Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2024

 

 

LG Display Co., Ltd.

(Translation of Registrant’s name into English)

 

 

LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒   Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐   No ☒

 

 

 


Table of Contents

QUARTERLY REPORT

(From January 1, 2024 to March 31, 2024)

THIS IS A TRANSLATION OF THE QUARTERLY REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SUPERVISORY COMMISSION.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED AND CERTAIN NUMBERS WERE ROUNDED FOR THE CONVENIENCE OF READERS. REFERENCES TO “Q1”, “Q2”, “Q3” AND “Q4” OF A FISCAL YEAR ARE REFERENCES TO THE THREE-MONTH PERIODS ENDED MARCH 31, JUNE 30, SEPTEMBER 30 AND DECEMBER 31, RESPECTIVELY, OF SUCH FISCAL YEAR. REFERENCES TO “W” ARE REFERENCES TO THE KOREAN WON.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH KOREAN INTERNATIONAL FINANCIAL REPORTING STANDARDS, OR K-IFRS, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. K-IFRS ALSO DIFFERS IN CERTAIN RESPECTS FROM THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES IN THIS DOCUMENT.

Contents

 

 

1.

  

Company

     3  
    

A.

  

Name and contact information

     3  
    

B.

  

Credit rating

     3  
    

C.

  

Capitalization

     3  
    

D.

  

Voting rights

     3  
    

E.

  

Dividends

     4  
    

F.

  

Matters relating to Articles of Incorporation

     4  
 

2.

  

Business

     4  
    

A.

  

Business overview

     4  
    

B.

  

Industry

     5  
    

C.

  

New businesses

     8  
    

D.

  

Customer-oriented marketing activities

     8  
 

3.

  

Major Products and Raw Materials

     8  
    

A.

  

Major products

     8  
    

B.

  

Average selling price trend of major products

     8  
    

C.

  

Major raw materials

     9  
 

4.

  

Production and Equipment

     10  
    

A.

  

Production capacity and output

     10  
    

B.

  

Production performance and utilization ratio

     10  
    

C.

  

Investment plan

     10  
 

5.

  

Sales

     11  
    

A.

  

Sales performance

     11  
    

B.

  

Sales organization and sales route

     11  
    

C.

  

Sales methods and sales terms

     12  
    

D.

  

Sales strategy

     12  
    

E.

  

Major customers

     12  
 

6.

  

Purchase Orders

     12  

 

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7.

  

Risk Management and Derivative Contracts

     12  
    

A.

  

Risk management

     12  
    

B.

  

Derivative contracts

     13  
 

8.

  

Major Contracts

     14  
 

9.

  

Research & Development

     14  
    

A.

  

Summary of R&D-related expenditures

     14  
    

B.

  

R&D achievements

     15  
 

10.

  

Intellectual Property

     16  
 

11.

  

Environmental and Safety Matters

     16  
    

A.

  

Business environment management

     16  
    

B.

  

Product environment management

     17  
    

C.

  

Safety standards

     19  
    

D.

  

Green management

     19  
    

E.

  

Status of sanctions

     19  
 

12.

  

Financial Information

     19  
    

A.

  

Financial highlights (Based on consolidated K-IFRS)

     19  
    

B.

  

Financial highlights (Based on separate K-IFRS)

     20  
    

C.

  

Consolidated subsidiaries as of March 31, 2024

     21  
    

D.

  

Status of equity investments as of March 31, 2024

     21  
 

13.

  

Audit Information

     23  
    

A.

  

Audit service

     23  
    

B.

  

Non-audit service

     23  
 

14.

  

Management’s Discussion and Analysis of Financial Condition and Results of Operations

     23  
 

15.

  

Board of Directors

     23  
 

16.

  

Information Regarding Shares

     23  
    

A.

  

Total number of shares

     23  
    

B.

  

Shareholder list

     23  
 

17.

  

Directors and Employees

     24  
    

A.

  

Directors

     24  
    

B.

  

Employees

     24  
 

18.

  

Other Matters

     24  
    

A.

  

Legal proceedings

     24  
    

B.

  

Status of collateral pledged to related party

     25  
    

C.

  

Material events subsequent to the reporting period

     25  

Attachment: 1. Financial Statements in accordance with K-IFRS

 

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1.

Company

 

  A.

Name and contact information

The name of our company is “EL-GI DISPLAY CHUSIK HOESA,” which shall be “LG Display Co., Ltd.” in English.

Our principal executive office is located at LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea, and our telephone number is +82-2-3777-1010. Our website address is http://www.lgdisplay.com.

 

  B.

Credit rating

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

  C.

Capitalization

 

  (1)

Change in capital stock (as of March 31, 2024)

(Unit: Won, Shares)

 

Date of Issuance

 

Method of Issuance

 

Details of the Shares Issued

 

Type

 

Number of
Shares

 

Par value
per Share

 

Offering price
per Share

 

Remarks

March 15, 2024

  Paid-in capital increase (share rights offering to existing shareholders)   Common shares   142,184,300   W5,000   W9,090   Ratio of paid-in capital increase: 39.74%

 

  (2)

Convertible bonds (as of March 31, 2024)

We have no outstanding convertible bonds as of March 31, 2024.

 

  D.

Voting rights (as of March 31, 2024)

(Unit: share)

 

Description

   Number of shares  

A. Total number of shares issued(1):

   Common shares(1)      500,000,000  
   Preferred shares      —   

B. Shares without voting rights:

   Common shares      —   
   Preferred shares      —   

C. Shares subject to restrictions on voting rights pursuant to our articles of incorporation:

   Common shares      —   
   Preferred shares      —   

D. Shares subject to restrictions on voting rights pursuant to regulations:

   Common shares      —   
   Preferred shares      —   

E. Shares with restored voting rights:

   Common shares      —   
   Preferred shares      —   

Total number of issued shares with voting rights (=A – B – C – D + E):

   Common shares      500,000,000  
   Preferred shares      —   

 

(1)

Authorized: 500,000,000 shares

 

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  E.

Dividends

 

Dividends 

for the three most recent fiscal years

 

Description (unit)

   2024 Q1      2023      2022  

Par value (Won)

        5,000        5,000        5,000  

Profit (loss) for the year (million Won)(1)

        (783,157      (2,733,742      (3,071,565

Earnings (loss) per share (Won)(2)

        (2,037      (7,640      (8,584

Total cash dividend amount for the period (million Won)

        —         —         —   

Total stock dividend amount for the period (million Won)

        —         —         —   

Cash dividend payout ratio (%)(3)

        —         —         —   

Cash dividend yield (%)(4)

  

Common shares

     —         —         —   
  

Preferred shares

     —         —         —   

Stock dividend yield (%)

  

Common shares

     —         —         —   
  

Preferred shares

     —         —         —   

Cash dividend per share (Won)

  

Common shares

     —         —         —   
  

Preferred shares

     —         —         —   

Stock dividend per share (share)

  

Common shares

     —         —         —   
   Preferred shares      —         —         —   

 

(1)

Based on profit for the year attributable to the owners of the controlling company.

(2)

Earnings per share is based on par value of W5,000 per share and is calculated by dividing net income by weighted average number of common shares.

(3)

Cash dividend payout ratio is the percentage that is derived by dividing total cash dividend by profit for the year attributable to the owners of the controlling company.

(4)

Cash dividend yield is the percentage that is derived by dividing cash dividend by the arithmetic average of the daily closing prices of our common shares during the one-week period ending two trading days prior to the closing of the register of shareholders for the purpose of determining the shareholders entitled to receive annual dividends.

Historical dividend information

 

Number of consecutive years of dividends(1)

   Average Dividend Yield(1)  

Interim dividends

   Annual dividends      Last 3 years        Last 5 years  

— 

   —       0.94        0.56  

 

(1)

The average dividend yield is calculated using the simple arithmetic average method, including the fiscal years in which no dividend was paid (dividends were paid with respect to fiscal year 2021 only based on the dividend resolution date).

 

  F.

Matters relating to Articles of Incorporation

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

2.

Business

 

  A.

Business overview

We were incorporated in February 1985 under the laws of the Republic of Korea. LG Electronics and LG Semicon transferred their respective LCD business to us in 1998, and since then, our business has been focused on the research, development, manufacture and sale of products that apply display technologies such as OLED and TFT-LCD. Sorting by major sales product category, television, IT products, “auto” products (comprising automotive display products), and mobile and other products accounted for 21%, 41%, 10% and 28% of our total sales, respectively, in the first quarter of 2024. Our customers primarily consist of global set makers, and our top ten customers comprised 88% of our total sales revenue in the first quarter of 2024. As a company focused on exports, our overseas sales accounted for approximately 95% of our total sales in the first quarter of 2024. We provide close local support through our overseas sales subsidiaries located in the United States, Germany, Japan, Taiwan, China and Singapore.

We operate key production facilities in Korea, China and Vietnam, and as of March 31, 2024, our cumulative production capacity in 2024 year-to-date was approximately 1.5 million glass sheets, as converted into eighth-generation sheets (2200x2500mm). In order to expand our production capacity of differentiated and competitive products such as OLED panels, our total capital expenditures on a cash out basis was around W3.5 trillion in 2023. In 2024, we expect to reduce our capital expenditure compared to 2023 to approximately in the W2 trillion range.

 

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The major raw materials for display panel production include glass, semiconductors, polarizers, organic matter, backlight units (“BLU”) and printed circuit boards (“PCB”), and the prices of our raw materials may fluctuate as a result of supply and demand in the market as well as changes in our purchase quantity.

The display industry to which we belong is highly affected by the global economic conditions. Given the characteristics of the display business, which requires large-scale investments, display panel prices may fluctuate due to an imbalance between supply and demand, which may affect our profitability. The sales performance of industry players is differentiated by not only the production capacity of each company but also other competitive differences arising from factors including technology, cost structure, product development capability, manufacturing efficiency, quality control and customer relationships, along with the price differentiation incorporating such factors. In addition, given the high proportion of our sales overseas, our sales of display panels are denominated mainly in U.S. dollars whereas our purchases of raw materials are denominated mainly in U.S. dollars, Japanese Yen and Chinese Yuan. Accordingly, our profit margins may be affected by changes in the exchange rates between the currencies. We strive to minimize the risk relating to foreign currency denominated assets, liabilities and operating cash flow due to exchange rate fluctuations.

Our research and development expenses represent approximately 12% of our sales, and we are continually creating customer value through systematic R&D activities for new products and technologies. Leveraging our competitive R&D activities, we are leading the display market by providing differentiated values in display panel products utilizing our OLED and TFT-LCD technologies for various uses including television, IT and mobile products, as well as automobiles and industrial uses.

Consolidated operating results highlights

(Unit: In billions of Won)

 

     2024 Q1      2023      2022  

Sales Revenue

     5,253        21,331        26,152  

Gross Profit

     218        345        1,124  

Operating Profit (loss)

     (469      (2,510      (2,085

Total Assets

     36,113        35,759        35,686  

Total Liabilities

     26,572        26,989        24,367  

 

  B.

Industry

 

  (1)

Industry characteristics

 

   

From the supply perspective, the display panel industry is technology- and capital-intensive in nature and requires mass production through achieving an economy of scale.

 

   

From the demand perspective, the display panel industry tends to demonstrate a high level of volatility depending on the global macroeconomic conditions, major regional sales events and/or seasonal factors.

 

   

Though the display panel industry is facing a short-term risk of decreased consumption of related goods and reduced confidence of investors due to continued uncertainty in the global macroeconomic environment, there are continued opportunities in the display market to meet changes in consumer lifestyle and specific consumer needs in the mid- to long-term.

 

   

In the market for television display panels, new opportunities from the expansion of the ultra-large TV market are expected to arise with the increase of viewable content (including over-the-top services) and more diversified uses of television (such as playing video games).

 

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In the market for traditional IT products such as laptops and desktop monitors, growth opportunities for new offerings such as gaming products and portable products are expected to increase due to the continually expanding demand for digital content production and consumption that utilize IT products in light of changes in lifestyle.

 

   

In the market for auto products, display panels are increasingly being used in light of the expanded adoption of in-vehicle infortainment systems, and the market is continuing to demonstrate qualitative growth as the demand for larger and higher-resolution display panels continue to increase.

 

   

The growth in the market for smartphone products continued to be concentrated around high value-added products using plastic OLED display panels that offer superior performance through design flexibility, low-power consumption and high resolution, in light of increased use of smartphones for mobile contents and gaming purposes.

 

  (2)

Growth Potential

 

   

The display panel industry is expected to continue to grow, as the essential role of display products as a key device and a necessity for information and communication in daily lives of individuals as well as for industrial purposes becomes more pronounced. We are strengthening our business base with a focus on customer value and developing new markets under our strategic plan to transition our business to center around OLED, which has a strong future growth potential within the display panel industry. With respect to large-sized display panels, we are focusing on securing OLED dominance in the market through differentiated products applying META technology with high-resolution and high-luminance while leading the expansion into new business areas, such as transparent OLED display panels and gaming display panels. In the small-sized display panel business, we are securing high value-added and differentiated technology and stable operating capabilities for 6th generation plastic OLED smartphone displays while continuing to grow our automotive display panels business by providing differentiated solutions such as plastic OLED, advanced thin OLED and LTPS LCD panels for ultra-large vehicle displays optimized for software-defined vehicles. We are also preparing to respond to new market opportunities, including automotive sound solutions, augmented reality and virtual reality. Furthermore, in the medium-sized display panel business, we are increasing the proportion of premium products such as high resolution and wide screen products based on IPS and Oxide technologies.

 

  (3)

Cyclicality

 

   

The display panel business is characterized by being highly cyclical and sensitive to fluctuations in the general economy. The industry experiences recurring volatility caused by imbalances between supply and demand due to capacity expansion and changing production utilization rates within the industry.

