LG Display Co Ltd (LPL) 2023 Q2 法說會逐字稿

[Interpreted] Good morning and good evening. First of all, thank you all for joining this conference call. And now we will begin the conference of the Fiscal Year 2023 Second Quarter Earnings Results by LG Display. This conference will start with a presentation followed by a divisional Q&A session. (Operator Instructions)

[翻譯]早上好，晚上好。首先，感謝大家參加本次電話會議。現在我們將開始召開 LG Display 2023 財年第二季度盈利結果發布會。本次會議將以演講開始，然後是部門問答環節。 （操作員說明）

Now we shall commence the presentation on the fiscal year 2023 second quarter earnings results by LG Display.

現在我們將開始介紹 LG Display 2023 財年第二季度的盈利結果。

[Interpreted] Good morning. This is Brian Heo, in charge of LG Display's IR. On behalf of the company, let me thank all the participants at this conference call. Today, I'm joined by the CFO, Sung-Hyun Kim; Hee-Yeon Kim, CSO; Seung-Min Lim, Senior Vice President of Corporate Planning; Ki Hwan Son, Vice President of Auto Marketing; [Jeong Lee], in charge of Business Intelligence; [Won Jae Lee], in charge of large Display Marketing; and Tae Gwang Kim, in charge of Medium Display Marketing.

[翻譯]早上好。我是 Brian Heo，負責 LG Display 的 IR。讓我代表公司感謝本次電話會議的所有參與者。今天，首席財務官 Sung-Hyun Kim 也加入了我的行列。 Hee-Yeon Kim，首席戰略官； Seung-Min Lim，企業規劃高級副總裁； Ki Hwan Son，汽車營銷副總裁； [Jeong Lee]，負責商業智能； [Won Jae Lee]，負責大型展示營銷；和 Tae Gwang Kim，負責中型展示營銷。

The conference call will be conducted in both Korean and English. Please refer to the provisional earnings release today or the IR Events section in the company's website for more details on the financial results of Q2, 2023. Before we begin the presentation, please take a moment to read the disclaimer. Please note that today's results are based on consolidated IFRS standards prepared for your benefit and have not yet been audited by an outside auditor.

電話會議將以韓語和英語進行。請參閱今天發布的臨時收益或公司網站的投資者關係活動部分，了解有關 2023 年第二季度財務業績的更多詳細信息。在我們開始演示之前，請花點時間閱讀免責聲明。請注意，今天的結果基於為您的利益而製定的綜合國際財務報告準則標準，尚未經過外部審計師的審計。

I will start with Q2 business results. In the midst of intense inventory correction continuing in the downstream industries since last year, especially in TV and IT, panel inventory in the channels has been falling. With improving inventory soundness across the industry ecosystem, leading to gradual recovery in panel demand, shipment of medium and large panels grew in Q2, led by OLED TV and IT. Revenue in Q2 was KRW 4.739 trillion, up 7% Q-o-Q. There was operating loss of KRW 881 billion, reduced from the previous quarter, following growth in shipment, improved operational efficiency and strong cost savings like cost innovation. LCD TV panel price keeps trending upward, but its impact on the company's Q2 results was limited with the company continuing with downsizing of LCD TV business as planned.

我將從第二季度的業務成果開始。去年以來下游行業尤其是電視、IT行業庫存持續大幅調整，渠道面板庫存持續下降。隨著整個行業生態系統庫存狀況的改善，面板需求逐步復甦，第二季度中大型面板出貨量增長，其中OLED電視和IT領漲。第二季度收入為 4.739 萬億韓元，環比增長 7%。由於出貨量增長、運營效率提高以及成本創新等強大的成本節約，運營虧損較上一季度減少了 8,810 億韓元。液晶電視面板價格持續上漲，但對公司第二季度業績影響有限，公司繼續按計劃縮減液晶電視業務規模。

Next, on area shipment and ASP per square meter, Q2 area shipment was up 11% Q-o-Q to 4.72 million square meters on the back of increased shipment of medium- and large-sized panels. ASP per square meter was $803, down 6% Q-o-Q and in line with the previous quarter's guidance from the seasonal decline in mobile shipment. In terms of revenue breakdown by each product segment, TV panel's revenue mix was 24%, owing to the Q-o-Q growth in OLED TV panel shipment. IT accounted for 42%, up 4 percentage points Q-o-Q, while mobile and others took up 23%, down by 9 percentage points following the seasonal decline in mobile panel shipments. Auto business is showing steady growth with its revenue mix remaining unchanged Q-o-Q at 11%. OLED revenue mix was lower Q-o-Q due to seasonal decline for mobile OLED falling 3 percentage points to 42%.

