During its Q2 earnings call on July 24, LG Display stated that despite significant impacts from external factors such as US tariffs and macroeconomic fluctuations, the company is still shipping large-size OLED panels as planned. LG Display expects its annual shipments of large-size OLED panels to reach approximately 6 million units, representing an increase compared to the same period last year.
LG Display stated that in recent years, in addition to TVs, the proportion of products such as gaming monitors in the demand for large-size OLEDs has been increasing, and it is estimated that the proportion of monitor products in the shipment of large-size OLEDs will exceed 10% this year.
Image source: LG Display
The report points out that LG Display's large-size OLED business has been operating for over 10 years but has yet to achieve profitability. However, considering that depreciation at its Guangzhou OLED factory will end this month, improvements in capacity utilization and sales could further reduce losses. For cost reasons, LG Display's current output at its Guangzhou OLED factory is higher than that at its Paju OLED factory in South Korea. The company's main customers include LG Electronics, Samsung Electronics, and Sony, with Samsung Electronics' OLED TV shipments being particularly significant.
LG Display stated, "Through measures such as strengthening product competitiveness, diversifying the product line, and innovating cost management, the large-size OLED business has made significant progress in profitability compared to the previous quarter. The company will build solid partnerships with top global customers and achieve stable results in growth and profitability."
At the shareholders' meeting in March this year, LG Display President Chung Cheol-dong clearly expressed his determination to improve the profitability of the large-size OLED business. Chung Cheol-dong said at the time: "The large-size OLED business will achieve profitability this year by strengthening the customer structure, expanding sales in areas such as ultra-large sizes and gaming, and by leveraging cost innovation."
During the conference call, LG Display mentioned that, according to its business plan, the company's performance in the first half of this year has exceeded expectations, improving by approximately 500 billion won compared to the same period last year, and it expects to achieve performance improvement in the second half of the year in proportion to sales growth.
LG Display's second-quarter results were: sales of 5.587 trillion won (approximately 29.22 billion yuan), operating loss of 116 billion won (approximately 607 million yuan), and net profit of 891 billion won (approximately 4.66 billion yuan). Compared to the same period last year, sales decreased by 16.7%, operating loss widened, but net profit turned around.
Sales revenue of 5.587 trillion won exceeded market expectations (the expected figure was 5.6734 trillion won); however, net profit of 891 billion won fell short of market expectations (an expected net loss of 254.6 billion won), primarily due to improved foreign exchange gains and losses, as well as gains from the sale of equity in the Guangzhou LCD factory, and other profit and loss factors. (Translated by TrendForce Display)