 

   

Macroeconomic factors and other causes of business cycles can affect the rate of growth in demand for display panels. Accordingly, if supply exceeds demand, average selling prices of display panels may decrease. Conversely, if growth in demand outpaces growth in supply, average selling prices may increase.

 

  (4)

Market conditions

 

   

Most display panel manufacturers are located in Asia as set forth below. Competition in the TFT-LCD sector is intensifying amid investments in new fabrication facilities led by Chinese panel manufacturers. In response, Korean panel manufacturers are continuing their efforts to maintain their market leadership and differentiate themselves by transitioning their business focus to OLED products and upgrading their TFT-LCD businesses.

 

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  a.

Korea: LG Display, Samsung Display, etc.

 

  b.

Taiwan: AU Optronics, Innolux, HannStar, etc.

 

  c.

Japan: Japan Display, Sharp, etc.

 

  d.

China: BOE, CSOT, HKC, etc.

 

   

Our worldwide market share of large-sized display panels (i.e., panels that are 9 inches or larger) based on revenue is as follows:

 

     2024 Q1   2023   2022

Panels for Televisions(1)(2)

   12.4%   12.5%   23.6%

Panels for IT Products(1)

   20.1%   18.6%   18.8%

Total(1)

   15.3%   14.6%   20.2%

 

(1)

Source: Large Area Display Market Tracker (OMDIA). Data for 2024 Q1 are based on OMDIA’s estimates, as actual results for 2024 Q1 have not yet been made available.

(2)

Includes panels for public displays.

 

  (5)

Competitiveness and competitive advantages

 

   

Our ability to compete successfully depends on factors both within and outside our control, including the development of new and premium products through technological advances, timely investments based on visibility of profitability, adaptable product portfolio and flexible fabrication mix, achievement of competitive production costs through enhancing productivity and managing supply costs of components and raw materials, our relationship with customers, success in marketing to our end-brand customers, general economic and industry conditions and foreign exchange rates.

 

   

In order for us to compete effectively, it is critical to offer differentiated products that enable us to secure profit margins even during times of a mismatch in the market supply and demand, to be price- and cost-competitive and to maintain stable relationships with customers.

 

   

A substantial portion of our sales is attributable to a limited number of end-brand customers and their designated system integrators. As such, it is important to build a sustained relationship with such customers.

 

   

Developing new products and technologies that can be differentiated from those of our competitors is critical to the success of our business. It is important that we take active measures to protect our intellectual property internationally. It is also necessary to recruit and retain experienced key managerial personnel and skilled line operators.

 

   

As a leading technology innovator in the display industry, we continue to focus on delivering differentiated value to our customers by developing various technologies and products, including display panels with WOLED/POLED, IPS, Oxide, in-TOUCH and other technologies. With respect to OLED panels, following our supply of the world’s first 55-inch OLED panels for televisions in January 2013, we have continued to achieve ongoing technological innovation by continuing to enhance the performance of our WOLED products and to offer differentiated large-sized OLED products such as our large-sized gaming OLED products and those incorporating our META technology. Moreover, we have continually introduced high value-added plastic OLED products for smartphones, automotive products, wearable devices and foldable notebook computers, among others. With respect to TFT-LCD panels, we are leading the market with our competitive advantages in technology, including through our IPS, Oxide and LTPS technology-based ultra-large and ultra-high definition (“Ultra HD” or “UHD”) television panels, desktop and notebook monitors featuring high resolutions, differentiated designs and high frequency refresh rates, and specialized products for automotive, commercial and medical uses. Our production facilities are also equipped to produce products incorporating in-TOUCH technology.

 

   

Moreover, we are maintaining and strengthening close long-term partnerships with major global firms to secure customers and expand relationships for technology development.

 

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  C.

New businesses

For our continued growth, we are actively exploring and preparing for new business opportunities in response to the changing market environment. As such, we are continually reviewing and looking at opportunities in the display and promising new industries.

 

  D.

Customer-oriented marketing activities

Through engaging in detailed analysis and acquiring insight on the market and industry conditions, technology, products and end-user consumers, we seek to provide differentiated values that are customer- and consumer-friendly. In addition, we engage in activities that are geared to proactively identify and offer meaningful benefits to customers and consumers. As a result, we are continually developing products that provide differentiated values using our differentiated technologies. At the same time, we strive to create new markets and mutually benefit our business and our customers by obtaining customer trust and satisfaction through our customer- and consumer-oriented marketing activities.

 

3.

Major Products and Raw Materials

 

  A.

Major products

We manufacture TFT-LCD and OLED panels, of which a significant majority is sold overseas.

(Unit: In billions of Won, except percentages)

 

                           2024 Q1  

Business area

   Sales type     

Items (By product)

  

Usage

  

Major
trademark

   Sales
Revenue
     Percentages
(%)
 
Display     
Goods/Products/Services/
Other sales
 
 
   Televisions    Panels for televisions    LG Display      1,125        21.4
   IT products    Panels for monitors, notebook computers and tablets    LG Display      2,128        40.5
   Auto products    Panels for automobiles    LG Display      513        9.8
     

Mobile,

etc.

   Panels for smartphones, etc.    LG Display      1,487        28.3
              

 

 

    

 

 

 

Total

                 5,253        100.0
              

 

 

    

 

 

 

 

  B.

Average selling price trend of major products

The average selling prices of display panels are subject to change based on market conditions and demand by product category. The average selling price of display panels per square meter of net display area shipped in the first quarter of 2024 decreased by 27% to USD 782 compared to the fourth quarter of 2023. The average selling prices of display panels per square meter of net display area may continually fluctuate in the future due to changes in market conditions and our product mix.

(Unit: US$ / m2)

 

Period

   Average Selling Price(1)(2)
(in US$ / m2)

2024 Q1

   782

2023 Q4

   1,064

2023 Q3

   804

2023 Q2

   803

2023 Q1

   850

2022 Q4

   708

2022 Q3

   675

2022 Q2

   566

2022 Q1

   660
(1)

Quarterly average selling price per square meter of net display area shipped.

(2)

Excludes semi-finished products in the cell process.

 

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  C.

Major raw materials

Prices of major raw materials depend on fluctuations in supply and demand in the market as well as on changes in size and quantity of raw materials due to the increased production of large-sized panels.

(Unit: In billions of Won, except percentages)

 

Business area

  

Purchase type

  

Items

  

Usage

   Cost(1)      Ratio (%)     

Suppliers(2)

Display    Raw materials    PCB    Display panel manufacturing      331        11.6%      Youngpoong Electronics Co., Ltd., etc.
   Polarizers      446        15.7%      LG Chem, etc.
   BLU      290        10.2%      Heesung Electronics LTD., etc.
   Glass      145        5.1%      Paju Electric Glass Co., Ltd., etc.
   Drive IC      132        4.7%      LX Semicon, etc.
   Others      1,495        52.7%      — 
           

 

 

    

 

 

    
Total               2,839        100.0%     
           

 

 

    

 

 

    

 

-

Period: January 1, 2024 ~ March 31, 2024.

 

(1)

Based on total cost for purchase of raw materials which includes manufacturing and development costs, etc.

 

(2)

Among our major suppliers, Paju Electric Glass Co., Ltd. is our affiliate, LG Chem is a member company of the LG Group and LX Semicon is an affiliate of LX Holdings Corp.

 

   

The market prices of main raw materials for display panels fluctuate depending on the global market conditions of raw materials and demand by product segment.

 

   

The market price of polarizers, which is a main raw material for display panels, decreased by 4% as of March 31, 2024 compared to the end of the previous year.

 

   

The market prices of PCB, drive IC and BLU, decreased by 5%, 5% and 3%, respectively, as of March 31, 2024, compared to the end of the previous year.

 

   

Despite the continued global economic slowdown in 2024, our raw material costs have slightly improved compared to the previous year due to an improvement in the balance of market supply and demand in the raw materials market and our efforts to strengthen our raw material cost competitiveness. The prices of raw materials may continue to fluctuate in light of changes in the market conditions of such materials.

 

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4.

Production and Equipment

 

  A.

Production capacity and output

 

  (1)

Production capacity

The table below sets forth the production capacity of our Gumi, Paju and Guangzhou facilities in the periods indicated.

(Unit: 1,000 glass sheets)

 

Business area

  

Items

  

Location of facilities

  

2024 Q1(1)

  

2023(1)

  

2022(1)

Display

   Display panel, etc.    Gumi, Paju, Guangzhou    1,534    5,223    8,794

 

(1)

Calculated based on the maximum monthly input capacity (based on glass input substrate size for eighth-generation glass sheets) during the year multiplied by the number of months in a given period. The production capacity for facilities with adjusted utilization rates have been calculated based on the maximum input capacity during the period.

 

  (2)

Production output

The table below sets forth the production output of our Gumi, Paju and Guangzhou facilities in the periods indicated.

(Unit: 1,000 glass sheets)

 

Business area

  

Items

  

Location of facilities

  

2024 Q1(1)

  

2023(1)

  

2022(1)

Display

   Display panel, etc.    Gumi, Paju, Guangzhou    1,405    4,256    6,390

 

(1)

Based on the production results (input standard) of each plant converted into eighth-generation glass sheets.

 

  B.

Production performance and utilization ratio

(Unit: Hours, except percentages)

 

Production facilities

  

Available working
hours in 2024 Q1

   Actual working
hours in 2024 Q1
   Average utilization ratio  

Gumi

   2,184(1)
(24 hours x 91 days)
   2,184(1)
(24 hours x 91 days)
     100.0

Paju

   2,184(1)
(24 hours x 91 days)
   2,184(1)
(24 hours x 91 days)
     100.0

Guangzhou

   2,184(1)
(24 hours x 91 days)
   2,184(1)
(24 hours x 91 days)
     100.0

 

(1)

Number of days is calculated by averaging the number of working days for each facility.

 

  C.

Investment plan

In 2023, our total capital expenditures on a cash out basis was around W3.5 trillion. In 2024, we expect to reduce our capital expenditures compared to 2023 to approximately in the W2 trillion range.

 

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5.

Sales

 

  A.

Sales performance

(Unit: In billions of Won)

 

Business area

  

Sales types

  

Items (Market)

   2024 Q1      2023      2022(2)  

Display

   Products    Display panel    Overseas(1)      4,984        20,634        25,651  
   Korea(1)      251        620        668  
   Total      5,235        21,254        26,319  
   Royalty    LCD, OLED technology patent    Overseas(1)      4        16        12  
   Korea(1)      0        0        0  
   Total      4        16        12  
  

Others

   Raw materials, components, etc.    Overseas(1)      11        46        24  
   Korea(1)      4        14        10  
   Total      15        60        34  
  

Total

   Overseas(1)      4,999        20,696        25,687  
   Korea(1)      254        634        678  
           

 

 

    

 

 

    

 

 

 
         Total      5,253        21,330        26,365  
           

 

 

    

 

 

    

 

 

 

 

(1)

Based on ship-to-party.

(2)

Sales excluding forward exchange hedging loss of W213 billion for currency risk management of expected export transactions, which has been reclassified to revenue.

 

  B.

Sales organization and sales route

 

   

As of March 31, 2024, each of our television, IT, auto and mobile product businesses had individual sales and customer support functions.

 

   

Sales subsidiaries in the United States, Germany, Japan, Taiwan, China and Singapore perform sales activities and provide local technical support to customers.

 

   

Sales of our products take place through one of the following two routes:

1) LG Display Headquarters and overseas manufacturing subsidiaries g Overseas sales subsidiaries (USA/Germany/Japan/Taiwan/China/Singapore), etc. g System integrators and end-brand customers g End users

2) LG Display Headquarters and overseas manufacturing subsidiaries g System integrators and end-brand customers g End users

 

   

Sales performance by sales route

 

Sales performance

   Sales route(1)    Ratio  

Overseas

   Overseas subsidiaries      97.5
   Headquarters      2.5

Overseas sales portion (overseas sales / total sales)

     95.2

Korea

   Overseas subsidiaries      36.1
   Headquarters      63.9

Korea sales portion (Korea sales / total sales)

     4.8

 

(1)

Percentage by sales route is based on revenue from the Display business segment.

 

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  C.

Sales methods and sales terms

 

   

Direct sales and sales through overseas subsidiaries, etc. Sales terms are subject to change depending on the fluctuation in the supply and demand.

 

  D.

Sales strategy

 

   

With respect to television products, we are expanding the premium television market with our OLED televisions and working towards strengthening our business portfolio and reinforcing consumer values through new businesses such as gaming and transparent products. We are also securing business stability in the LCD market with products that are commercially differentiated while mainly targeting global customers.

 

   

With respect to IT products, we are securing stable sales by having major global personal computer and home electronics manufacturers as our primary customer base, and we are also continually strengthening the sales of high-resolution, IPS, narrow bezel and other high-end display panels for monitors, notebook computers and tablets.

 

   

With respect to automotive display products, we are pursuing a stable order-based business with global automobile manufacturers on the basis of sustained profitable growth. By leveraging our existing technologies, including OLED and LCD, and expanding our OLED technology platform, we are strengthening our business portfolio and securing stable growth based on profitability.

 

   

With respect to a wide range of products including smartphones, wearable devices, commercial products (including interactive whiteboards and video wall displays, among others) and industrial products (including aviation and medical equipment, among others), we are continuing to build a strong and diversified business portfolio and expand our global customer base by leveraging the strength of our differentiated technology and products.

 

  E.

Major customers

 

   

Customers “A” and “B” each accounted for more than 10% of our sales revenue in the first quarter of 2024 and the first quarter of 2023. Our sales revenue derived from our top ten customers comprised 88% of our total sales revenue in each of the first quarter of 2024 and the first quarter of 2023.

