PConline News According to "Reuters" news, Sharp released the second fiscal quarter 2013 financial report as of the end of September showed that by the weakening of the yen exchange rate, solar cell and LCD panel market demand recovery, Sharp two years for the first time in a single quarter Profit - net profit of 139 million US dollars.
It is said that Sharp has never made a profit since September 2011. In FY2012, it was a net loss of 545 billion yen. According to a research firm Thomson Reuters, market analysts had expected, on average, that Sharp had a net loss of 9 billion yen in the second fiscal quarter of 2013.
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Sharp's financial report for the first half of 2012 showed that from April to September, Sharp's sales revenue was 1.104 trillion yen, a decrease of 16% year-on-year. Although Sharp predicts that operating income for the fiscal year 2012 will be 2.46 trillion yen, which is a year-on-year increase of 0.2%, the same period forecast shows that net profit attributable to shareholders of listed companies in fiscal year 2012 was -450 billion yen (about -5.6 billion US dollars). , compared with 376 billion yen last year, a substantial increase, and it is a huge loss for two consecutive years.
Similar to Matsushita Electric Industrial Co., Ltd., which had suffered a loss of 765 billion yen for the whole year, the main business was not performing well. The unpredictability of future earnings was the main cause of Sharp's huge loss in 2012.
Panasonic and Sharp suffered from similar problems because of large-scale investment mistakes, poor product structure, sluggish sales of flat-panel TVs, declining prices of white goods and mobile phones, and fierce competition leading to harsh operating conditions.
TV business is the main drag
Sharp's financial report showed that the company's sluggish LCD business was the main cause of the sharp drop in revenue.
It is understood that China is Sharp's largest overseas market. In the previous fiscal year, Sharp's revenue from the Chinese market accounted for 20% of the company's total revenue. "The sales of Sharp TV in China account for about 40% of its total sales." Industry insiders said Sharp, Panasonic and other Japanese household electrical appliance companies have strong overseas dependence, mainly because of their dependence on the Chinese market, so the Chinese market is operating The situation has a major impact on its overall sales.
According to the statistics of September 2012, the market share of Sharp and Sony TV in China all slipped below 5%. In the Golden Week that just passed, data from a third-party research firm, Aowei Consulting, showed that the overall decline of Japanese brands exceeded 40%, and that of Japanese companies with the largest sales volume of brands was more than 50% year-on-year.
Sharp Otahiro
In addition, the high restructuring costs make Sharp's loss prospects further expanded. Sharp announced the restructuring of the company this year, including the global layoff of 10,000 people, plans to sell some factories. The financial report shows that due to the inclusion of a restructuring charge of US$1.1 billion, Sharp’s operating loss from July to September was 74.8 billion yen, compared with Sharp’s 30.1 billion yen profit in the same period last year.
"With the gradual progress of Sharp's business restructuring and reform plan, Sharp's domestic and overseas production and sales systems will achieve improvement." Although Sharp will again set a record of losses, Sharp President Okuda Takashigi said yesterday that Sharp's institutional reform and restructuring will also be implemented. Strengthen the profitability of the next fiscal year.
"Hongxia Love" stranded
In March of this year, Hon Hai agreed to purchase Sharp's 9.9% stake. The purchase price per share was set at 550 yen. Hon Hai would therefore invest approximately 66.9 billion yen in Sharp's capital. However, since the beginning of this year, Sharp's share price has fallen by 75%. It is precisely for this reason that Hon Hai requested a reduction in the share purchase price and requested Sharp's latest LCD panel technology and the dispatch of directors to Sharp. However, Sharp did not agree. Believing that excessively high asking prices and Japan’s conservative policies on foreign investment are the main stumbling blocks for Hong Xia’s love hangover.
When interviewed by the reporter of the “Daily Economic News†earlier this year, Sharp Shinzo Nobuyoshi, Chairman of Sharp Greater China, made it clear that Sharp had already considered the “worst responseâ€. In addition to current measures such as layoffs, salary cuts, sale of assets, and application for additional loans, foreign media sources indicated that Sharp had announced the latest redevelopment plan to the cooperative bank in September 2012, stating that he would seek to eliminate Hon Hai. New partners outside of precision, the United States Microsoft, Hewlett-Packard, Dell and China Lenovo are all in the consideration.
“We often consider a variety of feasible plans, but it is not convenient to disclose details.†However, Okuda Takashi insisted on a press conference at Sharp's final account yesterday that the agreement between Sharp and Hon Hai was still on. Okuda Takashi also stated that turning profit into profit in 2013 is a goal that must be accomplished. “The company will work hard to restore profitability in the fiscal year from January to March next year.â€
Analysis of the reasons for the loss
Sharp's second-quarter net profit was 13.6 billion yen (about 139 million U.S. dollars), compared with a net loss of 249.2 billion yen in the same period last year; operating profit was 30.8 billion yen, which was better than the operating loss of 166.9 billion yen in the same period of last year. yuan. This means that in the first half of 2013, Sharp's net loss was 4.3 billion yen (about 44 million US dollars), better than the 387.6 billion yen in the same period last year. What exactly is the reason for such a large company to succeed in turning losses into losses? In fact, the method is similar to Sony.
1. Asset sales and investment introduction
Sharp also raised 137 billion yen (about 1.4 billion U.S. dollars) by way of discounted sales last month. In addition, Sharp has publicly issued 450 million shares to raise up to 11.91 billion yen in funds, and through a third-party distribution method, it has issued new shares worth 17.4 billion yen to companies such as Mitaka Group, Makita Corporation, and Denso Corporation. To raise the total fundraising to 137 billion yen.
Sharp began actively seeking external investment, selling some assets, and implementing a large-scale layoff plan last year, hoping to get out of the predicament. In early March, Sharp and Samsung reached $110 million in investment cooperation. According to the cooperation agreement, Samsung will receive a 3% stake in Sharp, which will give priority to Samsung to provide high-quality panels. In early December of last year, Qualcomm and Sharp reached a cooperation agreement: Qualcomm invested 120 million US dollars to obtain 3.5% of shares in Sharp, and Sharp will help Qualcomm subsidiary Pixtronix to develop low-energy Indium Gallium Oxide (IGZO) displays.
2. The so-called Abenomics
According to a survey by Thomson Reuters, market analysts had expected that Sharp's second-quarter net loss was 9 billion yen. In the same period of last year, Sharp's net loss was 249.2 billion yen due to the fierce competition from overseas competitors and the strong trend of the yen exchange rate exerting pressure on the company's overseas revenue. Since November last year, driven by the gradual depreciation of the yen, Sharp's export business has become increasingly profitable.
Future outlook
Although Sharp has optimistic expectations for the future, from the perspective of current profitability, Sharp’s saltwater fish are made by financial means. Their industry’s competitiveness has not been significantly improved because of this crisis. The old problems that have arisen since then have not been resolved once and for all, and in the future they may continue to linger. Japanese companies must really regain competitiveness and self-hematopoietic function. Taking the American innovation method and Korean learning improvement method are all feasible ways. If Sharp cannot solve the problem of the internal structure of the company, the profit will only be short-lived.
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