JNTC "Last Year's Sales 347.8 Billion KRW... Turnaround Expected This Year"

[Asia Economy Reporter Hyunseok Yoo] JNTC, a specialist company in 3D cover glass, announced on the 12th through its earnings disclosure that it recorded consolidated sales of 347.8 billion KRW and operating profit of 74.9 billion KRW in 2020. This represents a decrease of 9.9% and 21.5%, respectively, compared to the previous year.

The poor performance in the fourth quarter had a significant impact. Fourth-quarter sales were 60.9 billion KRW, with an operating loss of 1.5 billion KRW. The company explained that one-time costs had a large effect, including sales decline due to year-end inventory adjustments, large-scale inventory provisions, and foreign exchange valuation losses caused by the sharp depreciation of the dollar.

A JNTC official stated, “Due to the decrease in shipments from major smartphone cover glass customers, we proactively reflected potential bad debts from held inventory and one-time costs, resulting in poor fourth-quarter performance.” However, the official added, “Since the beginning of this year, with the acquisition of new customers and recovery of volume from major customers, sales as of this month have already exceeded those of the fourth quarter, so a gradual turnaround is expected going forward.”

JNTC recently completed orders for smartphone cover glass from new customers in the Greater China region. Additionally, with the completion of the third factory of its Vietnam subsidiary in April and the full-scale start of new product mass production focusing on glass for smartwatches from May to June, the company aims to create financial performance through new growth engines.

Regarding glass for smartwatches, it is scheduled to be supplied first to one of the global top three smartwatch companies within the first half of the year. Starting with new sales of cover glass for smartwatches, the company plans to maximize customer responsiveness by expanding its product lineup to include automotive cover glass and UTG.

Park Youngjun, CEO of JNTC, emphasized, “This year will be the first year to resolve the risk of customer concentration, and we will do our best to secure new growth engines.” He added, “With the completion of the third factory in Vietnam and new products such as cover glass for smartwatches and automotive use, we will accelerate a definite performance turnaround.”

This content was produced with the assistance of AI translation services.