On July 1, panel manufacturer Japan Display (JDI) disclosed its latest progress in adapting to the Tokyo Stock Exchange's main board listing maintenance standards yesterday (June 30), and announced that it will further promote structural reforms and the "BEYOND DISPLAY" growth strategy to achieve turnaround and enhance corporate value.

According to the announcement, as of March 31, 2025, JDI's "tradable share ratio" is 20.1%, which still does not meet the 35% standard stipulated by the Tokyo Stock Exchange, but it has improved from 17.3% in March 2024. This improvement is mainly due to the sale of all common shares held by INCJ Co., Ltd. in the past year. It is worth noting that INCJ, as an original shareholder of JDI, invested a total of 462 billion yen in 7 times between August 31, 2011 and September 2, 2019, while the sale of shares only recovered 307.3 billion yen, with a loss ratio of 33.48%. JDI reiterated that it will strive to meet all listing maintenance standards by the end of March 2028.

According to Japan's listing rules, if JDI fails to meet the requirements before March 31, 2028, it will be designated as a "watch list" by the Tokyo Stock Exchange; if the final review still determines that the floating share ratio does not meet the requirements, it may be included in the "reorganization list" on October 1, 2028 and delisted.

The biggest challenge JDI is facing is that its main shareholder Ichigo Trust holds 78.2% of common shares. If it exercises its preferred stock conversion rights and new stock subscription rights, its shareholding ratio may rise to 91.6%, which will put short-term pressure on the floating share ratio. The company has been negotiating with Ichigo on the adjustment of shareholding ratio and actively exploring new investors to diversify its equity.

In terms of business transformation, JDI launched the "BEYOND DISPLAY" strategy in November 2024, officially entered the advanced semiconductor packaging market, and increased resource investment in the sensor business. In order to reduce costs and improve production efficiency, the company decided to close the high-cost factory in Mobara by March 2026 and concentrate production at Ishikawa MULTI-FAB. In addition, JDI had planned to mass-produce the new generation of OLED products "eLEAP" in Mobara, but has now stopped its own production model and turned to cooperation with foundry partners in a fabless model.

According to a recent announcement, JDI will transfer some of its patent assets related to liquid crystal and organic EL (OLED) displays to three newly established subsidiaries in the form of capital contribution in kind, and then sell these subsidiaries to its major shareholder Ichigo Trust. At the same time, the company plans to sell the land and buildings of the Mobara factory to Ichigo Trust, and relevant negotiations are currently underway. JDI said that although it has not yet achieved significant financial results, it has established a foundation for improvement, and will continue to focus on fixed cost reduction, personnel adjustments and investor communication.