APR Co., Ltd. (262260.KQ) Q3 FY2025 Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Thank you for joining the APR Earnings conference call. Today's session will begin with APR's presentation followed by a Q&A session with participants. [Operator Instructions] Now we will begin APR's earnings presentation for the third quarter of 2025.

Good morning, and thank you for joining APR's Third Quarter 2025 Earnings Presentation. The webcast will begin shortly. Please note that today's session will be conducted with simultaneous interpretation in Korean and English. If you are currently connected to the English interpretation channel, you are in the correct session. The presentation will start in just a moment. Thank you for your patience, and please stay tuned.

Good morning, and welcome to all our valued shareholders and investors. My name is Jaeha Shin, Vice President of APR Corporation. Please note that today's financial results are based on internal data and prepared for investors' reference. As the external auditor's review is still in progress, some figures may change once the audit is completed. In addition, forward-looking statements may change depending on the future market conditions. With that, I will now begin APR's third quarter 2025 earnings presentation. Please turn to Page 3, overall revenue trends. In the first quarter of 2025, APR recorded a consolidated revenue of KRW 386 billion, marking another record high quarterly performance. As shown on the left, through the global expansion strategy, APR achieved record high results for 6 consecutive quarters since the second quarter of 2024 and maintaining strong growth momentum. Although the third quarter is typically a slow season, revenue increased significantly through short-term promotions such as Amazon Prime Day in the U.S., Qoo10 MegaWari in Japan and the Medicube's 10th anniversary event in Korea. Even after this event, sales remained above pre-promotion levels, showing that the impact was not temporary, but strengthened the foundation for continued growth. Now please turn to Page 4, third quarter results. In the third quarter of 2025, APR maintained its strong growth momentum, achieving record high revenue and operating profit once again. Consolidated revenue was KRW 386 billion, up 122% year-over-year, and operating profit rose 253% to KRW 96 billion, both marking all-time high. The operating margin reached 25%, reflecting solid profitability while expanding our business. Please turn to Page 5, 9 months 2025 results. Driven by strong growth in our core businesses, Cosmetics and Beauty Device, APR continued its steep growth momentum. Cumulative revenue reached KRW 980 billion, more than double year-over-year, achieving nearly KRW 1 trillion, our full year guidance target within just 3 quarters. Cumulative operating profit was KRW 235 billion, almost 3x higher than the previous year. Next, please turn to Page 6, third quarter results by division. Starting with Cosmetic and Beauty division, revenue reached KRW 272 billion, up 220% year-over-year. The strong momentum that began in late 2024 continued, and for the first time, the quarterly Cosmetic revenue exceeded KRW 250 billion. Steady sellers like the Zero Pore Pad remained strong, while more SKUs ranked at the top of major online channels, demonstrating solid global demand and long-term growth potential. In the Beauty Device division, revenue recorded KRW 103 billion, up 39% year-over-year. We saw steady demand in Japan and growing traction in new regions. The cumulative sales volume surpassed 5 million units, marking a key milestone. With new launches in August and October, we further strengthened our lineup to meet broader customer needs. Lastly, the others division recorded KRW 11 billion in revenue, down 28% year-over-year due to reduced non-core business activity. Please turn to Page 7, third quarter results by region. In the third quarter of 2025, overseas revenue reached KRW 310 billion, up 210% year-over-year, surpassing KRW 300 billion for the first time. The proportion of overseas revenue rose sharply from 58% in the third quarter of 2024 to 80% this quarter. The U.S. led this growth, accounting for 39% of total revenue, while our brands continued to gain strong recognition across global markets, driving steady growth worldwide. We will look at the regional details on the next page. Please turn to Page 8, third quarter results by region. In the third quarter of 2025, the United States led our global growth with a strong upward trend. Japan and others region also delivered strong year-over-year growth as brand awareness continued to expand worldwide. Starting with Korea, revenue reached KRW 76 billion, up 3% year-over-year. Despite declines in non-core segment, our core businesses remained stable, supporting overall domestic performance. In the United States, revenue reached KRW 151 billion, up 280% year-over-year, marking the first time revenue from a single market surpassed KRW 100 billion in a quarter. U.S. achieved more than twice Korea's revenue, solidifying its position as a key growth driver. During Amazon Prime Day in July, we saw strong performance with rising brand awareness and higher demand, leading to another record high quarterly result. In addition, since August, our products have been available at about 1,400 Ulta Beauty stores nationwide, and we expect continued growth through offline channels going forward. In Japan, revenue rose to KRW 47 billion, up 207% year-over-year. Expanded offline placement enhanced customer access and brand visibility, creating strong online and offline synergy. Supported by strong virality, we again achieved record revenue during the Qoo10 MegaWari event in September. In Greater China, revenue reached KRW 27 billion, up 12% year-over-year. We continued to generate revenue by responding flexibly to market volatility. Lastly, others region continued to increase, driven by steady growth in B2B sales and rising demand from new markets. In the third quarter of 2025, revenue reached KRW 85 billion, about 4x higher year-over-year. Lastly, please refer to Page 9 for our summarized consolidated financial statement. This financial summary is provided for reference purposes only. This concludes APR's earnings presentation for the third quarter of 2025. We will now move on to the Q&A session. Thank you.

