LG Electronics said today that the company plans to realize 100 trillion won by 2030 (currently about RMB 557 billion) sales, and will invest about 50 trillion won (currently about RMB 278.5 billion), to promote the various strategies.
In its new plan, LG Electronics has made the auto parts business one of its most important directions of development, and the company plans to rank among the top 10 global auto parts makers by 2030 and more than double its related business revenue to 20 trillion won (currently about 111.4 billion won). In addition, LG Electronics plans to strengthen its service platform for its home appliance and TV business to generate more recurring profits, such as media subscription and rental revenues.
LG Electronics CEO William Cho said in a press release, “LG Electronics will transform its business portfolio to boost profits through the growth of its B2B business and shift to the service business. We will not be satisfied with our past success in the home appliance sector.”
LG Electronics also plans to enter new markets such as electric vehicle charging and digital healthcare, and in order to achieve its goals, the company said it will actively consider joint ventures, mergers and acquisitions, etc. LG Electronics is aiming to reach an operating profit margin of 7% by 2030.
In 2022, LG Electronics posted consolidated sales of about 65 trillion won (currently about RMB 362.05 billion), a figure that excludes its subsidiary LG Innotek, which produces device components such as smartphone camera modules.
LG Electronics said it expects its backlog of orders for its fast-growing Automotive Component Solutions business, the company’s newest business unit, to be close to 100 trillion won (currently about RMB 557 billion) by the end of the year, with the revenues spread out over many years to come. The Auto Parts Solutions unit, which also makes infotainment systems and lamps, turned a profit last year and posted quarterly sales of 2.4 trillion won (currently about RMB 13,368 million) in January-March this year.
