According to the latest report, LG New Energy, the world’s second-largest power battery manufacturer developed from LG Chem’s battery business, expects that their revenue in the first quarter of this year will increase year on year, but operating profit will be substantial.
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Judging from reports, LG New Energy expects its revenue in the first quarter to be 4.34 trillion won, equivalent to $3.558 billion, a year-on-year increase of 2.1%. Although revenue has increased year-on-year, LG New Energy expects its operating profit in the first quarter of this year to fall to 258.9 billion won, a year-on-year decline of 24.1%.
However, even if LG New Energy’s operating profit in the first quarter will decline sharply year-on-year, their expected operating profit still exceeds analysts’ average expectations and is 75.1% higher than analysts’ average expectations.
Moreover, LG New Energy was spun off from LG Chem’s battery business and was officially established on December 1, 2020. Thanks to LG Chem’s years of hard work in the battery business, LG New Energy has been a large-scale battery supplier since its establishment. Korean media said it is the world’s second-largest power battery manufacturer after CATL.
Shortly after its official establishment, LG New Energy was planning for listing and financing. According to the sources, LG New Energy has submitted IPO application documents to the Korea Exchange in June last year, and successfully IPOed in January this year, raising 12.8 trillion won, or about 10.8 billion US dollars.
