LG ENERGY SOLUTION, LTD.
Interim Condensed Separate Financial Statements As of March 31, 2024, and December 31, 2023, and
For the Three-Month Periods Ended March 31, 2024 and 2023
(With the Independent Auditor's Review Report Thereon)
LG ENERGY SOLUTION, LTD.
Table of Contents
Report on Review of Interim Condensed Separate Financial Statements
Page | |
Interim Condensed Separate Financial Statements | |
As of March 31, 2024, and December 31, 2023, and | |
For the Three-Month Periods Ended March 31, 2024 and 2023: | |
Interim Condensed Separate Statements of Financial Position | 1 |
Interim Condensed Separate Statements of Profit or Loss | 2 |
Interim Condensed Separate Statements of Comprehensive Income | 3 |
Interim Condensed Separate Statements of Changes in Equity | 4 |
Interim Condensed Separate Statements of Cash Flows | 5 |
Notes to the Interim Condensed Separate Financial Statements | 6 |
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Report on Review of Interim Condensed Separate Financial Statements
English Translation of Independent Auditor's Review Report Originally Issued in Korean on May 10, 2024
To the Shareholders and the Board of Directors of
LG Energy Solution, Ltd.:
Reviewed financial statements
We have reviewed the accompanying interim condensed separate financial statements of LG Energy Solution, Ltd. (the "Company"). These interim condensed separate financial statements consist of the interim condensed separate statement of financial position as of March 31, 2024, and the related interim condensed separate statements of profit or loss, interim condensed separate statements of comprehensive income, interim condensed separate statements of changes in equity and interim condensed separate statements of cash flows for the three-month periods ended March 31, 2024 and 2023, all expressed in Korean won, and a summary of significant accounting policies and other explanatory information.
Management's responsibility for the interim condensed separate financial statements
Management is responsible for the preparation and presentation of these interim condensed separate financial statements in accordance with Korean International Financial Reporting Standard ("K-IFRS") 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of interim condensed separate financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express a conclusion on these interim condensed separate financial statements based on our review.
We conducted our review in accordance with the review standards for interim financial statements in the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing ("KSAs") and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed separate financial statements are not prepared, in all material respects, in accordance with K-IFRS 1034 Interim Financial Reporting.
Other matters
We have audited the separate statement of financial position as of December 31, 2023, and the related separate statement of profit or loss, separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then ended in accordance with KSAs. We expressed an unqualified opinion on those separate financial statements, not presented herein, in our audit report dated March 7, 2024.
The accompanying separate statement of financial position as of December 31, 2023, presented for comparative purposes, is not different, in all material respects, from the above audited separate statement of financial position
May 10, 2024
This review report is effective as of May 10, 2024, the independent auditor's review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor's review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim condensed separate financial statements and may result in modifications to this review report.
LG ENERGY SOLUTION, LTD. (the "Company")
Interim condensed separate financial statements
as of March 31, 2024, and December 31, 2023, and
for the three-month periods ended March 31, 2024 and 2023
"The accompanying interim condensed separate financial statements, including all footnotes and disclosures, have been prepared by, and are the responsibility of, the Company."
Dong Myung Kim
Chief Executive Officer
LG Energy Solution, Ltd.
LG Energy Solution, Ltd.
Interim condensed separate statements of financial position
As of March 31, 2024, and December 31, 2023
(Korean won in millions) | ||||||||
Notes | March 31, 2024 | December 31, 2023 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 3,5,6 | ₩ | 1,803,807 | ₩ | 1,855,224 | |||
Trade receivables | 3,5,7,29 | 1,840,454 | 2,289,892 | |||||
Other receivables | 3,5,7,29 | 1,661,397 | 1,173,761 | |||||
