LG Display Co Ltd (LPL) 2025 Q3 法說會逐字稿

(spoken in foreign language)

（用外語說）

Good afternoon. This is Heo Suk, Leader of the LG Display IR team. Thank you for joining our third quarter 2025 earnings conference call.

午安.這位是LG Display IR團隊負責人許碩。感謝您參加我們2025年第三季財報電話會議。

Joining us today are CFO, Kim Sung-Hyun; Vice President, Choi Hyun-chul, in charge of Business Control and Management; Vice President, Kim Kyu Dong, in charge of Finance and Risk Management; Lee Kyung, in charge of Business Intelligence; Vice President, Kim Yong Duck, in charge of Large Display Planning and Management; Ahn-Yoo Shin, in charge of Medium Display Planning and Management; Park Sang-woo, in charge of Small Display Planning and Management; and [Hong Moon-tae], Head of Auto Planning and Management.

今天與我們一同出席的有：財務長金成鉉；負責業務控制和管理的副總裁崔賢哲；負責財務和風險管理的副總裁金奎東；負責商業智能的李京；負責大型顯示器規劃和管理的副總裁金勇德；負責中型顯示器規劃和管理的安宥信；負責大型顯示器規劃和管理的副總裁金勇德；負責中型顯示器規劃和管理的安宥信；負責顯示器規劃和管理的樸相；

Today's conference call will be conducted in both Korean and English. For detailed performance-related materials, please refer to our disclosure or the investor relations section in the company's website. Please refer to the disclaimer before we begin the presentation.

今天的電話會議將以韓語和英語進行。有關業績的詳細資料，請參閱本公司網站上的揭露文件或投資者關係部分。請在開始示範前閱讀免責聲明。

Please be informed that the financial figures presented in today's earnings release are consolidated figures prepared in accordance with IFRS. These figures have not yet been audited by an external auditor and are provided for the convenience of our investors.

請注意，今天發布的盈利報告中所列的財務數據是根據國際財務報告準則編制的合併數據。這些數據尚未經過外部審計師的審計，僅供投資人參考。

I will now report on the company's business performance in Q3 2025. Panel shipment grew Q-o-Q across the entire OLED product line, driven by the start of seasonality and supply for new small and medium sized OLED products. Revenue was KRW6.957 trillion, up by 25% Q-o-Q and up 2% Y-o-Y.

接下來我將報告公司 2025 年第三季的業務表現。受季節性因素和新型中小尺寸 OLED 產品供應的推動，整個 OLED 產品線的面板出貨量較上季成長。營收為6.957兆韓元，季增25%，年增2%。

Operating profit reached KRW431 billion, improving by over KRW500 billion Q-o-Q and Y-o-Y. The improvement resulted from the growth in shipment and portion of OLED products as well as the company's ongoing intensive cost innovation activities.

營業利潤達 4,310 億韓元，較上季和年比均成長超過 5,000 億韓元。這項改善得益於OLED產品出貨量和市場佔有率的成長，以及公司持續進行的密集成本創新活動。

The number reflects around KRW40 billion in onetime costs related to workforce efficiency activities, excluding which the business performance stands at approximately KRW470 billion.

該數字反映了與提高員工效率活動相關的約 400 億韓元一次性成本，若不計入該成本，則業務績效約為 4,700 億韓元。

Net income was KRW1.2 billion, including the impact from the foreign currency translation gain with the exchange rate rising Q-o-Q. EBITDA in Q3 was KRW1.4239 trillion with an EBITDA margin of 20%.

淨利潤為 12 億韓元，其中包括匯率環比上漲帶來的外匯折算收益的影響。第三季 EBITDA 為 1.4239 兆韓元，EBITDA 利潤率為 20%。

Next is the trend in area shipment and ASP. In Q3, area shipment fell 1% Q-o-Q despite the seasonality and growing shipment of small and medium OLED product lines. This is following reduced shipment of low-margin midsized LCD models in line with our ongoing profitability-focused product portfolio management.

接下來是區域出貨量和平均售價的趨勢。第三季度，儘管受到季節性因素的影響，且中小 OLED 產品線的出貨量不斷增長，但區域出貨量較上季下降了 1%。這是由於我們持續推進以獲利為導向的產品組合管理，導致低利潤率的中型液晶顯示器出貨量減少所致。

ASP per square meter was $1,365, up 29% Q-o-Q, slightly outperforming the guidance. It was driven by the higher-than-planned growth in shipments of small and medium OLED products. It is an all-time high, resulting in part from the rising portion of OLED.

每平方公尺平均售價為 1,365 美元，季增 29%，略高於預期。這是由於中小尺寸 OLED 產品出貨量成長超出預期所致。這是歷史最高水平，部分原因是 OLED 佔比上升。

Next is revenue share by product category. Mobile and others, which has the largest share, reached 39%, up 11-percentage-points Q-o-Q, led by panel shipment growth stemming from the seasonality and preparation for new products.