[Operator Instructions] Our first question comes from Lee Ka-young of Samsung Securities.

My name is Lee Ka-young from Samsung Securities. Congratulations on the successful results. I have 2 questions. First, regarding profitability. Well, the profitability has been really encouraging and way more than we expected. And how about the tariff impact during the second quarter? And how about the portion of the marketing cost compared to the previous quarter? And the second question, Ulta Beauty. You said you got into the 1,400 Ulta Beauty in the U.S. and the initial volume was already sold out and the second order started in the third quarter. How about the volume? And every quarter -- you might have some forecast for Ulta Beauty. It will be appreciated if you give us color.

Yes. So as for profitability, regarding the tariff, like we said for the estimated third quarter tariff, the impact will be around 1% point. And the criteria for the tariff recognition is coming from the inventory recognition in the U.S. warehouse. And then once it is recognized as sales, then we take it as tariff, the custom. So it was the first time to see a significant recognition of the tariff, and that impact is within 1%, around 1% in the revenue -- in the total revenue. And profitability was 17.5%. And during the third quarter, promotion events took place. So as you can see, unlike other areas, SG&A has decreased constantly. So except for the impact of the tariff, mostly every area is still the same. And then regarding reorder, from the end of August to September, we received -- we were only able to receive the reorder from Ulta Beauty. And the sales volume and sales trend is very good in Ulta Beauty. And then at the level of wholesale, KRW 7 billion to KRW 8 billion revenue is recognized at Ulta Beauty. And then sell-out is very strong constantly. And across the brand at Ulta Beauty, our rank is quite high and then -- we are within top 10. And out of the K-beauty, we rank the first from our understanding regarding profitability and OP. So fourth quarter and perhaps going through the first and second quarter of next year, we believe the revenue will continue to increase at Ulta Beauty, but we are still at the infant stage. So perhaps -- we actually prepared offline drive in New York.

Next question is from [indiscernible].

I have about 2 questions and it is related to profitability. And I believe the tariff has negative impact. Still has your revenue remained intact. And did you have GP improvement in your products business or because of the increasing price from your device or so? So what is your assumption of impact? And I believe that your operating margin is very good due to your advertisement or promotional events. And did they outperform than your expectation? And I'm wondering why you still maintain good operating margin. And did you have really good marketing effect? So I'm wondering about this achievement.

