Japanese media: Chinese companies cautious on the Japanese investment JDI

Japanese media said that Japan's monitor is operating to rebuild the capital cooperation negotiations are towards long-term .At the end of March was originally negotiated an agreement, but the largest shareholder of industrial innovation agencies and cooperative banks, etc., is expected to be postponed until after April. The reason for the long-term bargaining is that the negotiations with Chinese companies, such as the promotion of investment, are at an impasse, and JDI's orders are expected to show signs of improvement as well, and will continue to push forward the cooperation negotiations while adjusting the funding conditions.

According to the "Nihon Keizai Shimbun" website reported on February 5, JDI proposed to introduce external capital as a prerequisite for its cooperation with global companies as a key measure of its business re-establishment initiative released in the summer of 2017 and plans to conduct business in 2017 (Until March 2018) there are eyebrows.

JDI is currently negotiating with China's CSOT, Visionox Display Technology and Sharp's Taiwan-based Hon Hai Precision Industry respectively, as well as with customers such as smartphone makers and component suppliers.

As a condition of capital contribution, JDI requires capital partners to spend hundreds of billions of yen to fund capital-infrastructural headquarters and mass production of organic EL panels at the Hakusan Plant (Hakusan City, Ishikawa Prefecture), etc. However, The establishment of organic EL production technology JDI invested huge sums of doubt in the voice of investment negotiations deadlocked.

However, the current JDI ushered in the unexpected good.Union of the largest US Apple organic EL models 'iPhoneX' sluggish sales is expected to 2018 new models will increase the purchase of LCD panels.

Other smart phone makers may have stalled from a transition from LCD panel to organic EL and orders from JDI, the world's largest maker of smart-phone LCD panels, are expected to increase JDI originally planned to FY17 (up to 2018 March) Impairment of LCD panel production equipment, but due to anticipated increase in demand, discussions have begun on the reduction of tens of billions of yen.

Although current orders are expected to improve, JD Capital plans to build organic EL panels in 2019 that will require hundreds of billions of yen of external funding to be invested in. In the long term, JDI plans to boost capital for financial soundness. The target of capital cooperation Chinese enterprises are cautious about capital investment and the capital cooperation negotiations are expected to experience twists and turns.