LG Display Co Ltd (LPL) 2026 Q2 法說會逐字稿

Good morning and good evening. Thank you all for joining the conference call for the LG Display earnings results. This conference will start with a presentation followed by a Q&A session. (Operator Instructions).

各位早安、晚安。感謝各位參加 LG Display 財報結果的電話會議。本次會議將先進行簡報，接著進入問答環節。（接線員指示）。

Now we will begin the presentation on LG Display's second-quarter of fiscal year 2026 earnings results.

現在我們將開始介紹 LG Display 2026 會計年度第二季的財報結果。

Good afternoon. This is Kim Kyu Dong, Vice President, In-charge of Finance and Risk Management at LG Display. Thank you for joining our second-quarter 2026 earnings conference call. Joining us today are CFO, Kim Sunghyun; Vice President, Cho Seunghyun, In-charge of Business Control and Management; Vice President, Kim Jong-duk, In-charge of Large Display Planning and Management; Ahn Yu-shin, In-charge of Medium Display Planning and Management; Vice President, Baek Seung-yong, In-charge of Small Display Planning and Management; Vice President Son Ki Hwan, Head of Auto Marketing; and Lee Ki Young, In-charge of Business Intelligence.

各位午安。我是 LG Display 負責財務與風險管理的副總裁金圭東。感謝各位參加我們 2026 年第二季財報電話會議。今天與會者包括：CFO 金成賢；負責事業控管與管理的副總裁趙承賢；負責大型顯示器規劃與管理的副總裁金鍾德；負責中型顯示器規劃與管理的安裕信；負責小型顯示器規劃與管理的副總裁白承勇；汽車行銷負責人孫基煥副總裁；以及負責商業情報的李基永。

Today's conference call will be conducted in both Korean and English. For more details on the company's performance, please refer to our disclosure, which is released just now or the Investor Relations section in the company website. Please refer to the disclaimer before we begin the presentation.

今天的電話會議將以韓文與英文雙語進行。如需公司業績的更多細節，請參閱我們剛發布的公告，或公司網站的投資人關係（IR）專區。在開始簡報前，請先參閱免責聲明。

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

敬請留意，今日財報新聞稿中所呈現的財務數字為依據國際財務報導準則編製之合併財務數字。這些數字尚未經外部會計師查核，係為投資人便利而提供。

I will now report on the company's business performance in Q2 2026. The company's production and shipments for mobile products in Q2 declined due to the seasonality. While shipments of Medium- and Large-Sized products increased driven by pull-in effects from sporting events, et cetera. With the won to dollar exchange rate remaining high, revenue in Q2 rose slightly YoY and QoQ to KRW5.6121 trillion (sic - see slide 3, "KRW5.612 trillion").

接下來我將報告公司 2026 年第二季的營運表現。第二季行動產品的生產與出貨因季節性因素而下滑。同時，在運動賽事等提前拉貨效應帶動下，中型與大型產品出貨增加。在韓元兌美元匯率維持高檔的情況下，第二季營收年增與季增皆小幅上升至 5.6121 兆韓元（原文如此——請參見投影片 3，「5.612 兆韓元」）。

As for P&L in Q2, the company recorded an operating loss, reflecting one-off costs from intensive workforce restructuring. However, with OLED capability stabilizing, and company-wide cost reduction efforts continuing, operating performance, excluding one-off costs, was in the black, improving significantly YoY. Even after accounting for seasonality and one-off costs, the company achieved profit for the first half of the year for the first time in five years since 2021.

就第二季損益（P&L）而言，公司因密集的人力重整所產生的一次性成本而錄得營業虧損。然而，隨著 OLED 產能/能力趨於穩定，且全公司持續推動成本削減，若排除一次性成本，營運表現轉為獲利，且年比大幅改善。即使將季節性與一次性成本納入考量，公司仍在自 2021 年以來的五年間首次於上半年達成獲利。

Operating profit margin was minus 2% and EBITDA margin, 16%. Net income recorded a loss of KRW418.8 billion due to the impact of FX translation loss as the exchange rate continued its rise from the previous quarter. Next is area shipment and ASP trends.

