On August 24, Shenzhen JPT Opto-electronics Co., Ltd. (JPT) released the financial report for the first half of 2022.
According to the report, JPT’s operating income reached 556 million yuan in the first half of 2022. This figure represents a year-on-year decline in operating income of 4.32%. The report also states that this has led to a year-on-year decrease in net profit of 13.69%, for a total of 37.1424 million yuan.
As the report says, the factors that have negatively affected the company’s profit margin are mainly related to the COVID-19 pandemic.
This was reflected in the second quarter of the year, with a pandemic that affected the technology industry in general and also the manufacturing supply chain.
The pandemic also affected the main consumers of laser technology, which includes electronics, semiconductor, automotive, metal processing, medical, and even food and beverage industries. These industries have decreased their production, so their demand for laser products has also decreased.
It is also worth noting that the companies’ equipment will be inspected in the second half of the year, which also contributes to lower profits for JPT in the first half.
The relatively significant decline in profits reflected in the aforementioned financial report represents an important business challenge for JPT, for which the company has prepared a commercial action plan based on the following four key actions:
1. Continue to explore the market of new energy
As the new energy market grows, so does the demand for related technologies, such as laser technology. In this sense, JPT has been able to penetrate the market and gain the trust of important companies in the industry.
This is the case for companies like BYD, a company that specializes in the manufacturing of various types of electric vehicles, solar panels, and batteries, as well as CATL, the world’s largest manufacturer of lithium-ion batteries for electric vehicles. Actually, JPT is the main supplier of CATL.
Another important customer of JPT is Kedali, a manufacturer and seller of structural components for new energy technology.
Laser technology is key for these types of companies since it is used in their metal cleaning and welding processes. JPT will use its expertise to take advantage of the new energy market growth to reach new customers in this industry through its offering of high-tech lasers, laser processing workstations, and laser processing automation equipment.
2. Vigorously develop the laser welding market
China’s domestic demand for electric vehicles is growing, and automakers want to meet this demand quickly to make up for ground lost due to the pandemic.
Manufacturers need state-of-the-art laser welding technology, and with its platform and independent light source laser technologies, JPT is able to meet the demands of its customers.
JPT will continue to make research and development efforts to improve its laser welding technology to bring it to the new energy battery market and give customers exactly what they need.
3. Expand the category of automation equipment
Since its foundation, JPT has been recognized for its great capacity for innovation in the area of laser technology, and among its 500+ patents, the laser trimmer stands out for its high performance. This trimmer has been recognized by customers as one of the highest-quality products in the market in its respective segmented field.
Additionally, JPT has cooperation agreements with several key customers in the industry to develop technologies associated with the laser sector, such as charter testing machines, inductor winding machines, and inductor paint stripping machines.
Most of these technologies have been approved by various customers and will serve to gradually reduce dependence on the import of similar technologies, allowing JPT to have a greater presence and strength in the domestic market.
Finally, JPT will continue to improve the features of its laser trimmer to maintain its level of competitiveness in this key segment.
4. Improve VR/AR inspection process
JPT has experience cooperating with several customers in the electronics industry in the development of Virtual Reality (VR) and Augmented Reality (AR) devices for optical inspection.
Most customer orders for this technology were created in the first half of 2022 to be delivered in the second half of the year.
JPT’s VR/AR equipment will receive enhancements to remain competitive against other next- generation devices as key customers are moving in that direction, and this will help JPT keep and increase its presence in this segmented field.