接下來是按產品類別劃分的收入份額。行動裝置及其他設備市佔率最大，達 39%，季增 11 個百分點，主要得益於季節性因素和新產品上市準備帶來的面板出貨量成長。

In IT, while revenue grew on the back of sharp expansion in shipment of OLED panel for IT, there were larger changes in revenue in other businesses. As a result, its portion fell to 37%, shrinking by 5-percentage-points Q-o-Q.

在 IT 領域，雖然 IT 產業的收入成長得益於 IT 產業 OLED 面板出貨量的大幅成長，但其他產業的收入變化更大。因此，其份額下降至 37%，季減 5 個百分點。

The TV segment's revenue share was 16%, down 4-percentage-points Q-o-Q. Auto segment's share was 8%, down 2-percentage-points Q-o-Q.

電視業務的營收份額為 16%，較上季下降 4 個百分點。汽車板塊的份額為 8%，環比下降 2 個百分點。

The share of OLED products out of total revenue was 65%, up 9-percentage-points Q-o-Q and 7-percentage-points Y-o-Y. As we continue to expand the performance of OLED-centric business structure upgrade, its impact is further solidifying our foundation for growth and profitability.

OLED 產品佔總營收的 65%，較上季成長 9 個百分點，較去年同期成長 7 個百分點。隨著我們不斷擴大以OLED為中心的業務結構升級的成效，其影響正在進一步鞏固我們成長和獲利的基礎。

Next is financial status and main indicators. Cash and cash equivalents in Q3 stood at KRW1.555 trillion, largely unchanged Q-o-Q. As we keep downsizing nonstrategic businesses, for example, discontinuing the LCD TV business and enhancing operational efficiency, the size of essential working capital has also decreased.

接下來是財務狀況和主要指標。第三季現金及現金等價物為1.555兆韓元，與上一季基本持平。隨著我們不斷縮減非策略性業務規模，例如停止液晶電視業務並提高營運效率，必要的營運資金規模也隨之減少。

Debt-to-equity ratio was 263% and net debt-to-equity ratio 151%, down 5-percentage-points and 4-percentage-points, respectively, Q-o-Q, further strengthening our financial soundness.

負債權益比率為 263%，淨負債權益比率為 151%，分別較上季下降 5 個百分點和 4 個百分點，進一步增強了我們的財務穩健性。

Next is Q4 guidance. Continuous growth is expected in area shipment of OLED products in Q4, while LCD shipment is expected to decrease as we keep running profitability-centered product portfolio. Accordingly, total area shipment is projected to grow in low single-digit percentage Q-o-Q.

接下來是第四季業績指引。預計第四季OLED產品出貨量將持續成長，而LCD出貨量預計將會下降，因為我們將繼續推行以獲利為中心的產品組合。因此，預計總區域出貨量將以個位數百分比較上季成長。

And for ASP per square meter, we saw much more pronounced increase in Q3 than usual, thanks to shipment growth of small and midsized OLED driven by seasonality and preparation for new product launches.

而就每平方公尺平均售價而言，由於季節性因素和新產品上市準備工作推動了中小尺寸 OLED 的出貨量成長，我們在第三季看到了比平常更為明顯的成長。

And that is also why going into Q4, we anticipate another higher level of ASP compared to average quarters. However, it is expected to decline in low single-digit percentage Q-o-Q due to some factors such as mix change in small and midsized OLED products.

這也是為什麼我們預計第四季平均售價將高於往年平均的原因。然而，由於中小尺寸 OLED 產品組合變化等因素，預計其環比將出現個位數百分比的下降。

And now let me hand over to our CFO, Kim Sung-Hyun.

現在讓我把麥克風交給我們的財務長金成鉉。

(spoken in foreign language)

（用外語說）

Good afternoon, everyone. This is the CFO, Kim Sung-Hyun. Let me thank you all for joining us at our conference call.

大家下午好。這位是財務長金成賢。感謝各位參加我們的電話會議。

Q3 this year was when we saw the results of our ongoing strategy to upgrade our business structure to be more OLED-centric and our strong initiatives for cost innovation beginning to come to fruition and manifest themselves into business performance.

今年第三季度，我們看到了我們持續推進的業務結構升級策略的成果，該策略旨在更加以OLED為中心，同時我們在成本創新方面的強有力舉措也開始取得成效，並轉化為業務績效。

As mentioned earlier, Q3 saw an increase in shipment coming from the seasonality, coupled with the impact of concentrated shipment of small and medium OLED for new products, it has boosted OLED product group's revenue share up to 65%.

如前所述，第三季出貨量因季節性因素而增加，再加上新產品中小尺寸 OLED 的集中出貨，OLED 產品組的營收份額已提升至 65%。

Based on this, Q3 year-to-date business performance showed revenue of KRW18.6093 trillion and operating profit of KRW345 billion, continuing the trend of improvement and giving more visibility to a full year turnaround after four years.

