Shulou(Shulou.com)11/24 Report--

CTOnews.com November 13 news, in August this year, it was reported that LG display reached an agreement with Skyworth on the sale of a liquid crystal display (LCD) factory located in Guangzhou, China. Because Skyworth is the shareholder of the 8. 5 generation production line of LGD Guangzhou Factory, it has the authority of priority acquisition or holding.

According to Ji Wein.com, industry insiders revealed yesterday that Skyworth intended to acquire LGD Guangzhou plant and conduct specific negotiations, but ended in failure. The negotiations between the two companies progressed to a discussion on the specific methods of operation, and in the end, no agreement could be reached due to differences in price.

"Skyworth has expressed its intention to acquire the LGD plant in Guangzhou, but it is understood that no agreement has been reached," a number of industry insiders said. "

LG Display (LGD for short) is one of the two major display panel companies in South Korea. LGD Guangzhou 8.5G Line is LGD's first overseas panel factory, which started in May 2012 and put into production on September 1, 2014. LGD, Guangzhou Development Zone (Guangzhou Kaide Technology Development Co., Ltd.) and Skyworth are invested in construction with an equity ratio of 70:20:10, with a total investment of US $4 billion (CTOnews.com Note: about RMB 29.2 billion). At full production, the monthly glass substrate production capacity can reach 120,000 pieces.

At the beginning of 2023, the capacity utilization of the line fell to about 50%. Coupled with the continued deterioration of LGD performance, Q1 sales this year was 4.4 trillion won, a decrease of 31.84% over the same period last year, with an operating loss of 1.1 trillion won (5.69 billion yuan). The result was lower than the estimated market sales of 5.5 trillion won and an operating loss of 1.3 trillion won. It is reported that LGD has not made a profit for four consecutive quarters. In addition, the sales of Q1 products account for 19% of TV panels, 38% of IT panels, 32% of mobile panels and other products, and 11% of car panels.

"the eighth-generation LCD plant in Guangzhou, China will be reduced to 50 per cent this year and is in operation," LGD said at a Q1 performance presentation. South Korea's seventh-generation LCD plant is promoting the sale of equipment and is studying profit maximization schemes such as conversion, sale and strategic partnership for other factories. "

LGD is actually transforming to an OLED business. At the end of last year, the company stopped producing LCD panels for televisions at its P7 plant in Paju, South Korea, leaving only its LCD factory in Guangzhou, China.

As Samsung display has also withdrawn from the LCD business, LGD Guangzhou has become the only LCD manufacturer in the display industry in South Korea.

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