營業利益率為 -2%，EBITDA 利益率為 16%。由於匯率自前一季起持續上升，造成外幣換算損失影響，淨利為虧損 4,188 億韓元。接下來是面積出貨量與 ASP 趨勢。

Second quarter area shipment grew by 12% from the previous quarter to 3.6 million square meters resulting from an expansion in shipments of Medium- and Large-Sized products despite some changes in the product mix. Price per square meter fell 13% QoQ to $1,079 following the seasonal decline in shipments of mobile products, which command relatively higher price per square meter.

第二季面積出貨量較前一季成長 12% 至 360 萬平方公尺；儘管產品組合有所變化，但中型與大型產品出貨擴大帶動成長。每平方公尺價格因行動產品出貨季節性下滑（其每平方公尺單價相對較高）而季減 13% 至 1,079 美元。

Next, I will discuss the revenue breakdown by product category. IT -- sorry, TV accounted for 21% of total revenue; IT, 36%; Mobile and Others, 32%; and Auto 10%. In the Large-Size segment, which includes OLED TVs as well as OLED gaming monitors, TV share out of revenue rose by 5 percentage points QoQ, thanks to increased shipments. Mobile and Others declined by 5 percentage points from the previous quarter due to OLED seasonality.

接下來我將說明依產品類別的營收結構。IT——抱歉，TV 佔總營收 21%；IT 佔 36%；行動與其他佔 32%；車用佔 10%。在包含 OLED 電視與 OLED 電競顯示器的大尺寸事業中，受惠於出貨增加，TV 營收占比較前一季上升 5 個百分點。行動與其他則因 OLED 季節性因素，較前一季下降 5 個百分點。

OLED share out of revenue was 57%, increasing slightly YoY. The process of upgrading our business structure. For example, expanding the OLED business and strengthening the company's fundamentals and competitiveness is still underway as planned and its benefits are expected to become increasingly evident over time.

OLED 營收占比為 57%，年比小幅上升。我們正持續推進業務結構升級。例如，擴大 OLED 業務並強化公司基本體質與競爭力的工作，仍依計畫進行，其效益預期將隨時間愈加明顯。

Next is financial position and key metrics. Cash and cash equivalents in Q2 was KRW1.452 trillion, slightly down QoQ. Debt-to-equity ratio stood at [20%], and the net debt-to-equity ratio at 156%. Exchange rate volatility associated with the high exchange rate has partly affected these financial ratios. But our work to achieve long-term financial stability continues unchanged.

接下來是財務狀況與關鍵指標。第二季現金及約當現金為 1.452 兆韓元，較前一季小幅下降。負債比率為 [20%]，淨負債比率為 156%。與高匯率相關的匯率波動，部分影響了這些財務比率。但我們為達成長期財務穩定所做的工作將持續不變。

Next is guidance for Q3. For Q3, shipments of Large and Mobile OLED products are expected to increase due to the positive seasonality, but the total area shipment is expected to rise by mid-single-digit percent QoQ on the heels of some pull-in effect in Q2 and the ongoing optimization strategy of our IT LCD portfolio. As for the price per square meter, it is expected to rise by a high-teen percent level driven by shipment expansion, thanks to the mobile OLED seasonality.

接下來是第三季展望。第三季在正向季節性帶動下，大尺寸與行動 OLED 產品出貨預期將增加；但由於第二季部分提前拉貨效應，以及我們持續推動 IT LCD 產品組合的最佳化策略，整體面積出貨量預期僅季增中個位數百分比。至於每平方公尺價格，受惠於行動 OLED 季節性帶動的出貨擴大，預期將上升至高十位數百分比的水準。

I will now turn the call over to our CFO, Kim Sunghyun.

接下來把電話交給我們的 CFO 金成賢。

Good morning and afternoon. This is the CFO, Kim Sunghyun. Thank you for joining us at this conference call.

各位早安、午安。我是 CFO 金成賢。感謝各位參加本次電話會議。

Allow me to first discuss our Q2 results. In Q2, shipments of Medium to Large products increased, thanks to pull-in effects from sporting events, et cetera, as well as a favorable exchange rate, but it ended an operating loss in Q2, owing to the decline in mobile panel shipment due to the traditional seasonality and one-off costs from previously announced workforce optimization.