 

6.

Purchase Orders

 

   

We supply some of our products in accordance with the production plans of automobile manufacturers. However, the volume of our supply is subject to fluctuation depending on the customers’ actual order volume and future market conditions, and it is not possible to accurately predict the changes in demand resulting from changes in the domestic and global economic environment. Moreover, as of March 31, 2024, we do not have purchase order contracts that recognize revenue by measuring progress towards satisfaction of performance obligation by using the cost-based input method.

 

7.

Risk Management and Derivative Contracts

 

  A.

Risk management

 

  (1)

Major market risks

Our business is exposed to credit risk, liquidity risk and market risk. Accordingly, we operate a risk management system that identifies and analyzes these risks while monitoring and managing risk level by establishing appropriate risk controls in order to ensure that such risks do not exceed certain threshold levels.

 

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Market risk refers to the risk that income from the financial instruments that we hold or the fair value of such financial instruments will fluctuate due to fluctuations in market prices, such as exchange rates, interest rates and prices of equity securities. The objective of our market risk management system is to manage and control our exposure to market risk within an acceptable level while optimizing our profit levels.

 

  (2)

Risk management method

As the average selling prices of OLED and TFT-LCD panels can continue to decline over time irrespective of industry-wide cyclical fluctuations, we may find it hard to manage risks associated with certain factors that are outside our control. However, we counteract such declines in average selling prices by increasing the proportion of high value added panels in our product mix while also implementing various cost reduction measures.

In addition, in order to manage our risk against foreign currency fluctuations, we eliminate such risk by adopting a policy of maintaining our net exposure risk within an acceptable level by buying or selling foreign currencies at spot rates, when necessary, to address short-term imbalances in the inflow and outflow of foreign currency funds. We also continually monitor our currency position and risk for other monetary assets and liabilities denominated in foreign currencies, and when needed, we may from time to time enter into cross-currency interest rate swap contracts and foreign currency forward contracts. Furthermore, we have adopted a policy aimed at minimizing uncertainty and financial costs arising from interest rate fluctuations and manage our interest rate risk through periodic monitoring of interest rate trends and adoption of appropriate countermeasures.

 

  B.

Derivative contracts

 

  (1)

Currency risks

 

   

We are exposed to currency risks on sales, purchases and borrowings that are denominated in currencies other than in Won, our functional currency. These currencies are primarily the U.S. dollar, the Chinese Yuan and the Japanese Yen.

 

   

Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by our underlying operations, primarily in Won, the U.S. dollar and the Chinese Yuan.

 

   

As of the end of the reporting period, in order to avoid risks of exchange rate fluctuations on the fair value of advance received, we entered into long position currency forward contracts of USD 1,200 million with Standard Chartered Bank and others. As of the end of the reporting period, among the valuation gains and losses of derivatives to which fair value hedge accounting is applied, there is no ineffective portion, and we recognized a valuation gain of W71 billion (purchase commitment: USD 1,200 million, contract exchange rate: W1,289.1~1,310.1) as part of our foreign currency translation gains and losses. With regard to fair value hedging, the maximum expected period of exposure to fair value fluctuation risk from hedged transactions is within 22 months from the end of the reporting period.

 

   

As of the end of the reporting period, in order to avoid risks of interest rate fluctuations and exchange rate fluctuations on foreign currency denominated borrowings with floating interest rates, we entered into an aggregate of USD 2,093 million and CNY 345 million cross currency interest swap agreements with KB Kookmin Bank and others, for which we have not applied hedge accounting. Any rights or obligations arising from derivative contracts that do not apply hedge accounting are measured at fair value and are accounted for as assets and liabilities, whereas any resulting valuation gain or loss is recognized as profit or loss at the time such valuation gain or loss is incurred. We recognized a gain on valuation of derivative instruments in the amount of W55 billion with respect to the above foreign exchange derivative instruments held during the reporting period.

 

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  (2)

Interest rate risks

 

   

Our exposure to interest rate risks relates primarily to our floating rate long term loan obligations. We have established and are managing interest rate risk policies to minimize uncertainty and costs associated with interest rate fluctuations by monitoring cyclical interest rate fluctuations and enacting countermeasures.

 

   

As of the end of the reporting period, we entered into an aggregate of W970 billion in interest rate swap agreements with Shinhan Bank and others, for which we have not applied hedge accounting. We recognized a gain on valuation of derivative instruments in the amount of W5 billion and a loss on valuation of derivative instruments in the amount of W1 billion with respect to our interest rate derivative instruments held during the reporting period.

 

8.

Major Contracts

Our material contracts, other than contracts entered into in the ordinary course of business, are set forth below:

 

Type of agreement

  

Name of party

  

Term

  

Content

Technology licensing/supply agreement

   Hewlett-Packard    January 2011 ~    Patent licensing of semi-conductor device technology
   Ignis Innovation, Inc.    July 2016 ~    Patent licensing of OLED related technology
   HannStar Display Corporation    December 2013 ~    Patent cross-licensing of LCD technology
   AU Optronics Corporation    August 2011~    Patent cross-licensing of LCD technology
   Innolux Corporation    July 2012 ~    Patent cross-licensing of LCD technology
   Universal Display Corporation    January 2015 ~ December 2025    Patent licensing of OLED related technology
   Semiconductor Energy Laboratory    January 2021 ~ December 2030    Patent licensing of LCD and OLED related technology

 

9.

Research & Development (“R&D”)

 

  A.

Summary of R&D-related expenditures

(Unit: In millions of Won, except percentages)

 

Items

   2024 Q1     2023     2022  

R&D Expenditures (prior to deducting governmental subsidies)

     669,338       2,399,513       2,431,590  

Governmental Subsidies

     (58     (718     (1,008
     

 

 

   

 

 

   

 

 

 

Net R&D-Related Expenditures

     669,280       2,398,795       2,430,582  
     

 

 

   

 

 

   

 

 

 

Accounting Treatment(1)

   R&D Expenses      526,475       1,906,616       1,927,828  
   Development Cost (Intangible Assets)      142,805       492,179       502,754  
     

 

 

   

 

 

   

 

 

 

R&D-Related Expenditures / Revenue Ratio(2)
(Total R&D-Related Expenditures ÷ Revenue for the period × 100)

     12.7     11.2     9.3
     

 

 

   

 

 

   

 

 

 

 

(1)

For accounting treatment purposes, R&D expenses are presented as research and development expenses in our statements of comprehensive income, net of amortization of capitalized intangible asset development costs.

(2)

Calculated based on the R&D-related expenditures before subtracting government subsidies (state subsidies).

 

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  B.

R&D achievements

Achievements in 2022

 

  (1)

Developed the world’s first 16:18 aspect ratio monitor product (27.6” SDQHD)

 

   

Developed a 27.6” (21.5”, 21.5”, vertical arrangement) monitor product, which is optimized for multi-tasking amid the increase in working remotely as a result of the COVID-19 pandemic

 

   

Created a new market through the development of a new aspect ratio (16:18, 2560x2880) product

 

  (2)

Developed our first three-sided “Borderless” notebook panel product (13.4” WU XPS)

 

   

Led the high-end market by adopting a new, three-sided borderless design applying low power consumption variable refresh rate technology

 

  (3)

Developed the world’s first 97” OLED TV product

 

   

Developed a product that outperforms competitors’ products both in display quality and in size in the high-end market

 

   

Strengthened the global trend towards OLED dominance by expanding our extra-large OLED TV product lineup and secured related original technology

 

  (4)

Developed the world’s first Curved 1,900R Black monitor product (34”)

 

   

Developed the world’s first IPS Black Curved monitor product (contrast ratio 2000:1) by utilizing nega-LC material

 

   

Led the high-end Curved product market

 

  (5)

Developed our first 12.3” cluster product utilizing VDA 3D technology

 

   

Utilizing VDA (Viewing Distance Adaption) technology, developed a 12.3” cluster product that applies glassless 3D technology and changes the user’s viewing distance while driving

 

  (6)

Developed the world’s first 12.3” cluster product utilizing DLC technology

 

   

Utilizing DLC (Double LGP Control) technology, developed a 12.3” cluster product which display is, when positioned in the passenger seat, visually recognizable from the passenger seat but not from the driver’s seat.

 

  (7)

Developed the world’s first META technology-applied product (gaming products: 27”, 45”; and television products: 4K 77/65/55”, 8K 77”)

 

   

Utilizing the development of META OLED technology, entered the gaming monitor market and strengthened flagship leadership in the premium TV market

1) Gaming product (27”, 45”): Secured high PPI luminance performance based on the META technology and provided a display optimized for gaming through high-speed (240 Hz), fast response time (0.03ms) and curved technology

2) Large television (4K/8K): Developed product with world’s best picture quality (luminance/viewing angle) based on META technology

 

  (8)

Developed the world’s first IPS Gaming FHD 480Hz monitor product (24.5”)

 

   

Applied high-performance Oxide-TFT BCE-4 cell to 480Hz FHD screens

 

   

Received the 2023 CES Award in Best Innovation / Gaming / Computer Accessory category

 

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Achievements in 2023

 

  (1)

Developed the world’s first small- and medium-sized transparent WOLED product (30” HD)

 

   

Expanded market coverage with the development of a new product size (30”) for transparent small- and medium-sized display

 

   

Strengthened market leadership through achieving a transparency rate of 45% and increased luminance (600/200 nit)

 

  (2)

Introduced the world’s first foldable pen touch notebook (17”)

 

   

Developed OLED panel for notebooks utilizing differentiated technologies such as the tandem OLED and a special folding structure

 

  (3)

Developed the world’s first Gaming OLED 240Hz monitor product (39”, 34”)

 

   

Applied high-speed (240Hz), fast response time (0.03ms), high-luminance (275 nit @APL 100%) and curved (800R) OLED technology

 

   

Provided ultra-wide (21:9 aspect ratio) full-size OLED Gaming monitor product (initially provided in 45” and expanded further to provide 39” and 34” products)

 

10.

Intellectual Property

As of March 31, 2024, our cumulative patent portfolio (including patents that have already expired) included 28,399 patents in Korea and 34,540 patents in other countries. In 2024, we registered 622 patents in Korea and 667 patents in other countries.

 

11.

Environmental and Safety Matters

In order to minimize the environmental impact of our business activities, we are actively responding to environmental regulations applicable to our products and business sites.

 

  A.

Business environment management

We have installed and operate various types of prevention facilities to minimize the emission of environmental pollutants generated in our production process. With respect to air and water pollutants, we set and manage our internal standard at 70% of the permitted levels under the regulatory emission standards. In addition, in order to establish a resource circulation system, we operate a proprietary system to monitor waste from its generation to treatment, have developed waste treatment technology and identified suitable recycling companies to reduce the amount of waste we generate and maximize recycling.

In addition, as we were designated a target company for the greenhouse gas emission trading system in 2015, we allocate and monitor our greenhouse gas emissions every year. In order to continually promote the reduction of greenhouse gas emissions, we have set a medium- to long-term goal to reduce the emission level by continually investing in facility improvements and monitoring our emission levels.

We are subject to a variety of environmental laws and regulations, and operations at our manufacturing plants are subject to regulation and periodic scheduled and unscheduled on-site inspections by the Ministry of Environment and local environmental protection authorities. The primary types of environmental laws applicable to us include the following:

 

  (1)

Environmental pollutant emission regulations: Integrated Control of Pollutant-discharging Facilities Act, Clean Air Conservation Act, Water Quality Conservation Act, Wastes Control Act, Environmental Impact Assessment Act, etc.

 

  (2)

Greenhouse gas emission management: Framework Act on Carbon Neutral and Green Growth to Respond to Climate Crisis, Act on the Allocation and Trading of Greenhouse Gas Emission Permits, etc.

 

  (3)

Other workplace environment management: Chemicals Control Act, Chemicals Registration and Evaluation Act, Soil Environment Conservation Act, etc.

 

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Through the implementation of an environmental and energy management system, we are continuously making efforts to minimize environmental impact and reduce energy usage in all aspects of our business process. Accordingly, we have acquired and currently operate the environmental management system ISO14001 and energy management system ISO 50001 certifications for all of our domestic and overseas production sites. In addition, we have established company-wide safety, healthy, energy and environment management policies and manuals, which are regularly updated based on international standards. We also conduct systematic management of our business process in accordance with international standards through annual follow-up and renewal audits.

In recognition of our efforts, we were awarded the highest level, Leadership A, and received the grand prize award at the CDP Water Korea Best Awards in 2016 from the Carbon Disclosure Project, which was presided over by the Carbon Disclosure Project Korea Committee. Since then, we have continued to maintain our excellence in water conservation activities and received Leadership A recognition from 2018 to 2022. In addition, we have also received the Carbon Management Honors Club award from 2017 to 2020 and the Carbon Management Sector Honors from 2016 to 2022 in recognition of our continued greenhouse gas emission reduction activities.

In addition, in recognition of our efforts toward recycling rate improvement and waste reduction, we were nominated as a leading company with an excellent performance in resource circulation and received a commendation from the Minister of Environment in 2020. Our overseas subsidiary in Yantai earned Platinum Zero Waste to Landfill (“ZWTL”) validation in 2021, and all of our domestic production facilities earned Gold ZWTL validation (above 95% recycling rate), and our overseas subsidiary in Nanjing earned Platinum validation in 2022. In 2022, we introduced a resource recirculation recognition program in accordance with the Korean government’s waste management policy and received circular resource certification on eight types of our discarded trays and vinyl. In 2023, we have obtained quality certification for certain of our recycled items recognized as circular resources, and we plan to continue to promote the resource circulation of our products. We will continue our efforts to reinforce our resource circulation program by minimizing waste and maximizing recycling rate.

