Sharp China Denies Nanjing Factory to Change Lenovo

The “scandal” of Sharp's Nanjing plant was released again. The protagonist of this time is Lenovo.

Some media reported yesterday (January 17) that Sharp may sell the Nanjing factory to Lenovo Group and plan to collaborate with Lenovo on the television business. The cooperation and consultation between the two parties has entered the final stage. However, Sharp said in a statement issued to the Japanese stock exchange that the company did not announce any negotiation plan.

The reporter asked Sharp Business (China) Co., Ltd. (hereinafter referred to as Sharp China) and Lenovo for confirmation. Both parties stated that they would not respond to the news published by the above media. On the other hand, Sharp China claims that the news is not issued by the company and it is not a fact.

Sharp wants to throw off Nanjing factory

The media reported that Sharp is planning to sell all shares of Nanjing LCD TV plant "Nanjing Sharp Electronics" to Lenovo in 2013, and that Lenovo will also take a share of Sharp's domestic subsidiary responsible for TV R&D and sales, and formally enter the company. TV market. Sharp and Lenovo will also sign a memorandum on the above cooperation plan this month.

The report pointed out that after Sharp sells Nanjing LCD TV plant to Lenovo, and converts its television sales and R&D subsidiary into a joint venture with Lenovo, it will use Lenovo’s sales network in China to expand sales of TVs to increase the number of LCD panels in Japan. Capacity utilization. Lenovo will continue to use Sharp's "AQUOS" brand to sell TV products after Lenovo's acquisition of the Nanjing plant, and plans to work together with Sharp to develop markets in Southeast Asia and Central and South America. The panel required will be Sharp's second Kameyama plant or World) 10th generation panel factory supply.

For the details of these “having noses and eyes”, Sharp and Lenovo’s “uninformed” attitude was considered by the industry to be a bit too awkward at this time.

“Sharp is in a state of being in a hurry and trying to get medical attention.” National Council of Consumer Electronics Channel Business Association Secretary-General Wu Xianjian said in an interview with the “Daily Economic News” reporter that Sharp recently went to find partners, such as Qualcomm and Hon Hai in the United States. And other companies. At this point, it is normal for the outside world to make some speculations about it, even if Sharp China does not recognize it, and it does not represent the opinion of the Japanese headquarters.

The above-mentioned people's argument stems from Sharp's current poor financial performance. Sharp had expected that the net loss for the current fiscal year ending March 31 will reach 450 billion yen.

In September last year, Sharp signed a syndicated loan agreement with Mizuho Corporate Bank and Mitsubishi Tokyo UF Bank amounting to 360 billion yen (about US$4.07 billion).

Expert: It is not correct that Lenovo entered the TV

"This news is not groundless and the news will inevitably affect the stock price." Wu Xianjian said that for Japanese investors, it should be optimistic about the cooperation between Sharp and Lenovo. Sharp's share price soared yesterday, and the gains reached 10%.

For the industry’s argument that Sharp’s cooperation with Hon Hai was deadlocked. Wu Xianjian said that both parties have already negotiated on the LCD business. However, Hon Hai’s second step is to participate in Sharp’s right to operate and control, resulting in Sharp’s failure to agree.

Home appliance industry analyst Liang Zhenpeng said that Lenovo launched its LCD TV in May last year. Since Lenovo does not have its own factory, the cost is bound to be higher, resulting in higher LCD TV prices. Lenovo has always planned to invest in building its own LCD TV factory in China. If Sharp intends to sell its own factory, it is a very rare opportunity for Lenovo.

However, according to Liang Zhenpeng, Lenovo's entry into LCD TVs is not the right choice. It has been doing IT industry, and it has insurmountable problems when it comes to entering television: Lenovo has no experience in the assembly of TVs, and has all zero in the upstream. There is no experience in fittings, and its marketing experience may not be applicable to the television industry.