其次，在出貨面積和每平方米平均售價方面，由於中大尺寸面板出貨量增加，第二季度出貨面積環比增長11%至472萬平方米。每平方米平均售價為 803 美元，環比下降 6%，與上一季度移動出貨量季節性下降的指引一致。從各產品領域的收入細分來看，由於OLED電視面板出貨量環比增長，電視面板的收入結構為24%。 IT佔比42%，環比上升4個百分點；移動及其他佔比23%，因移動面板出貨量季節性下降而下降9個百分點。汽車業務呈現穩定增長，收入結構環比保持在 11% 不變。由於移動 OLED 的季節性下滑，OLED 收入結構環比下降了 3 個百分點，至 42%。

Next is on the financial position and key metrics. Company's cash and cash equivalent was KRW 3.853 trillion. Inventory value was KRW 2.682 trillion, resulting from the company's effort to minimize inventory. Key financial ratios were up Q-o-Q, resulting from the strategic financing activities to strengthen liquidity as well as net loss in the quarter. Debt-to-equity ratio was 293% and net debt-to-equity ratio, 143%. Cash flow in Q2 was KRW 3.853 trillion, almost flat from the previous quarter, with cash inflow from financial activities and cash outflow through investment, balancing out each other.

接下來是財務狀況和關鍵指標。公司現金及現金等價物為3.853萬億韓元。由於公司努力減少庫存，庫存價值為 2.682 萬億韓元。由於加強流動性的戰略融資活動以及本季度的淨虧損，主要財務比率環比上升。債務股本比率為293%，淨債務股本比率為143%。第二季度現金流為3.853萬億韓元，與上季度基本持平，金融活動現金流入和投資現金流出相互平衡。

Next, on Q3 guidance. With inventory level moving down across the industrial ecosystem, shipment of medium- and large-sized products is expected to grow again in Q3 following Q2. Area shipment is thus expected to grow by a mid single-digit in Q3. ASP per square meter is expected to increase by high single-digit Q-o-Q, thanks to seasonal growth in mobile panel shipments.

接下來，關於第三季度的指導。隨著整個產業生態系統的庫存水平下降，中型和大型產品的出貨量預計將繼第二季度之後在第三季度再次增長。因此，第三季度面積出貨量預計將實現中等個位數增長。由於移動面板出貨量的季節性增長，每平方米平均售價預計將環比出現高個位數增長。

Thank you for your attention. Next, CFO, Sung-Hyun Kim will walk us through the key highlights.

感謝您的關注。接下來，首席財務官 Sung-Hyun Kim 將向我們介紹主要亮點。

Good afternoon. This is the CFO, Sung-Hyun Kim. Looking back to the first half of the year, actual set sales fell short of expectations with macroeconomic uncertainties persisting and consumer sentiment dampening. But inventory soundness began to improve in Q2 across the ecosystem, leading to actual growth in panel purchase. It appears that the market is now over the worst, but not yet starting a full recovery backed by real demand. Consequently, the company further propped up liquidity through strategic financing activities in Q2 as well for the purpose of upgrading our business structure with our priorities strengthening our financial structure. Cost saving initiatives like reducing fixed cost, manpower deployment efficiency and flexible operation of fabs are still ongoing.

下午好。我是首席財務官金成賢 (Sung-Hyun Kim)。回顧上半年，宏觀經濟不確定性持續存在，消費者情緒低迷，實際套銷量不及預期。但整個生態系統的庫存狀況在第二季度開始改善，導致面板採購量實際增長。目前看來，市場已經度過了最糟糕的時期，但尚未開始在實際需求的支持下全面復甦。因此，公司在第二季度通過戰略融資活動進一步支撐流動性，也是為了升級業務結構，重點加強財務結構。降低固定成本、提高人力部署效率、晶圓廠靈活運營等成本節約舉措仍在進行中。

To upgrade our business structure, we will keep increasing the share and performance of contract-based business in the second half, including mobile products. Contract-based businesses revenue mix is expected to top 40% this year and 50% next year. The target is 70% in the next 2 to 3 years. The company will also strengthen the share and business competitiveness of OLED in all categories that cut across all the different sizes of panel. With improving market awareness of OLED value, its company-wide revenue mix is expected to surpass 50% this year and keep growing thereafter.

