[Update] JDI Slams Claims it Turned to INCJ for Financial Support

Japan Display Inc. (JDI), a manufactuerr of small to mid-sized LCD displays issued a statement on Saturday refuting claims made by Nikkei and other media that it was seeking financial support from INCJ.

The company stated: “Japan Display Inc. (JDI) wishes to make clear that today's media reports concerning financial support for JDI are not based on any statement made by JDI. JDI currently has nothing specific to announce relating to the subject matter of the media reports referred to above.”

According to the Nikkei report, JDI asked for cash assistance from INCJ, due to slowdown in LCD panel shipments to iPhone, and hopes to receive billions of yen worth of financial assistance from top shareholder INCJ.

JDI has 55 billion yen (US $539 million) in cash and equivalents as of March 31, 2016, a 40% drop compared from a year earlier. The company’s cash shrunk due to waning LCD shipments to Apple, and low demands in the current fiscal year that began in April.

As of 2015, Apple orders contributed to more than 53.7% of JDI’s revenue, reported a MoneyDJ report.

The Nikkei report also noted payments for a new plant in Ishikawa Prefecture in Japan also dented JDI’s finances.

For its first quarter fiscal year report, dating from April to June 31, 2016, JDI reported a net loss of 11.8 billion yen, and has taken on loans of 30 billion yen to pay suppliers and manufacturers.

The company is seeking for further long term loans so it can invest in the mass production of OLED displays.

However, in JDI’s financial report it cited declining average selling prices in the Chinese market, and changes in its product mix in Europe and U.S. markets as the main cause of its sliding revenues for 1Q16. Another factor cited to have impacted revenues was foreign exchange currency losses.

JDI will be announce its financial forecast for 2Q16 on Aug. 9, 2016.

A few days after the announcement JDI fell back on its word admitting it had indeed sought financial aid from top shareholder INCJ. Details of the announcement can be viewed here: JDI Asks INCJ for Financial Aid.

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