基於此，第三季迄今的業務表現顯示，營收為 18.6093 兆韓元，營業利潤為 3,450 億韓元，延續了改善的趨勢，並使四年後全年扭虧為盈的前景更加明朗。

Despite the pressure on revenue from the discontinuation of the LCD TV business, it remained flat Y-o-Y, thanks to larger portion of OLED and premium products.

儘管液晶電視業務的終止給收入帶來了壓力，但由於OLED和高階產品佔比更大，收入仍與去年同期持平。

Operating profit year-to-date improved by approximately KRW1 trillion Y-o-Y. It is owed to the intense and speedy execution of strategic initiatives, including cost innovation and operational efficiency along with business structure upgrade.

今年迄今的營業利潤年增約1兆韓元。這歸功於策略性舉措的有力快速執行，包括成本創新、營運效率提升以及業務結構升級。

External uncertainties and the consequent shipment volatility are expected to persist in Q4. There still remain variables in the business environment, including macro-related real demand, intensifying competition among suppliers and supply chain stability, but we plan to address these challenges by prioritizing business efficiency initiatives.

預計第四季外部不確定因素及由此導致的出貨量波動將持續存在。商業環境中仍存在一些變數，包括宏觀經濟相關的實際需求、供應商之間日益激烈的競爭以及供應鏈的穩定性，但我們計劃透過優先推進業務效率提升措施來應對這些挑戰。

OLED products revenue share is expected to be similar Q-o-Q in Q4 with the annual share projected at a low 60% level. Incidentally, we are also planning for an additional workforce improvement program in Q4 as part of our ongoing cost innovation effort.

預計第四季度 OLED 產品收入份額將與上一季持平，年度份額預計在 60% 左右。順便一提，作為我們持續成本創新工作的一部分，我們還計劃在第四季度推出額外的員工改進計劃。

The specifics cannot be disclosed in advance, but its impact on our financial performance is considered to be more than that of last quarter. The onetime cost occurred by this workforce improvement program will be offset after 1.5 years, providing positive impact on the business performance thereinafter.

具體細節無法提前披露，但預計其對我們財務業績的影響將比上一季更大。此員工隊伍改善計畫產生的一次性成本將在 1.5 年後得到抵消，並對之後的業務績效產生正面影響。

Next, let me share our plans and strategies by business segment. For small mobile business, we plan to ensure more stable operations by expanding panel shipments every year based on our technological leadership and stronger partnership with our customers.

接下來，我將按業務板塊分享我們的計劃和策略。對於小型行動企業，我們計劃憑藉我們的技術領先優勢和與客戶更緊密的合作關係，逐年擴大面板出貨量，以確保更穩定的營運。

At the same time, we will keep broadening our future business opportunities by methodically implementing all future-proofing activities, including R&D and investments in new technologies.

同時，我們將有條不紊地進行各項面向未來的活動，包括研發和投資新技術，從而不斷拓展未來的商業機會。

For IT OLED, which is part of our midsized business, we plan to respond to the growing demand in high-end tablet market with our Tandem OLED technology.

對於作為我們中型業務一部分的 IT OLED，我們計劃利用我們的 Tandem OLED 技術來滿足高端平板電腦市場日益增長的需求。

And for the anticipated shift to OLED in the notebook sector, we will closely examine the market size and pace of change and respond effectively. Overall, we will enhance our responsiveness with differentiated approaches.

對於筆記型電腦領域預期的OLED轉變，我們將密切關注市場規模和變化速度，並做出有效應對。總體而言，我們將透過差異化的方法提高響應速度。

Leveraging our long-standing technological leadership and mass production competitiveness, we will solidify our leading position in the market. We will also proactively respond to changing environment, including market demand and customers requests through efficient utilization of our existing infrastructure.

憑藉我們長期以來的技術領先地位和大規模生產競爭力，我們將鞏固我們在市場上的領先地位。我們還將積極應對不斷變化的環境，包括市場需求和客戶要求，並透過有效利用現有基礎設施來實現這一目標。

In IT LCD business, we remain focused on reducing low-margin products while focusing on B2B and differentiated high-end LCD segments.

在IT液晶顯示器業務方面，我們將繼續專注於減少低利潤產品，同時專注於B2B和差異化的高階液晶顯示器市場。

It is encouraging that this has led to meaningful improvement in profitability Y-o-Y. We will strengthen execution of our current initiatives to deliver improved results next year as well.

令人鼓舞的是，這帶來了同比盈利能力的顯著提升。我們將持續加強現有措施的執行力度，以期明年取得更好的業績。

For large panel business, where OLED's differentiated competitiveness is well recognized in the market, we will further solidify our leadership in the premium market with a various lineup of OLED panels offering unique value based on close partnership with strategic customers.

對於大尺寸面板業務，OLED 的差異化競爭力已在市場上得到充分認可，我們將透過與策略客戶的緊密合作，推出一系列具有獨特價值的 OLED 面板，進一步鞏固我們在高端市場的領先地位。

We will continuously grow our business performance and intensify cost improvement initiatives to maintain stable business operations.