We have continued to pursue ESG management activities based on the spirit of “value creation for consumers” and “human-first management,” and we plan to obtain further recognition for our eco-friendly management and share relevant information with the stakeholders.

 

  B.

Product environment management

In order to respond to applicable domestic and overseas environmental regulations, such as the European Union’s Restriction of Hazardous Substances (RoHS) and Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) that restrict the use of certain hazardous substances, we operate a hazardous substance management program that implements a four-step procedure (each such step, a “Gate”) that manages various stages of our production cycle, beginning with the registration process of our business partners up to the mass production stage. In addition, in order to preemptively address four types of phthalate substances that became additionally regulated pursuant to the RoHS in 2016 and officially went into effect on July 22, 2019, we replaced the latent risk elements in advance as well as implemented a more stable management process with respect to such substances. In implementing this process, we collaborated with external agencies to ascertain regulatory trends and establish our response strategy, and we formulated and applied effective management measures through the collaborative efforts of our development, procurement, quality assurance and analysis teams.

- Gate 01 (Business Partner Stage): An audit is conducted prior to the registration of a new business partner (including the inspection of the business partner’s hazardous substance response process)

- Gate 02 (Parts Development Stage): An environmental evaluation of each part under development is conducted (consisting of three stages: (1) document review; (2) XRF test and (3) precision analysis)

 

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- Gate 03 (Product Development Stage): An environmental evaluation of the product model and product labeling are conducted (including RoHS verification)

- Gate 04 (Mass Production Stage): Process management through the periodic testing of mass-produced parts for any hazardous substances (including rate-based tests based on risk assessment)

We operate a “Hazardous Substance Management System for Products” that effectively manages hazardous substances by classifying them into four levels: A-I, A-II, B-I, and B-II. In particular, in addition to substances prohibited by global hazardous substance regulations on products, we have designated substances causing harm to the human body and the environment as Level B substances. By developing alternative technologies and parts and applying them to our products, we continually strive to achieve a gradual reduction and elimination of non-prohibited hazardous substances.

- Level A-I (Prohibited Substances): Prohibited substances designated under the RoHS regulations (i.e., 10 regulated substances) and those designated by specific customers

- Level A-II (Prohibited Substances): Substances prohibited by regulations and conventions other than those covered under Level A-1 and those designated as such by customers

- Level B-I (Substances Subject to Voluntary Reduction): Substances that are being voluntarily replaced over a certain period of time

- Level B-II (Substances Under Observation): Substances that are not currently banned, but are expected to become prohibited in the future

Moreover, we participated in reforming IEC 62321, an international testing standard published by the International Electrotechnical Commission and used by RoHS, and the commission adopted our halogen-free combustion ion chromatography method in as IEC 62321-3-2, which was published in June 2013.

In 2017, we became the first display panel company to receive the SGS Eco Label accreditation for OLED television display modules from SGS, a global product testing/accreditation agency, and have since continually received such accreditation. In 2022, we expanded our accreditation program to cover display modules for monitors, notebook computers, tablets and automobiles, as a result of which our display modules for monitors and notebook computers received SGS Eco Label accreditation for the first time and our automotive display module became the first in the industry to receive the same accreditation for its excellence in energy efficiency, and we have since maintained the SGS Eco Label for such products. In 2023, our high-end LCD panels for 16-inch notebooks and 27-inch monitors, in which we incorporated recycled materials for the first time, received the SGS Eco Label accreditation. In addition, our 30-inch and 55-inch transparent display products, for which we applied hazardous substance reduction technology, became the first in the industry to receive the SGS Eco Label accreditation. Moreover, in 2022, our 27-inch monitor display product that applied anti-bacterial films received the SGS Performance Mark accreditation for its anti-bacterial performance, and in 2023, our commercial display module that applied Plus-Bright energy consumption reduction technology obtained the SGS Performance Mark accreditation for its energy efficiency performance. Our high-end LCD panels for 16-inch notebooks and 27-inch monitors also received the same accreditation for reducing energy consumption through the implementation of proprietary algorithms and improving panel transmittance.

Also in 2022, upon assessment and verification of GHG emissions throughout its entire product life cycle, our OLED TV panel received the industry’s first Carbon Footprint Certification from The Carbon Trust, a not-for-profit company founded by the United Kingdom government that provides voluntary carbon certification services and carbon labeling schemes. In 2023, our high-end IT LCD panels (27-inch and smaller) received the Product Carbon Footprint (PCF) certification from TÜV Rheinland, a global independent testing, inspection and certification agency, by achieving carbon emission reduction through the application of recycled materials and low energy consumption technologies. Our OLED panels for automotive products also received the same certification for achieving carbon emission through the application of light-control film integration technology.

In 2021, we received the “Green Technology Certification” for our advanced incell touch display technology, an eco-friendly technology with touch-sensing electrodes and transmission lines that reduce carbon emissions and the use of rare metals. Also, since 2021, we have continued to obtain an eco-friendly certification from TUV SUD, a globally recognized accreditation agency, for excellence in resource circulation and non-use of specific hazardous substances in our OLED television and PO mobile models.

 

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In 2018, we became the first display panel company to receive the “Green Technology Certification” from the Korean Ministry of Science and ICT for improving the light efficiency technology of OLED to promote energy use reduction. In 2017, for the IPS Nano Color for LCD, we received the Quality & Performance Mark from Intertek, a global product testing/accreditation agency, by applying a technology to eliminate cadmium (Cd) and indium phosphide (InP).

 

  C.

Safety standards

Our products comply with the IEC 62638-1 global product safety standards, and we obtain CB and UL certifications on applicable products.

In order to promote the enhancement of safety for automobile manufacturers and consumers, we became the first display panel company in June 2016 to introduce a flame-resistant certification program for our display panels, which program includes flame resistance standards for automotive materials (including ISO 3795, DIN 75200 and FMVSS 302 standards) as well as for safety standards for information technology devices, which has been certified by TUV SUD. In 2022, we expanded the number of applicable flame resistance standards for such program from three to nine.

Furthermore, in 2021, we established infrastructure for flammability tests required under the United States Federal Aviation Administration’s FAR 25.853 standards and impact tests under RTCA DO-313 standards, and the reliability of these test results have been certified by TUV SUD.

 

  D.

Green management

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

  E.

Status of sanctions

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

12.

Financial Information

 

  A.

Financial highlights (Based on consolidated K-IFRS).

(Unit: In millions of Won)

 

Description

   As of
   March 31,  
2024
     As of
 December 31, 
2023
     As of
December 31,
2022
 

Current assets

     10,190,020        9,503,186        9,444,035  

Quick assets

     6,820,693        6,975,458        6,571,117  

Inventories

     3,369,327        2,527,728        2,872,918  

Non-current assets

     25,922,769        26,256,112        26,241,984  

Investments in equity accounted investees

     85,323        84,329        109,119  

Property, plant and equipment, net

     19,676,122        20,200,332        20,946,933  

Intangible assets

     1,720,046        1,773,955        1,752,957  

Other non-current assets

     4,441,278        4,197,496        3,432,975  

Total assets

     36,112,789        35,759,298        35,686,019  

Current liabilities

     13,865,383        13,885,028        13,961,520  

Non-current liabilities

     12,706,983        13,103,726        10,405,272  

Total liabilities

     26,572,366        26,988,754        24,366,792  

Share capital

     2,500,000        1,789,079        1,789,079  

Share premium

     2,821,006        2,251,113        2,251,113  

Retained earnings

     1,889,974        2,676,014        5,359,769  

Other equity

     727,279        515,976        479,628  

Non-controlling interest

     1,602,164         1,538,362         1,439,638   

Total equity

     9,540,423        8,770,544        11,319,227  

 

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(Unit: In millions of Won, except for per share data and number of consolidated entities)

 

Description

   For the three months
ended
March 31,
2024
     For the year
ended
December 31,
2023
     For the year
ended
December 31,
2022
 

Revenue

     5,252,975        21,330,819        26,151,781  

Operating profit (loss)

     (469,432      (2,510,164      (2,085,047

Profit (loss) from continuing operations

     (761,276      (2,576,729      (3,195,585

Profit (loss) for the period

     (761,276      (2,576,729      (3,195,585

Profit (loss) attributable to:

        

Owners of the company

     (783,157      (2,733,742      (3,071,565

Non-controlling interest

     21,881        157,013        (124,020

Basic earnings (loss) per share

     (2,037      (7,640      (8,584

Diluted earnings (loss) per share

     (2,037      (7,640      (8,584

Number of consolidated entities(1)

     22        22        22  

 

(1)

The number of consolidated entities is based on the consolidated entities (including the parent company) as of the end of the reporting period.

 

  B.

Financial highlights (Based on separate K-IFRS).

(Unit: In millions of Won)

 

Description

   As of
   March 31,  
2024
     As of
December 31,
2023
     As of
December 31,
2022
 

Current assets

     5,813,484        5,590,482        5,627,177  

Quick assets

     3,544,814        3,809,523        3,702,583  

Inventories

     2,268,670        1,780,959        1,924,594  

Non-current assets

     24,736,922        24,141,930        23,631,862  

Investments

     5,764,915        4,932,063        4,837,704  

Property, plant and equipment, net

     13,170,850        13,584,247        14,044,844  

Intangible assets

     1,632,334        1,683,029        1,635,181  

Other non-current assets

     4,168,823        3,942,591        3,114,133  

Total assets

     30,550,406        29,732,412        29,259,039  

Current liabilities

     17,593,470        16,422,259        16,043,011  

Non-current liabilities

     6,873,801         7,628,598         5,865,589  

Total liabilities

     24,467,271        24,050,857        21,908,600  

Share capital

     2,500,000        1,789,079        1,789,079  

Share premium

     2,821,006        2,251,113        2,251,113  

Retained earnings

     762,129        1,641,363        3,310,247  

Other equity

     0        0        0  

Total equity

     6,083,135        5,681,555        7,350,439  

 

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Table of Contents

(Unit: In millions of Won, except for per share data)

 

Description

   For the three months
ended
March 31,
2024
     For the year
ended
December 31,
2023
     For the year
ended
December 31,
2022
 

Revenue

     5,137,018        19,811,015        24,131,172  

Operating profit (loss)

     (644,820      (3,884,121      (3,201,463

Profit (loss) from continuing operations

     (876,445      (1,718,701      (3,191,387

Profit (loss) for the period

     (876,445      (1,718,701      (3,191,387

Basic earnings (loss) per share

     (2,280      (4,803      (8,919

Diluted earnings (loss) per share

     (2,280      (4,803      (8,919

 

  C.

Consolidated subsidiaries (as of March 31, 2024)

 

Company Interest

   Primary Business    Location    Equity  

LG Display America, Inc.

   Sales    U.S.A.      100

LG Display Germany GmbH

   Sales    Germany      100

LG Display Japan Co., Ltd.

   Sales    Japan      100

LG Display Taiwan Co., Ltd.

   Sales    Taiwan      100

LG Display Nanjing Co., Ltd.

   Manufacturing    China      100

LG Display Shanghai Co., Ltd.

   Sales    China      100

LG Display Guangzhou Co., Ltd.

   Manufacturing    China      100

LG Display Shenzhen Co., Ltd.

   Sales    China      100

LG Display Singapore Pte. Ltd.

   Sales    Singapore      100

L&T Display Technology (Fujian) Limited

   Manufacturing and sales    China      51

LG Display Yantai Co., Ltd.

   Manufacturing    China      100

Nanumnuri Co., Ltd.

   Workplace services    Korea      100

LG Display (China) Co., Ltd.

   Manufacturing and sales    China      70

Unified Innovative Technology, LLC

   Managing intellectual property    U.S.A.      100

LG Display Guangzhou Trading Co., Ltd.

   Sales    China      100

Global OLED Technology LLC

   Managing intellectual property    U.S.A.      100

LG Display Vietnam Haiphong Co., Ltd.

   Manufacturing and sales    Vietnam      100

Suzhou Lehui Display Co., Ltd.

   Manufacturing and sales    China      100

LG Display Fund I LLC(1)

   Investing in new emerging
companies
   U.S.A      100

LG Display High-Tech (China) Co., Ltd.

   Manufacturing and sales    China      70

 

(1)

During the reporting period, we invested an additional W652 million in LG Display Fund I LLC.

 

  D.

Status of equity investments (as of March 31, 2024)

 

  (1)

Consolidated subsidiaries

 

Company

   Capital Stock
(in millions)
     Date of
Incorporation
     Equity
Interest
 

LG Display America, Inc.

   USD  411        September 1999        100

LG Display Germany GmbH

   EUR 1        October 1999        100

LG Display Japan Co., Ltd.

   JPY 95        October 1999        100

 

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Table of Contents

Company

   Capital Stock
(in millions)
     Date of
Incorporation
     Equity
Interest
 

LG Display Taiwan Co., Ltd.

   TWD  116        April 1999        100

LG Display Nanjing Co., Ltd.

   CNY  3,020        July 2002        100

LG Display Shanghai Co., Ltd.

   CNY 4        January 2003        100

LG Display Guangzhou Co., Ltd.

   CNY 1,655        June 2006        100

LG Display Shenzhen Co., Ltd.

   CNY 4        July 2007        100

LG Display Singapore Pte. Ltd.

   USD 1        November 2008        100

L&T Display Technology (Fujian) Limited

   CNY 116        December 2009        51

LG Display Yantai Co., Ltd.

   CNY 1,008        March 2010        100

Nanumnuri Co., Ltd.

   KRW 800        March 2012        100

LG Display (China) Co., Ltd.

   CNY 8,232        December 2012        70

Unified Innovative Technology, LLC

   USD 9        March 2014        100

LG Display Guangzhou Trading Co., Ltd.

