Japan Display announced that the company has been involved in improper accounting treatment with a total padded operating profit of JPY 8.2 billion (US$ 76.12 million) in the past six years since 2014, when the company was listed on the first section of the Tokyo Stock Exchange. The company was investigated by a third-party committee and revealed the results on April 13, 2020.

(Image: JDI)

The investigation showed that JDI recorded fictitious inventory of JPY 10 billion (US$92.86 million) in total since the fourth quarter of fiscal 2013. The investigation also identified 10 other issues that JDI committed to manipulate profit.

JDI published a notice regarding the investigation report with sincere apology to its shareholders, business partners and other stakeholders and claimed that it will focus on preventing recurrence and improve business performance to restore trust.

JDI was established in 2012 by merging the LCD units of Sony, Toshiba and Hitachi and has been a iPhone display supplier. However, the company has been struggling with its weak business performance in the competitive display market and are trying to engage in new display technology. Last year in November, JDI presented a Micro LED display with glō, the Sweden/US-based Micro LED technology builder, at FINTECH JAPAN 2019.