Usher in the new year '2020', I hope all of LCC staff's well being and domestic happiness. Also i'm praying the whole of partner's (Customers, Foreign Buyers, Business Partners which are helping LCC to be a one hundred years company and being a export company) business success in this new year.

Especially, I hope CEO Hina and the Pieras member's well being, because they grew the Propolis Gargle to be a famous brand in picky Japan Market.

In 2019 year, the Global Economy's Uncertainty were increased by trade war between China and US, and slowdown in International Economy. On the Domestic front, the drastic increase in minimum wage, a 52-hour workweek and various regulations that tighten businesses are turning into a difficult country to manufacture.

The shipbuilding industry, motor industry, construction industry, steel industry, which were lead hyper growth of Korea Economy, fall in growth. And two-digit decline in exports seems to foretell the gloomy future of our economy which is export-dependent country.

Last year, inspite of difficult economy conditions in domestic and international, we were did our best. So we increased sales and profitability in our business. Especially we recorded our export result 10million dollars and this record lead us to receive the '10million dollars export trophy' on '2019 Korea Export day'.

We expanded our Propolis Gargle's Product Line-up and also made inroads into various foreign market. Finally the Propolis Gargle going on sale in domestic market and getting a good respond so that we expect another miracle in a few years.

The Lip care, which is the top competitive product in LCC, is also recording large-scale exports to the US. For now, the orders are increasing in northern europe, africa, middle east, southeast asia. I feel that we could manufacture 50 million Lip Care annually in a few years with various packaging format such as two pack.

Although the domestic and international economic environment is going through hard times, we must focus all our capabilitieson the following point to realize our vision of '100years company through export'.

First, we will be an active parter who is supporting the new marketing and promotion efforts of Propolis Gargle in Japan.

We will do our best in promotion of TV and convenient store. Also we will provide the price competitiveness and good quality.

The Propolis Gargle's sales is brisk in large cities such as Tokyo and Osaka, but the myth of luxury Propolis can only continue if there is a proliferation to local areas.

For the speed supply of mouthwash sachet and for expand supply of 5oz mouthwash, we have to prepare the sub-material in advance like the using the CY Warehouse which is purpose to utilize for supply proper time.

Secondly, We must focus our whole capabilities to expand the dispenser gargle in to expansion US Market.

The world's first idea product 'D-Gargle' have installed and using in US Fastfood restaurant and office building. Also the new product named auto dispenser, which is appropriate with Americans with Disabilites Act, had developed and got favorable feedback. Furthermore, the development of simple slim dispenser(manual dispenser which having internal cup-holder) will be developed in January this year, so we could target the US Market genuinely.

Being a Zero Trouble with auto-dispenser's install and management, we have to complement the minor defect with install this dispenser in domestic area such as big building and awareness department store. Therefore, if we install the auto-dispenser in Hyundai Motor company and Lotte Shopping mall, which are well known company in Korea, we are liable to find the big and small problem in auto-dispenser. With this Trial and error, we believe that we could complete the Zero Trouble in auto-dispenser. Also, if we develop the brilliant out door of dispenser with pearl effect and printing method which is used in automobile bumper, we could proceed the successful challenge in US Market.

Third, we must prepare throughly for the construction of the whole automatic and high-tech Gargle Factory.

For beat the inevitable competitor's pursuit when we develop the US Market, we have to get the superior price competitiveness with big and high-tech gargle factory which manufacture the 10million mouthwash per month. For this, we must map out and construct the continuous and automatic facility. We have to decide the manufacture process either continuous system or batch system. bottles should be auto-input, auto-alignment ,filling and capping, labeling have to proceed by manless.

Maybe, we have to review automatic factory warehouse to be a FIFO, auto packing and palletlizing, auto container loading.

If it is necessary, the filling and packing could go ahead in night time because of large scale investment will proceed on this automatic process.

Fourth, we will diversification the foreign market of Lip Care. 20years ago I had a recklessness to construct the Lipcare Factory with 30 thousand quantity order. It is now the second-largest Lip care manufacturing company in the world, Asia's largest Manufacturer that could be produce 30 million units per year.

The Lip care launched at US and Canada Market and recevied favorable feedback from this market. It is growing rapidly every year. For now, The Lip Care product is spreading out in Mideast, North Europe, Africa and indonesia Market. Also we have developed various packaging of Lip Care since last year. This economical and simplify packaging way will provide to distributor according the region and distribution channel. We have a plan to add the luxurious Cap besides the previous transparent and non-transparent Cap as well.

We will change the Lip care's prescription, which will contain more natural ingredients, to make more eco-friendly and natural product than before.

Fifth, Not only the expansion of Export performance but also to keep grow our Brand named 'Oriox' in domestic Niche Market is important.

The Sauna Cosmetic Products have to secure the absoulute advantage against the domestic major company. The Major company must be pulled out from Niche Market as soon as possible. Our Dispenser Mouthwash has the competitiveness in quality and price comparing with the big company. In the near future we could enlarge our market share in this Dispenser Mouthwash industry.

Our Brand acted vigorously in Daiso Market in 2019year. The coefficient of expansion was over 30% against 2018 year. We expect that the turnover will more over 4million dollars in 2020 year. Our domestic Sales was over 10million dollars last year. If the Oriox brand enter in the "No Brand" Market which is one of favorable brand market, successful, Our Sales might record over 20million dollars in a few years.

To realize our vision and to be the long-term company will come when export-domestic demand is balanced and mutually complementary.

Sixth, we should do our best in manufacture and supply of Thera Breath Gargle which have prepared to launch over one-year. We hope that our LCC Factory make the role of production base of Therabreath.

Also, the new product such as Close-up Mouthwash and renewal of Lip and Eye remover in UNILEVER, has to be developed and enter the market successfully. Furthermore we should search the new sub-material manufacturer which supply the sub-material with good quality and price. This process will lead to customer satisfaction while proceeding the package renewal such as Bottle, Pump, Label.

Recently, most of major companies don't invest their own factory. So they outsource to factory which have the quality and price competitiveness. So the bulk products such as Aekyung's Handwash should be actively accommodated and supplied.

The above-mentioned export expansion, sales growth and profitability improvements will eventually be achieved through concerted efforts by our LCC employees. Therefore, we need to create a company where employees can be happy and realize their dreams, and to that end, the "healthy and correct corporate culture" should be embodied in the company's mission statement. In addition, the 5S activity have proceeded actively since last year. This activity will make every corner of the production site and warehouse bright and transparent.

LCC Employees!

Let's run together until the day we win the $20 million · $30 million export records.

CEO BAIK, SUNGCHUN