   CNY 1        April 2015        100

Global OLED Technology LLC

   USD 138        December 2009        100

LG Display Vietnam Haiphong Co., Ltd.

   USD 600        May 2016        100

Suzhou Lehui Display Co., Ltd.

   CNY 637        July 2016        100

LG Display Fund I LLC(1)

   USD 76        May 2018        100

LG Display High-Tech (China) Co., Ltd.

   CNY  15,600        July 2018        70

 

(1)

During the reporting period, we invested an additional W652 million in LG Display Fund I LLC.

 

  (2)

Affiliated companies

 

Company

   Carrying
Amount
(in
  millions)  
     Date of
  Incorporation  
     Equity
Interest
 

Paju Electric Glass Co., Ltd.

   W 25,326        January 2005        40

Wooree E&L Co., Ltd.

   W 7,216        June 2008        13

YAS Co., Ltd.

   W 28,776        April 2002        16

Avatec Co., Ltd.

   W 20,750        August 2000        14

Arctic Sentinel, Inc.

     —         June 2008        10

Cynora GmbH

     —         March 2003        10

Material Science Co., Ltd.(1)

   W 3,255        January 2014        15

 

(1)

During the three months ended March 31, 2024, our equity interest in Material Science Co., Ltd. decreased from 16% to 15% due to a decrease in the investee’s treasury shares.

Although our respective share interests in Wooree E&L Co., Ltd., YAS Co., Ltd., Avatec Co., Ltd., Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, we are able to exercise significant influence through our right to appoint a director to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

For the three months ended March 31, 2024 and 2023, the aggregate amount of dividends we received from our affiliated companies was W200 million and W15,200 million, respectively.

 

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13.

Audit Information

 

  A.

Audit service

(Unit: In millions of Won, hours)

 

Description

   2024 Q1   2023   2022

Auditor

   Samil PwC   KPMG Samjong   KPMG Samjong

Activity

   Audit by independent
auditor
  Audit by independent
auditor
  Audit by independent
auditor

Compensation(1)

   1,800 (650)(2)   1,640 (590)(2)   1,557 (575)(2)

Time required(3)

   2,620   21,246   21,238

 

(1)

Compensation amount is the contracted amount for the full fiscal year.

(2)

Compensation amount in ( ) is for Form 20-F filing and SOX 404 audit.

(3)

Figures are based on actual performance as of the date of this report.

 

  B.

Non-audit service

 

Period

    Date of contract       Description of  
service
     Period of service      Compensation

2024 Q1

   February 2024    Tax advice    March 2024 ~ December 2024    W50 million

2023

   —     —     —     — 

2022

   —     —     —     — 

 

*

Based on direct contracts on a separate basis.

 

14.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information is omitted in quarterly and semi-annual reports in accordance with Korean disclosure rules, and we plan to include such information in our annual report.

 

15.

Board of Directors

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

16.

Information Regarding Shares

 

  A.

Total number of shares

 

  (1)

Total number of shares authorized to be issued (as of March 31, 2024): 500,000,000 shares.

 

  (2)

Total shares issued and outstanding (as of March 31, 2024): 500,000,000 shares.

 

  B.

Shareholder list

 

  (1)

Largest shareholder and related parties as of March 31, 2024:

 

Name

  

Relationship

   Number of shares
of common stock
     Equity
interest
 

LG Electronics(1)

   Largest shareholder      183,593,206        36.72

 

(1)

The number of shares and equity interest held by LG Electronics reflect its participation in our paid-in capital increase in March 2024.

 

  (2)

Shareholders who are known to us that own 5% or more of our shares as of March 31, 2024.

 

Beneficial owner

   Number of shares
of common stock
   Equity
interest

LG Electronics

   183,593,206    36.72%

 

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17.

Directors and Employees

 

  A.

Directors

 

  (1)

List of Members of Board of Directors

 

Name

  

Position

   Shares of
the
Company
held
     First
appointed
   Term
expires

Cheoldong Jeong

   Representative Director (non-outside), Chief Executive Officer and President      —       December 1,
2023
   March 22,
2027

Sung Hyun Kim

   Director (non-outside), Chief Financial Officer and Vice President      —       December 1,
2018
   March 23,
2025

Beom Jong Ha

   Non-standing Director and Member of Outside Director Nomination Committee      —       March 23,
2022
   March 23,
2025

Doocheol Moon

   Outside Director and Member of Audit Committee, Outside Director Nomination Committee and ESG Committee      —       March 23,
2021
   March 22,
2027

Chung Hae Kang

   Outside Director and Member of Audit Committee, Related Party Transaction Committee and ESG Committee      —       March 23,
2022
   March 23,
2025

Jungsuk Oh

   Outside Director and Member of Audit Committee, Outside Director Nomination Committee, Related Party Transaction Committee and ESG Committee      —       April 26,
2022
   March 21,
2026

Sang Hee Park

   Outside Director and Member of Audit Committee, Related Party Transaction Committee and ESG Committee      —       March 21,
2023
   March 21,
2026

 

  (2)

Compensation of Directors

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

  B.

Employees

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

18.

Other Matters

 

  A.

Legal proceedings

We are a defendant in two separate civil lawsuits (comprising one damages claim in the United Kingdom filed by private plaintiffs and one damages claim in Israel filed by private plaintiffs) filed against us and certain other TFT-LCD panel manufacturers in connection with alleged anticompetitive behavior of the defendants. In each of these cases, the amount being sought has not been determined. The trial for the case in the United Kingdom was completed and the court’s ruling regarding the amount of our liability is expected in May 2024, while no trial has been scheduled for the case in Israel. While the expected outcome of each of these cases is unclear, we do not believe that any of these cases would have a material effect on our financial conditions.

 

24


Table of Contents
  B.

Status of collateral pledged to related party

On March 27, 2023, the Board of Directors resolved to borrow W1 trillion from our largest shareholder, LG Electronics, in order to strengthen the competitiveness of our OLED business as well as for working capital purposes, and withdrew W650 billion of the principal amount of such borrowing on March 30, 2023 and the remaining W350 billion on April 20, 2023. The repayment terms provide for a two-year grace period followed by a one-year repayment period in installments with an interest rate of 6.06%. In addition, we pledged certain of our land and buildings equivalent to the sum of the principal and interest amount as collateral for such borrowing.

Moreover, deposits in the amount of CNY4,306 million (equivalent to the maximum amount of W799.8 billion) have been pledged as collateral by LG Display Nanjing Co., Ltd. in connection with our borrowings in the amount of USD 200 million and W450 billion from Shinhan Bank and others.

 

  C.

Material events subsequent to the reporting period

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

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Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Financial Statements

(Unaudited)

March 31, 2024 and 2023

(With Report on Review of Condensed Interim Financial Statements)


Table of Contents


Table of Contents

Report on Review of Condensed Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors of

LG Display Co., Ltd.

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of LG Display Co., Ltd. and its subsidiaries (collectively referred to as the “Group”). These condensed consolidated interim financial statements consist of the consolidated interim statement of financial position of the Group as at March 31, 2024, and the related consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month period ended March 31, 2024, and material accounting policy information and other selected explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

Other Matters

The consolidated statements of comprehensive income, changes in equity and cash flows for the three-month period ended March 31, 2023, presented herein for comparative purposes, were reviewed by another auditor whose report dated May 12, 2023. Based on their review, nothing has come to their attention that causes them to believe the accompanying condensed financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

 

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Table of Contents

The consolidated statement of financial position as at December 31, 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, were audited by another auditor who expressed an unqualified opinion on those statements on March 7, 2024. The consolidated statement of financial position as at December 31, 2023, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2023.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

May 14, 2024

Seoul, Korea

 

This report is effective as of May 14, 2024, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

 

2


Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of March 31, 2024 and December 31, 2023

 

(In millions of won)    Note    March 31, 2024
(unaudited)
     December 31,
2023
 

Assets

        

Cash and cash equivalents

   4, 25    W 2,571,729      2,257,522

Deposits in banks

   4, 25      653,248      905,971

Trade accounts and notes receivable, net

   5, 15, 25, 27      2,944,680      3,218,093

Other accounts receivable, net

   5, 25      83,849      126,985

Other current financial assets

   6, 25      210,029      168,623

Inventories

   7      3,369,327      2,527,728

Prepaid income taxes

        39,235      44,505

Other current assets

   5      317,923      253,759
     

 

 

    

 

 

 

Total current assets

        10,190,020      9,503,186

Deposits in banks

   4, 25      11      11

Investments in equity accounted investees

   8      85,323      84,329

Other non-current financial assets

   6, 25      187,553      173,626

Property, plant and equipment, net

   9, 18      19,676,122      20,200,332

Intangible assets, net

   10, 18      1,720,046      1,773,955

Investment Property

   11, 18      31,723      32,995

Deferred tax assets

   23      3,819,307      3,562,861

Defined benefits assets, net

   13      372,988      407,438

Other non-current assets

        29,696      20,565
     

 

 

    

 

 

 

Total non-current assets

        25,922,769      26,256,112
     

 

 

    

 

 

 

Total assets

      W 36,112,789      35,759,298
     

 

 

    

 

 

 

Liabilities

        

Trade accounts and notes payable

   25, 27    W 4,432,283      4,175,064

Current financial liabilities

   12, 25, 26      5,909,392      5,262,295

Other accounts payable

   25      1,911,645      2,918,903

Accrued expenses

        593,124      648,949

Income tax payable

        30,208      52,237

Provisions

   14      96,750      117,676

Advances received

        840,699      625,838

Other current liabilities

        51,282      84,066
     

 

 

    

 

 

 

Total current liabilities

        13,865,383      13,885,028

Non-current financial liabilities

   12, 25, 26, 27      11,213,215      11,439,776

Non-current provisions

   14      56,022      63,805

Defined benefit liabilities, net

   13      1,482      1,559

Long-term advances received

   15      808,080      967,050

Deferred tax liabilities

   23      1,646      2,069

Other non-current liabilities

   25      626,538      629,467
     

 

 

    

 

 

 

Total non-current liabilities

        12,706,983      13,103,726
     

 

 

    

 

 

 

Total liabilities

        26,572,366      26,988,754
     

 

 

    

 

 

 

Equity

        

Share capital

   16      2,500,000      1,789,079

Share premium

   16      2,821,006      2,251,113

Retained earnings

        1,889,974      2,676,014

Reserves

   16      727,279      515,976
     

 

 

    

 

 

 

Equity attributable to owners of the Parent

        7,938,259      7,232,182
     

 

 

    

 

 

 

Non-controlling interests

        1,602,164      1,538,362
     

 

 

    

 

 

 

Total equity

        9,540,423      8,770,544
     

 

 

    

 

 

 

Total liabilities and equity

      W 36,112,789      35,759,298
     

 

 

    

 

 

 

See accompanying notes to the condensed consolidated interim financial statements.

 

3


Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES 

Consolidated Interim Statements of Comprehensive Loss 

For the three-month periods ended March 31, 2024 and 2023 

 

(In millions of won, except loss per share amounts)    Note      2024
(unaudited)
    2023
(unaudited)
 

Revenue

     17, 18, 27      W 5,252,975     4,411,056

Cost of sales

     7, 19, 27        (5,035,087     (4,794,490
     

 

 

   

 

 

 

Gross profit (loss)

        217,888     (383,434

Selling expenses

     19, 20        (124,621     (137,625

Administrative expenses

     19, 20        (222,952     (224,394

Research and development expenses

     19        (339,747     (352,905
     

 

 

   

 

 

 

Operating loss

        (469,432     (1,098,358
     

 

 

   

 

 

 

Finance income

     22        202,202     514,535

Finance costs

     22        (407,708     (668,081

Other non-operating income

     21        431,888     383,350

Other non-operating expenses

     19, 21        (748,145     (605,718

Equity in income of equity accounted investees, net

        1,847     (567
     

 

 

   

 

 

 

Loss before income tax

        (989,348     (1,474,839

Income tax benefit

     23        228,072     321,739
     

 

 

   

 

 

 

Loss for the period

        (761,276     (1,153,100
     

 

 

   

 

 

 

Other comprehensive income (loss)

       

Items that will never be reclassified to profit or loss

       

Remeasurements of net defined benefit liabilities

     13        (2,789     (545

Other comprehensive income (loss) from associates

        (94     170
     

 

 

   

 

 

 
        (2,883     (375

Items that are or may be reclassified to profit or loss

       

Foreign currency translation differences for foreign operations

     16        253,528     363,105

Other comprehensive loss from associates

     16        (304     (113
     

 

 

   

 

 

 
        253,224     362,992
     

 

 

   

 

 

 

Other comprehensive income for the period, net of income tax

        250,341     362,617
     

 

 

   

 

 

 

Total comprehensive loss for the period

      W (510,935     (790,483
     

 

 

   

 

 

 

Profit (loss) attributable to:

       

Owners of the Parent

        (783,157     (1,213,777

Non-controlling interests

        21,881     60,677
     

 

 

   

 

 

 

Loss for the period

      W (761,276     (1,153,100
     

 

 

   

 

 

 

Total comprehensive income (loss) attributable to:

       

Owners of the Parent

        (574,737     (912,258

Non-controlling interests

        63,802     121,775
     

 

 

   

 

 

 

Total comprehensive loss for the period

      W (510,935     (790,483
     

 

 

   

 

 

 

Loss per share (in won)

       

Basic loss per share

     24      W (2,037     (3,187
     

 

 

   

 

 

 

Diluted loss per share

     24      W (2,037     (3,187
     

 

 

   

 

 

 

See accompanying notes to the condensed consolidated interim financial statements.