我們將持續提升業務績效，並加大成本控制力度，以維持業務穩定營運。

Last is auto. The market outlook is more positive than other product areas, led by expanding in-vehicle display adoption and accelerating enlargement of displays.

最後是自動。市場前景比其他產品領域更為樂觀，這主要得益於車載顯示器普及率的提高和顯示器尺寸的加速增大。

While competition is expected to intensify, we plan to maintain our competitive edge and create differentiated customer value based on our solid market position and diversified technology and product portfolio.

儘管預計競爭將會加劇，但我們計劃憑藉穩固的市場地位和多元化的技術和產品組合，保持競爭優勢，創造差異化的客戶價值。

Finally, on investment. Our principle in CapEx execution remains unchanged, focusing on investment for future preparedness and business structure upgrade. Because our investment efficiency initiatives continue, CapEx this year is expected to be at high KRW1 trillion range below last year's level.

最後，談談投資。我們在資本支出執行方面的原則保持不變，即專注於為未來做好準備和業務結構升級進行投資。由於我們的投資效率提升措施持續推進，預計今年的資本支出將比去年減少1兆韓元以上。

Moving forward, we will make prudent investment decisions while maximizing the use of existing infrastructure. New investments will be executed with profitability as the top priority. Thank you very much for your attention.

展望未來，我們將做出審慎的投資決策，同時最大限度地利用現有基礎設施。新投資項目將以獲利能力為首要目標。非常感謝您的關注。

(spoken in foreign language)

（用外語說）

This concludes our presentation of business highlights for Q3 2025. We will now take your questions. Operator, please commence with the Q&A session.

以上就是我們對2025年第三季業務亮點的介紹。現在開始回答各位的問題。操作員，請開始問答環節。

(Operator Instructions) Gang Ho Park, Daishin Securities.

（操作說明）樸剛浩，大新證券。

(spoken in foreign language)

（用外語說）

Congratulations on the good performance. Now I have largely two questions. Now I see that in the third quarter, the performance has risen sharply, and that appears to be on the back of rising revenue from the OLED panel as well as the revenue share of the OLED panel as well.

恭喜你表現出色。現在我主要有兩個問題。現在我看到，第三季業績大幅提升，這似乎是得益於OLED面板收入的成長以及OLED面板營收份額的提高。

Then the question is, does the company believe that it has the kind of structure that can sustain this kind of business performance down the road? And then related to this, traditionally, the company has been sluggish in the first half because of the strategy of its strategic customer.

那麼問題來了，該公司是否相信其組織結構能支撐這種業務表現持續下去？與此相關的是，傳統上，由於其策略客戶的策略，該公司上半年的業績一直較為疲軟。

But then given the fact that it saw a good performance in the first half of this year, then does the company believe that this marks any change in the structure of the OLED market or the OLED business? And then based on that, then what would be the outlook for next year first half and also for the whole year?

但鑑於該公司今年上半年的良好業績，該公司是否認為這標誌著 OLED 市場或 OLED 業務結構發生了任何變化？那麼，基於此，明年上半年以及全年的前景如何？

And the second question is, now in 2026, it appears that the macro uncertainties will continue and also competition continues to intensify even amidst the sluggish demand in the downstream. And as a result of this, then there could be some pressure from the customer to lower the ASP.

第二個問題是，到了 2026 年，宏觀經濟的不確定性似乎將繼續存在，即使下游需求疲軟，競爭也將繼續加劇。因此，客戶可能會施加一些壓力，要求降低平均售價。

Then how does the company intend to respond if such pressure should arise? And what is the company's strategy for continuous growth for the future?

那麼，如果出現這種壓力，公司打算如何應對？那麼，公司未來持續成長的策略是什麼？

(spoken in foreign language)

（用外語說）

This is VP Choi Hyun, in charge of the Business Control and Management responding to your questions. Now allow me to respond to the second part of your question first. And thank you very much for your interest in the company.

這裡是負責業務控制管理的副總裁崔賢，我來回答您的問題。現在請容許我先回答您問題的第二部分。非常感謝您對本公司的關注。

Now it is true that in the past few years, the uncertainty and volatility in the external environment have continued.

誠然，近幾年來，外部環境的不確定性和波動性一直持續存在。

But then the company have continued also to expand our business performance every year based on internal capabilities based on our push to upgrade our business structure to be more OLED-centric and also to continue with the cost innovation activities.

但同時，公司也憑藉自身能力，不斷提升業務績效，每年持續擴大業務規模。這得益於我們推動業務結構升級，使其更加以OLED為中心，並持續進行成本創新活動。

And as a result, despite the various factors coming from the outside, we were able to improve our performance, and we intend to keep demonstrating more stable performance down the road.

因此，儘管受到各種外部因素的影響，我們仍然能夠提高我們的業績，並且我們打算在未來繼續展現出更穩定的業績。

Now looking back to the performance in the past two years, then last year, in 2024, we were able to narrow the loss by a very big margin of KRW2 trillion from the previous 2023.

