Business Context and Reporting Period
This Form 6-K filing by LG.Philips LCD Co., Ltd. (now LG Display Co., Ltd.) reports a material change in revenues or income exceeding 15% for the fiscal year ended December 31, 2007. The report was filed on January 15, 2008, and presents consolidated and non-consolidated financial data under Korean GAAP.
Key Financial Metrics (Consolidated)
| Metric (KRW Billion) | 2007 | 2006 | YoY Change |
|---|---|---|---|
| Revenues | 14,352 | 10,624 | +35.1% |
| Operating Income | 1,504 | -879 | Turnaround |
| Net Income | 1,344 | -769 | Turnaround |
| Total Assets | 13,780 | 13,488 | +2.2% |
| Total Liabilities | 5,491 | 6,598 | -16.8% |
| Total Shareholders' Equity | 8,289 | 6,890 | +20.3% |
Operating Margin: Approximately 10.5% in 2007 (1,504/14,352), compared to a negative margin in 2006.
Liquidity/Debt: The filing does not provide specific cash flow statements, current ratios, or detailed debt maturity schedules. Total liabilities decreased significantly year-over-year.
Material Changes vs. Prior Period
- Profitability Turnaround: The company shifted from a net loss of KRW 769 billion in 2006 to a net profit of KRW 1,344 billion in 2007. Operating income similarly swung from a loss of KRW 879 billion to a profit of KRW 1,504 billion.
- Revenue Growth: Consolidated revenues increased by 35.1% year-over-year, driven by a KRW 3,728 billion increase.
- Balance Sheet Strengthening: Total liabilities decreased by 16.8% (KRW 1,107 billion reduction), while shareholders' equity grew by 20.3%.
Guidance, Outlook, and Risks
The filing text does not contain forward-looking guidance, management commentary on future market conditions, specific risk factors, or details on contingencies. The document is strictly a notification of historical financial performance changes exceeding the 15% threshold.
Investor Verification Checklist
- Verify the specific drivers of the 35% revenue increase (e.g., price increases vs. volume growth in LCD panels).
- Confirm the composition of the KRW 1,107 billion reduction in total liabilities (debt repayment vs. reclassification).
- Review the full annual report (Form 20-F) for detailed cash flow statements and segment reporting not included in this summary.
- Assess the sustainability of the operating margin recovery given the cyclical nature of the display panel industry.