Coloray Holdings Reports Q3 Sales of 16.6 Billion KRW, Up 22.2% Year-on-Year

[Asia Economy Reporter Jang Hyowon] Coloray Holdings (CEO Zhuo Zhongbiao), a Chinese company specializing in pearl production for cosmetics, announced on the 30th that it achieved sales of 16.6 billion KRW and operating profit of 6.1 billion KRW in the third quarter of this year.

Sales increased by 22.2% compared to the same period last year, while operating profit decreased by 21.7%. On a consolidated basis, cumulative sales and operating profit for the third quarter reached 45 billion KRW and 20 billion KRW respectively, representing an 11.1% increase and a 16.3% decrease compared to the same period last year.

A representative of Coloray Holdings commented on the sales growth, stating, "Approximately 6.4 billion KRW in new sales were generated from the new distribution business in the third quarter, achieving sales growth through the new distribution business despite the COVID-19 crisis." They added, "We saw strong sales in the distribution business through cooperation with China’s leading e-commerce platforms such as Tmall and JD.com."

Regarding the decrease in operating profit, the representative explained, "Due to the downturn in the color cosmetics market caused by COVID-19, sales of pearl luster pigments fell by about 25.1% compared to the same period last year." They further explained, "The decline in sales of pearl luster pigments, which have higher profit margins compared to the distribution business, led to the decrease in operating profit."

The representative also stated, "In line with the growing color cosmetics market, we completed the expansion of a new factory this year." They added, "Starting from the first half of next year, we will operate it in full scale and expand the market including China and Korea."

They continued, "Also, as the distribution business has stabilized with strong sales during this year’s Singles’ Day, we will accelerate marketing efforts to further expand the distribution business market."

Meanwhile, Coloray Holdings has entered a cosmetics specialty direct mall operated by Alibaba’s Tmall and is currently conducting strategic collaboration with Tmall. It is expected to grow by expanding the items and scale related to the distribution business through cooperation with many well-known e-commerce platforms in China.

This content was produced with the assistance of AI translation services.