現在回顧過去兩年的業績，再看看去年，在 2024 年，我們能夠將損失大幅減少 2 兆韓元，與 2023 年相比。

And then for this year, although we still have the fourth quarter to go, we have the projection that we will be able to improve profitability by another KRW1 trillion this year for the year. Now looking ahead, uncertainties in the external environment are likely to persist.

至於今年，雖然還有第四季度，但我們預計今年獲利能力將再提高 1 兆韓元。展望未來，外部環境的不確定性可能會持續存在。

But then as explained earlier, based on the stronger business fundamentals as well as the ongoing efforts at cost innovation, we will continue to work to further improve our business performance next year as well Y-o-Y. And looking ahead, we will continue to maintain stable business performance.

但正如先前解釋的那樣，基於更強勁的業務基本面以及持續的成本創新努力，我們將繼續努力，爭取明年實現同比業務業績的進一步提升。展望未來，我們將持續維持穩定的業務表現。

And now it is true that there has been sluggish demand in the display market downstream and also stronger competition, making it difficult for any company to go for both growth and stable management of profitability at the same time.

現在，顯示器市場下游需求疲軟，競爭加劇，這使得任何公司都難以同時實現成長和穩定的獲利能力。

Having said that, the company will continue to try to expand our revenue and solidify our market leadership by increasing the OLED product portion, focusing more on high value-add and high-end products from global leaders and also developing the new growth engines based on differentiated technologies.

儘管如此，公司仍將繼續努力擴大收入，鞏固市場領導地位，具體措施包括增加 OLED 產品份額，更加重視來自全球領先企業的高附加價值和高端產品，以及開發基於差異化技術的新成長引擎。

And now with regards to your question about the panel price, I take it that it is a question about our maintenance of the profitability.

至於您提出的面板價格問題，我認為您指的是我們能否維持獲利能力的問題。

Now based on our strong partnership with our customers, we will continue to operate an optimum pricing strategy, while at the same time, upgrading our product mix and continuing with our cost innovation and operational efficiency activities at the same time so that we can continue to expand our profitability.

現在，基於我們與客戶的牢固合作關係，我們將繼續實施最優定價策略，同時升級我們的產品組合，並繼續進行成本創新和營運效率提升活動，以便我們能夠繼續擴大獲利能力。

(spoken in foreign language)

（用外語說）

We will take the next question.

我們來回答下一個問題。

Mingyu Kwon, SK Securities.

Mingyu Kwon，SK證券。

(spoken in foreign language)

（用外語說）

Congratulations on the good performance. I have two questions, and one is about the mobile. So it seems that the, so I'm wondering about the market reception to the launch of new models by the North American customer.

恭喜你表現出色。我有兩個問題，其中一個是關於手機的。所以，我想知道北美消費者對新車型的市場反應如何。

Now from media reports, it seems as if the reception for the standard model is better than expected, for the air model, perhaps less so. Then what would be the implications for the LG Display?

從媒體報導，標準版的市場反應似乎比預期好，而空氣版的市場反應可能就沒那麼好了。那麼，這對LG Display會有什麼影響呢？

For example, will there be any changes in the expected shipments or in the market share? And then the second question is now for the smartphone panel annual shipment target and the outlook for next year.

例如，預期出貨量或市佔率是否會有任何變化？那麼第二個問題就是智慧型手機面板的年度出貨量目標以及明年的展望。

So if there is a foldable product to be launched and also given the, so given the likely launch of the foldable product and also the intensifying competition, then what is the possibility of shipment increase in 2026? If the company believes that shipment growth in 2026 is possible, then what would be the drivers for that?

因此，如果即將推出可折疊產品，並且考慮到可折疊產品可能推出以及日益激烈的競爭，那麼 2026 年出貨量成長的可能性有多大？如果該公司認為 2026 年出貨量成長是可能的，那麼推動這項成長的因素是什麼？

And then the last question is related to the small to midsized OLED. Now because of the restructuring in the Japan Display Inc., it is understood that LG Display is now the sole supplier for the smartwatch panels.

最後一個問題與中小尺寸 OLED 有關。由於日本顯示器公司進行了重組，據了解，LG Display 現在是智慧手錶面板的唯一供應商。

Then what will be the volume, the annual volume of supply? And also what will be the contribution to the company's revenue and profit and loss?

那麼，年供應量是多少呢？此外，這將對公司的收入和利潤虧損做出怎樣的貢獻？

(spoken in foreign language)

（用外語說）

This is [Park Sang-woo], in charge of Small Display Planning and Management. Now for the smartphone business, the company has been achieving stable performance, thanks to our stronger competitiveness with our technology and production as well as across all areas of operation.

這位是負責小型顯示器規劃和管理的[樸相佑]。如今，在智慧型手機業務方面，公司憑藉著技術和生產方面的更強競爭力以及在所有營運領域的競爭力，取得了穩定的業績。

And then in terms of the response to the new models by the customer, we understand that generally, it is quite positive. But then for the different models, the actual demand could be different.

