Shares in Japan Display, a key supplier of screens for Apple iPhones, have taken a tumble amid reports the company has requested financial assistance from the Innovation Network Corporation of Japan.
Japan Display has asked INCJ, a public-private fund and the company’s largest shareholder, for help, which is likely to be through guaranteeing liabilities as opposed to providing loans, reported Nikkei.
Shares were down 6.5 per cent in afternoon trade in Tokyo, but had been down as much as 9.7 per cent. The company’s market capitalisation has halved so far this year.
Slowing iPhone sales are of concern to JD, which derives more than half its revenue from Apple. Nikkei points out that while the company is mostly free of debt obligations, it is carrying large inventories, and with fewer products being shipped, its cash flow is looking less healthy.
JD was established via a merger of the LCD businesses of Sony, Toshiba and Hitachi in 2012, before being floated on the Tokyo Stock Exchange two years later.
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