為了升級我們的業務結構，下半年我們將繼續提高合同業務的份額和業績，包括移動產品。合同業務收入組合今年預計將達到 40%，明年將達到 50%。目標是未來2到3年達到70%。該公司還將加強OLED在涵蓋所有不同尺寸面板的所有類別中的份額和業務競爭力。隨著市場對OLED價值的認知不斷提高，預計今年公司整體收入佔比將超過50%，並在此後繼續增長。

By product category, large OLED business will keep running on the basis of real demand, while broadening the customer base and consolidating its market position in the premium TV market. It will not be bound to the traditional TV market as the product portfolio keeps diversifying into new applications like gaming and transparent. It will also keep implementing cost innovation and improving expense structure efficiency.

從產品類別來看，大型OLED業務將根據實際需求繼續運行，同時擴大客戶群並鞏固其在高端電視市場的市場地位。它不會局限於傳統電視市場，因為產品組合不斷多元化，進入遊戲和透明等新應用領域。持續實施成本創新，提高費用結構效率。

For mid-sized OLED, the company is steadfastly building up the structure to respond to mass production in the first half of 2024. We will keep strengthening its business capability by preempting the market and ensuring stable operations. For medium LCD, we will focus on recovering profitability by enabling high-efficiency production system and cost innovation, while solidifying our leadership by targeting the premium monitor and laptop market based on differentiated competitiveness.

對於中尺寸OLED，公司正在穩步構建應對2024年上半年量產的架構。我們將通過搶占市場和確保穩定運營來不斷增強業務能力。對於中型液晶顯示器，我們將專注於通過高效生產系統和成本創新來恢復盈利能力，同時通過基於差異化競爭力的高端顯示器和筆記本電腦市場來鞏固我們的領導地位。

In small OLED business, we will grow the shipment volume and improve business consistency based on production ramp-up and technological capability. In auto, we continue to improve business performance on the basis of reliable supply, thanks to dedicated capacity as well as technology that can provide differentiated value like Tandem OLED. The company will focus on growing our revenue and increasing orders on top of differentiated technological competitiveness and customer relations across OLED and high-end LCD and boost our position as the world's #1.

在小型OLED業務方面，我們將根據產能提升和技術能力來增加出貨量並提高業務一致性。在汽車領域，我們憑藉專用產能以及能夠提供差異化價值（例如Tandem OLED）的技術，在可靠供應的基礎上不斷提高業績。公司將在OLED和高端LCD領域差異化的技術競爭力和客戶關係的基礎上，專注於增加收入和增加訂單，並提升我們作為全球第一的地位。

Going into the second half, turnaround to profit as expected in Q4 on anticipation of high panel demand by set makers following the return to healthy inventory levels and growth in contract-based business. But as explained earlier, the market is yet to start full recovery driven by real demand. The company will keep a close eye on the external environment as we strive toward more meaningful performance by focusing on recovering financial soundness and upgrading the business structure.

進入下半年，由於預計隨著庫存水平恢復健康以及合同業務的增長，電視機製造商對面板的需求將增加，第四季度將如預期扭虧為盈。但正如之前所解釋的，市場尚未在實際需求的推動下開始全面復甦。公司將密切關注外部環境，聚焦恢復財務穩健、升級業務結構，爭取更有意義的業績。

Thank you very much for your attention.

非常感謝您的關注。

That brings us to the end of earnings presentation for Q2 2023. We will now take your questions. Operator, please commence with the Q&A session.

2023 年第二季度的收益報告到此結束。現在我們將回答您的問題。接線員，請開始問答環節。

[Interpreted] Now Q&A session will begin. (Operator Instructions) The first question will be provided by Dongwon Kim from KB Securities.

【解讀】現在問答環節開始。 （操作員說明） 第一個問題將由 KB 證券公司的 Dongwon Kim 提出。

[Interpreted] Now my questions are with regards to OLED as well as the consolidated performance. Now first of all, for the small and mid-sized OLED, last year due to technical issues, the shipment of panels was reduced. So does the company expect a similar technical issues this year for small and mid-sized OLED panels? And does the company believe that there would be similar issues that would also reduce the shipment than the initial plan?