 

4


Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity

For the three-month periods ended March 31, 2024 and 2023

 

     Attributable to owners of the Parent Company               
(In millions of won)    Share capital      Share
premium
     Retained
earnings
    Reserves     Sub-total     Non-
controlling
interests
     Total equity  

Balances at January 1, 2023

   W 1,789,079      2,251,113      5,359,769     479,628     9,879,589     1,439,638      11,319,227
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total comprehensive income (loss) for the period

                 

Profit (loss) for the period

     —         —         (1,213,777     —        (1,213,777     60,677      (1,153,100
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Other comprehensive income (loss)

                 

Remeasurements of net defined benefit liabilities

     —         —         (545     —        (545     —         (545

Foreign currency translation differences

     —         —         —        302,007     302,007     61,098      363,105

Other comprehensive income (loss) from associates

     —         —         170     (113     57     —         57
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total other comprehensive income (loss)

     —         —         (375     301,894     301,519     61,098      362,617
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total comprehensive income (loss) for the period

   W —         —         (1,214,152     301,894     (912,258     121,775      (790,483
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Balances at March 31, 2023 (unaudited)

   W 1,789,079      2,251,113      4,145,617     781,522     8,967,331     1,561,413      10,528,744
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Balances at January 1, 2024

   W 1,789,079      2,251,113      2,676,014     515,976     7,232,182     1,538,362      8,770,544
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total comprehensive income (loss) for the period

                 

Profit (loss) for the period

     —         —         (783,157     —        (783,157     21,881      (761,276
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Other comprehensive income (loss)

                 

Remeasurements of net defined benefit liabilities

     —         —         (2,789     —        (2,789     —         (2,789

Foreign currency translation differences

     —         —         —        211,607     211,607     41,921      253,528

Other comprehensive income (loss) from associates

     —         —         (94     (304     (398     —         (398
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total other comprehensive income (loss)

     —         —         (2,883     211,303     208,420     41,921      250,341
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total comprehensive income (loss) for the period

   W —         —         (786,040     211,303     (574,737     63,802      (510,935
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Transaction with owners, recognized directly in equity

                 
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Capital Increase

     710,921      569,893      —        —        1,280,814     —         1,280,814
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Balances at March 31, 2024 (unaudited)

   W 2,500,000      2,821,006      1,889,974     727,279     7,938,259     1,602,164      9,540,423
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

See accompanying notes to the condensed consolidated interim financial statements.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the three-month periods ended March 31, 2024 and 2023

 

(In millions of won)    Note      2024
(unaudited)
    2023
(unaudited)
 

Cash flows from (used in) operating activities:

     26       

Cash used in operations

     26        (152,190     (355,452

Income taxes paid

        (42,366     (19,675

Interests received

        23,963     27,955

Interests paid

        (242,611     (226,346
     

 

 

   

 

 

 

Cash used in operating activities

      W (413,204     (573,518
     

 

 

   

 

 

 

Cash flows from (used in) investing activities:

       

Increase in deposits in banks

      W (500     (286,678

Proceeds from withdrawal of deposits in banks

        269,949     408,189

Acquisition of financial assets at fair value through profit or loss

        (331     (635

Proceeds from disposal of financial asset at fair value through profit or loss

        66     191

Acquisition of property, plant and equipment

        (891,608     (1,302,945

Proceeds from disposal of property, plant and equipment

        26,684     375,459

Acquisition of intangible assets

        (199,372     (146,031

Proceeds from disposal of intangible assets

        34     —   

Government grants received

        2,227     2,803

Proceeds from settlement of derivatives

        85,172     28,925

Increase in short-term loans

        4,497     3,129

Increase in deposits

        (1,336     (2,912

Decrease in deposits

        527     1,252

Proceeds from disposal other assets

        —        1,464
     

 

 

   

 

 

 

Cash used in investing activities

        (703,991     (917,789
     

 

 

   

 

 

 

Cash flows from (used in) financing activities:

     26       

Proceeds from short-term borrowings

        1,654,638     2,591,199

Repayments of short-term borrowings

        (1,820,607     (2,643,980

Proceeds from issuance of bonds

        —        336,160

Repayments of bonds

        (80,000     (190,000

Proceeds from long-term borrowings

        1,325,404     2,700,802

Repayments of long-term borrowings

        (953,679     (944,102

Payment of lease liabilities

        (18,091     (20,938

Capital Increase

        1,292,455     —   

Transaction cost from capital increase

        (11,640     —   

Subsidiaries’ dividends distributed to non-controlling interests

        (7,302     —   
     

 

 

   

 

 

 

Cash from financing activities

        1,381,178     1,829,141
     

 

 

   

 

 

 

Net increase in cash and cash equivalents

        263,983     337,834

Cash and cash equivalents at January 1

        2,257,522     1,824,649

Effect of exchange rate fluctuations on cash held

        50,224     50,241
     

 

 

   

 

 

 

Cash and cash equivalents at March 31

      W 2,571,729     2,212,724
     

 

 

   

 

 

 

See accompanying notes to the condensed consolidated interim financial statements.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

1.

Reporting Entity

 

  (a)

Description of the Parent Company

LG Display Co., Ltd. (the “Parent Company”) was incorporated in February 1985 and the Parent Company is a public corporation listed in the Korea Exchange since 2004. The main business of the Parent Company and its subsidiaries (the “Group”) is to manufacture and sell displays and its related products. As of March 31, 2024, the Group is operating Thin Film Transistor Liquid Crystal Display (“TFT-LCD”) and Organic Light Emitting Diode (“OLED”) panel manufacturing plants in Gumi, Paju and China and TFT-LCD and OLED module manufacturing plants in Gumi, Paju, China and Vietnam. The Parent Company is domiciled in the Republic of Korea with its address at 128 Yeouidae-ro, Yeongdeungpo-gu, Seoul, the Republic of Korea. As of March 31, 2024, LG Electronics Inc., a major shareholder of the Parent Company, owns 36.72% (183,593,206 shares) of the Parent Company’s common stock.

As of March 31, 2024, 500,000,000 shares of the Parent Company’s common stock is listed on Korea Exchange under the identifying code 034220, and 15,741,012 American Depository Shares (“ADSs”, 2 ADSs represent one share of common stock) is listed on the New York Stock Exchange under the symbol “LPL”.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

1.

Reporting Entity, Continued

 

  (b)

Consolidated Subsidiaries as of March 31, 2024

 

(In millions)                            

Subsidiaries

  Location   Percentage of
ownership
    Closing  

Date of
incorporation

 

Business

  Capital stocks  

LG Display America, Inc.

  San Jose, U.S.A.     100   December   September 24, 1999   Sales of display products   USD  411  

LG Display Germany GmbH

  Eschborn, Germany     100   December   October 15, 1999   Sales of display products   EUR 1  

LG Display Japan Co., Ltd.

  Tokyo, Japan     100   December   October 12, 1999   Sales of display products   JPY 95  

LG Display Taiwan Co., Ltd.

  Taipei, Taiwan     100   December   April 12, 1999   Sales of display products   NTD 116  

LG Display Nanjing Co., Ltd.

  Nanjing, China     100   December   July 15, 2002   Production of display products   CNY  3,020  

LG Display Shanghai Co., Ltd.

  Shanghai, China     100   December   January 16, 2003   Sales of display products   CNY 4  

LG Display Guangzhou Co., Ltd.

  Guangzhou, China     100   December   June 30, 2006   Production of display products   CNY 1,655  

LG Display Shenzhen Co., Ltd.

  Shenzhen, China     100   December   July 27, 2007   Sales of display products   CNY 4  

LG Display Singapore Pte. Ltd.

  Singapore     100   December   November 4, 2008   Sales of display products   USD 1  

L&T Display Technology (Fujian) Limited

  Fujian, China     51   December   December 7, 2009   Production and sales of LCD module and LCD monitor sets   CNY 116  

LG Display Yantai Co., Ltd.

  Yantai, China     100   December   March 17, 2010   Production of display products   CNY 1,008  

Nanumnuri Co., Ltd.

  Gumi, South Korea     100   December   March 21, 2012   Business facility maintenance   KRW 800  

LG Display (China) Co., Ltd.

  Guangzhou, China     70   December   December 10, 2012   Production and sales of display products   CNY 8,232  

Unified Innovative Technology, LLC

  Wilmington, U.S.A.     100   December   March 12, 2014   Intellectual property management   USD 9  

LG Display Guangzhou Trading Co., Ltd.

  Guangzhou, China     100   December   April 28, 2015   Sales of display products   CNY 1  

Global OLED Technology, LLC

  Sterling, U.S.A.     100   December   December 18, 2009   OLED intellectual property management   USD 138  

LG Display Vietnam Haiphong Co., Ltd.

  Haiphong, Vietnam     100   December   May 5, 2016   Production and sales of display products   USD 600  

Suzhou Lehui Display Co., Ltd.

  Suzhou, China     100   December   July 1, 2016   Production and sales of LCD module and LCD monitor   CNY 637  

LG DISPLAY FUND I LLC (*)

  Wilmington, U.S.A.     100   December   May 1, 2018   Investment in venture business and technologies   USD 76  

LG Display High-Tech (China) Co., Ltd.

  Guangzhou, China     70   December   July 11, 2018   Production and sales of display products   CNY  15,600  

 

(*)

For the three-month period ended March 31, 2024, the Parent Company contributed W652 million in cash for the capital increase of LG DISPLAY FUND I LLC. There was no change in the Parent Company’s percentage of ownership in LG DISPLAY FUND I LLC as a result of this additional investment.

In addition to the above subsidiaries, the Parent Company has invested W925,100 million in MMT (Money Market Trust), which is controlled by the Parent Company.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

2.

Basis of Preparation

The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The accompanying (condensed) consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Group’s financial position, financial performance or cash flows, is not presented in the accompanying condensed consolidated interim financial statements.

 

  (a)

Application of accounting standards

The Group’s condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard as adopted by the Republic of Korea (Korean IFRS) 1034, Interim Financial Reporting. These condensed consolidated interim financial statements do not include all of the information required for full annual consolidated financial statements and should be read in conjunction with the consolidated financial statements of the Group as of and for the year ended December 31, 2023.

 

  (b)

Basis of Measurement

The condensed consolidated interim financial statements have been prepared on the historical cost basis except for the following material items in the consolidated statement of financial position:

 

   

derivative financial instruments at fair value, financial assets at fair value through profit or loss (“FVTPL”), financial assets at fair value through other comprehensive income (“FVOCI”), financial liabilities at fair value through profit or loss (“FVTPL”), and

 

   

net defined benefit liabilities (defined benefit assets) recognized at the present value of defined benefit obligations less the fair value of plan assets

 

  (c)

Functional and Presentation Currency

Each subsidiary’s financial statements within the Group are presented in the subsidiary’s functional currency, which is the currency of the primary economic environment in which each subsidiary operates. The condensed consolidated interim financial statements are presented in Korean won, which is the Parent Company’s functional currency.

 

  (d)

Estimates and Judgments

The preparation of the condensed consolidated interim financial statements in conformity with Korean IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

 

  (e)

Accounting standards and Interpretation issued and adopted by the Group

The Group has applied the following new or amended accounting standards for the annual periods commencing January 1, 2024.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

2.

Basis of Preparation, Continued

 

  (e)

Accounting standards and Interpretation issued and adopted by the Group, Continued

 

  (i)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. In addition, covenants that an entity is required to comply with after the end of the reporting period would not affect classification of a liability as current or non-current at the reporting date. When an entity classifies a liability that is subject to the covenants which an entity is required to comply with within twelve months of the reporting date as non-current at the end of the reporting period, the entity shall disclose information in the notes to understand the risk that non-current liabilities with covenants could become repayable within twelve months after the reporting period. The amendments do not have a significant impact on the financial statements.

 

  (ii)

Amendments to Korean IFRS 1007 Statement of Cash Flows, Korean IFRS 1107 Financial Instruments: Disclosures – Supplier finance arrangements

When applying supplier finance arrangements, an entity shall disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk.

 

  (iii)

Amendments to Korean IFRS 1116 Leases – Lease Liability in a Sale and Leaseback

When subsequently measuring lease liabilities arising from a sale and leaseback, a seller-lessee shall determine lease payments or revised lease payments in a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not have a significant impact on the financial statements.

 

  (iv)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Disclosure of Cryptographic Assets

The amendments require an additional disclosure if an entity holds cryptographic assets, or holds cryptographic assets on behalf of the customer, or issues cryptographic assets. The amendments do not have a significant impact on the financial statements.

 

  (f)

Accounting standards and Interpretation issued but not yet adopted by the Group

The Accounting standards and Interpretation issued that have been enacted or amended but have not been applied because the effective date has not arrived are as follows:

Amendments to Korean IFRS 1021 The Effects of Changes in Foreign Exchange Rates and 1101 First-time Adoption of International Financial Reporting Standards – Lack of Exchangeability

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

2.

Basis of Preparation, Continued

 

  (f)

Accounting standards and Interpretation issued but not yet adopted by the Group, Continued

 

When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments should be applied for annual periods beginning on or after January 1, 2025, and earlier application is permitted. The Group is in review for the impact of these amendments on the financial statements.

 

  (g)

Income Tax Expense

The Group is within the scope of the Pillar Two model rules, there is no additional income tax expenses recognized in relation to the rules and applied the exception to recognizing and disclosing information about deferred tax and assets and liabilities related to Pillar Two income Taxes.

 

3.

Accounting Policies

The accounting policies followed by the Group in the preparation of its condensed consolidated interim financial statements are the same as those followed by the Group in its preparation of the consolidated financial statements as of and for the year ended December 31, 2023, except for the application of Korean IFRS 1034, Interim Financial Reporting.

 

4.

