In response to the strong sales of Huawei's Mate 60 series smartphones, JNTC, the South Korean supplier of curved mobile cover glass, is gearing up for significant revenue growth in 2023. The company is expanding its manufacturing base in Vietnam to meet the surging demand, which can be attributed to Huawei's flagship Mate 60 Pro.
JNTC's expertise lies in curved cover glass processing technology, which Huawei adopted for its Mate 60 series released in August 2023. This technology involves refining the edges of curved smartphone screens to enhance the tactile experience for users. A recent report from South Korean media outlet TheElec revealed JNTC's production capacity expansion plans in Vietnam, driven by the success of Huawei's Mate 60 Pro.
While JNTC once supplied curved protective glass for Samsung Electronics' Galaxy S6 Edge smartphones, it has shifted its business focus towards the Chinese market, resulting in a gradual decline in collaboration with Samsung. Currently, JNTC operates a joint venture factory named BNJ in China in partnership with the leading Chinese panel manufacturer, BOE Technology. The tempered glass produced by JNTC finds its way to Huawei smartphones through panel manufacturers such as BOE Technology, Visionox, and others.
South Korean industry insiders generally believe that Huawei's smartphone sales will significantly bolster JNTC's performance in 2023, given that curved cover glass constitutes approximately 60-80% of JNTC's revenue, with Huawei contributing 40-50% of this total. Since 2019, Huawei has been grappling with US sanctions that have affected its smartphone business, leading to repercussions for JNTC's financial performance.
JNTC has seen a steady decline in its revenues over the years, dropping from KRW 386.2 billion in 2019 to KRW 347.8 billion in 2020, KRW 202.6 billion in 2021, and KRW 161.3 billion in 2022. Operating losses were recorded at KRW 30.7 billion in 2021 and KRW 44.3 billion in 2022.
Market insiders estimated JNTC's revenue for the third quarter of 2023 could double year-on-year to reach KRW 110 billion, with an operating profit of KRW 15 billion, potentially marking a return to profitability. There is optimism that if JNTC continues to perform well in the fourth quarter of 2023, its annual revenue could reach around KRW 300 billion, with Huawei's contribution possibly exceeding 50%.
In June 2023, market research firm Omdia predicted that Huawei's smartphone shipments would increase from 28.1 million units in 2022 to 36 million units in 2023. However, with the subsequent release of Huawei's Mate 60 series, there is anticipation that the actual smartphone shipments could surpass these estimates.
Article translated by Willis Ke
