Sharp will close another LED giant in the LED factory

Japan's LCD panel and solar cell leader Sharp (Sharp) on February 3rd this year (April 2014 - March 2015) combined pure profit target from the original estimated surplus of 30 billion yen to a loss of 30 billion The yen (about RMB 1.566 billion). However, according to the latest news from Japan, Sharp’s net loss this year is likely to increase to 100 billion yen (about RMB 5.221 billion) as Sharp considers withdrawing from the solar cell business and will lose losses on related production equipment. The above scale, and the increase in net loss, also made Sharp unable to support, and the outgoing will seek funding from the bank for aid. The Nikkei News reported on the 3rd that Sharp will reorganize its domestic business in Japan. In addition to plans to close four electronic component factories, it will also consider selling/exiting the solar cell business, and because it wants to degrade the production equipment of the solar cell business, Sharp’s net loss this year is likely to have deteriorated significantly from the current estimate of 30 billion yen to more than 100 billion yen. The report pointed out that Sharp is expected to propose an operational reorganization plan in May, and the focus of the plan is to reorganize the electronic components business and consider exiting the solar energy business. According to reports, due to fierce competition with Chinese manufacturers, it is difficult for solar cell business to ensure profit, forcing Sharp to consider withdrawing from the solar cell market, and plans to reduce the solar cell business this year, which is to make Sharp's net loss this year. The main reason for the sharp deterioration of the amount, and as of 2020, there are still about 200 billion yen (about 104.42 billion yuan) of solar battery material (silicon) purchase contract in the hands of Sharp, and the amount of purchase signed by it is higher than the current The market price, so once the contract content is revised, it is feared that Sharp must add additional losses. In addition, in the reorganization of the electronic components business, Sharp plans to close the Fukuyama Plant No. 1-3, which manufactures sensors for smart phones, and plans to close the Fukuyama No. 4 plant. The Nikkei also pointed out that in order to allow financial institutions to withstand the streamlined measures that will be carried out in the future, Sharp is also considering seeking financial assistance from major banks such as Mizuho Bank and Mitsubishi UFJ Bank, and the estimated amount of assistance will reach 150 billion yen. In addition to asking for help from the bank, Sharp also plans to raise about 30 billion yen in the form of a third-party quota increase. The target may include Japanese and foreign motor manufacturers such as Samsung Electronics, which currently holds Sharp's 3 shares. According to the Nikkei News, the current LCD panel business accounted for 32% of Sharp's overall revenue, 32 digital intelligence appliances, 14 electronic components, and 9 energy solutions (solar cell business).