Cash and Cash Equivalents and Deposits in Banks

Cash and cash equivalents and deposits in banks as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)              
     March 31, 2024      December 31, 2023  

Current assets

     

Cash and cash equivalents

     

Cash

   W 3        3  

Deposits (*1)

     2,571,726        2,257,519  
  

 

 

    

 

 

 

Total

   W 2,571,729        2,257,522  
  

 

 

    

 

 

 

Deposits in banks

     

Time deposits (*1) (*2)

   W 653,248        905,971  

Non-current assets

     

Deposits in banks

     

Deposit for checking account

   W 11        11  

 

(*1)

As of March 31, 2024, it includes deposits restricted in use of W1,094,481 million to guarantee the Parent Company’s borrowings.

(*2)

As of March 31, 2024, it includes funds for business cooperation of W20,000 million to aid LG Group companies’ suppliers which is restricted in use.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

5.

Trade Accounts and Notes Receivable, Other Accounts Receivable and Others

(a) Trade accounts and notes receivable as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)              
     March 31, 2024      December 31, 2023  

Due from third parties, net

   W 2,456,504        2,827,163  

Due from related parties

     488,176        390,930  
  

 

 

    

 

 

 

Total

   W 2,944,680        3,218,093  
  

 

 

    

 

 

 

(b) Other accounts receivable as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)              
     March 31, 2024      December 31, 2023  

Current assets

     

Non-trade receivables, net

   W 72,012        112,739  

Accrued income

     11,837        14,246  
  

 

 

    

 

 

 

Total

   W    83,849          126,985  
  

 

 

    

 

 

 

Due from related parties included in other accounts receivable as of March 31, 2024 and December 31, 2023 are W3,035 million and W11,520 million, respectively.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

5.

Trade Accounts and Notes Receivable, Other Accounts Receivable and Others, Continued

 

(c) The aging of trade accounts and notes receivable and other accounts receivable as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)    March 31, 2024  
     Original amount      Allowance for doubtful account  
     Trade accounts
and notes
receivable
     Other
accounts
receivable
     Trade accounts
and notes
receivable
     Other
accounts
receivable
 

Not past due

   W 2,936,675      81,378      (979)        (187

1-15 days past due

     6,531      1,195      —       (12

16-30 days past due

     2,323      213      (1      (2

31-60 days past due

     —         82      —       (1

More than 60 days past due

     131        1,193      —         (10
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   W 2,945,660      84,061      (980)        (212
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(In millions of won)    December 31, 2023  
     Original amount      Allowance for doubtful account  
     Trade accounts
and notes
receivable
     Other
accounts
receivable
     Trade accounts
and notes
receivable
     Other
accounts
receivable
 

Not past due

   W 3,212,514        123,919        (932)        (191

1-15 days past due

     3,077        1,357        (1      —   

16-30 days past due

     3,435        156        —         (2

31-60 days past due

     —         168        —         (2

More than 60 days past due

     —         1,592        —         (12
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   W 3,219,026        127,192        (933)        (207
  

 

 

    

 

 

    

 

 

    

 

 

 

The movement in the allowance for doubtful account in respect of trade accounts and notes receivable and other accounts receivable for the three-month periods ended March 31, 2024 and 2023 are as follows:

 

(In millions of won)    March 31, 2024      March 31, 2023  
     Trade accounts
and notes
receivable
     Other
accounts
receivable
     Trade accounts
and notes
receivable
     Other
accounts
receivable
 

At January 1

   W    933       207      875        1,778  

(Reversal of) bad debt expense

     47      5      (103      (216
  

 

 

    

 

 

    

 

 

    

 

 

 

At March 31

   W 980      212      772        1,562  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

5.

Trade Accounts and Notes Receivable, Other Accounts Receivable and Others, Continued

 

(d) Other current assets as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)              
     March 31, 2024      December 31, 2023  

Advanced payments

   W 1,470        1,675  

Prepaid expenses

     136,178        103,355  

Prepaid value added tax

     176,188        143,608  

Right to recover returned goods

     4,087        5,121  
  

 

 

    

 

 

 

Total

   W 317,923        253,759  
  

 

 

    

 

 

 

 

14


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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

6.

Other Financial Assets

Other financial assets as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)    March 31, 2024      December 31, 2023  

Current assets

     

Financial assets at fair value through profit or loss

     

Derivatives (*1)

   W 151,838        136,762  
  

 

 

    

 

 

 

Fair value hedging derivatives

     

Derivatives (*2)

   W 26,259        —   
  

 

 

    

 

 

 

Financial assets at amortized cost

     

Deposits

   W 537      1,356  

Short-term loans

     28,961      26,375  
  

 

 

    

 

 

 

Subtotal

   W 29,498        27,731  
  

 

 

    

 

 

 

Other financial assets

     

Lease receivables

   W 2,434      4,130  
  

 

 

    

 

 

 

Total

   W 210,029      168,623  
  

 

 

    

 

 

 

Non-current assets

     

Financial assets at fair value through profit or loss

     

Equity securities

   W 90,984      87,027  

Convertible securities

     3,185      3,127  

Derivatives (*1)

     39,536      32,941  
  

 

 

    

 

 

 

Subtotal

   W 133,705      123,095  
  

 

 

    

 

 

 

Fair value hedging derivatives

     

Derivatives (*2)

   W 9,139        —   
  

 

 

    

 

 

 

Financial assets at amortized cost

     

Deposits

   W 17,977      17,022  

Long-term loans

     26,732      33,509  
  

 

 

    

 

 

 

Subtotal

   W 44,709      50,531  
  

 

 

    

 

 

 

Total

   W   187,553        173,626  
  

 

 

    

 

 

 

 

(*1)

The derivatives, which are not designated as hedging instruments, arise from cross currency interest swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)

The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

7.

Inventories

Inventories as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)              
     March 31, 2024      December 31, 2023  

Finished goods

   W 1,149,495        750,775  

Work-in-process

     1,462,450        1,145,606  

Raw materials

     568,979        457,356  

Supplies

     188,403        173,991  
  

 

 

    

 

 

 

Total

   W 3,369,327        2,527,728  
  

 

 

    

 

 

 

For the three-month periods ended March 31, 2024 and 2023, the amount of inventories recognized as cost of sales and inventory valuation allowance are as follows:

 

(In millions of won)         2024              2023     

Inventories recognized as cost of sales

   W 5,035,087        4,794,490  

Inventory valuation allowance

     210,044        239,490  

Use of inventory valuation allowance

     (192,627      (245,619

There were no significant reversals of inventory valuation allowance recognized during the three-month periods ended March 31, 2024 and 2023.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

8.

Investments in Associates

Details of investment in associates as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)                                         

Associates

   Location    Closing    Date of
incorporation
  

Business

   March 31, 2024      December 31, 2023  
   Percentage of
ownership
    Carrying
amount
     Percentage of
ownership
    Carrying
amount
 

Paju Electric Glass Co., Ltd.

   Paju,

South Korea

   December    January

2005

   Production of glass for display      40   W 25,326      40   W 24,200  

WooRee E&L Co., Ltd.

   Ansan,

South Korea

   December    June

2008

   Production of LED back light unit packages      13     7,216      13     7,106  

YAS Co., Ltd.

   Paju,

South Korea

   December    April

2002

   Development and production of deposition equipment for OLEDs      16     28,776      16     28,564  

AVATEC Co., Ltd.

   Daegu,

South Korea

   December    August

2000

   Processing and sales of glass for display      14     20,750      14     20,871  

Arctic Sentinel, Inc.

   Los
Angeles,
U.S.A.
   March    June

2008

  

Development and production of

tablet for kids

     10     —         10     —   

Cynora GmbH

   Bruchsal,

Germany

   December    March

2003

   Development organic light emitting materials for displays and lighting devices      10     —         10     —   

Material Science Co., Ltd.(*)

   Seoul,

South Korea

   December    January

2014

   Development, production, and sales of materials for display      15     3,255      16     3,588  
                

 

 

      

 

 

 

Total

                 W 85,323      W 84,329  
                

 

 

      

 

 

 

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

8.

Investments in Associates, Continued

 

(*)

For the three-month period ended March 31, 2024, due to the investee’s disposal of treasury shares, the Parent Company’s percentage of ownership decreased from 16% to 15%.

Although the Parent Company’s respective share interests in WooRee E&L Co., Ltd., YAS Co., Ltd., AVATEC Co., Ltd., Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, the Parent Company is able to exercise significant influence through its right to appoint one or more directors to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

Dividend income recognized from associates for the three-month periods ended March 31, 2024 and 2023 amounted to W200 million and W15,200 million, respectively.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

9.

Property, Plant and Equipment

For the three-month periods ended March 31, 2024 and 2023, the Group purchased property, plant and equipment of W473,408 million and W1,243,634 million, respectively. The capitalized borrowing costs and the annualized capitalization rates were W28,363 million and 5.70%, and W76,413 million and 5.03%, for the three-month periods ended March 31, 2024 and 2023, respectively. Also, for the three-month periods ended March 31, 2024 and 2023, the Group disposed of property, plant and equipment with carrying amounts of W44,171 million and W393,438 million, respectively. And, the Group recognized W5,629 million and W16,791 million, respectively, as gain and loss on disposal of property, plant and equipment for the three-month period ended March 31, 2024 (gain and loss on disposal of property, plant and equipment for the three-month period ended March 31, 2023: W15,523 million and W33,041 million, respectively). For the three-month periods ended March 31, 2024 and 2023, impairment losses of W69,618 million and W3,890 million are recognized respectively for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

 

10.

Intangible Assets

The Group capitalizes expenditures related to development activities, such as expenditures incurred on designing, manufacturing and testing of products after those related activities meet the capitalization criteria of development costs including technical feasibility, future economic benefits and others. The balances of capitalized development costs as of March 31, 2024 and December 31, 2023 are W631,854 million and W641,461 million, respectively. For the three-month periods ended March 31, 2024 and 2023, the Group recognized impairment losses amounting to W45,368 million and W1,962 million, respectively, in connection with development projects.

 

11.

Investment Property

 

  (a)

Changes in investment properties for the three-month periods ended March 31, 2024 and 2023 are as follows:

 

(In millions of won)              
   2024      2023  

At January 1

   W  32,995        28,269  

Depreciation

     (1,272      (1,226
  

 

 

    

 

 

 

At March 31

   W 31,723        27,043  
  

 

 

    

 

 

 

 

  (b)

For the three-month period ended March 31, 2024, rental income from investment property is W1,783 million (rental income from investment property for the three-month period ended March 31, 2023: W810 million).

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

12.

Financial Liabilities

 

  (a)

Financial liabilities as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)              
     March 31, 2024      December 31, 2023  

Current

     

Short-term borrowings

   W 1,758,929        1,875,635  

Current portion of long-term borrowings

     3,194,920        2,934,693  

Current portion of bonds

     901,074        369,716  

Derivatives (*1)

     7,435        26,193  

Fair value hedging derivatives (*2)

     —         7,392  

Lease liabilities

     47,034        48,666  
  

 

 

    

 

 

 

Total

   W 5,909,392        5,262,295  
  

 

 

    

 

 

 

Non-current

     

Long-term borrowings

   W 10,656,060        10,230,658  

Bonds

     513,216        1,118,427  

Derivatives (*1)

     18,685        37,333  

Fair value hedging derivatives (*2)

     324        28,660  

Lease liabilities

     24,930        24,698  
  

 

 

    

 

 

 

Total

   W  11,213,215        11,439,776  
  

 

 

    

 

 

 

 

(*1)

The derivatives, which are not designated as hedging instruments, arise from cross currency interest swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)

The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

 

  (b)

Details of short-term borrowings as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)

Lender

   Description    Annual interest rate as of
March 31, 2024 (%)
   March 31,
2024
   December 31,
2023

Standard Chartered Bank Korea Limited and others

   Working capital and others    3.40 ~ 6.98    W1,758,929    1,875,635

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

12.

Financial Liabilities, Continued

 

  (c)

Details of Won denominated long-term borrowings as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)         

Lender

   Description      Maturity      Annual interest rate
as of

March 31, 2024 (%)
     March 31,
2024
    December 31,
2023
 

LG Electronics Inc.

    
Operating
capital
 
 
     March 2026        6.06      W 1,000,000       1,000,000  

Korea Development Bank and others

    

Facility
capital and
others
 
 
 
    
July 2024 ~
March 2030
 
 
     1.90 ~ 6.65        3,763,753       3,490,967  

Less : current portion of long-term borrowings

              (1,183,500     (776,000
           

 

 

   

 

 

 

Total

            W  3,580,253       3,714,967  
           

 

 

   

 

 

 

 

  (d)

Details of foreign currency denominated long-term borrowings as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won, USD and CNY)                                  

Lender

   Description      Maturity      Annual interest rate
as of

March 31, 2024 (%)
     March 31,
2024
    December 31,
2023
 

KEB Hana Bank and others

    

Facility
capital and
others
 
 
 
    
May 2024 ~
July 2029
 
 
     1.82 ~ 8.60      W 9,087,227       8,674,384  

Foreign currency equivalent of foreign currency borrowings

              USD 3,057       USD 3,222  
              CNY 26,757       CNY 24,991  

Less : current portion of long-term borrowings

              (2,011,420     (2,158,693
           

 

 

   

 

 

 

Total

            W  7,075,807       6,515,691  
           

 

 

   

 

 

 

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

12.

