Coloray, Operating Profit of 29.3 Billion KRW Last Year... 1.6% Decrease YoY
[Asia Economy Reporter Jang Hyowon] Despite the impact of COVID-19, ColorRay performed well in its main business of pearl luster pigment and plans to accelerate sales growth following the recovery of the color cosmetics market.
ColorRay (CEO Zhuo Zhongbiao), a Chinese specialized manufacturer of pearl luster pigments for cosmetics, announced on the 2nd through a public disclosure that its sales and operating profit last year decreased by 23.49% and 1.65% respectively compared to the previous year, recording 56.4 billion KRW and 29.3 billion KRW.
ColorRay stated, "The full-year performance in 2021 was mainly affected by a decline in sales in the distribution business, especially due to an increase in self-sourcing rates by Chinese e-commerce companies, which led to some demand reduction. Going forward, we will expand the product range, scale, and supply platforms to improve distribution business performance and achieve growth."
However, the overall operating profit margin in 2021 rose sharply to 51.9% from 40.4% in 2020. This increase was driven by higher sales in the highly profitable pearl luster pigment business segment.
In fact, sales of the main business, pearl luster pigment, reached 49.8 billion KRW in 2021, showing strong sales following the recovery trend in the color cosmetics market in the 3rd and 4th quarters, a 7.3% increase compared to 46.4 billion KRW in 2020. This figure nearly recovered to the pre-COVID sales level of 50.8 billion KRW. ColorRay has been making proactive investments to grow pearl luster pigment sales.
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A ColorRay representative said, "With the expected resolution of COVID-19 uncertainties and the faster recovery of the color cosmetics market centered on the Chinese market, we anticipate an increase in our pearl luster pigment sales. We will rapidly expand sales not only in the Chinese domestic and global markets but also in industrial pigment sales and new businesses such as automotive primer coating paints, benefiting from market recovery and accelerating sales growth."
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