[解讀] 現在我的問題是關於OLED以及綜合性能。現在首先來說中小尺寸OLED，去年由於技術問題，面板出貨量有所減少。那麼，該公司預計今年中小尺寸OLED面板會出現類似的技術問題嗎？公司是否認為會出現類似問題，導致出貨量比最初計劃減少？

And my second question is now the company has now been seeing losses for the past 5 quarters straight. But then in the presentation, it was mentioned that the company is now expecting a turnaround in the fourth quarter of this year. Then from which business, the biggest contribution will come? So, will it be the large OLED or the small to mid-sized OLED or any other businesses? And what are the reasons or the drivers for such a contribution from that particular business?

我的第二個問題是，該公司在過去連續 5 個季度出現虧損。但隨後在演示中提到，該公司目前預計今年第四季度將出現扭虧為盈。那麼，哪項業務的貢獻最大呢？那麼，是大型OLED還是中小型OLED或者其他業務呢？該特定業務做出如此貢獻的原因或驅動因素是什麼？

[Interpreted] Thank you very much for your questions. This is Heo Suk -- Brian Heo, in charge of LG Display's IR. Now first of all, let me clarify that we are not able to comment on any situation involving the customer. But then for the second half of the year, based on our expanded mass production capability, the company intends to increase shipments. And by doing so, we also plan to improve our consolidated earnings.

[解釋]非常感謝您的提問。我是 Heo Suk——Brian Heo，負責 LG Display 的 IR。首先，我要澄清的是，我們無法對涉及客戶的任何情況發表評論。但下半年，基於我們擴大的量產能力，公司打算增加出貨量。通過這樣做，我們還計劃提高我們的綜合收益。

[Interpreted] Now this is the CSO responding to your second part of the question. And as the CFO has already explained in his presentation of the highlights, we see that the inventory level is going down across the market. And as a result, we see that the profitability is going to improve on both the large as well as the medium-sized OLED. Now that having said, where we are expecting the biggest momentum to come in the second half is, as Mr. Brian Heo has just explained, is from the capacity increase as well as the increase in the volume of the small-sized panels.

[解讀]現在這是CSO對你問題的第二部分的答复。正如首席財務官在其重點介紹中所解釋的那樣，我們看到整個市場的庫存水平正在下降。因此，我們看到大型和中型 OLED 的盈利能力都將提高。話雖如此，我們預計下半年最大的動力，正如Brian Heo先生剛才所解釋的，來自於產能的增加以及小尺寸面板數量的增加。

[Interpreted] The following question will be presented by Soo-yeon Kim from Hana Securities.

[解讀] 以下問題將由韓亞證券的 Soo-yeon Kim 提出。

[Interpreted] I also have 2 questions. They are pertaining to investment and EBITDA. Now first, about the annual investment, the company's guidance was somewhere in mid- to high KRW 3 trillion level for the year. Now having gone through quite a lot of changes in the circumstances, I wonder whether the number remains unchanged? Or is there -- are there any changes to the number for the annual investment? And then also, what would be the expected investment for the years 2023 as well as 2024? And also, what would be the company's guidance for EBITDA?

[解讀]我也有2個問題。它們與投資和 EBITDA 有關。首先，關於年度投資，該公司今年的指導處於 3 萬億韓元的中高水平。現在情況發生了很大的變化，我想知道這個數字還沒有變化嗎？或者年度投資的數字有什麼變化嗎？另外，2023 年和 2024 年的預期投資是多少？另外，公司對 EBITDA 的指導是什麼？

And then the second part of the question is also about investment, particularly in the OLED IT. So, I understand that the company is now investing in the OLED IT Gen 6. So, if the company can provide us an update regarding that investment. Then now with the company's clients in North America, what would be the plan for the IT investment for Gen 8?

問題的第二部分也是關於投資，特別是在 OLED IT 領域。據我了解，該公司目前正在投資 OLED IT Gen 6。因此，該公司能否向我們提供有關該投資的最新信息。那麼現在公司的客戶在北美，Gen 8的IT投資計劃是怎樣的？

[Interpreted] This is the CFO responding to your question. Now yes, the company has given the guidance of mid- to high KRW 3 trillion level for the annual investment. And currently, investment is underway where the investment is necessary within the guidance range. But of course, at the same time, we are conducting efforts in parallel to improve the efficiency of the investment as well as spending. And as the investors would be aware in this industry, investment is implemented over a long period after pre-orders. And that means that it is not easy to flexibly adjust the investment amount given the circumstances.

