JNTC Reports 1Q Operating Loss of 1.9 Billion Won... "Will Resolve Sales Concentration in Greater China Clients"

Improvement in Deficit Despite Turning to Red Compared to Q4 Last Year

[Asia Economy Reporter Minji Lee] JNTC, a company selling 3D cover glass, announced on the 17th that it recorded an operating loss of 1.9 billion KRW on a consolidated basis in the first quarter, turning to a deficit. Sales amounted to 46.9 billion KRW, a 38% decrease compared to the same period last year.

The biggest factor in the performance decline was the delayed sales recovery in the Greater China region for mobile phone cover glass. Additionally, as mass production of new products through the 3rd factory began in earnest, depreciation expenses for buildings and machinery also increased.

Although operating profit turned to a loss compared to the same period last year, the deficit margin improved compared to the fourth quarter of last year. This was due to increased sales of new products from the Vietnam 3rd factory such as smartwatches, camera windows, and automotive cover glass, reduced fixed cost burden from improved operating rates at the 3rd factory, and foreign exchange effects.

A JNTC official stated, “Although difficult internal and external business conditions continue, we will work on improving performance by diversifying customers to resolve sales concentration in the Greater China region, expanding supply volume of mobile phone cover glass through product diversification, and cost reduction activities.”

In fact, the automotive cover glass business has currently secured orders for four models across three vehicle types. This year, the company aims to secure orders for new Big Car Maker vehicle types. Accordingly, sales of automotive cover glass this year are expected to increase more than threefold compared to the previous year. New business activities for cover glass used in displays of newly launched electric vehicles are actively underway, and the company has high expectations for expanding orders for autonomous vehicles in the future.

Additionally, the company is negotiating cover glass supply with multiple smartphone manufacturers. The company explained, “In the mid to long term, we plan to secure large-scale orders for smartphone cover glass products with special coatings, which are high-strength and high value-added products. Supply of special coated cover glass applied to wearable devices has already begun, and we are continuously collaborating with leading glass companies.”