Q1 2026 Revenue Up 24% and Net Loss Narrows; 50:1 Stock Split Approved and New Controlling Shareholder Emerges via Premium Third-Party Allotment
Consolidated revenue for Q1 2026 increased 24% year-on-year to 195,053,133 CNY (approx. 41.28B KRW), driven by the expansion of the shoe series to 59% of total sales.
Operating loss narrowed 28% to 34,942,460 CNY (approx. 7.39B KRW) from 48,769,884 CNY in Q1 2025, and net loss improved 12.6% to 41,266,210 CNY (approx. 8.73B KRW), indicating continued loss reduction.
Cash and cash equivalents surged 74% to 966,605,148 CNY (approx. 211.4B KRW) from year-end 2025, supported by improved operating cash flow and the issuance of 7th convertible bonds (52,316,250 CNY).
Two convertible bonds (6th: conversion price 255 KRW, 7th: 194 KRW) are outstanding, potentially adding up to 112,482,853 new shares upon conversion, posing dilution risk to existing shareholders.
A 50:1 stock split was approved at the AGM on April 30, 2026, and executed on May 28, 2026, reducing the outstanding shares from 389,004,876 to 7,780,097, aimed at stabilizing the stock price and enhancing per-share value.
On April 23, 2026, SUN YANE acquired 138,000,000 shares (approx. 18.35B KRW) through a third-party allotment, becoming the new largest shareholder, while previous largest shareholder Im Guk-gang saw his stake diluted from 8.4%.
Indonesian subsidiary PT TEA BABY INDONESIA reported a profit of 9,552,636 CNY on revenue of 55,647,537 CNY, while Chinese subsidiary Nanping Shi'ai Daily Products continued to incur losses of 43,359,451 CNY on revenue of 139,405,596 CNY.
R&D expenses of 8,733,187 CNY (4.48% of revenue) increased from zero in the prior year period, but are lower than the full-year 2025 ratio of 8.59%. No dividends or share buyback/cancellation occurred.
[AI Summary]In Q1 2026, Organic Tea Cosmetics grew revenue and narrowed losses thanks to strong shoe segment performance, but remains loss-making with dilution risk from convertible bonds. Positives include the new controlling shareholder's premium capital injection and stock split efforts to stabilize the price, which could benefit shareholder value. However, persistent operating losses, subsidiary deficits, and high potential dilution are key investment risks.
KOSDAQ Filing Information
Filing: Quarterly Report (2026.03)
Company: Organic Tea Cosmetics Holdings (900300)
Submission: Organic Tea Cosmetics Holdings Company Limited