至於顧客對新車型的反應，我們了解到整體而言，反應相當正面。但不同型號的實際需求可能會有所不同。

So this could also translate into some changes in the shipment plan based on the market trends. And now in the first half, despite the seasonality, there was a meaningful shipment growth by over 20% Y-o-Y.

因此，根據市場趨勢，發貨計劃也可能會做出一些調整。儘管受到季節性因素的影響，但上半年出貨量仍實現了超過 20% 的同比增長。

And then in the second half, thanks to the diversified product portfolio and stable supply system as well as the efficiency improvement, there has been improvement in profitability as well. So for the year, we are confident that we will be able to further expand our performance from last year.

下半年，得益於產品組合多元化、供應系統穩定以及效率提升，獲利能力也提高了。因此，我們有信心在今年取得比去年更好的業績。

Now for the company, we believe that we have already have built up the technological know-how to flexibly respond to the diversifying needs from the customer. For example, by having a stronger capability in development and mass production of smartphone panels.

對於公司而言，我們相信我們已經累積了足夠的技術知識，可以靈活地回應客戶多樣化的需求。例如，透過增強智慧型手機面板的研發和量產能力。

And also by more efficiently utilizing the current infrastructure, we will be able to respond even more speedily and flexibly to new technologies and also growth in demand for different products.

此外，透過更有效地利用現有基礎設施，我們將能夠更快、更靈活地應對新技術以及對不同產品需求的成長。

And looking ahead, we will continue to create stable performance by strengthening our quality competitiveness, continuing with our cost innovation efforts and preparing for the future technologies based on our close partnership with the customer.

展望未來，我們將持續加強品質競爭力，持續推動成本創新，並與客戶緊密合作，為未來技術做好準備，從而創造穩定的績效。

Now about the wearable devices, they are equipped with a number of different functionalities. And also across the society, we are seeing increased interest in health overall.

現在來說說可穿戴設備，它們配備了許多不同的功能。此外，我們看到整個社會對健康的整體關注度也不斷提高。

So it seems as if the use of these products across the consumers lifestyle in general is going to keep going up. So we believe that the outlook for the mobile OLED product market, including the smartphones is quite positive.

因此，這些產品在消費者日常生活中的使用似乎將會持續成長。因此，我們認為包括智慧型手機在內的行動 OLED 產品市場前景相當樂觀。

The company already has the best technological leadership and production capability in the smartwatch panel business. And recently, there has been a change in the supplier status in the industry, which has also resulted in the growth of panel supply volume.

該公司在智慧手錶面板行業已經擁有最領先的技術優勢和生產能力。最近，行業供應商的地位發生了變化，這也導致了面板供應量的成長。

And we believe that this will serve to further solidify the company's position in the premium wearable market. Now in terms of the annual supply volume, revenue, profitability and other information related to them are directly related to the customer.

我們相信，這將有助於進一步鞏固公司在高階穿戴式裝置市場的地位。現在，就年度供應量、收入、獲利能力以及其他相關資訊而言，都與客戶直接相關。

And thus, please understand that I am not in the position to discuss the details or the specifics. But then we will continue to create stable performance in the smartwatch panel business, utilizing our technological competitiveness and leading supplier status.

因此，請理解我無法討論細節或具體情況。但我們將利用自身的技術競爭力和領先供應商地位，繼續在智慧手錶面板業務領域創造穩定的業績。

(spoken in foreign language)

（用外語說）

We will take the next question.

我們來回答下一個問題。

John Heekyu Yun, UBS Securities.

John Heekyu Yun，瑞銀證券。

(spoken in foreign language)

（用外語說）

I have a question on the small mobile product. Now the market expectation is that in the second half of 2026, the North American customer will be launching a foldable smartphone product.

我有一個關於小型移動產品的問題。目前市場預期，北美客戶將在 2026 年下半年推出可折疊智慧型手機產品。

Now then what would be LG Display's strategy for foldable smartphone panel business? And can you also share with us the status of the company's readiness for the product and technology?

那麼，LG Display在可折疊智慧型手機面板業務方面的策略是什麼？您能否也向我們介紹一下公司在產品和技術方面的準備？

(spoken in foreign language)

（用外語說）

Now for foldable products, there is growing anticipation from the market on the possibility of opening up new market segments for its differentiated form factor and the new user experience that it provides.

如今，市場對可折疊產品寄予厚望，認為其差異化的外形和全新的用戶體驗有望開闢新的市場領域。

Now if the foldable smartphone market becomes well established, then the product can also become the vehicle for trying out new technologies as the flagship model. So the company is closely monitoring the smartphone market trends as well as the demand outlook and is preparing for potential market growth.

如果可折疊智慧型手機市場發展成熟，那麼該產品也可以作為旗艦機型，成為嘗試新技術的工具。因此，該公司正密切關注智慧型手機市場趨勢和需求前景，並為潛在的市場成長做好準備。

But for now, our strategy is to maximize the supply volume for the existing products so that we can continue to heighten our performance until we can get better visibility into the demand growth as well as opportunities for the company.