So let me double check and answer your questions. So about GP margin, it had continuous improvement. And of course, it varies by quarter. And in Q3, GP margin compared to Q3 had 0.5% increase. And about this part, I believe that there might be a different trend moving forward based on different quarters because if there is increase in B2B margin, then sales mix might decrease. Of course, we might have great operating margin. And you also mentioned about GP margin. So it varies by sales margin and mix. And in Q3, Amazon promotion, Qoo10 MegaWari events were significant. That's why we had GP margin increase. However, revenue in Q-o-Q seems to be decreasing. However, unlike Q-o-Q, if you look at Y-o-Y, fortunately, across all segments, we're experiencing cost effectiveness and revenues in the global market increasing. And in the global market, the cost is a bit higher than the Korean market. That's why we had better GP margin. And also SG&A expense, although not significant, decreased 3% Y-o-Y. And also great improvement was made in fixed cost. Direct cost recorded last year -- I'm sorry, let me rephrase my sentence. Last year, fixed cost recorded 14.5%, and this quarter is short of 10%, is approximately 9.8%. So I mean the absolute amount of fixed cost is increasing. However, our sales is increasing compared to that cost. So we have the impact from decreasing fixed costs, leading to cost effectiveness. So across all business segments, we're maintaining our great profitability. And additionally, in TikTok and marketing expenses and advertisement, you had this question, right? In online platforms, there are uncertainties and dynamics and variabilities. And of course, our business size is growing. So similar K-beauty products and brands are playing in the same market and also there are major brands competing against each other, and including us. And also the market share of the major brands, including K-beauty brands, are increasing. So there are great dynamics, fierce competition in this market. However, up until now, the brand awareness and presence remains strong in the market in Amazon and TikTok. Our sales remain intact and strong.

The next question comes from Park Hyunjin of Shinhan Securities.

I have 2 questions. First, on and offline sales promotions in the U.S. should be focused by you. And please give us some focus up to the fourth quarter. And then also how about marketing costs and –- well, the marketing activities in the APRILSKIN is observed quite actively. So it would be appreciated if you give us some investment plan.

On an offline sales portion in the U.S., as for that, in terms of accounting recognition, like I said, Ulta Beauty sales has yet to reach KRW 10 billion. So it's less than 10% -- I mean the offline base is less than 10% of the total. But from next year, the offline sales representation is going up to 20% to 30%. That's our expectation. And you also mentioned other areas regarding on and offline breakdown, but we cannot really give any specific data on that in this conference call. So maybe in the next occasion, we can share with you the data. And for the forecast, during the fourth quarter, we still remain positive. And the largest portion of the sales in the fourth quarter comes from the promotion -- in the promotion events in the U.S., Japan and Korea. So it is hard to -- it is too early to tell you about the tone, but we think the market consensus will be KRW 400 billion. But maybe -- up to the third quarter, KRW 90 billion was already accomplished. So it's hard to tell you the exact number. But perhaps only to be KRW 400 billion, or if we are very successful, then it will be more than that. And regarding for marketing cost plan, it's hard to explain it in detail. But marketing cost is going to increase proportionately with revenue. Of course, marketing and promotion events and campaigns will take place. And the efficiency is going up as well. Subsequently, sales volume will be increasing. And it is a little hard to tell you about the detailed plan regarding marketing because it's one of the core strategies. And for APRILSKIN -- Medicube has been very successful. And APRILSKIN, the sub-brand of our company, is going to be more exposed to consumers, end consumers, just like in Medicube. But the revenue from APRILSKIN is 130 of that of Medicube. So even after the first quarter, we believe that we are going to continue to focus on Medicube. How aggressive we are going to be for APRILSKIN can perhaps be shared with you later.

Next question from Hanwha Securities, Han Yu-jung.

Congratulations on your great earnings. And Mr. Shin said the offline market will account for more than 20% and this year recorded KRW 100 billion. And I would like to have more guidance for the year 2026.

