Sharp makes Tokyo Stock Exchange 1st Section comeback
TOKYO (The Japan News/ANN) — Sharp Corp. returned to the First Section of the Tokyo Stock Exchange on Thursday, after being demoted to the Second Section last year due to a business slump.
The electronics maker restored its finances under parent company Hon Hai Precision Industry Co. of Taiwan, returning after 16 months of demotion. It was the first time for a company to return to the First Section since major nonbank lender Orient Corp. did so in March 2011.
“We were able to make an early comeback,” Sharp President and CEO Tai Jeng-wu said at a press conference.
Sharp’s liabilities exceeded its assets due to losses in its flagship liquid crystal display business. In August 2016, Sharp was demoted to the Second Section from the First Section under TSE rules.
As a result of cost-cutting efforts and other structural reforms under Hon Hai Precision, its operating profit was in the black on a consolidated basis in the fiscal year ended in March — Sharp’s first time to be profitable in three years.
Sharp applied to the TSE in June to be relisted on the First Section.
Tai received a notice on Thursday saying the firm was listed on the First Section at the TSE, and rang the bell during a ceremony at the exchange.
Sharp shares began trading at ¥3,905, up ¥20, from Wednesday’s close.