但就目前而言，我們的策略是最大限度地提高現有產品的供應量，以便我們能夠繼續提高業績，直到我們能夠更好地了解需求成長以及公司的發展機會。

So the company continues with the series of activities to strengthen our R&D and acquire new technologies. Now in the smartphone areas, if we can come upon more clearer opportunities, then we will build up our supply structure and expand our business opportunities after carefully reviewing the market acceptance of differentiated product as well as the market growth pace.

因此，公司繼續進行一系列活動，以加強研發並取得新技術。現在在智慧型手機領域，如果我們能遇到更清晰的機會，那麼在仔細評估差異化產品的市場接受度以及市場成長速度之後，我們將建立我們的供應鏈結構並擴大我們的業務機會。

(spoken in foreign language)

（用外語說）

We will take the next question.

我們來回答下一個問題。

Sun Kim, Kiwoom Securities.

Sun Kim，Kiwoom Securities。

(spoken in foreign language)

（用外語說）

I have two regarding the IT business. Now first, in IT, the LCD, the competition for LCD in IT is intensifying. And also, at the same time, the profitability is worsening.

我有兩個關於IT產業的問題。首先，在IT領域，液晶顯示器（LCD）的競爭日益激烈。與此同時，獲利能力卻在惡化。

Then are there any plans for the company to downsize or even exit the LCD IT business as it has done so in the LCD TV? Or otherwise, what would be the strategy for the LCD IT business?

那麼，該公司是否有計劃縮減規模甚至退出液晶電視業務，就像它在液晶IT業務領域所做的那樣？否則，LCD IT業務的策略是什麼？

And then second, now there is also outlook for growing adoption of OLED in the IT market as well. And in response to this, your peers in the market are now making investment into the 8.6 Gen OLED. So what is the company's preparation or what are the company's activities in order to be ready for this potential adoption growth of OLED in IT?

其次，OLED 在 IT 市場的應用前景也越來越光明。對此，市場上的同行現在正在投資第 8.6 代 OLED 技術。那麼，為了迎接 OLED 在 IT 領域的潛在應用成長，該公司做了哪些準備或採取了哪些活動？

(spoken in foreign language)

（用外語說）

This is [Ahn-Yoo Shin], in charge of Medium Display Planning and Management. Now it is true that the medium product market remains overall sluggish, but then the company has been maintaining intense cost innovation activities.

這位是負責媒體展示規劃和管理的[申安佑]。雖然目前中階產品市場整體仍低迷，但該公司一直在積極進行成本創新活動。

And as a result, we have been moving closer to our targeted performance, for example, making gradual improvement on our profitability, thanks to our focus on the high-end LCD technologies and differentiated competitiveness coming from OLED.

因此，我們正朝著既定目標穩步邁進，例如，由於我們專注於高端液晶顯示技術以及OLED帶來的差異化競爭力，我們的獲利能力正在逐步提高。

In LCD, we are maintaining profitability-centric business management by the select and focused approach centered on strategic customers.

在液晶顯示器公司，我們透過以策略客戶為中心的精選和專注的方法，維持以盈利為中心的業務管理。

And utilizing the company's technological advantage and global customers partnerships, we continue to maintain our business based on B2B and high-end lineups. While at the same time, downsizing the low-margin models and improving profitability and enhancing stability.

利用公司的技術優勢和全球客戶合作夥伴關係，我們繼續保持以 B2B 和高端產品線為基礎的業務模式。同時，縮減低利潤率機型規模，提高獲利能力，增強穩定性。

And for OLED, in particular, the company is providing various solutions to our customers based on the two track strategy of addressing new demand and preparing for future market.

特別是對於 OLED，公司正基於滿足新需求和為未來市場做準備的雙軌策略，為客戶提供各種解決方案。

Now based on the company's differentiated competitiveness, we continue to respond to the growing demand of high-end monitors like gaming. And as a result, we are also seeing increase in the shipment of OLED panels for monitors.

現在，憑藉公司差異化的競爭力，我們將繼續滿足市場對高階顯示器（如遊戲顯示器）日益增長的需求。因此，我們也看到用於顯示器的 OLED 面板出貨量增加。

Now in the notebook business, it is expected that there is going to be a gradual transition to OLED. But then the company believes that we need to see additional and clearer signs of the market size, transition speed as well as consumers acceptance.

現在，筆記型電腦產業預計將逐步過渡到 OLED 技術。但該公司認為，我們需要看到更多更清晰的市場規模、轉型速度以及消費者接受度的跡象。

As such, the company remains closely watching the OLED notebook market size, while at the same time, we will be utilizing the existing infrastructure as much as possible for the technologies that can apply to future products. And by doing so, we will steadily make preparation for future technologies and mass production.

