Business / Corporate

Japan Display to receive faster payments from Apple as additional financial support

Kyodo

Japan Display Inc. said Wednesday it will receive further financial support from Apple Inc. and other clients, as part of efforts to quell concerns over its financing arrangements.

The ailing display maker said the U.S. tech giant will speed up payments to Japan Display for its products. The move has effectively helped it secure up to ¥40 billion ($370 million) since November last year.

This latest lifeline comes after Japan Display said last month that Apple would provide it with $200 million, doubling the amount previously announced.

“I would like to declare concerns over our financing are cleared,” Japan Display President Minoru Kikuoka told reporters while reiterating the company would mark profits in the third quarter through December, thanks to job cuts conducted earlier in the year.

Japan Display had agreed to receive a capital injection of up to ¥80 billion from a consortium of China’s Harvest Tech Management Co. and Hong Kong’s Oasis Management Co., but last month Harvest withdrew from the rescue framework.

In the April-June period, Japan Display logged a group net loss of ¥83.27 billion and slipped into negative net worth amid falling demand for smartphones.

In the last fiscal year, which ended in March, the company incurred a group net loss for the fifth consecutive year, hit by declining demand from Apple.

Japan Display was established in 2012 through the merger of the display operations of Sony Corp., Hitachi Ltd. and Toshiba Corp., with support from state-backed fund INCJ Ltd.