In my opinion, I believe that -- I mean, based on sell-in, I believe that we can achieve KRW 100 billion brand-wide revenue. in the U.S. And there are several backgrounds and rationales, not only in our business plan. And based on my ideation and to have better communication, I'm giving you this outlook, looking forward to achieve that KRW 100 billion record. So primarily, we can achieve that goal in Ulta Beauty sales. And this year's prospect is about KRW 15 trillion to KRW 16 trillion. It is about 3x or 4x higher than sales from Olive Young. So overall, the sales from Ulta Beauty will be recognized as a great marketplace. And our brand is making a really high revenue as good as top 5 brands. So based on selling standards, I believe we can achieve KRW 100 billion. Because if you look at all the brands in Ulta Beauty, and not only in Ulta Beauty, but also in domestic markets, if you are ranked top 5 or 10, then you might also have a similar calculation for the revenue as well. So based on this rationale, we can achieve that goal. And also next year, we're also thinking about having different channels and getting ready for entering different channels as well. So if we make great achievement in different channels, then pretty much we can achieve that goal. For the color in 2026, unfortunately, we have not prepared for the outlook yet. Maybe early next year, we can give you a guidance for the outlook in 2026. The reason is that to give you a color, a list, we need to have some data for Q4 performance and then have to develop business plans and then design for the color in 2026. In fact, next year's color business plan was developed this year, but this year's earnings and performance were quite different from what we expected early this year, exceeding a lot than we expected. So maybe next year, we can make another miracle. So we're being very aggressive in developing our business plan. And also there are variables. So we need to consider them for our prospect, outlook and business plan as well. So I'll give you detailed color for the next year.

And our next question comes from Lim Heejin of Citi Securities.

I have 2 questions. First, how about the revenue trend in the European market? And the second, it seems like the marketing activities was quite aggressive, but the OP margin is -- remains at the same level as the previous quarter. And Amazon, TikTok and the third-party channels, commission fee structure might be more favorable from my guess. What do you think?

Well, the sales trend in the European market, for that, it's hard to tell you the exact figure. But during the second quarter, you've seen the number. So we've received the order a little higher or a similar level of order from that market. But we don't have any specific plan for specific campaigns in the European market. And to penetrate into the online market in the European region, we have been preparing. And at the end of this year and getting into the next year, in U.K. market, Germany and France and other markets, which are quite leading markets in the European region, we are going to market our products in online channels, including Amazon and TikTok so that we can expose our products to the end customers in European region. Once again, our partner, SILICON2, and our direct channels are already there in the European market. And we've seen a little bit and slight higher -- a slightly higher revenue in that market. And our products are sold in the offline market at SOHO and the small dollar shops in the European market at the moment. And regarding marketing costs, like I said -- we said, overall, it is going down. Last year, the average was 20%, and the year before last year, it was higher than that. But like you said, the marketing activities is sort of a communication effort. So marketing is very important for us. And we have to highlight differentiation of our own brands through marketing. Nonetheless, OP margin remains at the same level as the previous quarter. From our understanding, regarding the successful OP margin, well, there's no big difference from the previous quarter. Like I said, we have sort of a negotiation power in Amazon and TikTok -- with Amazon and TikTok, but it doesn't mean that our selling price is lower than that, lower than before. So like I said, across the businesses, fixed cost has decreased, and subsequently, OP margin being affected. And regarding transportation, you will find it out in disclosure later the transportation has decreased. Well, the -- but it will increase because our sales volume will increase in overseas markets. And it is reflected -- it is transferred to the sales commission and fee. So it is hard just to tell you about the accounting items and names. But anyways, overseas sales is continuing to increase. But with overseas sales volume increasing, the fixed cost is improving as well.

Next question from JPMorgan, [ Jo-jihan ].

I have 2 questions. One is 20% to 30% of proportion in offline next year was mentioned earlier. And compared to online sales, offline sales may have a burden or risk of inventory. So how long would you maintain stock in your inventory? And if your sales are not as good as expected, then how would you handle that inventory and safely stock your channel? Will retailers carry the burden or APR? And you said OP margin is high. And in my opinion, maybe it could be weaker over next quarter. So is that right? And I think your sales in Cosmetics is very good. So sales in Beauty Devices look flat. So what about your outlook in Q3 and Q4 in Device segment?

