Japan Display is reportedly in talks with Chinese businesses and investment funds to get support for its turnaround efforts.

Apple's LCD supplier has been mired in red ink due to a slump in its mainstay LCD smartphone panels and has been seeking capital from investors in and outside Japan.

According to Nikkei, JDI is considering several Chinese groups as backers. Candidates include the state-owned Silk Road Fund, as well as electronic parts maker O-film Tech and auto parts maker Minth Group, according to the report.

"Those reports are not based on any announcement made by JDI," Japan Display said. "As have already been announced, JDI has been in negotiations with outside parties including Chinese companies about alliances. However, nothing has been decided with respect to this topic at this point of time. Any decision relevant to this matter requiring disclosure will be promptly announced," the company said.

JDI logged a fourth straight year of net losses for the 12 months ended March 2018. The company stated in a restructuring plan announced in August 2017 that it will seek outside funding through alliances with global companies. But the Japanese company fell far behind on the goals it had set for the fiscal year ended March 2018.

Earlier this year, JDI announced plans to receive about 55 billion yen ($484 million) from overseas and other investors.

Public-private innovation fund Japan Investment Corp. is the display maker's top shareholder through a 25.3% stake.