我先說明第二季的業績。第二季在運動賽事等提前拉貨效應帶動，以及有利匯率的助益下，中大型產品出貨增加；但由於行動面板出貨受傳統季節性影響下滑，加上先前公告的人力優化所產生的一次性成本，第二季最終仍為營業虧損。

But our core business profitability, excluding one-off costs remain in the black, achieving an improvement of over KRW100 billion in the first half YoY. We were able to minimize the impact from seasonality and one-off costs in the first half, thanks to the upgrade to OLED centric business structure based on technological leadership.

不過，排除一次性成本後，我們核心事業的獲利能力仍維持在獲利狀態，上半年年比改善超過 1,000 億韓元。憑藉以技術領先為基礎、朝 OLED 為中心的業務結構升級，我們得以在上半年將季節性與一次性成本的影響降至最低。

To be more specific, we have been undertaking rigorous and ongoing cost reduction initiatives company-wide to strengthen competitiveness. Not only that, there were parallel efforts toward yield improvement, profitability focused product portfolio adjustment and revenue expansion through partnerships with global customers, which created the foundation to deliver strong results despite the uncertain external environment.

更具體而言，我們在全公司範圍內推動嚴格且持續的成本削減措施，以強化競爭力。此外，我們也同步推進良率改善、以獲利為導向的產品組合調整，以及透過與全球客戶的合作夥伴關係擴大營收，從而奠定基礎，使我們即使在外部環境不確定的情況下仍能交出穩健成果。

Although external uncertainties and macroeconomic volatility will persist in the second half, the company plans to continue strengthening our competitiveness around two pillars: securing top-tier technology and advancing cost innovation based on technology.

儘管下半年外部不確定性與總體經濟波動仍將持續，公司計畫持續以兩大支柱強化競爭力：取得頂尖技術，以及以技術為基礎推進成本創新。

In particular, beyond simple cost cutting, we will maximize efficiency across the entire process from development to manufacturing through AI and digital transformation centered on AX-driven technological innovation. As production capability enhancement is expected to fundamentally improve the company's structure and drive growth based on differentiated customer value. These efforts will ultimately result in fundamental competitiveness, encompassing cost advantage, differentiation and concentration and are instrumental in building a business structure that generates sustained long-term profits.

特別是，除了單純的成本削減之外，我們將透過以 AX 驅動的技術創新為核心的 AI 與數位轉型，最大化從研發到製造的全流程效率。由於生產能力的提升預期將從根本上改善公司的體質，並以差異化的客戶價值帶動成長。這些努力最終將形成涵蓋成本優勢、差異化與聚焦的根本競爭力，並有助於建立可持續創造長期穩定利潤的事業結構。

Among the elements that constitute fundamental competitiveness, we believe the most essential is to secure cost leadership to create synergy with our technology differentiation strategy. Accordingly, we will keep prioritizing cost optimization and technology-driven differentiation across the company, along with flexible targeted allocation of resources as circumstances require to generate stable returns. Furthermore, we will use the resulting stable profits to strengthen our financial position and leverage that stronger financial base as a catalyst for future growth, thereby completing a virtuous cycle that solidifies our market position.

在構成根本競爭力的要素之中，我們認為最關鍵的是確保成本領先，以與我們的技術差異化策略形成綜效。因此，我們將持續把全公司層面的成本最佳化與技術驅動的差異化列為優先事項，並依情勢需要彈性且有針對性地配置資源，以創造穩定報酬。此外，我們將運用由此帶來的穩定獲利來強化財務體質，並以更強健的財務基礎作為未來成長的催化劑，從而完成鞏固市場地位的良性循環。

I will now briefly outline our plans and strategies for each business area. For Large OLED, we will strengthen our premier market leadership and expand performance with the product lineup that combines differentiated technology and cost competitiveness. As the monitor market increasingly shifts from LCD to OLED, we plan to capitalize on the unique strengths and differentiators of our Large W OLED to reinforce high-value product lines like gaming OLED monitors and increased shipments.

接下來我將簡要說明各事業領域的計畫與策略。在大型 OLED 方面，我們將強化領先市場的龍頭地位，並以結合差異化技術與成本競爭力的產品組合擴大業績表現。隨著顯示器市場加速由 LCD 轉向 OLED，我們計畫運用大型 W OLED 的獨特優勢與差異化特點，強化如電競 OLED 顯示器等高附加價值產品線並提升出貨量。

For Small and Medium Displays, we will focus on differentiated competitive technologies and strengthen competitiveness based on high-end products. We will also leverage our stable system of technology, development, and mass production to respond flexibly to market changes. Particularly, in mobile OLED, we will pursue profitability through new technology development, yield improvement and cost minimization while striving to deliver unique value to customers and consumers.