Prepaid income taxes | 17,184 | 15,132 | ||||||
Other current financial assets | 3,5,8 | 96,597 | 65,400 | |||||
Other current assets | 13 | 133,910 | 118,776 | |||||
Inventories | 9 | 1,291,031 | 1,265,558 | |||||
6,844,380 | 6,783,743 | |||||||
Non-current assets | ||||||||
Trade receivables | 3,5,7 | 145,989 | 127,946 | |||||
Other receivables | 3,5,7,29 | 138,805 | 153,173 | |||||
Other non-current financial assets | 3,5,8 | 376,140 | 287,187 | |||||
Investments in subsidiaries | 10 | 11,469,740 | 9,847,300 | |||||
Investments in associates and joint ventures | 10 | 274,221 | 271,463 | |||||
Deferred tax assets | 27 | 1,705,667 | 1,598,516 | |||||
Property, plant and equipment | 11 | 3,490,450 | 3,383,740 | |||||
Intangible assets | 12 | 744,101 | 712,217 | |||||
Investment properties | 32 | 201,418 | 212,650 | |||||
Other non-current assets | 13,16 | 144,939 | 168,004 | |||||
18,691,470 | 16,762,196 | |||||||
Total assets | ₩ | 25,535,850 | ₩ | 23,545,939 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Trade payables | 3,5,29 | ₩ | 900,052 | ₩ | 1,097,287 | |||
Other payables | 3,5,29 | 823,239 | 983,134 | |||||
Borrowings | 3,5,11,14,30 | 706,783 | 670,418 | |||||
Other current financial liabilities | 3,5,8 | 55,367 | 58,440 | |||||
Current provisions | 15 | 334,018 | 374,710 | |||||
Other current liabilities | 17,31 | 523,423 | 326,930 | |||||
3,342,882 | 3,510,919 | |||||||
Non-current liabilities | ||||||||
Other payables | 3,5,29 | 3,338 | 3,368 | |||||
Borrowings | 3,5,11,14,30 | 4,847,449 | 3,149,383 | |||||
Other non-current financial liabilities | 3,5,8 | 68,249 | 68,368 | |||||
Non-current provisions | 15 | 213,520 | 152,295 | |||||
Other non-current liabilities | 17,31 | 63,571 | 60,112 | |||||
5,196,127 | 3,433,526 | |||||||
Total liabilities | 8,539,009 | 6,944,445 | ||||||
Equity | ||||||||
Share capital | 19 | 117,000 | 117,000 | |||||
Capital surplus | 19 | 17,589,722 | 17,589,722 | |||||
Accumulated other comprehensive income | (52,115) | (53,516) | ||||||
Accumulated deficit | 20 | (657,766) | (1,051,712) | |||||
Total equity | 16,996,841 | 16,601,494 | ||||||
Total liabilities and equity | ₩ | 25,535,850 | ₩ | 23,545,939 | ||||
The accompanying notes are an integral part of the interim condensed separate financial statements.
1
LG Energy Solution, Ltd.
Interim condensed separate statements of profit or loss
For the three-month periods ended March 31, 2024 and 2023
(Korean won in millions) | ||||||||
Notes | March 31, 2024 | March 31, 2023 | ||||||
Revenue | 21,29,31 ₩ | 1,907,931 | ₩ | 3,298,683 | ||||
Cost of sales | 21,22,29 | 1,437,437 | 2,851,299 | |||||
Gross profit | 470,494 | 447,384 | ||||||
Selling and administrative expenses | 21,22,23,29 | 742,480 | 541,175 | |||||
Operating loss | 21 | (271,986) | (93,791) | |||||
Finance income | 5,24,29 | 194,697 | 264,403 | |||||
Finance costs | 5,24,29 | 192,711 | 197,405 | |||||
Other non-operating income | 25 | 681,363 | 169,964 | |||||
Other non-operating expenses | 26 | 60,432 | 117,367 | |||||
Profit before income tax expense | 350,931 | 25,804 | ||||||
Income tax expense (benefit) | 27 | (43,517) | 3,646 | |||||
Profit for the period | ₩ | 394,448 | ₩ | 22,158 | ||||
Earnings per share attributable to | ||||||||
the equity holders of the Company | 28 | |||||||
(in Korean won) | ||||||||
Basic earnings per share | ₩ | 1,686 | ₩ | 95 |
The accompanying notes are an integral part of the interim condensed separate financial statements.
2
LG Energy Solution, Ltd.
Interim condensed separate statements of comprehensive income
For the three-month periods ended March 31, 2024 and 2023
(Korean won in millions)
Notes | March 31, 2024 | March 31, 2023 | |||
Profit for the period | ₩ | 394,448 ₩ | 22,158 | ||
Other comprehensive income: |
Items that will not be subsequently reclassified to profit or loss: | |
Remeasurements of net defined benefit liabilities | 16 |
Gain on valuation of financial assets at fair value | 5 |
through other comprehensive income ("FVOCI") | |
Income tax effect of other comprehensive income | |
Items that may be subsequently reclassified to profit or loss: | |
Gain on cash flow hedge | 5 |
Income tax effect of other comprehensive income |
(651) | 780 | |
1,437 | 8,853 | |
(180) | (2,543) | |
606 | 7,090 | |
380 | 574 | |
(87) | (152) | |
293 | 422 |
Other comprehensive income for the period, net of tax | 899 | 7,512 | |||
Total comprehensive income for the period, net of tax | ₩ | 395,347 ₩ | 29,670 | ||
The accompanying notes are an integral part of the interim condensed separate financial statements.
3
LG Energy Solution, Ltd.
