LG Display holds regular shareholder meeting, expects price increase of LCD factory in Guangzhou, China

CINNO Research Industry Information, LG Display once again stated that the amount of money from the sale of the G8.5 LCD factory in Guangzhou, China will increase. As early as last October's performance conference, LG Display had released a signal that the sale amount of the Guangzhou LCD factory might be higher than the previously announced amount of about 2.3 trillion won.
According to the Korean media thelec, at the regular shareholders' meeting held in Paju on March 20, LG Display Chief Financial Officer (CFO) and Vice President Kim Sung-hyun said: "As of March, the business results of the Guangzhou LCD factory have not yet been finalized. Judging from the settlement in February, the sales amount is expected to increase to a certain extent." Vice President Kim Sung-hyun further added: "I mentioned in October last year that the business results in 2024 will be reflected in the final sales amount, so the sales amount is unlikely to decrease. However, to get the exact amount, we have to wait until early April." Vice President Kim Sung-hyun gave the above response to a series of questions raised by shareholders at the shareholders' meeting regarding "the final sales amount of the Guangzhou LCD factory, the proportion of cash, the time node of the account entry, and the future use of funds." LG Display signed a contract with Chinese panel manufacturer TCL Huaxing in September last year to transfer shares of the Guangzhou LCD panel factory (CA legal person) and module factory (GZ legal person). The sale amount announced at the time was 10.8 billion yuan (about 2.3 trillion won), and the scheduled disposal date was this month's 31st. In response to questions about the expected profit margin this year, Vice President Kim said: "The implementation process of the business goal of achieving profit transformation this year is in progress," but also pointed out that "because there are still 9 months left (in 2025), it is not possible to specify it now, but we will work hard to achieve profit transformation." LG Display President Zheng Zhedong expressed his determination to improve the performance of the large-size organic OLED business. LG Display's large-size OLED business, which has been in operation for more than 10 years, has never achieved annual profits.
President Chung said, “The large-size OLED business will expand sales in areas such as ultra-large size and gaming based on a strengthened customer structure, while promoting cost innovation and striving to achieve a transformation in the profit structure this year.” After the shareholders’ meeting, a reporter asked, “Will the large-size OLED business really achieve a profitable transformation this year?” “Does it mean to lay the foundation for the profitable transformation of the large-size OLED business?” President Chung Cheol-dong briefly replied, “If there are results by the end of the year, I will explain it to everyone.” Regarding the direction of other business areas, President Chung said, “The small-size business will improve its R&D capabilities and enhance profitability through a high level of customer response capabilities.” He then explained, “The medium-size business will focus on improving quality competitiveness and improving the business structure to consolidate the foundation for profit security.” Regarding automotive displays, he said, “We will increase sales and profitability and enhance our contribution to the business through stable orders and stable sales growth based on this.” LG Display did not announce last year’s shipments of OLED panels for Apple’s iPhone at this year’s shareholders’ meeting. The company said that "(in 2023) smartphone OLED shipments increased by 20% from the previous year to 51.8 million units." Previously, LG Display held a private meeting with shareholders and the chief financial officer (CFO) after the shareholders' meeting, but it did not take place this year. Few shareholders actually attended the shareholders' meeting.