Sharp said Monday that it will sell its small and midsize liquid crystal display panel plant in Kameyama, Mie Prefecture, to its Taiwanese parent, Hon Hai Precision Industry.
The Kameyama No. 2 plant will be transferred to Hon Hai by August 2026.
Sharp aims to focus its business resources on competitive fields by downsizing the LCD panel business, which has been operating in the red.
Even after the transfer, sales of products from the plant ordered by current clients will continue, Sharp President Masahiro Okitsu told an online news conference.
Sharp will continue producing highly profitable automotive LCD panels at its Kameyama No. 1 plant.
In addition, Sharp plans to move its headquarters to the city of Osaka from the city of Sakai, also in Osaka Prefecture.
Also on Monday, the company announced a consolidated net profit of ¥36 billion in fiscal 2024, which ended in March this year, against the previous year's loss of ¥149.9 billion. It secured its first profit in three years thanks to positive effects of restructuring measures and profits from the sale of some assets.
Due to its sluggish business performance, Sharp halted the operations of its television LCD panel factory in Sakai in August last year and sold part of the land and buildings to SoftBank.
In the latest year, Sharp's overall sales declined 7.0% from the previous year to ¥2.16 trillion, while it swung to an operating profit of ¥27.3 billion from the previous year's loss of ¥20.3 billion.
The company expects to post sales of ¥1.85 trillion for fiscal 2025, down 14.4%, and net profit of ¥10 billion, down 72.3%.
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