Due to rising panel prices and good performance in the OLED (organic light-emitting diode) business, South Korean panel manufacturer LG Display announced on the 28th that it has officially turned a profit in the second quarter.
This South Korean optoelectronic factory, which enjoys technological advantages in the manufacturing of large OLED displays, had a net profit of 423.8 billion won (approximately US$367 million) in the second quarter, compared with a loss of 503.8 billion won (approximately US$436 million) in the same period of 2020. The profit has clearly turned from a loss to a profit.
Operating profit in the second quarter was 701.1 billion won (approximately US$607 million), compared with a profit loss of 517 billion won (approximately US$447 million) a year ago. At the same time, LG Display also achieved a record of profit exceeding 700 billion won for the first time in four years.
At the same time, sales volume increased by 31.3% to 6.96 trillion won, setting a record for the highest single-quarter revenue in the second quarter in its history. Compared with the first quarter, net profit increased by 59.4%
%, profit increased by 34%, and sales also increased slightly by 1.2%.
LG Display pointed out that its panel shipments reached 8.9 million square meters in the second quarter, much larger than the 6.7 million square meters a year ago. In terms of average selling price, it was US$703 per square meter last quarter, which was also higher than US$654 in the same period in 2020.
LG Display’s production capacity has expanded to 11.6 million square meters from 9.3 million square meters a year ago.
Judging from the product structure in the second quarter, IT panels accounted for 39% of revenue, followed by TV panels which accounted for 38%. As for mobile device monitors and screens, they accounted for 23%.
LG Display’s factory in Guangzhou, China will expand production capacity and it is expected to be able to supply 10 million OLED TV panels next year and 11 million in 2023.
In the LCD field, LG Display stated, “We have transferred a large number of LCD TV panel production lines to panel production lines for IT products. We have
Pinyong LCD panel has a solid customer base and differentiated solutions. ”
In addition, LG Display also said that it has planned to deal with possible price drops in LCD panels. Currently, the LCD TV panel business accounts for more than 15% of its total revenue.
LG Display Chief Financial Officer Suh Dong-hee said during the company’s second quarter conference call that it has conducted a substantive review of plans to add flexible OLED production lines for IT and mobile devices.
Suh said the company will make an announcement to the market once the plan is finalized.
IT OLED panels refer to panels used in smartphones such as iPhones.
LG Display’s production capacity is expected to increase by 15,000 Gen 6 (15001850mm) substrates. in 2020
In the second quarter conference call, the company stated that it has no plans to increase its production capacity of 15,000 substrates per month.
In a recent conference call, LG Display also said that it expects its large-scale OLED business to become profitable in the second half of the year.
Anna
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