Let me double check the question and give you the answer. Well, about the -- 20% to 30% outlook in offline sales is from the United States. So we are looking forward to have 20% to 30% sales from offline market in the U.S. And about the inventory risk, in most cases, inventory burden or risk is carried by the retailer or channel distributors. And we have return policy and we have very stable and steady return policy. So for example, if there are any guarantee or liability we should bear, then maybe our return policy will be applicable, but we do not accept all the returns. And the price in the foreign markets are slightly higher. And of course, based on promotional events, the price might change. And for example, in Ulta Beauty in the United States, we're doing this partnership. But in Olive Young, we're also selling our brands, in Watsons, and there are various channels. We're selling our brands in different channels, but the business practice is pretty much similar. But when it comes to price or return policy, we have pretty much solid and manageable policy. So in terms of investors, like if price is breaking down or there are huge risk of returns or inventory risk so we're losing control over inventory, and such concerns are not very significant. And of course, does the channel distributor bear all the risk? They want to minimize the inventory period. So like early on, they wanted to hold all the stock for several months. And later, if their sales are not very good, then they may have inventory risk. In fact, our stocks happen a lot. So at this time, when we launch our products in Ulta Beauty -- and 30% of our SKUs were out of stock. So they bought stocks at a significant amount early, and then their sales was 3x higher than expected, so they made reorder. And now based on the data, the channel distributors are managing their inventory and aligning with our written policy. So they are in good control of inventory through sell-through strategy. And Device business strategy. Next year, we'll be focusing on global market for our Device segment. In Q2 next year, we're going to launch EBD device. And there are new devices to be launched this year and next year. And for your reference, to give you the sales trend from device, in Q3, we recorded about sales of 2 million units. So based on the number of units that we have sold so far, we have been on track so far, maintaining solid growth. And last year, the number of device sold was 1.5 million. So we already exceeded the amount of sold last year this year. So based on the solid growth pattern, we're expecting 2 million to 3 million units to be sold this year. So I believe the business in Device segment is doing well. However, relatively, it seems flat based on cosmetic brands, cosmetic products. However, on the other hand, the at-home beauty device must be familiar with customers in Korea and Japan. That's why we are recording a solid growth. And among competing brands, APR has great awareness and brand reputation, therefore, having greater competitiveness. So next year, in the U.S. and in other global markets, we will have stronger device driver and we will have more upside potential.

The next question will come from Park Hyunjin of Shinhan Securities.

Please understand that I keep asking about channels. And if you diversify products and items in Amazon market, and I -- from my understanding, you have very good partnership with Amazon. And is it true? Is it okay to go in parallel with -- between Amazon and also Ulta? There might be some concerns about cannibalization. What do you think about that?

Well, in reality, for example, the cannibal -- we have -- we didn't really track it, but we strongly believe that we can coexist and we can sell our products in both channels, and that's the lessons that we learned from domestic market. We've already experienced it. The market itself -- the market size per se is very, very large and Ulta Beauty has its own pros and we can strengthen our experiences in Amazon as well. Like you said, we are diversifying our product items in Amazon. And based on research, external research and the diversified categories, more than half of the categories show a high rank of -- I mean, the Medicube products ranks high in more than half of the categories. So we have very good position in Amazon. And for Ulta Beauty, in offline, around 10 product items are being sold, including online, around 20 products are being sold in the U.S. market. And then offline products will increase by 2.5x. In this conference call -- our strategic position and partnership with Ulta Beauty which will bring about the benefits to us might not be really touched in details in this conference call. I have to be very cautious. But I can tell you that each channel has its own growth. So like we did in domestic market -- well, our revenue might be increasing in Olive Young, but it doesn't mean that other channels -- our sales volume might decrease in other channels. So for us, Ulta Beauty as an offline channel can help us raise our brand awareness. And with curations, we can expose our products to more customers. In Amazon channel, it is really helpful for us to retain our customers. So there might be some synergy effect when we go together with both channels. And as for benchmark, the global brands in the U.S. market with very high -- strong presence are strong in both channels, which is really a leading example. So we think we are going to be able to benchmark such cases. That's our plan.