[解讀]這是首席財務官回答你的問題。現在是的，該公司已經給出了每年3萬億韓元中高水平的投資指導。目前，投資正在進行中，需要在指導範圍內進行投資。但當然，與此同時，我們正在並行努力提高投資和支出的效率。正如該行業的投資者所知，投資是在預訂後的很長一段時間內實施的。這意味著要根據具體情況靈活調整投資金額並不容易。

And there was also a question about expected investment for next year. Now of course, the business plan for next year is yet to be finalized, but then perhaps I can share with you some of the, let's say, some of the findings of the review that we have had so far regarding our investment plan. So for next year, perhaps -- so our thinking now is that there can be some meaningful reduction from the mid- to high-level KRW 3 trillion one level of investment of this year. And also, as the company has already disclosed, the investment into IT OLED Gen 6 is currently underway and this will continue into the first half of next year.

還有一個關於明年預期投資的問題。當然，現在明年的業務計劃尚未最終確定，但也許我可以與您分享一些我們迄今為止關於我們的投資計劃的審查結果。因此，對於明年，我們現在的想法是，可能會比今年 3 萬億韓元的中高端投資水平進行一些有意義的削減。此外，正如該公司已經披露的那樣，對 IT OLED Gen 6 的投資目前正在進行中，並將持續到明年上半年。

And there was also another question about investment, potential investment in Gen 8. And of course, this is related to a customer and also for ourselves, what we look into. So what some of the factors that we consider are the technological development as well as the progress being made and also whether there is development in the demand from the market that is sufficient to contribute to the company's profitability. So, there are a host of factors that we consider before we make the decision about investments. So, we will do so again this time in due time after considering all the different factors.

還有另一個關於投資的問題，對第 8 代的潛在投資。當然，這與客戶有關，也與我們自己有關，我們所研究的是什麼。那麼我們考慮的一些因素是技術發展以及正在取得的進步，以及市場需求的發展是否足以貢獻公司的盈利能力。因此，在做出投資決定之前，我們會考慮許多因素。所以，這次我們會在考慮所有不同因素後，在適當的時候再次這樣做。

[Interpreted] The following question will be presented by Simon Woo from Bank of America.

[解讀]以下問題將由美國銀行的Simon Woo提出。

[Interpreted] Now there was a mention about turnaround to profit in the fourth quarter. And just thinking about this simply then we see panel price rising, I believe only in LCD TV and not in others. Then I am trying to better understand the rationale behind the expectation of turnaround in Q4 and especially because the company appears to have done most of the cost reductions that it can. And of course, there is going to be some volume increase in the second half compared to the first half, but still, I'm not sure whether that would be sufficient to move the company from almost a KRW 1 trillion loss in 1 quarter to almost 0 next. So again, I'm trying to better understand the rationale. So, I would like to ask for further elaboration.

[解讀]現在有人提到第四季度扭虧為盈。只要簡單地考慮一下這一點，我們就會看到面板價格上漲，我只相信液晶電視，而不相信其他電視。然後我試圖更好地理解第四季度扭虧為盈預期背後的理由，特別是因為該公司似乎已經盡其所能地削減了大部分成本。當然，與上半年相比，下半年的銷量將會有所增加，但我仍然不確定這是否足以使公司從第一季度近 1 萬億韓元的虧損轉向接下來幾乎是0。再次，我試圖更好地理解其基本原理。所以，我想請求進一步的說明。

And then the second question is now I see that there has been a steady increase in borrowing. So, what would be the company's interest expense in the second quarter? That would be helpful for us to calculate the financial cost over the year.

第二個問題是，現在我看到借貸穩步增加。那麼，公司第二季度的利息支出是多少？這將有助於我們計算全年的財務成本。

[Interpreted] This is the CFO speaking. And the question was about the interest expense or the financial expense for the second quarter. But I know that you're simply going to multiply that number by 4. So, I would just like to go right ahead and give you the annual number, which is expected to be at low- to mid- KRW 600 billion.

