I express my gratitude to all of you for your efforts in advancing the company over the past year. I sincerely hope that you remain healthy and that happiness and peace fill your homes in the coming year. I also extend my best wishes to our valued customers, partners, and overseas buyers who play a crucial role in guiding and supporting us in realizing the dream of becoming a ‘century-old company through exports.'

 Looking back on 2023, a challenging year marked by the aftermath of the COVID-19 pandemic, we managed to achieve sales growth and improved profitability despite the difficulties. Significant progress was made in Total Quality Control (TQC) activities aimed at enhancing global quality and price competitiveness, as well as efforts to improve productivity. The export ratio, surpassing 50%, is a remarkable milestone compared to the early days of our business, and major customers such as Unilever, C&D, and Pieras are now leading the way among overseas buyers.

 The products we manufacture and supply underwent a significant shift in business structure, moving away from skincare and hand wash to focus sharply on gargle and lip care. In summary, it can be defined as a transformative year in 2023, aligning with our LCC's vision of realizing an export-oriented business.

 In the New Year of 2024, we plan to expand the reach of Dispenser Mouthwash through AMAZON in the U.S. market and transform TheraBreath Oral Rinse, previously sold domestically, into an export product for Europe, Australia, and China. Additionally, we aim to achieve an annual sales target of 50 million units for our Lip Care products, characterized by global quality and price competitiveness, with a focus on the U.S. market and expansion into Europe, the Middle East, Japan, and the Asia region.

 Capitalizing on the growth of Propolinse Mouthwash as a 'premium mouthwash' in the Japanese market, we see an opportunity to re-enter the Chinese market and will attempt to expand our presence in various Asian countries such as India and Taiwan. Our in-house brand, ORIOX, will also release diverse new products in Daiso stores and No Brand shops, fostering growth through Package Renewal to establish a robust and competitive brand.

 In the coming year, our primary focus will be on actively promoting the sales and marketing of Dispenser Mouthwash through Amazon, aiming to expand its presence in U.S. fast-food restaurants and office buildings.

 To comply with the 'Americans with Disabilities Act' in the U.S., we have developed Manual and Auto Dispensers, addressing various challenges over the past three years. These improvements have resulted in the birth of a 'flawless and impeccable dispenser'. Pioneered over 20 years ago as the world's first dispenser for hygienic use with disposable paper cups, Dispenser Mouthwash has successfully carved out a niche market, particularly in department stores, golf courses, upscale restaurants, and large office buildings (for employee welfare). Riding on this success, we are now poised to challenge the vast U.S. market, which is over 30 times larger than the domestic market. Despite facing setbacks in the last three years due to insufficient product promotion through Door-to-Door distributor sales, we are determined to capitalize on the normalization of Mouthwash use and the significant market size in the U.S.

 Now, we have decided to refine our strategy and expand product promotion and awareness through 'AMAZON sales.' We have selected a professional company, finalized the packaging design, and will create a 'video and sales page' to embark on this new challenge. Amazon is the world's largest e-commerce platform, dominating 41% of the e-commerce market in the United States, making it an overwhelmingly dominant player and a unique market where even small brands can become global leaders.

 To succeed on Amazon, we must ensure the uniqueness and price competitiveness of our product and promptly devise various strategies in response to consumer feedback. We are planning significant investments in advertising, and we are prepared to endure several years of operating losses. Ultimately, as the awareness spreads that installing Dispenser Mouthwash leads to increased sales in restaurants, we envision the widespread adoption and affectionate use of LCC's Auto Dispenser Mouthwash across the United States, with mass installations in Fast Food chain headquarters creating a miraculous scenario of increased usage nationwide.

 Secondly, our Lip Care products, which have grown into a global line, will significantly expand beyond the U.S. market into Europe, the Middle East, Japan, China, and Southeast Asia. With an annual export of 40 million units, we stand shoulder to shoulder with renowned brands such as Chapstick, Burt's Bees, Carmex, and Blistex. Our diverse packaging options, including Blister, Labelling, and 2 Packs, have secured a market share of over 15% in the U.S., totaling more than 200 million units annually.

 With a production capacity of 80 million units per year (based on a 1-shift operation), our company aims to meet the diverse needs of the UK and Northern European markets, supplying products tailored to the European market. Additionally, we plan to develop premium products with a Natural Image and sophisticated packaging to further grow into a Global Top Brand. To enhance our price competitiveness, we will actively pursue increased productivity in existing facilities and automation in filling and packaging processes.

 Thirdly, we plan to expand the reach of TheraBreath Oral Rinse beyond domestic sales and export it to various countries worldwide, excluding the United States, including Europe, Canada, Australia, and Southeast Asia. With the recent acquisition of TheraBreath Oral Rinse by CHURCH & DWIGHT, we intend to leverage their global distribution network to propagate the proven premium brand in the U.S. market into a global product. C&D's Chairman and senior executives consistently visited our company in 2023, validating our excellent automated facilities for blending, filling, and packaging, along with a quality management system driven by computerization. Through weekly video conferences, the trust between the two companies has strengthened.

 After completing various certification processes, we have fundamentally addressed container shrinkage and inner seal defects identified in U.S. products. We anticipate that TheraBreath Oral Rinse, crafted by LCC with perfect quality, will play a significant role in safeguarding the oral health of people worldwide.

 Fourthly, through commercial TV broadcasts for Propolinse Mouthwash and online marketing via influential YouTube channels, we have successfully established it as a premium Mouthwash in the Japanese market. The newly launched 1000ml Mouthwash is gaining traction among dedicated enthusiasts, while the 150ml small-sized Mouthwash sold in convenience stores, along with the introduction of the disposable Stick Mouthwash, is set to capture the interest of the younger demographic.

 Despite challenges posed by the pandemic, our re-entry into the Chinese market and the expansion of exports to countries such as India and Australia are poised to elevate Propolinse Mouthwash to the status of a global luxury brand. Additionally, we have completed preparations for obtaining "Over-the-Counter Drug Approval" from the Japanese Ministry of Health, Labour and Welfare, and we are actively collaborating with Pieras for the marketing and sales of Pro Mouthwash.

 Fifthly, we will expand the sales of ORIOX products at Daiso and No Brand shops. Recognizing that achieving our vision of becoming a century-old company is challenging with only OEM and ODM products, we initiated the Sauna Cosmetics and Dispenser Mouthwash, which have achieved significant success in niche markets. ORIOX products, known for their quality and price competitiveness, have secured a prominent position at Daiso stores with key products such as Mouthwash, Body Lotion, and Bubble Hand Wash. The products are also spreading to No Brand shops, E-mart, and convenience stores.

 The newly launched ORIOX Lip Care products, in particular, have gained tremendous popularity, exceeding one million units in annual sales. The expansion of various Hand Wash and Lotion products is actively underway. If we continue to introduce new products that actively reflect consumer needs and engage in Package Renewal familiar to the younger generation, we anticipate achieving annual sales of over 12million dollars.

 In the New Year, we will channel all the company's capabilities into the Amazon marketing of Dispenser Mouthwash, aiming to seize the opportunity to soar to new heights like a dragon in the sky. Our goal for 2025 is to achieve $30 million in exports. We will continually upgrade the sales page, photos, and videos, attentively listening to the feedback from U.S. consumers and swiftly addressing any minor flaws in the dispenser to enhance its performance.

 Internally, we will focus our efforts on automating the filling and packaging processes at the Lip Care factory, which produces 50 million units annually. We anticipate significant progress in both productivity enhancement and price competitiveness as a result.

CEO BAIK, SUNGCHUN