Sharp made its first net loss in six years, and Foxconn asked for a performance improvement plan within three months.

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! CTOnews.com, July 27 (Xinhua)-- according to Nikkei Asia, Foxconn has asked Sharp to come up with a business improvement plan within three months in order to recover as soon as possible from the losses it had fallen into after showing weakness in the business.

Liu Yangwei, chairman of Foxconn, the official website of ▲ Touyuan Sharp, visited Sharp's offices in Tokyo and Chiba last week. It was reported that he met with Wu Baixun, Sharp's general manager and CEO, and other executives and asked them to work out a plan to restore profitability.

CTOnews.com previously reported that Sharp reported its first net loss in six years in the fiscal year ended March, including a display-related impairment loss of 188.4 billion yen (CTOnews.com Note: currently about 9.608 billion yuan), which Sharp blamed mainly on the poor performance of its subsidiary Sakai Display Products. Foxconn, Sharp's largest shareholder, was also dragged down, generating a non-operating loss of about NT $17.3 billion (currently about 3.962 billion yuan) related to Sharp in the first quarter of January-March this year.

"We have asked Sharp to come up with a performance improvement plan that is in the interests of its major shareholders," Huang Qiulian, CFO of Foxconn, told an investor conference in May. "if there is still no improvement, we will ask them to adjust their management team to improve their operations."

Foxconn bought Sharp in 2016 and has since seen Sharp turn a profit. Sharp had expected to turn losses into profits again this fiscal year, with a net profit of 10 billion yen (currently about 510 million yuan).