JAYJUN Reports 4.6 Billion KRW in Q3 Sales... "Will Recover Performance Through New Business and Financial Structure Improvement"

[Asia Economy Reporter Yoo Hyun-seok] JAYJUN Cosmetic announced through a public disclosure on the 17th that its consolidated sales for the third quarter recorded 4.6 billion KRW, a 69% decrease compared to the same period last year. Operating loss and net loss for the same period were 5.4 billion KRW and 6.3 billion KRW, respectively.

A JAYJUN representative stated, "As the COVID-19 pandemic has prolonged worldwide, the slowdown in the cosmetics market has also extended, leading to a continued decline in third-quarter sales. Although we succeeded in turning operating profit positive in the second quarter, we recorded an operating loss in the third quarter due to efficiency measures taken to alleviate the burden of inventory assets accumulated since 2018."

He added, "Recently, founder CEO Lee Jin-hyung returned, and efforts are being made to recover performance and improve financial structure by selling real estate and promoting new businesses in beauty medical devices. As a result, non-operating expenses decreased due to building sales and a reduction in convertible bonds, leading to a 79% decrease in financial costs compared to the same period last year."

In October, JAYJUN established a beauty medical device subsidiary, ‘DRC Healthcare,’ and accelerated the expansion of its beauty business portfolio from cosmetics to beauty medical devices by acquiring shares of ‘Daonic,’ a manufacturer of 'ClearJet' equipment.

A JAYJUN Cosmetic representative said, "As China is recovering from the impact of COVID-19, we expect sales improvement in the core cosmetics business and an expansion in mask pack sales. ClearJet, having received FDA approval in the United States and verified in North America and Europe, is anticipated to have high demand in domestic and Southeast Asian markets where there is strong interest in skin beauty, thus we expect profitability improvement through the beauty business."