Japan Display (JDI) announced that it will sell Crystal Display Precision Electronics, a consolidated subsidiary that manufactures liquid crystal modules in Suzhou City, Jiangsu Province, to Suzhou Dongshan Precision Manufacturing (DSBJ), which is engaged in metal precision machining. The sale price is 20.5 billion yen, and JDI believes that the sale has the effect of improving earnings for the company's business reconstruction.
JDI plans to transfer all shares of Diode Display Precision Electronics to Dongshan Precision Manufacturing from January to March 2023. Crystal Display is responsible for part of the manufacturing process of JDI's vehicle panel, and will continue to OEM after the sale. The person in charge of JDI said, "I hope to cooperate in the large-size panel business that the company wants to do in the future. I look forward to JDI to improve its technical strength under Dongshan Precision Manufacturing, which has strong financial strength."
JDI continues to be in a tough financial position. Due to fierce competition in the main product, LCD panels, and the deterioration of the financial situation, the company has been in a final deficit for eight consecutive years from fiscal 2014 (as of March 2015). The company announced in January 2022 that it will reduce its registered capital from about 215.2 billion yen to 100 million yen. Tax-saving measures are also being promoted, and the relevant system is applied as a small and medium-sized enterprise in the tax system.
