Sharp sold all SDP shares in the LCD panel maker to withdraw from production of large LCD panels

Sharp sold all of its shares in the SDP and withdrew from production of large liquid crystal panels. Sharp officially announced the sale of all its shares in the SDP of the liquid crystal panel manufacturer (sakai display products), but based on confidentiality terms, it did not disclose the specific buyer and the price of the transaction, saying only that the counterparty was not an affiliated company. The expected completion of the transaction on March 15,2021, will have little impact on the 2020 consolidated financial year as of the end of March. At present, Sharp holds a total SDP of 1.0308 million common shares, holding about 24.55. The impact of the sale on performance is slight. Allegedly, will ensure television LCD panel purchases on the basis of the sale of sustained losses of SDP equity. Divestiture will be intensified competition with Chinese enterprises resulting in unstable returns SDP, focusing on household appliances and other。

The deal means Sharp will exit production of large LCD panels in the future.

Sharp said the goal is to become a strong brand company, in the equipment business, will actively cooperate with external structural reforms to ensure core technology and maintain stable procurement, but also in the field of intellectual property to maintain a partnership with SDP. Future SDP will continue to supply Sharp LCD panels, will not be affected by the transaction. Sharp believes that the large LCD panel business needs to invest a lot of capital to remain competitive, but the business is also volatile, the deal will help stabilize Sharp's performance.

SDP operating conditions have been poor in recent years, And again into a loss. The combined revenue for fiscal year 2019 as of March was 99.92 billion yen (6.074 billion yuan), An annual increase of 10.34 per cent, Operating loss 7.175 billion yen (436 million yuan), The loss was 59.6 per cent lower than the previous year, After-tax losses of 19.642 billion yen (1.194 billion yuan), The loss was 31.01% lower than the previous year. The world is facing a severe market environment, A strong competition from manufacturers in Chinese mainland regions, That has caused sharp to worry about future market prospects, Timely stop loss adjustment strategy is a feasible scheme.

Large-scale factories from Chinese companies such as Beijing Oriental Technology Group (BOE) have been put into production, SDP TV panel prices have fallen significantly before. At present, panel prices show an upward trend, but the earnings are not stable SDP Sharp's performance is an uneasy factor.