Japan Display Inc. said Friday it had developed a negative net worth following a group net loss of ¥83.27 billion ($786 million) for the April-June quarter due to restructuring costs and falling demand for smartphone displays.
The company also posted an operating loss of ¥27.48 billion on sales of ¥90.42 billion for the first quarter, down 12.5 percent from a year earlier.
Japan Display’s capital adequacy ratio stood at minus 19.3 percent at the end of June.
On Wednesday the company said it had agreed to an ¥80 billion capital injection from China’s Harvest Tech Investment Management Co. and Hong Kong’s Oasis Management Co., as well as financial support from major client Apple Inc. But it canceled a joint news conference with its Chinese backers scheduled for Friday at which they were expected to announce the details of the bailout.
The deadline for the capital injection has been extended to Aug. 28 next year instead of Dec. 30 because it might take some time to win the approvals necessary for the bailout plan from authorities in Japan and China.
The rescue plan was created after Taiwanese panel maker TPK Holding Co. and Taiwanese private equity fund CGL group withdrew plans for throwing the company a lifeline following months of negotiations.
For the fiscal year ended March, Japan Display incurred a fifth consecutive group net loss on declining demand from Apple.
Japan Display was established in 2012 following the merger of the display operations of Sony Corp., Hitachi Ltd. and Toshiba Corp., with support from state-backed INCJ Ltd.