在中小尺寸顯示器方面，我們將聚焦於差異化的競爭技術，並以高階產品為基礎強化競爭力。我們也將運用穩定的技術、開發與量產體系，彈性因應市場變化。尤其在行動 OLED 方面，我們將透過新技術開發、良率提升與成本最小化來追求獲利，同時致力於為客戶與消費者提供獨特價值。

The automotive market is growing faster than other display segments and is thus more competitive. We will leverage our differentiated product and technology portfolio to lead market share and continuously strengthen our position.

車用市場的成長速度快於其他顯示器領域，因此競爭也更為激烈。我們將運用差異化的產品與技術組合來引領市占率，並持續強化我們的市場地位。

Building on these initiatives, we will strive to deliver tangible results in the second half of the year. Along the same line, we will continue driving annual performance improvements by upgrading our cost innovation and strengthening business competitiveness to solidify a stable profit structure.

在上述措施的基礎上，我們將力求在下半年交出具體成果。同時，我們將透過升級成本創新與強化事業競爭力，持續推動年度業績改善，以鞏固穩定的獲利結構。

Last is our investment strategy. We remain focused on developing differentiated technologies across all product lines to secure future competitiveness and achieve fundamental cost innovation.

最後是我們的投資策略。我們將持續專注於在所有產品線開發差異化技術，以確保未來競爭力並實現根本性的成本創新。

Having said that, large-scale investments that lead to mass production require various conditions such as demand visibility, confidence in market growth, and discussions with customers to use our limited resources efficiently. We are carefully evaluating cost competitiveness, investment cost, technological advantages, and the likelihood of securing stable returns.

不過，能帶動量產的大規模投資需要多項條件，例如需求能見度、對市場成長的信心，以及與客戶的討論，以便有效運用我們有限的資源。我們正審慎評估成本競爭力、投資成本、技術優勢，以及取得穩定報酬的可能性。

CapEx spend in 2026 is expected to be in the mid to high KRW2 trillion range. Going forward, our investment decisions will be made at the optimal balance point, taking into account the company's financial position and long-term competitiveness. Thank you very much for your attention.

2026 年資本支出（CapEx）預計落在 2 兆韓元中段至高段區間。展望未來，我們將在考量公司財務狀況與長期競爭力的前提下，於最佳平衡點做出投資決策。非常感謝各位的關注。

This concludes our presentation of business highlights for Q2 2026. We will now take your questions. Operator, please commence the Q&A session.

以上為 2026 年第二季營運重點簡報內容。接下來我們將進行提問。請主持人開始問答環節。

Now Q&A session will begin. (Operator Instructions)

現在開始問答環節。（主持人說明）

Won Suk Chung, iM Securities.

鄭元錫（Won Suk Chung），iM 證券。

I have two. The first is that there has been some pull-in demand in the second quarter. So considering such pull-in demand, then my question is on the amount of one-off costs incurred in Q2 and the operating performance, excluding those one-off cost. And also, I wonder whether there are any changes to the company's full year outlook compared to the start of the year?

我有兩個問題。第一個是，第二季出現了一些提前拉貨需求。因此，考量這類提前拉貨需求，我想請教第二季發生的一次性成本金額，以及扣除該一次性成本後的營運表現。另外，我也想了解公司相較於年初，對全年展望是否有任何變化？

And the second question is the positive seasonality is starting in the third quarter. And along with that, it is likely to drive up the smartphone panel shipments. But there are also some potential risks such as weak IT device demand and heightened macroeconomic volatility. So what is the company's strategy to expand revenue and improve profitability in the second half?

第二個問題是，第三季正向季節性開始顯現。同時，這很可能推升智慧型手機面板出貨量。但也存在一些潛在風險，例如 IT 裝置需求疲弱以及總體經濟波動加劇。因此，公司在下半年擴大營收並改善獲利能力的策略是什麼？

This is the CFO responding to your question. Now as had been announced earlier, we had undertaken the program as if this was going to be our last time. So in terms of the size from the perspective of the market and also from the perspective of the employees, it was much larger in terms of the packages as part of the voluntary retirement package.