因此，公司將繼續密切關注 OLED 筆記型電腦市場規模，同時，我們將盡可能利用現有基礎設施，開發可應用於未來產品的技術。透過這樣做，我們將穩步為未來的技術和大規模生產做好準備。

(spoken in foreign language)

（用外語說）

We will take one last question.

我們最後一個問題。

Won Suk Chung, IM Securities.

鄭元錫，IM證券。

(spoken in foreign language)

（用外語說）

Now I have a simple question about the OLED TV. So the macro uncertainties continue and also there is growing competition with the LCD products.

現在我有一個關於OLED電視的簡單問題。因此，宏觀經濟的不確定性依然存在，而且液晶顯示器產品的競爭也日益激烈。

And then at the same time, there are also reports that a domestic TV set-top company is intending to expand its OLED lineup as well. So what is LG Display's strategy and mid-term to long-term target for the OLED TV business?

同時，也有報道稱，一家國內電視機上盒公司也打算擴大其OLED產品線。那麼，LG Display在OLED電視業務方面的策略和中長期目標是什麼？

(spoken in foreign language)

（用外語說）

This is [Kim Yong Duck], in charge of Large Display Planning and Management. Yes, it is true that the uncertainties in the external environment and the business environment continue. But then for the company this year, we are projecting a mid-6 million unit level of large OLED panel shipment, which is growth Y-o-Y.

這位是負責大型展示規劃與管理的[金勇德]。是的，外在環境和商業環境的不確定性仍然存在。但就公司而言，我們預計今年大型 OLED 面板出貨量將達到 600 萬片左右，以實現年成長。

Now compared to the LCD, the unique value of OLED panel appears to be more and more recognized in the market. And also pricing is nearing the range of affordability, enhancing further its acceptability in the market.

現在，與液晶顯示器相比，OLED面板的獨特價值似乎越來越受到市場的認可。而且價格也接近可承受範圍，進一步提高了其在市場上的接受度。

And as such, for next year, the company is looking forward to another growth expecting 7 million units. And in particular, the gaming OLED monitor, so the demand for the gaming OLED monitor that is produced out of the large OLED fab is seeing meaningful growth.

因此，該公司期待明年再次成長，預計銷量將達到 700 萬輛。尤其是遊戲 OLED 顯示器，大型 OLED 工廠生產的遊戲 OLED 顯示器的需求正在顯著增長。

So for the large OLED panel, so we believe that the gaming OLED monitor out of the large OLED panel shipment, the share will be around low-teen to mid-teen percentage this year.

因此，對於大尺寸 OLED 面板，我們認為今年遊戲 OLED 顯示器在大尺寸 OLED 面板出貨量中的份額將達到 10% 到 15% 左右。

The company continues to strengthen the fundamental competitiveness of OLED products as we also continue to diversify our product group. At the same time, we are maintaining very intense cost innovation activities and operational efficiency activities at the same time so as to continue to improve profitability of our large panel business.

公司在不斷增強OLED產品基本競爭力的同時，也不斷豐富產品線。同時，我們正在積極開展成本創新活動和營運效率提升活動，以持續提高我們大型面板業務的獲利能力。

Of course, I cannot mention the specific profitability of each business segment, but then the results of all these multifaceted efforts are coming together to make a bigger contribution to the overall business performance.

當然，我無法提及每個業務部門的具體獲利情況，但所有這些多方面努力的成果匯聚在一起，對整體業務績效做出了更大的貢獻。

But of course, external uncertainties persist and competition between the different products is also intensifying as evidenced by the launch of various products that are in direct competition with OLED.

當然，外部不確定因素依然存在，不同產品之間的競爭也在加劇，各種與 OLED 直接競爭的產品的推出證明了這一點。

So in response to these changes, the company will maintain our very strong cost innovation activities and also continue to build up our partnership with global top-tier customers so that we can maintain stable business performance.

因此，為了因應這些變化，公司將繼續保持強大的成本創新能力，並繼續加強與全球頂級客戶的合作關係，以維持穩定的業務表現。

And last, the company's OLED capacity is 180,000 for Generation 8, out of which we are currently utilizing 135,000 for mass production. And down the road, we intend to flexibly run the capacity in linkage to actual demand. And we also have sufficient infrastructure to flexibly respond to any additional growth in the market demand.

最後，該公司第八代 OLED 的產能為 18 萬片，目前我們正在利用其中的 13.5 萬片進行量產。未來，我們計劃根據實際需求靈活調整產能。而且我們還擁有足夠的基礎設施，可以靈活應對市場需求的任何額外成長。

(spoken in foreign language)

（用外語說）

Thank you very much. This concludes LG Display's Q3 2025 earnings conference call. We thank everyone for joining us today. Should you have any additional questions, please contact the IR team. Thank you.

非常感謝。LG Display 2025 年第三季財報電話會議到此結束。感謝各位今天蒞臨現場。如果您還有其他疑問，請聯絡投資者關係團隊。謝謝。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄稿中的英文陳述是由現場通話中的口譯員翻譯的。本次活動的翻譯人員由活動贊助公司提供。