The chairman of South Korean cosmetics brand TonyMoly said Thursday that the company is preparing to aggressively expand its business in China this year, projecting sales of 260 billion won ($213 million) for 2016.

“We plan to focus on our business in China starting this year, as we have concluded the two-year legal dispute with our local distributor,” chairman Bae Hae-dong told reporters in Seoul during a press conference to mark the brand’s 10th anniversary.

Having won its two-year lawsuit against its former distributing partner Shanghai Unique Information Technology Co. as of January, TonyMoly is ready to drive up its presence in the Chinese market, he said.

In 2013, Tony Moly signed a partnership with SUIT to market the brand’s products in China. However, TonyMoly terminated its contract the following year and filed a damage suit against SUIT for failing to comply with its contract stipulations, effectively halting expansion in China for the past two years.

With the legal hurdles lifted, TonyMoly is eyeing a bright sales outlook in China. It projects 2 trillion won in sales by 2025, around 55 percent of which will come from overseas, particularly China, said Tony Moly CEO Yang Chang-soo.

TonyMoly plans to add around 200 independent brand shops in China by the end of this year. As of now, the brand operates 64 independent shops across China and sells its products at some 2,400 beauty retailers in the country, including Watson’s.

In line with its focus on China, TonyMoly has begun constructing a new production plant operated by its affiliate Tony Moly Megacos, an ODM and OEM manufacturer of cosmetics products. Upon its completion in 2017, the plant will help the Korean brand reap “immense sales and profits,” according to Bae.

The chairman also expressed concerns over TonyMoly’s falling stock value, which has more than halved since the firm went public on Korea's main bourse in July 2015.

Considering its growth potential, TonyMoly is “significantly undervalued,” said Bae. Expressing regret, he said the firm’s current stock price fails to reflect major achievements such as its official entry into all of Sephora’s branches in Europe announced earlier this week.

Founded in 2006, TonyMoly strives to be a “witty cosmetics” brand targeting young women in their teens and 20s. Its bestselling products include its Back Gel Eyeliner and Magic Food Banana Hand Milk as well as a number of other products known for their unique packaging.

The brand currently operates 676 stores in Korea and around 7,700 stores -- including its independent shops and sections inside beauty retailers -- in 41 countries around the world.

By Sohn Ji-young (jys@heraldcorp.com)