Apple owed, JDI annual profit first loss

Small and Medium Size LCD Panel Giants Japan Display Inc8 Announced Previous Shares (July-September 2017) after Japan's Stock Market Backlog: Due to the slowdown in the demand for high-end LCD panels in the Chinese market and the fierce price competition with Chinese panel makers, On the smart phone factory to increase the use of OLED panel, dragged down consolidated revenue contracted by 5.8% over the same period last year to 185.268 billion yen; show the profitability of the industry consolidated profit from 1,235 million yen a year earlier to a loss of 12.364 billion yen; display The consolidated net loss of the final profit of 365.77 billion yen, a loss of 4.929 billion yen over the same period last year surged more than 6 times (up 642%), the main reason for the surge was mentioned 13.8 billion yen structural reform costs.

In the last quarter, revenue of JDI Operations (comprising panel products for smartphones, tablets and mobile phones) decreased by 6.6% to 1,480.26 billion yen, accounting for 79.9% of total revenue; JDU (non-mobile devices) Revenue fell 2.2% to 37.241 billion yen in panels of consumer machinery such as machine / digital cameras / game consoles, panels for industrial machinery such as medical displays, and patent revenues.

(Source: JDI)

JDI did not release 2017 (April 2017 to March 2018) financial estimates, but said that due to the estimated market share of smart phones with OLED panels will expand market share, coupled with competition, the new LTPS LCD panel The factory started to import production, leading to intensified competition. Therefore, it is estimated that the fiscal year 2017 will be reduced by about 15% to 25%.

Nikkei Shimbun, JDI Chief Financial Officer (CFO) Takashima Oshima held the earnings conference on the 8th, said the situation can not explain more for specific customers, but 'from North American customer orders as a whole is in a critical situation' .

The report pointed out that for JDI, 10-12 in previous years can be said that the 'Apple harvest', but this year, 'Apple' fear of closing income, and from JDI 2017 estimated revenue decline (15% 25%), 2017 JDI's consolidated operating profit showing the profitability of the Company is likely to surrender its debut 'loss report card' since its listing in 2014 (for the first time, the combined profit will fall into a loss for the IPO).

In contrast, the iPhone X with LCD panels has been sluggish, while the demand for iPhone X with OLED panels has been strong, and Apple even claims that the demand for the iPhone X is broken. "The iPhone 8 is generally regarded as playing the role of enhancing the innovation of the iPhone X."

Reuters reported that on the cooperation with external companies to assist JDI to carry out the operation of the restructuring, Oshima Long declared on the 8th, 'is currently negotiating with a number of enterprises' .Oshima Long declared the list of three cooperative enterprises conditions: 1. Can highly evaluate the technology owned by JDI; 2. Can pay the corresponding price of JDI; 3. Can build a win-win relationship.

JDI rose 0.42% on the 8th and closed 241 yen, up 27.63% so far this year.