I would like to begin this message by expressing my deep appreciation to you for continuously providing us with your outstanding support.

 

In the 16th term (January 1, 2021 through December 31, 2021), the domestic cosmetics market shrank due to the continued impact of COVID-19, and the future remains uncertain due to repeated outbreaks of variants. The Chinese market, which the POLA ORBIS Group has positioned as a key market, has seen lockdowns and restrictions on stores’ operating hours. However, changes in the market environment triggered by the COVID-19 pandemic also represent an opportunity for us to make significant changes for future growth. 

 

Under these market conditions and in line with the medium-term management plan for the period from 2021 through 2023, which started in 2021, we have been working on the following key themes: 1) Evolve domestic direct selling, 2) Grow overseas business profitably, 3) Profit contribution from brands under development, 4) Strengthen operations, and 5) Expand new brands and domains of “beauty.” For POLA, our flagship brand, we promoted greater OMO (Online Merges with Offline). As a result, POLA’s domestic e-commerce business, which the Group has been focusing on, and its overseas business, which continues to enjoy high growth, contributed to the Group’s consolidated performance.

 

In February of this year, we announced our long-term management plan, VISION 2029. While striving to achieve our goals for 2023, the final year of the current medium-term management plan, we will accelerate sustainable business growth by enhancing our business portfolio to respond to diversifying values of “beauty” in anticipation of 2029, which will mark the 100th anniversary of our founding.
 

We greatly appreciate our shareholders’ continuing support of the POLA ORBIS Group.

 

March 2022