這裡由財務長回覆您的問題。如先前所公告，我們推動該方案時是以「彷彿這是最後一次」的決心來執行。因此，無論從市場觀點或員工觀點來看，作為自願退休方案的一部分，其補償方案規模都大幅提高。

So it ended at KRW240 billion in one-off expense that was reflected into our second quarter. And as I had announced in the first quarter earnings release call, I did commit that excluding such one-off costs, I was determined to see that our business performance was going to be seeing profit. Now what this achievement means is that now actually, one of the problems of the company had been our chronic suffering of losses in the second quarter for the past four years.

因此，第二季認列的一次性費用最終為 2,400 億韓元。正如我在第一季財報電話會議中所提到，我也承諾在扣除這類一次性成本後，我們將致力於讓營運表現轉為獲利。這項成果的意義在於，過去四年公司在第二季一直長期承受虧損。

So what this means is that excluding the one-off cost, we were able to put an end to the chronic losses that we have been suffering in the second quarter until now. And now the company believes that everything that we had planned for the second quarter this year has been smoothly achieved. And we believe that, that is thanks to our technological leadership and cost innovation. But of course, these are efforts and initiatives that we need to continue to refine and upgrade. And so we will continue to do so while adjusting the intensity and the extent.

這表示在扣除一次性成本後，我們得以終結截至目前為止第二季長期虧損的狀況。公司也認為，今年第二季原先規劃的各項事項都已順利達成。我們相信這要歸功於技術領先與成本創新。當然，這些努力與措施仍需要持續精進與升級。因此，我們將在調整力度與範圍的同時，持續推進。

And now the second part of your question was about the third quarter outlook as well as the company strategy. Now as the investors would be fully aware, our structure is such that we achieve pretty much all of our performance for the year in the third quarter and the fourth quarter. But now in the third quarter of this year, what is unique is the fact that there are so many uncertainties much more than usual. For example, the semiconductors, geopolitics, and also the rise in the commodity prices as a result of this, and all of them combined into the macroeconomic uncertainties as well.

接著您第二部分的問題是關於第三季展望以及公司策略。如投資人所熟知，我們的結構是年度大部分業績通常集中在第三季與第四季實現。然而，今年第三季的特殊之處在於不確定性比以往更多。例如半導體、地緣政治，以及由此帶動的大宗商品價格上漲，這些因素共同加劇了總體經濟的不確定性。

Now despite that, the company will continue to try to achieve competitive cost cutting and provide the kind of technological value that is expected of us, meaning that we will continue to do our best to achieve the kind of business performance that we had planned for.

儘管如此，公司仍將持續推動具競爭力的成本削減，並提供市場對我們所期待的技術價值；也就是說，我們將持續全力以赴，達成原先規劃的營運表現。

We will take the next question.

我們將進行下一個問題。

Sung Kyu Kim, Daiwa Securities.

金成圭（Sung Kyu Kim），大和證券。

Thank you for taking my questions which are on the Large-Sized panel. Now it appears that the Large Size business is going to post stable operating profit margin in the first half of '26 following '25. So what is the company's profitability outlook for the second half of the year? And this is because with the greater China region suppliers, improving premium products like RGB mini LED and becoming more price competitive, what is the company's white OLED TV strategy to maintain high-end TV share?

感謝讓我提問，我的問題是關於大尺寸面板。目前看起來，大尺寸業務在2025年之後，於2026年上半年將維持穩定的營業利益率。那麼公司對於下半年獲利能力的展望為何？另外，鑑於大中華地區供應商透過提升RGB mini LED等高階產品並提高價格競爭力，公司在白色OLED電視方面，為了維持高階電視市占，有何策略？

And another question is, this is also mentioned by the CFO, but then the high-end gaming mode to market is growing fast and the white OLED-based OLED monitors seem to be driving higher white OLED shipments and strong results. So what is the current status of the OLED monitor business and also the company's mid- to long-term capacity strategy?

