BOE and other injection of Japanese panel makers JDI news further.
This morning, Japanese media reported that Japan's display company (JDI), which is under capital spending, is discussing an investment of more than 200 billion Japanese yen (about 1.8 billion U.S. dollars) in the company by three Chinese panel makers, including BOE. Before the end of March next year to reach an agreement.Another two Chinese companies Shen Tian Ma and Shenzhen Huaxing Optoelectronics Technology Co.,
Affected by this news, Japan's display shares jumped 10.1% in early trading.
In fact, as early as October, it has been reported that BOE intends to inject JDI, and even when BOE Chairman Wang Dongsheng interviewed, he made it clear that he intends to provide assistance to Japan Display Inc (JDI) for redevelopment.
It is reported that, JDI was first announced in August this year, by 2017, including the introduction of external capital will be included, including the basic management of reconstruction measures.This year in October began overseas competitors to screen cooperative enterprises.
For this financing purpose, JDI plans to make improvements to the existing 'evaporation method', as early as 2019 to produce small organic EL panels for smartphones instead of using JOLED's own 'printing method', while JOLED will use Large and medium-sized panels used in industrial equipment and televisions, etc. JDI is hoping to meet a wide range of needs by having both types of production within the group.
Currently in the OLED panel market, Samsung and LG occupy the leading two Korean companies, but with Samsung and other 'vapor deposition (in a vacuum state, the red, green, blue and other luminescent materials vapor deposition attached to the substrate) JOLED printing technology, the initial investment burden of small, material wear and tear less, the manufacturing cost is expected to be 3-4% lower than the evaporation, and the cost is reduced, it is expected to provide lower prices OLED panels, therefore JOLED plans to price competitiveness as a weapon to regain the disadvantage.
The company is located in:
Information shows that JDI is mainly composed of two major business segments. In 2016, the mobile sector (including smart phones, tablet computers and mobile phone panel products) accounted for more than 80% of the revenue while revenue dropped significantly by 13.1% to 728.641 billion yen. Revenues grew by 3.2% to 155.798 billion yen, for the automotive / non-mobile device segment (including panels for consumer devices such as automotive / digital cameras / game consoles, industrial machinery panels for medical displays, and patent revenues).
Previously, JDI has been a loss for three consecutive years.The latest third-quarter results show that the loss increased more than 6 times over the same period last year.
As the supplier of iPhone mobile phone screen, Apple has always been the biggest owner of JDI, and its revenue contribution exceeds the total business of the company by more than half. Even Huawei, OPPO and Xiaomi are their important customers, but the proportion is relatively small.
This year's LCD panel iPhone 8 sluggish sales, the other hand, with the strong demand for iPhone X OLED panel, which also exacerbated the financial deterioration of JDI speed, it is expected that such a situation will continue in the fourth quarter and even next year.