Now sharp is almost a step away from bankruptcy.

Absrtact: Sharp is now almost a step away from bankruptcy. Sharp in early November warned that in the April 2012 ~2013 March, the company may face 450 billion yen losses, will exceed the previous year's 376 billion yen, the record of the largest loss. Sharp said that whether it can continue to survive

Now sharp is almost a step away from bankruptcy. Sharp in early November warned that in the April 2012 ~2013 March, the company may face 450 billion yen losses, will exceed the previous year's 376 billion yen, the record of the largest loss. Sharp says there are "big doubts" about whether it will survive.

Sharp, or the last resort to save himself in a "century-old shop" that struggles with life and death, turned to the Japanese government to seek funding for restructuring.

Sharp will have 200 billion yen (about $2.5 billion trillion) of convertible bonds due next year, Sangyo Soseiiadvisory Inc. co-founder Sato (Fumiaki Sato), a Tokyo recycling consultancy, quoted yesterday as saying that Sharp is likely to offer the Japanese government's Corporate regeneration Support Agency ( Enterprise Turnaround Initiative Corp. or Japan's Industrial innovation Agency (innovation receptacle Corp.of Japan) sought financial assistance.

"Given the possible impact of these bankruptcies on the economy, the Japanese government has no choice but to fund those companies that need bail-outs." Yuuki Sakurai, president of Wells Fargo Capital Management in Tokyo, said that if sharp collapses, many people will lose their jobs, including suppliers, and the economic impact should not be overlooked.

In September this year, Sharp had submitted delisting applications to Japan's three stock exchanges, which meant that the depressed capital markets had been hard pressed to provide financing, and by turning to the government, it meant that Sharp would have gone back two years before Japan's airways. The Japanese government fund, Etic, immediately injected 350 billion yen into JAL after the court filed for bankruptcy after the JAL's debt of up to 2.32 trillion trillion yen.

In addition, sharp expected the entire year LCD operating losses from the original expected 105 billion yen expansion to 132 billion yen, mainly large LCD inventory writedowns of 53.5 billion yen, small LCD sales are not up to expectations.

And Sharp's talks with Hon Hai are deadlocked. Earlier, Foxconn had planned to invest 570 billion yen in sharp, but it was reported to be struggling to issue commercial paper because it burned too fast and did not succeed. Sharp said sales fell in China and Japan as the price of LCD panels dropped, with the postponement of an LCD factory, and the company's 6-month loss to September 30 was huge.

To reverse the situation, sharp, starting early this year, has discussed the first time in Japan to take early retirement, lower wages and other ways, the world's big layoffs million people, and the sale of office building in Tokyo. The production of solar cells that are deteriorating as a result of falling prices will also be slashed to accelerate performance improvements. Sharp president Otiano Longs said: "We must restore profits as soon as possible, regain the trust of investors, we must prove through the results." ”

But Sharp did not come up with a new growth strategy. "Sharp is in a desperate position and it has to work hard to deal with short-term funding," Kao Song Ichiro Takamatsu, fund manager at Bayview Asset Management company in Tokyo. In addition to selling more small, medium LCD panels, it has no long-term vision. ”

In the view of Paller Consulting director Luo Qingxi, the global economic downturn has not improved substantially this year, the panel business, which accounts for the biggest proportion of Sharp's business, is facing the double embarrassment of overcapacity and insufficient demand, which makes its future operating income lack of guarantee; in Japan, Japan's electronics giants, including Sharp, have suffered a rise in the yen and a tax increase Problems such as power shortages don't necessarily make money even if the product is sold.

At present, Fitch International Credit Rating Co., Ltd. announced the sharp company's credit rating to the junk level. Fitch said in a statement that sharp market competitiveness and strong yen, the Japanese technology companies in the short and medium term, the operation of the core business is difficult to reverse the good.