Financial Liabilities, Continued

 

  (e)

Details of bonds issued and outstanding as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won and USD)                            
     Maturity      Annual interest rate
as of

March 31, 2024 (%)
     March 31,
2024
     December 31,
2023
 

Won denominated bonds at amortized cost (*1)

           

Publicly issued bonds

    

September 2024 ~

February 2027

 

 

     2.29~3.66      W 945,000        1,025,000  

Privately issued bonds

    

January 2025 ~

January 2026

 

 

     7.20~7.25        337,000        337,000  

Less : discount on bonds

           (1,753      (2,120

Less : current portion

           (901,074      (369,716
        

 

 

    

 

 

 

Subtotal

         W 379,173        990,164  
        

 

 

    

 

 

 

Foreign currency denominated bonds at amortized cost (*2)

           

Privately issued bonds

     April 2026        7.22      W 134,680        128,940  

Foreign currency equivalent

           USD 100        USD 100  

Less : discount on bonds

           (637      (677
        

 

 

    

 

 

 

Less : discount on bonds of Foreign currency denominated bonds

           —         USD (1)  
        

 

 

    

 

 

 

Subtotal

         W 134,043        128,263  
        

 

 

    

 

 

 

Total

         W  513,216        1,118,427  
        

 

 

    

 

 

 

 

(*1)

Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly.

(*2)

Principal of the foreign currency denominated bonds is to be repaid at maturity and interests are paid quarterly.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

13.

Post-employment Benefits

The Parent Company and certain subsidiaries’ defined benefit plans provide a lump-sum payment to an employee based on final salary rates and length of service at the time the employee leaves the Parent Company or certain subsidiaries.

 

  (a)

Net defined benefit liabilities (defined benefit assets) recognized as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)              
     March 31, 2024      December 31, 2023  

Present value of defined benefit obligations

   W 1,455,814        1,491,146  

Fair value of plan assets

     (1,827,320      (1,897,025
  

 

 

    

 

 

 

Total

   W (371,506)        (405,879
  

 

 

    

 

 

 

Defined benefit liabilities, net

   W 1,482        1,559  

Defined benefit assets, net

   W  (372,988)        (407,438

 

  (b)

Plan assets as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)              
     March 31, 2024      December 31, 2023  

Time deposits in banks

   W  1,827,320         1,897,025   

As of March 31, 2024, the Group maintains the plan assets primarily with Shinhan Bank, KEB Hana Bank and others.

 

  (c)

Expenses related to defined benefit plans recognized in profit or loss for the three-month periods ended March 31, 2024 and 2023 are as follows:

 

                                     
(In millions of won)              
        2024            2023     

Current service cost

   W 38,622        43,484  

Net interest cost

     (4,714)        (5,986)  
  

 

 

    

 

 

 

Total

   W     33,908        37,498  
  

 

 

    

 

 

 

 

  (d)

Remeasurements of the net defined benefit liabilities (assets) included in other comprehensive income (loss) for the three-month periods ended March 31, 2024 and 2023 are as follows:

 

                                     
(In millions of won)              
        2024            2023     

Remeasurements of net defined benefit liabilities

   W (3,620      (702

Tax effect

     831      157  
  

 

 

    

 

 

 

Remeasurements of net defined benefit liabilities, net of income tax

   W      (2,789      (545
  

 

 

    

 

 

 

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

14.

Provisions

Changes in provisions for the three-month periods ended March 31, 2024 and 2023 are as follows:

 

(In millions of won)                            
     Litigation      Warranties (*)      Others      Total  

At January 1, 2024

   W 1,806        173,795        5,880        181,481  

Additions (reversal)

     64        8,918        (1,495      7,487  

Usage

     —         (36,196      —         (36,196
  

 

 

    

 

 

    

 

 

    

 

 

 

At March 31, 2024

   W 1,870        146,517        4,385        152,772  
  

 

 

    

 

 

    

 

 

    

 

 

 

Current

   W 1,870        90,495        4,385        96,750  

Non-current

   W —         56,022        —         56,022  

 

(*)

The Group provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.

 

(In millions of won)                            
     Litigation      Warranties (*)      Others      Total  

At January 1, 2023

   W 1,680        249,368        8,431        259,479  

Additions (reversal)

     96        18,582        (1,879      16,799  

Usage

     —         (44,512      —         (44,512
  

 

 

    

 

 

    

 

 

    

 

 

 

At March 31, 2023

   W 1,776        223,438        6,552        231,766  
  

 

 

    

 

 

    

 

 

    

 

 

 

Current

   W 1,776        147,117        6,552        155,445  

Non-current

   W —         76,321        —         76,321  

 

(*)

The Group provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

15.

Contingent Liabilities and Commitments

 

  (a)

Legal Proceedings

Anti-trust litigations

The Group and other LCD panel manufacturers have been sued by individual claimants on allegations of violating EU competition laws. While the Group continues its vigorous defense of the various pending proceedings described above, as of March 31, 2024, the Group cannot predict the final outcomes of the lawsuits that have been filed.

Others

The Group is involved in various lawsuits and disputes in addition to pending proceedings described above. The Group cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the disputes.

 

  (b)

Commitments

Factoring and securitization of accounts receivable

The Parent Company has discount agreements with Korea Development Bank and other banks for accounts receivable related to export sales transactions with its subsidiary, up to USD 1,000 million (W 1,346,800 million). As of March 31, 2024, there is no discounted accounts receivable that are not past due in connection with these agreements. In relation to the above contract, the financial institutions have the recourse for account receivables that are past due.

The Parent Company has assignment agreements with Standard Chartered Bank and other banks for accounts receivable related to domestic and export sales transactions, up to W4,154,878 million. As of March 31, 2024, the amount of the sold accounts receivable that are not past due in connection with these agreements is W696,770 million. In relation to the above contract, the financial institutions do not have the recourse for account receivables that are past due.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

15.

Contingent Liabilities and Commitments, Continued

 

Letters of credit

The Group has entered into agreements with a financial institutions to open letter of credit (L/C), etc., and as of March 31, 2024, the credit limits for each agreement are as follows:

 

(In millions of won and USD)              
     Contractual amount      KRW equivalent  

KEB Hana Bank

     USD 450      W 606,060  

Industrial Bank of Korea

     USD 450        606,060  

Industrial and Commercial Bank of China

     USD 200        269,360  

Shinhan Bank

     USD 70        94,276  

KB Kookmin Bank

     USD 700        942,760  

MUFG Bank

     USD 100        134,680  

The Export–Import Bank of Korea

     USD 100        134,680  
  

 

 

    

 

 

 

Total

     USD 2,070        2,787,876  

Payment guarantees

The Parent Company obtained payment guarantees amounting of USD 1,200 million (W1,616,160 million) from KB Kookmin Bank and other banks for advances received related to the long-term supply agreements.

LG Display (China) Co., Ltd. and other subsidiaries have entered into agreements with China Construction Bank Corporation and other banks to receive guarantees up to CNY 850 million (W157,888 million), JPY 900 million (W8,005 million), VND 73,279 million (W3,979 million), and USD 0.5 million (W698 million) for the payment of consumption tax, import value-added tax, customs duties, and electricity charges.

Patent and License agreements

As of March 31, 2024, the Group has patent license agreements with Hitachi Display, Ltd. and others in relation to its LCD business and patent license agreements with Universal Display Corporation and others in relation to its OLED business. Also, as of March 31, 2024, the Group has a trademark license agreement with LG Corp. and other license agreements with other companies for patents, trademarks and other intellectual property rights.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

15.

Contingent Liabilities and Commitments, Continued

 

Long-term Supply Agreement

As of March 31, 2024, in connection with long-term supply agreements with customers, the Parent Company recognized advances received of USD 1,200 million (W1,616,160 million). The advances received will be used to offset against accounts receivable arising from future product sales after a certain period of time from the date of receipt. In relation to this, the Parent Company received payment guarantees of USD 1,200 million (W1,616,160 million) from KB Kookmin Bank and other banks. (see note 15(b) payment guarantees).

Collateral

The details of collateral provided by the Group are as follows:

 

(In millions of won, USD and CNY)                         

Collateral

   Carrying
amount
    Maximum
bond
amount
    

Secured creditor

   Collateral
borrowings
amount
 
   W 489,821       1,200,000      LG Electronics Inc.      1,000,000  
     82,354       326,400      Korea Development Bank and others      204,000  

Property, plant and equipment and others

     255,655 (*)      780,000      Korea Development Bank and others      300,000  
     719,927       —       China Construction Bank Corporation and others      CNY 9,330  
             USD 200  

Deposits in Banks and others

     CNY 4,306       799,840      Shinhan Bank and others      450,000  

The carrying amount of collateral asset, amounting to W255,655 million, includes collateral asset of W82,354 million for collateral borrowings of W204,000 million from Korea Development Bank and other banks.

Commitments for asset acquisition

The amount committed to acquire property, plant, equipment and intangible assets not recognized on the financial statements as of March 31, 2024 is W794,336 million.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

16.

Share Capital, Share Premium and Reserves

 

  (a)

Share capital and Share premium

The total number of shares to be issued by the Parent Company is 500,000,000 shares, the number of shares issued is 500,000,000 shares (December 31, 2023 : 357,815,700 shares), and the par value per share is W5,000.

The Parent Company conducted a paid-in capital increase based on the resolution of the board of directors on December 18, 2023, and the newly issued shares were listed on the Korea Exchange (KRX) on March 26, 2024.

With the new shares of common stock, the capital stock increased by W710,921 million to W2,500,000 million.

 

Classification

  

Description

Purpose

   Facility capital, operating capital and debt repayment

Type of shares issued

   Common stock

Number of shares issued

   142,184,300 shares

The amount per shares

  

W9,090

The Group’s capital surplus consists of share premium and due to the capital increase during this quarter, the share premium increased by W569,893 million to W2,821,006 million.

 

  (b)

Reserves

Reserves consist mainly of the following:

Translation reserve

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of overseas subsidiaries and others.

Other comprehensive income (loss) from associates

The other comprehensive income (loss) from associates comprises the amount related to change in equity of investments in equity accounted investees.

Reserves as of March 31, 2024 and December 31, 2023 are as follows:

 

(In millions of won)  
     March 31, 2024      December 31, 2023  

Foreign currency translation differences for overseas subsidiaries and others

   W 760,399        548,792  

Other comprehensive loss from associates

     (33,120      (32,816
  

 

 

    

 

 

 

Total

   W
 

727,279
 
 
     515,976  
  

 

 

    

 

 

 

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

17.

Revenue

Details of revenue for the three-month periods ended March 31, 2024 and 2023 are as follows:

 

(In millions of won)              
     2024      2023  

Sales of goods

   W  5,234,936      4,398,318  

Royalties

     3,582      4,947  

Others

     14,457      7,791  
  

 

 

    

 

 

 

Total

   W 5,252,975        4,411,056  
  

 

 

    

 

 

 

 

18.

Geographic and Other Information

The following is a summary of the Group’s operation by region based on the location of customers for the three-month periods ended March 31, 2024 and 2023.

 

  (a)

Revenue by geography

 

(In millions of won)              

Region

   2024      2023  

Domestic

   W 254,205        132,363  

Foreign

     

China

     3,563,714        2,965,198  

Asia (excluding China)

     608,063        528,673  

North America

     476,950        446,098  

Europe

     350,043        338,724  
  

 

 

    

 

 

 

Subtotal

   W  4,998,770        4,278,693  
  

 

 

    

 

 

 

Total

   W  5,252,975        4,411,056  
  

 

 

    

 

 

 

Revenue to Company A and Company B amount to W 2,647,814 million and W 735,119 million, respectively, for the three-month period ended March 31, 2024 (the three-month period ended March 31, 2023: W 2,277,666 million and W 825,557 million, respectively). The Group’s top ten end-brand customers together accounted for 88% of revenue for the three-month period ended March 31, 2024 (the three-month period ended March 31, 2023: 88%).

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

18.

Geographic and Other Information, Continued

 

  (b)

Non-current assets by geography

 

(In millions of won)                       

Region

   March 31, 2024      December 31, 2023  
   Property, plant
and equipment
     Intangible
assets
     Investment
Property
     Property, plant
and equipment
     Intangible
assets
     Investment
Property
 

Domestic

   W  13,169,934        1,632,421        31,723        13,583,136        1,683,116        32,995  

Foreign

                 

China

     3,215,852        28,152        —         3,358,395        32,009        —   

Vietnam

     3,277,228        34,683        —         3,244,729        31,472        —   

Others

     13,108        24,790        —         14,072        27,358        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Subtotal

   W 6,506,188        87,625        —         6,617,196        90,839        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   W 19,676,122        1,720,046        31,723        20,200,332        1,773,955        32,995  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (c)

Revenue by product and services

 

(In millions of won)              
     March 31, 2024      March 31, 2023  

TV

   W 1,124,792        825,117  

IT

     2,127,639        1,694,890  

AUTO

     513,486        495,042  

Mobile and others (*)

     1,487,058        1,396,007  
  

 

 

    

 

 

 

Total

   W 5,252,975        4,411,056  
  

 

 

    

 

 

 

 

(*)

This includes royalties and other revenue.

The proportion of revenue from OLED products to total revenue disclosed above was 47% and 45% for the years ended December 31, 2024 and 2023, respectively.

 

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LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023 (unaudited), and December 31, 2023

 

19.

The Nature of Expenses

The classification of expenses by nature for the three-month periods ended March 31, 2024 and 2023 are as follows:

 

(In millions of won)              
     2024      2023  

Changes in inventories

   W (841,599      62,332  

Purchases of raw materials and others

     3,126,663        2,384,765  

Depreciation and amortization

     1,279,177      1,018,196  

Outsourcing

     263,732      196,348  

Labor

     890,511      863,359  

Supplies and others

     220,564      216,886  

Utility

     329,867      284,188  

Fees and commissions

     167,603      178,146  

Shipping

     35,937      29,920  

Advertising

     14,287      17,672  

Warranty

     8,918      18,582