[口譯]這是首席財務官的講話。問題是關於第二季度的利息費用或財務費用。但我知道您只需將這個數字乘以 4。因此，我想直接告訴您年度數字，預計將在 6000 億韓元中低水平。

[Interpreted] And this is the CSO, and I would like to comment about the turnaround, expected turnaround in Q4. And as was explained earlier, our small panels, they account for about 20%. And over the next 2 quarters, there is an expected increase by 10 percentage points each quarter. And another factor is the mid-sized IT, which has taken up the biggest share out of our revenue in Q2. Now of course, the price for TV is moving up. But then compared to that, it is true that for the mid-sized IT, there is not such a big movement. But it appears as if the price for mid-sized IT is also bottoming out and we have been seeing a slight increase and we believe that, that is also going to contribute to profitability.

[解讀] 這是 CSO，我想對扭虧發表評論，預計第四季度扭虧為盈。正如之前所解釋的，我們的小面板約佔 20%。未來兩個季度，預計每個季度增長 10 個百分點。另一個因素是中型IT，它在我們第二季度的收入中佔據了最大的份額。當然，現在電視的價格正在上漲。但相比之下，確實對於中型IT來說，並沒有那麼大的動靜。但中型 IT 的價格似乎也在觸底反彈，我們已經看到了小幅上漲，我們相信，這也將有助於提高盈利能力。

[Interpreted] The following question will be presented by Jung Hoon Chang from Samsung Securities.

[解讀]以下問題將由三星證券的Jung Hoon Chang提出。

[Interpreted] Now the first question, yes, the CSO commented on a possible turnaround in Q4. And I think for Q3, it was just about improvement. So, no specific guidance as far as I understood. Then I wonder whether this is incorporating the possibility of delay in mobile shipments in the second half? Or is it regardless of that? Meaning that it is just in consideration of the overall market circumstances and that the company believes that it will be difficult to go over the BP in the third quarter?

[解讀] 現在第一個問題，是的，CSO 評論了第四季度可能出現的好轉。我認為對於第三季度來說，這只是為了改進。因此，據我所知，沒有具體的指導。那麼我想這是否包含了下半年手機出貨量延遲的可能性？或者不管怎樣？是否意味著只是考慮到整體市場情況，公司認為三季度BP很難突破？

And the second question is now, yes, there have been press reports about a new customer in the large IT OLED, but then the company's guidance was simply about the possibility of starting a new partnership. So, if there could be some further highlights regarding this, then it would be appreciated. And then now based on this, then of course, the business plan, I'm sure has not been finalized, but then now what would be the company's expectation of the volume for next year?

第二個問題是，是的，有媒體報導稱大型 IT OLED 領域有新客戶，但隨後該公司的指導只是關於建立新合作夥伴關係的可能性。因此，如果對此有更多亮點，我們將不勝感激。然後現在基於此，當然，商業計劃，我確信還沒有最終確定，但是現在公司對明年銷量的預期是多少？

[Interpreted] This is the CFO speaking. And the question was about the potential turnaround in Q4 and improvement in Q3. Now overall, it is clear that there is improved (technical difficulty). Now for mobile shipment delay, I must clarify that the company has never commented on it. But in principle, regarding the market volatility or the company's inside operations, in principle, we always remain conservative. So, for the Q3, what we are expecting is that there is going to be a faster improvement in Q3 than what we have seen between Q1 and Q2. And then that improvement is going to accelerate in Q4 to achieve a turnaround.

[口譯]這是首席財務官的講話。問題是關於第四季度的潛在轉變和第三季度的改善。現在總體來說，很明顯是有改進的（技術難度）。對於手機發貨延遲的問題，我必須澄清，該公司從未對此發表評論。但原則上，對於市場波動或者公司內部經營，我們原則上始終保持保守。因此，對於第三季度，我們預計第三季度的改善將比我們在第一季度和第二季度之間看到的更快。然後，這種改善將在第四季度加速，以實現扭虧為盈。

And also, you asked about a new customer in large size, but please understand that the -- given the nature of our business, our industry, we are not in the position to comment on anything related to the customer. And that is the set makers position. So please understand, and that also means that there are no highlights for me to present to you at this time. And there was another question about the potential volume next year. And again, there is nothing for me to comment on at this time.

另外，您詢問了一位大型新客戶，但請理解，鑑於我們業務、行業的性質，我們無法對與該客戶相關的任何事情發表評論。這就是佈景製作者的立場。所以請大家理解，這也意味著我目前沒有什麼亮點可以給大家呈現。還有一個關於明年潛在銷量的問題。再說一次，我現在沒有什麼可評論的。

[Interpreted] The final question will be presented by Sung Eun Kim from Meritz Securities.