另一個問題也由CFO提到：高階電競顯示器市場成長快速，而以白色OLED為基礎的OLED顯示器似乎帶動了白色OLED出貨增加並帶來強勁表現。請問目前OLED顯示器業務的現況如何？以及公司中長期的產能策略為何？

Now this is Kim Jong-deok of the Large Display Planning and Management, responding to this question. The market situation in the second half will be challenging due to the rising material costs like semiconductor components. And also with the World Cup coming to an end, the demand uncertainty in the second half is likely to be there. So we will continue to monitor the situation very closely. So we will continue rigorous cost innovation efforts and production technology improvement to overcome the difficult market environment.

我是負責大尺寸顯示規劃與管理的金鍾德，回覆這個問題。由於半導體零組件等材料成本上升，下半年市場情勢將具挑戰性。此外，隨著世界盃結束，下半年需求不確定性可能仍然存在。因此我們將持續非常密切地監控情勢。我們也將持續推動嚴格的成本創新與生產技術改善，以克服艱困的市場環境。

And as for competition, yes, there have been aggressive promotions of RGB mini LED TVs by greater China suppliers, and that has intensified competition in the high-end segment. So the company will actively promote white OLED unique strength and technological differentiators and also strengthen high-end brand lineups with leading global set makers and expand mid- to low-end OLED TV offerings with the goal of solidifying our Large Science (sic - "Display") business and white OLED technology leadership.

至於競爭方面，確實大中華地區供應商對RGB mini LED電視進行了積極促銷，進一步加劇高階市場的競爭。因此，公司將積極宣傳白色OLED的獨特優勢與技術差異化，同時與全球領先整機廠合作強化高階品牌產品線，並擴大中低階OLED電視產品供給，目標是鞏固我們的大尺寸（原文誤植為"Large Science"，應為"Display"）業務與白色OLED技術領導地位。

And for monitors, the market has been relatively strong versus other IT products. In particular, OLED monitor is showing meaningful growth as the high-end gaming monitor market rapidly shift from LCD to OLED. We expect the share of OLED monitors within our Large-Size shipments to rise from the low 10% level last year to about 20% this year, with meaningful growth projected for next year as well. We will focus on product and customer strategies that optimize the TV and monitor production mix to maximize business performance and opportunities.

至於顯示器，市場相較其他IT產品仍相對強勁。尤其是隨著高階電競顯示器市場快速由LCD轉向OLED，OLED顯示器呈現具意義的成長。我們預期OLED顯示器在我們大尺寸出貨中的占比，將由去年的10%出頭提升至今年約20%，且明年也預計將有顯著成長。我們將聚焦於產品與客戶策略，最佳化電視與顯示器的生產組合，以最大化營運績效與機會。

And last, for the mid- to long-term capacity operations, as I mentioned earlier, given the changes in the monitor market, and also in cooperation with the global set makers, we will leverage improved market responsiveness to make full use of our existing capacity and actively respond to demand.

最後，關於中長期產能運作，如我先前所提，考量顯示器市場的變化，並與全球整機廠合作，我們將運用更佳的市場反應能力，充分利用既有產能並積極回應需求。

Next question please.

下一題，請。

[Jang Hyun-Yoon], UBS Securities.

[Jang Hyun-Yoon]，瑞銀證券。

I also have two questions regarding the mid-sized panel business. It appears as if the IT set prices are rising due to higher semiconductor costs, which could be a risk in the second half. So what is the company's outlook on the second half demand? And does the company foresee any potential risks to achieving your target profitability?

我也有兩個關於中尺寸面板業務的問題。由於半導體成本上升，IT整機價格似乎正在上漲，這可能成為下半年的風險。那麼公司對下半年需求的展望為何？公司是否預見達成目標獲利能力可能面臨任何風險？

And the second question is, with the IT LCD sales and shipments declining and also with the mainstream customers appearing to be moving away from LCD towards OLED, what is the company's mid- to long-term IT LCD fab operation strategy and IT OLED business strategy?

第二個問題是，隨著IT LCD銷售與出貨下滑，且主流客戶似乎正從LCD轉向OLED，公司中長期的IT LCD廠運作策略與IT OLED業務策略為何？

Thank you. This is Ahn Yu-shin, In-charge of Medium Display Planning and Management, responding to these questions. Now with the rising component costs such as semiconductors and the consequent IT set price hikes, they -- these factors make the second half demand highly uncertain. To prepare for demand declines and intensify competition, we are trying to secure supply flexibility and closely monitoring the market.

