The net loss for the first fiscal quarter was 83.27 billion yen (CZK 18.2 billion) compared to a loss of 1.77 billion in the same period last year, the company announced today.
The write-off of 51.4 billion yen at the LCD plant also contributed to a significant increase in losses between April and June. The net worth of the company is already negative, ie. the value of the liabilities exceeds the value of the assets. According to Tokyo Stock Exchange rules, if the company's net worth was negative for two consecutive years, the company's shares would have to be excluded from trading, Reuters said.
Apple iPhone XR
Photo: manufacturer's archive
One billion financial injections
Japan Display has agreed with a consortium led by Chinese investment company Harvest Group to provide $ 80 billion in financial assistance, which includes an investment by Apple and Hong Kong investor Oasis Management. Shareholders must vote in favor of the General Assembly on September 27 and must be completed by August next year at the latest. The Chinese group wins 49.8% in return for a financial injection in Japan. He will be the largest shareholder in the company, replacing the INCJ Fund, supported by the Japanese government.
However, it is uncertain whether Japan's display will be able to fulfill the agreement by the deadline. The investment is subject to certain conditions, such as no intervention by Chinese authorities and no major cuts in Apple orders. Analysts say Apple may be leaving LCD screens next year and will prefer thinner, more flexible OLEDs that use organic electroluminescent diode technology. This would be another blow to the Japan Display.
Japan Display was created in 2012, bringing together the screen production of Sony, Hitachi and Toshiba with the support of the INCJ State Fund.