SUN&L to liquidate New Zealand subsidiary... "To focus capabilities on lifestyle beauty business"

*This content was translated by AI.

Global lifestyle beauty packaging company SUN&L (CEO Lee Yun-gyu) announced on the 22nd that it is accelerating its restructuring of the business portfolio by deciding to liquidate its New Zealand subsidiary.

SUN&L stated that the board of directors of its wholly-owned subsidiary, "SUN&L New Zealand Limited" (hereinafter SLNZ), located in New Zealand, resolved on July 21 to liquidate the company to improve management efficiency. SLNZ is scheduled to proceed with liquidation procedures in accordance with local laws, and the company completed a voluntary disclosure regarding the occurrence of dissolution grounds on the same day.

This decision is part of a strategy to shift from a business structure centered on wood manufacturing and distribution to the lifestyle beauty sector, including household goods and cosmetic containers. The company plans to consolidate its resources and capabilities into its core packaging business by disposing of non-core overseas assets.

Since its establishment in 2013, SLNZ has operated forestry plantations, logging, and trading businesses. Over approximately 13 years, it generated cumulative sales of about 203 million New Zealand dollars (NZD) and cumulative net income of approximately 12.06 million NZD, creating stable profits. Additionally, it contributed significantly to the group's financial stability by paying out approximately 21.42 million NZD to the headquarters through dividends and capital reductions.

SUN&L analysts expect the financial impact of this liquidation to be limited. As of the end of December 2025, SLNZ's total assets amounted to approximately 3.45 billion won, representing only 0.73% of SUN&L's consolidated total assets (473.2 billion won). The company anticipates improving its consolidated profitability and enhancing capital efficiency by proactively restructuring businesses that have become less profitable due to a slowdown in the wood market.

A representative of SUN&L (SUN&L Co., Ltd.) stated, "The New Zealand subsidiary has fulfilled its role over 13 years by returning investment returns exceeding the original capital to the company through dividends and capital reductions." He added, "This liquidation is not a contraction but a strategic choice and focus to advance as a global lifestyle beauty packaging company, which will elevate our corporate valuation to the next level."

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*This content was translated by AI.