Zhejiang built OLED factory has a play! JDI reached a preliminary agreement on capital injection of 6.6 billion yuan across the Taiwan Strait. 24th,April,2019

                                          On April 3, it was learned that the small and medium-sized LCD panel giant "Japan Display Company" (JDI), which has suffered from sluggish performance, accepted 60 billion to 80 billion yen (about 3.7 billion to 4.9 billion yuan) from the China and Taiwanese business alliances. Funding has basically reached an agreement. It is expected to be signed in the first half of next week and formally decided on the board of directors.

According to relevant sources, the Chinese and Taiwanese enterprise alliances include Taiwan panel maker TPK Holdings and China Investment Fund. The investment ratio is expected to be less than 50% and will become the largest shareholder of JDI. The current largest shareholder and government fund INCJ (formerly industrial innovation institutions) will reduce the proportion of investment from 25.3% to more than 10%.

JDI's negotiations with the cross-strait alliance on the 3rd indicated that it took time for the business process, and announced that "the signing of the contract is moving forward as expected in the first half of the week."

In addition to the cross-strait alliance capital injection, INCJ also intends to provide tens of billions of yen in funding support by accepting non-voting preference shares. The total amount of JDI capital increase will exceed 110 billion yen (about 6.6 billion yuan).

At present, JDI continues to lose money and is stepping up its financial base. It is expected that the cross-strait alliance and JDI will set up joint ventures to build a new OLED factory in mainland China.

JDI may have a play in building an OLED factory in Zhejiang

2.jpg

In December last year, it was reported that JDI will accept a large-scale fund jointly by Chinese companies and consortia to build a new OLED display panel production line in China. After the Chinese fund has invested JDI 600-800 billion yen, it plans to use the Chinese government's 500 billion yen subsidy to rebuild the "Phoenix Plan" and build an OLED production line in Zhejiang, China. Contrary to the investment in OLED production lines, working capital lacks the content of revitalizing JDI.

Yuan Jiajun, a business group from Japan and the governor of Zhejiang Province of China, met in Zhejiang in early December 2018 to hold talks on a very secret project and expressed his hope to conduct business through Sino-Japanese cooperation.

A total of nearly 20 people from China and Japan gathered together. Among them, Japanese participants were JDI executives: JDI President and CEO (CEO) Dongjin Lixinbo and Fukuijiu Managing Director. Also, the winner of the first major shareholder of JDI, INCJ, and the executive director of Dong Shenzhi also attended the meeting.

3.jpg

JDI will supply OLED panels for Apple Watch

According to Reuters Tokyo on April 3, two sources pointed out that JDI (6740.T) will start supplying organic light-emitting diode (OLED) panels for Apple Watch later this year, bringing this company with tight capital. A major breakthrough. JDI previously missed many Apple (AAPL.O) orders because of the slower pace of moving to OLED panels.

The two informed sources said that the supply order will mark the Japanese display into the OLED panel market. The two refused to be named because they were not authorized to talk to the media.

Due to the recent reduction in the use of liquid crystal display (LCD) panels by Apple and the poor sales of Apple's only LCD panel phone, the iPhone XR, in 2018, the core LCD business of Japanese monitors continues to be sluggish.

The OLED panel market is currently dominated by Samsung Electronics and LG Display (034220.KS) under Samsung Electronics (005930.KS).