Jucan Optoelectronics reported a net profit of 5.24 million yuan in Q1, turning losses into profits year-on-year (YoY).

Jucan Optoelectronics released its Q1 report, showing revenue of RMB 264 million in the first quarter, a Year-on-year (YoY) increase of 36.8%, driven by increased sales volume; net profit attributable to shareholders of the listed company reached RMB 5.2448 million, a Year-on-year (YoY) increase of 162.40% compared to -RMB 8.4051 million in the same period last year.

The main factors contributing to the above changes in business revenue are:

(1) The Company adheres to its established development strategy of focusing resources and strengthening its core business. With operational strategies centered on structural adjustment, performance enhancement, cost reduction, and efficiency improvement, all operations have proceeded in an orderly manner. Particular emphasis has been placed on cost and expense control, independent technological innovation, and steady quality advancement. Meanwhile, economies of scale from expansion have significantly reduced unit costs, process optimization has continuously improved efficiency, ongoing improvements have gradually enhanced product quality, and product transformation and upgrading have driven marketing innovation, resulting in a further increase in gross profit margin during the reporting period.

(2) The company's production department continued operations without interruption during the Spring Festival holiday, so the actual impact of the novel coronavirus pneumonia epidemic on product output was minimal. Meanwhile, the company accurately aligned product positioning with market demand and implemented a "production based on sales" marketing strategy for high-end products represented by high luminous efficacy, high voltage, backlight, and flip-chip products. This further increased product market share, achieving unity between maximized output and optimized benefits, resulting in significant growth in Revenue and Net profit during the reporting period.