Organic Ticosmetic "32 Billion KRW Fundraising... Entering Chinese Water Purifier Market"

[Asia Economy Reporter Hyunseok Yoo] Organic T Cosmetic announced on the 2nd that it has decided through a board resolution to issue a paid-in capital increase of approximately 14 million USD (17.3 billion KRW) with 15 million shares to Jinzheng Investment, and to issue the 3rd series of convertible bonds worth 13 million USD (15.1 billion KRW) to three corporations including HENG YANG INVESTMENT MANAGEMENT CO PET.LTD.

The company stated, "Some of the funds raised through this capital increase will be used to acquire a portion of the shares of Guangdong Qianye Electric Appliance Industrial Co., LTD," adding, "Although the acquisition timing has not been determined, both parties have confirmed their willingness to cooperate."

Organic T Cosmetic plans to enter the home water purifier market through a partnership with Guangdong Qianye, following acquisitions of pharmaceutical and cosmetic companies over the past two years.

Guangdong Qianye is a smart health appliance manufacturer that integrates product research and development, design, production, sales, and services, producing home appliances such as smart water purification equipment and smart small kitchen appliances. In 2020, it also launched an online app (Fish OS data management system) capable of real-time status and water quality visualization and smart monitoring of purification equipment.

Guangdong Qianye has maintained a growth rate of over 40% for the past three years, with a net profit margin exceeding 20%. To date, it has recorded sales of more than 100,000 water purification devices across both online and offline stores.

Meanwhile, Organic T Cosmetic announced in its semi-annual report on the 30th of last month that its consolidated sales for Q2 2021 reached 77.9 billion KRW, with an operating profit of 13.4 billion KRW. Although sales decreased by 3% compared to the same period last year, operating profit returned to the black.

This content was produced with the assistance of AI translation services.