Sharp Niigata breaks out of Sharp and becomes the first self-divided case

Apple Daily News Last week, Japanese media reported that Hon Hai’s chairman, Guo Taiming, had predicted that the layoffs would cause Sharp’s 43,000 employees worldwide to worry, but not everyone was “sitting.”

According to the "Nihon Keizai Shimbun" report, as of the end of March this year, the century-old shop Sharp has a total of 98 subsidiaries and related companies.

One of Sharp's subsidiaries, Sharp Niigata Electronics Co., Ltd. in Niigata Prefecture, Japan, launched MBO (Management Buyout, management buy-and-buy) in mid-April after negotiations over several months, with President Okazaki and other directors. With employees taking out 590 million yen, they bought all the shares of the company from Sharp Corporation, so that the shares of Sharp Niigata Electronics Co., Ltd. were completely controlled by their own employees.

This MBO transaction case means that Sharp Niigata Electronics Co., Ltd. is no longer a member of Sharp, but a completely independent local enterprise, and also created the first case of the Sharp subsidiary to separate itself.

In other words, after Hon Hai officially entered Sharp in the future, Guo Dong’s layoffs and knives should be cut, and they have nothing to do with Sharp Niigata Electronics.

According to the report, Sharp Niigata Electronics Co., Ltd., established in 1970, has been growing with the parent company Sharp for decades, from computers and word processors, to all the power components of LCD TVs.

However, good luck always has a useful day. In the 2011 fiscal year, orders for LCD TV parts from Sharp's parent company were greatly reduced, resulting in a sharp drop in revenue for the year of more than 2/3, far less than the 24 billion yen in fiscal year 2010.

In order to survive, Sharp Niigata Electronics began to reduce its dependence on the parent company Sharp. Since 2013, it has begun to design OEM orders for LED components of other companies, and accepts a small number of orders to develop new customers.

This strategy proved to be correct, and the company turned a profit in fiscal year 2014.

In the fiscal year 2015 at the end of March this year, Sharp Niigata Electronics Co., Ltd. had revenues of 7.1 billion yen, of which less than half were from Sharp's parent company, but still profitable throughout the year, making money for the second consecutive year.

Sharp Niigata Electronics expects shipments of Sharp to gradually approach zero in the next three years, but President Okazaki said that the company will retain the name of "Sharp", in addition to brand awareness considerations, It is proved that the former Sharp employees are still working hard.

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