Next question from NH Securities, Jung Jiyoon.

Can you hear me?

Yes, very well.

I'm wondering about B2B sales revenue. In Q3, you recorded KRW 85 billion Q-o-Q. And what about Q4 and trend next year? Do you expect increased revenue Q-o-Q? And also, from last Q4, you have had a strong revenue in B2B and I believe that you might expect KRW 100 billion record in B2B business. So is that right?

About B2B business, in Q4 might not be disclosed because we did not spend a lot of time in the fourth quarter and I'm not really sure about sales status quo. And as mentioned earlier, we have been maintaining stable growth in revenue in B2B segment and we're expanding our channels and also we're maintaining and in a good control of stores. And with this momentum, we'll remain solid in Q4 as well. And for the channel growth, in 2026, it will be pretty much similar this year in the U.S., Europe, Japan. We're targeting these advanced countries market and we're going to enhance online channel and expand offline. So this is our business strategy. And by targeting this market, we're going to expand globally, leading towards various channels in the global market and indirect entry into the B2B market as well. And it's been almost a year, but I think we do not have enough coverage so far to give you the exact data. And in Europe and Middle East and Southeast Asia, we still have more room for our growth. So I believe that you can expect pretty much good upside potential next year as well.

No questions in the queue. [Operator Instructions] The next question comes from Lee Ka-young of Samsung Securities.

I have 2 questions -- additional 2 questions. The first, in relation to Japan, so far, online portion of the sales volume is larger, but offline sales volume is one of your -- the offline sales volume increase is one of your plans. So what is the status quo? And then from the fourth quarter to first quarter, what is your plan for the offline marketing and sales? And the second question, I'm not sure if I understood it correctly, but in B2B, the European -- regarding the question about the portion of the European market, you said that it is pretty much similar to the first -- the previous quarter. But looking at the rankings in Amazon -- and we see -- we've seen very good and high revenue trends in TikTok. But compared to that, your sales trend is not that speedy upside in the European market. Why is it -- does it take long compared to other markets?

Well, in Japanese offline market, we got into around 2,000 stores. We've expanded our businesses there up to the second quarter. Compared to the second quarter, we don't see any big difference. And in addition to that, we are strengthening our – I mean increasing and strengthening our SKU during the fourth quarter. And in offline channels, of course, we sell our products through partners. And we also have to sell our products according to the schedule of the channels. So that's why it's not as speedy as online markets. And for offline channels, we continue to work on strengthening those channels. It's a very core initiative going through next year. So of course, we are going to strengthen our offline sales volume in Japan so that we expect a strong upside there. So once again, during the third quarter, the offline upside and sales volume is still at a similar level as the second quarter. And the sales is recognized -- when it is sold in wholesale, the reorder volume was not that big. From our understanding, in the fourth quarter and next year, anyways, we expect some growth there. And for the portion of the B2B sales volume, we cannot really tell you the exact number because I didn't really receive the permit about disclosure of the number. But at the same time, we don't have exact number. It is a little hard to figure it out because we sell our products through partners. And so the number -- exact numbers to the European market is not really available at the moment. Please understand it. But during the second quarter, we thought that the revenue was higher than expected in European market and our presence is quite strong there in the market. But when we went to the European market, our products are not actually well exposed enough -- sufficiently exposed to customers. We've expanded our businesses in online market, but we are going to strengthen our offline marketing later. But it doesn't mean that a decrease or reduction in demand. Rather, we are focusing on raising demand and needs of the customers in the European market because we have yet to implement our strategies in earnest. So we are figuring out the demand and needs of the customers in the European market. So in B2B, our export to the European region, our estimated phase is like that. So once again, the upside in the European market will be in good shape, better shape from next year. The major markets in the European region, we can maybe make our products go viral, just like in the U.S. market. I think we can make it. And if it happens, and as we expected, our sales volume will increase. And we can show it to you. We can prove it maybe later.