謝謝。我是負責中尺寸顯示規劃與管理的安裕信，回覆這些問題。隨著半導體等零組件成本上升，以及因此帶來的IT整機價格上調，這些因素使得下半年需求高度不確定。為因應需求下滑並加劇競爭，我們正努力確保供應彈性並密切監控市場。

In the second half, building on long-standing customer trust, we will further refine our customer mix towards high-end accounts, focus on differentiated high-end products actively reduce low-margin products and continue with our cost-cutting efforts to maximize profitability-based opportunities. With all these initiatives, we expect profitability to continue improving YoY. And regarding the IT OLED, we are preparing for the future by actively reviewing more competitive approaches such as utilizing existing fabs, to secure fundamental competitiveness and run our fabs more efficiently.

下半年，我們將在長期累積的客戶信任基礎上，進一步將客戶組合優化至高階客戶，聚焦差異化高階產品，積極降低低毛利產品，並持續推動降本措施，以最大化以獲利為基礎的機會。透過上述各項措施，我們預期獲利能力將持續年增改善。至於IT OLED，我們正為未來做準備，積極檢討例如利用既有廠房等更具競爭力的方式，以確保根本競爭力並更有效率地運作我們的工廠。

We will take one last question.

我們再接受最後一題。

HyeonWoo Park, Shinhan Investment & Securities.

朴賢宇，新韓投資證券。

I have a couple of questions about the small size business. The company's panel share in the smartphone market has been steadily increasing. So what is the company's plan for additional investment to meet rising demand and what strategies and preparations are in place to secure technological leadership?

我有幾個關於小尺寸業務的問題。公司在智慧型手機市場的面板市占率一直穩步提升。那麼公司為了因應需求上升，追加投資的計畫為何？以及為確保技術領先地位，已有哪些策略與準備？

And the second question is, it appears that the handset makers cost burden continues to rise. So if that price hikes lead to an accelerated decline in panel ASPs, it could affect planned profitability. So what is the company's outlook and what measures will you take to mitigate the risk, if at all?

第二個問題是，手機品牌廠的成本負擔似乎持續上升。若因此引發漲價並導致面板ASP加速下滑，可能會影響原先規劃的獲利能力。請問公司的展望為何？以及若有的話，將採取哪些措施來降低風險？

Thank you. This is Baek Seung-ryong, In-charge of Small Display Planning and Management, responding to the questions. The company is steadily increasing our smartphone panel market share based on overwhelming technological competitiveness and product reliability. To meet rising demand in a timely manner, we will not only utilize our existing production infrastructure efficiently but also carefully review and execute preemptive investment in new technologies.

謝謝。我是負責小尺寸顯示規劃與管理的白承龍，回覆這些問題。公司憑藉壓倒性的技術競爭力與產品可靠性，正穩步提升智慧型手機面板市占率。為及時滿足需求成長，我們不僅將有效率地運用既有生產基礎設施，也將審慎評估並執行對新技術的前瞻性投資。

Now there are some concerns about the rising component costs and the macro changes, which the -- which is actually affecting the industry on the whole, and we do recognize that there are such concerns. Accordingly, we will sustain solid profitability through cost innovation across production and operations while contributing to customers' new model competitiveness through timely development of new technologies. By doing so, we hope to further strengthen the technological barrier to entry into the smartphone panels.

目前對於零組件成本上升與總體環境變化確實存在一些疑慮，這些因素也正影響整體產業，我們也認知到這些擔憂。因此，我們將透過生產與營運全方位的成本創新，維持穩健的獲利能力，同時藉由及時開發新技術，協助客戶提升新機種競爭力。透過這些作為，我們希望進一步強化智慧型手機面板的技術進入門檻。

This concludes LG Display's Q2 2026 earnings conference call. We thank everyone for joining us today. Should you have any additional questions, please contact the IR team. Thank you.

以上為LG Display 2026年第二季法說會電話會議內容。感謝各位今天的參與。如有任何其他問題，請聯絡IR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.

本逐字稿中的英文陳述由現場電話會議的口譯員口譯。該口譯員由主辦本活動的公司提供。