Interim condensed separate statements of changes in equity
For the three-month periods ended March 31, 2024 and 2023
(Korean won in millions) | ||||||||||||||||||
Accumulated | ||||||||||||||||||
other | Retained earnings | |||||||||||||||||
Share | Capital | comprehensive | (accumulated | |||||||||||||||
Notes | capital | surplus | income (loss) | deficit) | Total | |||||||||||||
As of January 1, 2023 | ₩ | 117,000 ₩ | 17,589,722 | ₩ | 46,640 | ₩ | (958,790) | ₩ | 16,794,572 | |||||||||
Total comprehensive income for the period: | ||||||||||||||||||
Profit for the period | - | - | - | 22,158 | 22,158 | |||||||||||||
Remeasurements of net defined benefit liabilities | 16 | - | - | - | 574 | 574 | ||||||||||||
Gain on valuation of financial assets at FVOCI | - | - | 6,516 | - | 6,516 | |||||||||||||
Gain on cash flow hedge | 5 | - | - | 422 | - | 422 | ||||||||||||
Total comprehensive income for the period | - | - | 6,938 | 22,732 | 29,670 | |||||||||||||
As of March 31, 2023 | ₩ | 117,000 ₩ | 17,589,722 | ₩ | 53,578 | ₩ | (936,058) | ₩ | 16,824,242 | |||||||||
As of January 1, 2024 | ||||||||||||||||||
₩ | 117,000 ₩ | 17,589,722 | ₩ | (53,516) | ₩ | (1,051,712) | ₩ | 16,601,494 | ||||||||||
Total comprehensive income for the period: | ||||||||||||||||||
Profit for the period | - | - | - | 394,448 | 394,448 | |||||||||||||
Remeasurements of net defined benefit liabilities | 16 | - | - | - | (502) | (502) | ||||||||||||
Gain on valuation of financial assets at FVOCI | - | - | 1,108 | - | 1,108 | |||||||||||||
Gain on cash flow hedge | 5 | - | - | 293 | - | 293 | ||||||||||||
Total comprehensive income for the period | ||||||||||||||||||
- | - | 1,401 | 393,946 | 395,347 | ||||||||||||||
As of March 31, 2024 | ₩ | 117,000 ₩ | 17,589,722 | ₩ | (52,115) | ₩ | (657,766) | ₩ | 16,996,841 | |||||||||
The accompanying notes are an integral part of the interim condensed separate financial statements.
4
LG Energy Solution, Ltd.
Interim condensed separate statements of cash flows
For the three-month periods ended March 31, 2024 and 2023
(Korean won in millions) | ||||||||
Notes | March 31, 2024 | March 31, 2023 | ||||||
Cash flows from operating activities: | ||||||||
Cash generated from operations | 30 | ₩ | 251,724 ₩ | 56,444 | ||||
Interest received | 15,048 | 38,664 | ||||||
Interest paid | (43,026) | (1,356) | ||||||
Dividends received | 280,860 | - | ||||||
Income tax paid | (78,425) | (19,399) | ||||||
Net cash provided by operating activities | 426,181 | 74,353 | ||||||
Cash flows from investing activities: | ||||||||
Cash inflow from investing activities: | ||||||||
Decrease in other receivables | 5,000 | - | ||||||
Decrease in other non-current receivables | 1,898 | 1,813 | ||||||
Proceeds from disposal of property, plant and equipment | 423 | 3,320 | ||||||
Proceeds from disposal of intangible assets | 3 | - | ||||||
7,324 | 5,133 | |||||||
Cash outflow for investing activities: | ||||||||
Increase in other non-current receivables | (5,203) | (4,107) | ||||||
Acquisition of investments in subsidiaries | (1,622,440) | (614,085) | ||||||
Acquisition of investments in associates | (2,758) | (46,575) | ||||||
Acquisition of financial instruments | (156) | (15,405) | ||||||
Acquisition of property, plant and equipment | (415,785) | (493,020) | ||||||
Acquisition of intangible assets | (26,874) | (22,962) | ||||||
Other cash outflow for investing activities | - | (4,431) | ||||||
(2,073,216) | (1,200,585) | |||||||
Net cash used in investing activities | (2,065,892) | (1,195,452) | ||||||
Cash flows from financing activities: | ||||||||
Cash inflow from financing activities: | ||||||||
Increase in borrowings | 30 | 1,595,376 | - | |||||
1,595,376 | - | |||||||
Cash outflow for financing activities: | ||||||||
Repayment of borrowings | 30 | (7,078) | (4,261) | |||||
(7,078) | (4,261) | |||||||
Net cash provided by (used in) financing activities | 1,588,298 | (4,261) | ||||||
Net decrease in cash and cash equivalents | (51,413) | (1,125,360) | ||||||
Cash and cash equivalents at the beginning of the period | 1,855,224 | 4,828,152 | ||||||
Effects of exchange rate changes on cash and cash equivalents | (4) | 78 | ||||||
Cash and cash equivalents at the end of the period | ₩ | 1,803,807 ₩ | 3,702,870 | |||||
The accompanying notes are an integral part of the interim condensed separate financial statements.
5
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LG Energy Solution Ltd. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 02:07:09 UTC.