[Announcement+] Coloray Holdings, 2Q Sales of 45.6 Billion KRW... "Aggressively Targeting Chinese Online Market"

Year-on-Year 180% Increase... Aiming for Strong Performance through Expansion of Chinese Online Sales Channels

[Asia Economy Reporter Minwoo Lee] Coloray Holdings, a Chinese company specializing in pearl pigments for cosmetics, saw a significant increase in sales in the second quarter of this year. The company plans to improve its performance by actively targeting the Chinese e-commerce market.

Coloray Holdings announced on the 6th that its consolidated sales for the second quarter reached 45.6 billion KRW, with an operating profit of 9.6 billion KRW. Compared to the same period last year, sales increased by 180.3%, while operating profit decreased by 3.9%. A representative from Coloray Holdings explained, "The distribution business, which we had been preparing as a new venture since the end of last year, began to show results from the second quarter, generating approximately 32 billion KRW in new sales. Thanks to our rapid entry into the Chinese e-commerce market, we achieved results despite the recession caused by the COVID-19 pandemic."

Earlier, Coloray Holdings established a distribution and trade subsidiary this year named Deqing Coloray New Materials Technology Co., Ltd., which sells cosmetics, beauty devices, and electronic products secured in South Korea and China on Chinese online e-commerce platforms. Currently, in addition to T-mall, operated by Alibaba, the largest online e-commerce platform in China, the company uses Taobao, JD.com, Pinduoduo, and Mengtu as sales channels. On T-mall, Coloray Holdings is strategically collaborating by entering a cosmetics specialty direct store. In May, the company signed a strategic business agreement (MOU) with Fengker (?柯), a professional content integrated marketing service provider, to expand distribution on e-commerce platforms.

A Coloray Holdings official stated, "Due to the explosive growth of China's online e-commerce industry caused by COVID-19, sales in the new distribution business are increasing, and we expect operating profit and net profit to rise compared to last year. Combining the new color cosmetics brand business using Coloray raw materials with the distribution business in the second half of the year will drive Coloray's future growth," they explained.