Sehwa P&C (CEO Lee Hoon-go) announced on the 10th that it achieved a revenue of 8.5 billion KRW, operating profit of 100 million KRW, and net profit of 290 million KRW in the first quarter of 2026, marking a successful turnaround to profitability.The improvement in performance is attributed to better profitability in its core business and cost efficiency measures that have enabled Sehwa P&C to overcome the operating and net losses recorded in the same period last year.

The company is gradually establishing a stable business structure, having achieved positive operating and net profits.Notably, the global market diversification strategy, spearheaded by its flagship beauty brand Moreremoo, has driven significant growth.

Revenue from Europe skyrocketed over 5.7 times, increasing from 99.05 million KRW to 570.92 million KRW year-on-year.The company's expansion through business diversification is also noteworthy.

The consolidated revenue for Q1, including results from its recently acquired subsidiary PlayX Studio, reached 8.79 billion KRW, reflecting a 1.25% increase compared to the same period last year.

The results for PlayX Studio, which commenced full-scale operations in April, are primarily impacted by initial investment costs and business preparation expenses reflected in the first quarter's consolidated performance.A representative from Sehwa P&C stated, “PlayX Studio is still in its early stages, and some pre-emptive investment costs are reflected in the consolidated results.

However, with full-scale operations starting in April, we anticipate that sales contributions will pick up in the second quarter, with clearer overall performance improvement effects—including profitability—expected in the third quarter.”Sehwa P&C is actively investing in technology-based initiatives to secure sustainable growth.

In Q1, it invested 221.9 million KRW, or 2.60% of revenues, into R&D. The company has also secured patents for functional cosmetic formulations containing tetrapeptide liposomes, expanding its technological territory in scalp and skin science.Sehwa P&C characterized Q1 as a milestone confirming that its cosmetics business has achieved a fully profitable structure through comprehensive management efficiency.

The company plans to accelerate channel expansion in Europe, North America, and the Middle East, while enhancing the profitability of existing operations and ensuring the stable integration of its newly acquired subsidiary to secure ongoing growth.