Business Context and Reporting Period
This Form 6-K filing by LG.Philips LCD Co., Ltd. (now LG Display Co., Ltd.) was submitted on January 12, 2006, to report a material change in revenues or income exceeding 15%. The filing presents consolidated and non-consolidated financial data for the fiscal years ended 2005 and 2004 under Korean GAAP, with figures expressed in billions of Korean Won (KRW B).
Key Financial Metrics (Consolidated)
| Metric | 2005 (KRW B) | 2004 (KRW B) | YoY Change |
|---|---|---|---|
| Revenues | 10,076 | 8,328 | +21.0% |
| Operating Income | 470 | 1,728 | -72.8% |
| Ordinary Income | 369 | 1,688 | -78.1% |
| Net Income | 517 | 1,655 | -68.8% |
| Total Assets | 13,674 | 10,357 | N/A |
| Total Liabilities | 5,998 | 4,585 | N/A |
| Total Shareholders' Equity | 7,676 | 5,772 | N/A |
The filing does not provide specific data on cash flow, debt maturity profiles, or liquidity ratios beyond total liabilities and equity.
Material Changes Versus Prior Period
- Revenue Growth vs. Profit Decline: While revenues increased by 21.0% year-over-year, profitability collapsed. Operating income fell by 72.8%, and net income dropped by 68.8%.
- Margin Compression: The drastic reduction in operating and net income relative to revenue growth indicates severe margin compression during the 2005 fiscal year.
- Balance Sheet Expansion: Total assets grew from 10,357 billion KRW to 13,674 billion KRW, while total liabilities increased from 4,585 billion KRW to 5,998 billion KRW.
Guidance, Outlook, and Risks
The filing text does not contain management commentary, forward-looking guidance, specific risk factors, or details regarding contingencies and unusual items. The document serves strictly as a notification of the material financial change required by Rule 13a-16 or 15d-16.
Investor Verification Checklist
- Verify the specific market conditions or operational factors in 2005 that caused a 72.8% drop in operating income despite a 21% revenue increase.
- Confirm the composition of the 5,998 billion KRW in total liabilities to assess debt burden and liquidity risks.
- Review subsequent filings for cash flow statements to determine if the company maintained sufficient liquidity to fund asset growth.
- Investigate whether the "unusual items" or specific cost drivers for the margin collapse were disclosed in the company's full annual report (Form 20-F).