Next question from [indiscernible].

I'm not really sure if I heard right. EBD is expected next year, right, Q2? So I thought that EBD in your home beauty category might have like a technological gap. And with that increase in R&D cost, how are you going to launch EBD next year? So can you give me more detailed information?

Not Q2 next year. I didn't say Q2. Maybe in the second half next year. Maybe -- it might be Q3 or Q4. The reason that I'm saying it's half -- second half is that we're in the middle of certification and approval and we cannot give you an exact anticipation or prospect about this time line. So we're expecting to launch this EBD in the second half next year. About R&D cost, well, actually it is included in our SG&A expense. And also we have about 30 to 40 people in R&D business -- department and also there are research team and clinical trial teams and also there are partner institutions as well. So there is no significant increase in R&D cost, as said, but actually, the R&D costs remained pretty much the same since the inception. And I did not prepare the exact number for our R&D cost so far. And you mentioned about technological gap. There might be some gaps. And of course, our devices will have our own proprietary characteristics, and they're not yet launched and they are not yet approved and certified. So I cannot give you detailed technological aspect. But when we're about to launch the product, I can give you detailed explanation about the technology and product. And this R&D people are divided into medical equipment and home beauty devices and also the research team. Also they work together for the development as well. And the EBD is related to home beauty and medical equipment. These two are pretty much different, but also they share a lot of commonalities as well. And we have original technologies as well. So in the EBD market, we believe that we can have solid growth and significant growth as well.

So we're going to have more questions, and there are 2 more people waiting for the opportunity to ask more questions. So I will accept questions from them first. And next question comes from [ Fuju Jong ] of the [indiscernible] Securities.

In the 3Q -- I'm wondering about the revenue in the apparels and fashion business units.

Can you please ask your question again?

Okay. Can you hear me?

Yes.

In the fashion and apparels, I'm wondering about the deficit and also the revenue. And during the third quarter, can you please provide a data of the sales -- the medical device sales by regions? Home beauty devices by regions?

In the fashion and apparels, the revenue was KRW 6 billion and the loss was KRW 1.3 billion. And looking at the stocks –- well, the inventories are not really recognized as reserves, but -- hold on a second. For the home beauty devices, we don't necessarily share the detailed data by regions. But in Korea, the revenue is 30% at the global level, less than 70% out of them, Japan, a little slightly over 20% and the rest of the world, including the United States.

Next question from Morgan Stanley, [indiscernible].

I'm asking about EBD. ASP is very different and I think sales might be very different. So I believe that this is a different business segment from injectables or medical equipment and so on. And since selling price might be different, so to launch this product, you might have different business plan. And I'm wondering about your sales personnel as well because you might have different OpEx and CapEx and different personnel for this business.

While this business segment might be pretty much different from our own and the selling price might be different and recognition of the revenue might be different as well, this is equipment sales in large scale and consumables, cartridge, replacement, and all these consumables will be also included in our business. But in terms of consumables, it might be pretty much similar. And about OpEx, we designated 1 factory for EBD and factory 3 maybe for TDI and device. It might be not next year, but we already designated certain factories. So we already recognized the CapEx and fixed cost for the plant. And we do not have to have a separate plan for operating capital or OpEx. And about R&D, we already mentioned about that. And about sales personnel, I'm not sure how many people, but we already started allocating people for this department or allocating people in-house from other -- from outside the company.

Well, now this wraps up our running -- earnings report. Thank you again for your time and your attention. APR's employees will be committed to the best of the shareholders and investors. Please continue your support and attention and interest. Now we would like to close the earnings report for Q3 2025. Thank you very much.