JDI signed with Harvest

JDI and Harvest finally signed, but whether it can get 80 billion yen still depends on Apple's decision.

The Japanese panel maker JDI (Japan Display)'s investment case was finally signed on August 7, 2019. Since the signing was later than expected, JDI officially approved the event's temporary shareholders' meeting date from August 29 to September. On the 27th, to announce the impact of this good news.

However, JDI decided that the temporary shareholders' meeting will be postponed until the end of September, and it will be good news to re-borrow the Japanese government and public funds INCJ, as well as major customers and Apple to make more guarantees.

JDI pointed out that the funded China Investment Group Harvest Fund proposed four funding conditions: 1, JDI received $100 million in support from major customers; 2. The mainland government did not intervene in transactions; 3. The main customers did not suspend or substantially reduce orders; The JDI share price cannot be lower than 30 yen (about 0.28 US dollars). The Nikki website reported that the main customer is Apple.

Apple's support for JDI has been confirmed, and the order may have been finalized in 2019, but the market rumors that Apple will end the LCD panel model iPhone production line in 2020, which is undoubtedly the termination or substantial reduction of orders; and in the 80 billion yen fund provided by Harvest There is a part of 10 billion yen, and Harvest is still looking for a partner, so the investment will be divided into two stages. In mid-October 2019, 50 billion yen will be provided, and will be completed by the end of August 2020.

Therefore, if Apple cuts orders in 2020, there may be 30 billion yen of funds that cannot be obtained in the future; and it is scheduled to get 80 billion yuan to improve finances in 2019. Now it needs to borrow 20 billion yen from INCJ, which is undoubtedly another. A variable, although these are tied to Harvest, but the real focus is still on Apple.

Due to the large number of adjustments, JDI originally scheduled to hold a temporary shareholder meeting on August 29, 2019, and has now decided to postpone until September 27.