Aekyung Industrial Q1 Operating Profit Down 63.3% YoY... "Prolonged Consumer Slump in China"

Sales Reach KRW 151.1 Billion, Down 10.7% Year-on-Year
Both Cosmetics and Household Goods See Decline in Operating Profit
"Establishing a Foundation for Long-Term Growth Through Global Diversification"

On April 29, Aekyung Industrial announced that its consolidated sales for the first quarter of this year reached KRW 151.1 billion, with an operating profit of KRW 6 billion. Compared to the same period last year, sales decreased by 10.7% and operating profit dropped by 63.3%.

A company representative explained, "Despite difficult conditions such as prolonged consumer stagnation in the Chinese market and intensified platform competition, we have focused on strengthening brand competitiveness in non-Chinese markets such as Japan and the United States, in line with global consumer trends, to establish a foundation for long-term growth."

In the cosmetics business, first-quarter sales were KRW 45.9 billion and operating profit was KRW 1.1 billion, marking declines of 27.2% and 88.4% respectively compared to the same period last year. The declines were attributed to weakened consumer sentiment in China and intensified platform competition. However, the company maintained solid growth in markets such as Japan by diversifying globally and strengthening country-specific strategies.

In Japan, the company continued its growth by strengthening its brand portfolio through the popularity of LUNA's Long Lasting Tip Concealer and Conceal Palette, as well as the launch of new products. In the United States, AGE20'S flagship products such as Essence Pact and sunscreen expanded the consumer base. In the domestic market, the company enhanced its market responsiveness by diversifying digital channels and expanding the Daiso channel brand lineup.

The company also strengthened its digital marketing strategies by country. In China, it focused on viral marketing centered on Xiaohongshu and TikTok, as well as collaborations with Wanghong (influencers). In Japan, the company appointed IVE member Rei as a brand ambassador to increase brand awareness. In the United States, it expanded consumer touchpoints through marketing using short-form content and seeding kits. In addition, the company launched trendy new products that meet consumer needs, such as AGE20'S Pink for Every Heart Edition.

In the household goods business, first-quarter sales were KRW 105.1 billion and operating profit was KRW 4.9 billion, down 0.8% and 26.0% respectively from the same period last year. Although the company strengthened its portfolio of personal care and premium products and actively expanded its global business, profitability declined due to intensified domestic channel competition and increased costs such as rising raw material prices.

The global business showed significant growth by expanding entry into major offline distribution channels in each country. The company accelerated its overseas market strategy by entering various channels such as large supermarkets in China, variety shops in Japan, and supermarkets in the United States. The body care brand LUVSCENT newly entered both online and offline channels in Japan. In the United States, KERASYS expanded its distribution network. In China, sales of KERASYS and other personal care products were strong.

In the household goods business, the proportion of personal care products centered on growth brands such as LABCCiN and LUVSCENT increased. Premium products featuring high-performance ingredients and trendy designs, such as KERASYS Propolis Hair Bonding and Vaseline Ceraderm, were also continuously launched.

A company representative stated, "Reflecting changes in the global consumer environment and conditions in key markets, we plan to establish strategies to strengthen profitability based on premium products, globalization, and enhanced response to growing channel platforms. At the same time, we aim to increase competitiveness in each market while laying the groundwork for mid- to long-term growth."

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