[解讀]最後一個問題將由 Meritz 證券公司的 Sung Eun Kim 提出。

[Interpreted] Now of course, demand remains uncertain in many categories. But then now in TV as well, I mean the demand is uncertain, but then now thanks to some correction in supply, the pricing for TV continues to rise. But then we do not see such conviction in IT. So, for the mid- to long-term, what we believe to have almost a certain growth in demand is the auto display category. And so that is what the market tends to believe and I believe that the company also has a similar expectation.

【解讀】當然，現在很多品類的需求仍然存在不確定性。但現在在電視領域也是如此，我的意思是需求是不確定的，但現在由於供應方面的一些調整，電視的定價繼續上漲。但我們在 IT 領域並沒有看到這樣的信念。因此，從中長期來看，我們認為需求幾乎有一定增長的是汽車顯示類別。這就是市場傾向於相信的，我相信該公司也有類似的期望。

Then for the medium term, what would be the potential orders received for auto business? And also what is the company's plan for the auto orders to be received for this year and next year? And also, what would be the revenue to be recognized in this business again for this year and next? So if such information can be shared with us, and that would be much helpful.

那麼中期來看，汽車業務的潛在訂單會是多少？公司今年和明年的汽車訂單計劃是怎樣的？另外，今年和明年該業務再次確認的收入是多少？因此，如果這些信息可以與我們分享，那將會非常有幫助。

[Interpreted] This is Ki Hwan Son, Vice President of Auto Marketing responding to your question. Now up to the second quarter for the OLED orders received, it has been KRW 4 trillion and we believe that the orders will -- so the orders continue to grow. So, we are currently continuing to upwardly adjust the expected orders for next year and the year after that. And as for the order backlog, it is currently KRW 20 trillion and it is going to be helpful in achieving consistent growth in revenue. And we believe that there is going to be an annual growth by mid-10% until 2027.

[解讀]這是汽車營銷副總裁 Ki Hwan Son 回答您的問題。截至第二季度，收到的 OLED 訂單已達 4 萬億韓元，我們相信訂單將會繼續增長。所以，我們目前正在繼續上調明年和後年的預期訂單。至於積壓訂單，目前為20萬億韓元，這將有助於實現收入的持續增長。我們相信，到 2027 年，年增長率將達到 10% 左右。

[Interpreted] If there is one last question, then we would like to entertain one more.

[解讀]如果還有最後一個問題，那麼我們想再回答一個問題。

[Interpreted] The final question will be presented by Jae Kwon from JPMorgan Securities.

[解讀]最後一個問題將由摩根大通證券的 Jae Kwon 提出。

[Interpreted] I have one question and that is about the Chinese -- about the company's LCD fab business in Guangzhou, China. So, what would be the timing of the sell-off and also about the tangible asset disposal? So regarding the LCD fab in Guangzhou, China, is there any update that can be shared with us? And in relation to that, when does the company believe that such update can be provided officially in the market?

[解釋]我有一個問題，是關於中國的——關於該公司在中國廣州的液晶顯示器工廠業務。那麼，拋售和有形資產處置的時機是什麼？那麼關於中國廣州的液晶顯示器工廠，有什麼最新消息可以與我們分享嗎？與此相關的是，公司認為何時可以在市場上正式提供此類更新？

[Interpreted] I do realize that there are a lot of speculations in the market regarding the LCD fab in Guangzhou, but what is for certain now is that about half of it is still running. And in terms of the asset rationalization or -- so we are trying to rationalize the use of the assets, but then nothing is determined yet. So regarding this, there is really no progress for me to share with the market.

【解讀】我確實知道市場上對於廣州的液晶顯示器工廠有很多猜測，但現在可以肯定的是，大約有一半的工廠仍在運行。就資產合理化而言，我們正在努力合理化資產的使用，但目前還沒有任何決定。所以在這方面，我確實沒有什麼進展可以跟市場分享。

[Interpreted] Thank you very much. That concludes the LG Display 2023 second quarter earnings results conference call. Thank you. And if there are any additional comments or questions, then please contact the IR team.

[解釋]非常感謝。 LG Display 2023 年第二季度收益電話會議至此結束。謝謝。如果還有任何其他意見或問題，請聯繫 IR 團隊。

[Portions of this transcript that are marked Interpreted were spoken by an interpreter present on the live call.]

[本文字記錄中標記為“已翻譯”的部分是由現場通話中的口譯員說出的。]