TS Trillion announced on the 20th that it has resolved all the insolvencies that occurred during the previous CEO's tenure as of the end of last year and expects a turnaround this year.
According to the Financial Supervisory Service's electronic disclosure system, TS Trillion reported provisional consolidated sales of 31 billion KRW and an operating loss of 100 million KRW last year. Sales decreased by 22.4% compared to the previous year, and operating profit turned to a loss. Net loss also widened to 3.6 billion KRW compared to the previous year.
According to the company, the main cause of the sales decline was mostly due to a decrease in home shopping sales. In response, TS Trillion is focusing on online sales channels such as Coupang, Naver Brand Store, and its own mall.
Despite the sales decline, the company's cost and selling and administrative expense structure is improving. In particular, by efficiently reorganizing excessive marketing expenses, which were identified as the cause of profitability deterioration, the company is transforming into a fundamentally sound enterprise.
The company also stated that the recent operating loss was a temporary loss incurred while resolving the insolvencies that occurred during the previous CEO's tenure. This includes the mask business, TS Cafe, and bad debts from accounts receivable initiated by the former CEO. The timing of the loss occurrence will also be specified in future audit reports.
A company official explained, "The current management acquired TS Trillion on December 6, 2023, and the turnaround loss from last year originated from the previous management. If the bad debt provisions and litigation costs incurred at that time had not occurred, the company would have recorded an operating profit close to 3 billion KRW last year."
Having resolved last year's insolvencies, TS Trillion aims to return to profitability this year. A company representative stated, "With the supply and operation contract signed last year with Cheongdam Global, a listed company specializing in Chinese distribution, rapid growth and turnaround are expected this year."
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