Big losses, layoffs, and delisting: Can Sharp's father still be able to eat rice?

Sustained huge loss for two years; expected to lay off 10,000 people; to save maintenance fees, apply to withdraw from the three stock exchanges in Japan; and Hon Hai shareholding negotiations deadlocked ... negative years, Sharp is like a bent over the elderly, People want to ask: Can you still rice?

However, Sharp received a new loan on the 27th.

According to Japanese media reports, due to Sharp's restructuring plan being approved, Sharp's major transaction banks will approve a loan of 360 billion yen (about 4.6 billion U.S. dollars) in order to guarantee the company's cash flow during the fiscal year.

However, whether Sharp can be finally rescued and whether negotiations with Hon Hai can be accelerated due to loans are still unknown.

I. In order to secure a loan for sharp loans, Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ will provide half of the 360 ​​billion yen loan to Sharp. The rest will be used for syndicated loans. Form.

In order to convince the bank group to approve the loan, Sharp severed his request. According to Japanese media reports, Sharp promised to strive for improvement in business conditions for six months from October 2012 and gradually realize profitability. Plan to turn a profit in 2013. To this end, Sharp plans to lay off staff, sell overseas factories, handle solar energy and other assets, and plans to merge the mobile phone business with Fujitsu. Among them, it is expected to cut over 10,000 employees, sell factories in Mexico and China to Hon Hai, and Malaysia plants may also sell them to Hon Hai.

In addition, Sharp also applied to withdraw from the Nasdaq, Fukuoka and Sapporo exchanges in Japan, and transactions on the Tokyo and Osaka Stock Exchanges remained. Withdrawing from these three stock exchanges can reduce the maintenance cost of about 1 million yen a year.

The person in charge of Sharp China said that Sharp did issue a financing application, but what conditions will be approved by the bank rather than Sharp. As for the layoffs, it said that as of yesterday, the layoffs plan was still 5,000, and it did not involve China.

Sharp is now experiencing difficulties and is caught in the biggest loss season in its history. In fiscal year 2011, the company recorded a loss of 376 billion yen. In fiscal 2012, it is expected to lose 250 billion yen. This caused Sharp's share price to plummet this year and had fallen below 200 yen. In September of this year, Sharp will have a huge short-term loan due, financing difficulties, so that Sharp is trapped in funds.

The report of Asahi TV reported that Sharp had passed the new reorganization plan, and even if he could not obtain Hon Hai’s contribution, he could guarantee that the financial deficit will not occur until March 2014.

Although this financing can solve Sharp's urgent needs, Sharp's reorganization plan mainly focuses on selling assets and layoffs. It does not point out new growth strategies. The panel line rate is still low, and sales in China are not satisfactory. In the industry, it is generally said that the cooperation with Hon Hai is the business rejuvenation.

Second, can the negotiations with Hon Hai be fruitful?

Hong Hai brings Foxconn and other members of the army with enormous cost-effective manufacturing capabilities and access to the sea. This is exactly what Sharp, whose panel line rate is not high, has to offer. In addition, as the father of LCD, Sharp is the only one in the world to achieve The quantified enterprises of oxide semiconductor products, their technological advantages and Hon Hai’s capital and manufacturing advantages have always been regarded as “a natural fit”.

Pursuant to the initial proposed agreement, Hon Hai took a 37.6% stake in Sharp's Tenth-to-Big line factory at a total of 66 billion yen, and obtained half the production capacity of the Tenth Generation Line; and priced at 66.9 billion yen at 550 yen per share. The headquarters is 9.9%, becoming the largest single shareholder of Sharp.

Sharp insiders said yesterday that Hon Hai did not request board seats and operating rights. However, Sharp's share price plummeted in August and Hon Hai has been dissatisfied with the results of the previous negotiations.

Li Yaqin, Research Director of Quzhi Consulting, told reporters that Sharp's disclosed reorganization plan did not involve Hon Hai’s shareholding, at least stating that Sharp’s new conditions proposed by Hon Hai could not be accepted. The differences between the two will focus on three aspects, namely whether Hon Hai can gain more control, Hon Hai's funds, and technical cooperation.

An insider of Sharp China stated that the cooperation between Sharp and Hon Hai can be divided into three parts. The first is the Yan factory. The cooperation has been realized and Sharp has received the money. The second is to cooperate in mobile phones and television services, such as launching smart phones in mainland China. Three shares of Hon Hai share Sharp. "The first two cooperations were successful and the third one was deadlocked."

Li Yaqin said that the reason why Hon Hai cooperates with Sharp is to extend its original competitiveness. Earlier, Hon Hai delayed negotiations and also hoped to use Sharp's capital chain predicament. Now that the predicament has been solved, Hon Hai’s strategy is expected to change. “The process of negotiation is expected to speed up and resolve the stalemate.”

However, some people think that it cannot be overly optimistic. Hon Hai has not shown signs of concession. Sharp is also very risky to use mobile phones. In the era of mobile internet, apart from hardware, the corresponding applications and channels are critical, but Sharp's advantage in this area is not obvious.