LG Innotek has decided not to hold a conference call (conference call) for investors in the fourth quarter results, and shareholder complaints are rising. As investors` interest in camera modules, such as the iPhone X, has increased. It is pointed out that Apple has blocked the dealers and communication channels.

According to industry sources on January 17, LG Innotek decided not to hold a separate conference call after announcing the fourth quarter results on January 23.

The conference call is an open-ended question and answer session between key management and investors of the company through telephone or internet related to major business conditions such as performance. LG Innotek replaced the conference call with no earnings announcement from the announcement of 1Q12 earnings.

An industry expert stated, "It seems that Apple has decided to discontinue the iPhone call due to Apple`s inconvenience."

LG Innotek, on January 8, announced that it will invest KRW 873.7 billion for mobile camera module and new technology module business until the end of next year. The company said that Apple invested in the expansion of its production facilities with the money it paid in advance with the plan to receive the sensing module such as dual camera and 3D face recognition in the next iPhone model from LG Innotek.

It has disappeared to get information on Apple`s supply situation as well as other management issues as LG Innotek halted the conference call. LG Innotek`s smartphone camera module business is on the verge of an upswing thanks to the companyÊs new orders from Apple. As of the end of 3Q08, sales of optical solution division, which is mainly focused on camera module, increased 55% compared to the same period of the previous year, while electrical components business grew 13% and substrate material stagnated. In terms of profitability, optical solution business accounted for 75% of total operating profit, while electrical components and LED lighting business accounted for operating losses.

The factory utilization rate is also decreasing. In the third quarter of last year, the motor and sensor plant operating rate for electric components fell 47.4%, down from 52.8% in 2016 by 5.4%. LEDs fell to 68.8% from 77.8% during the same period. LG Innotek representative said, "We cannot say anything except to not make a conference call."


By Park Jung Il comja77@


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