VTGMP Spins Off Laminating Division 'GMP'... Focus on Cosmetic 'VT' Growth

VT GMP, a KOSDAQ-listed company, announced on the 19th through a public disclosure that it plans to spin off its laminating business division and focus on its cosmetic business.

VT GMP will separate the non-core laminating business division ‘GMP’ (hereinafter referred to as GMP), which had been hindering its performance turnaround, by establishing a new company through a physical spin-off. The core cosmetic business division ‘VT’ (hereinafter referred to as VT), which is conducting the main business, will remain as a listed company holding 100% of GMP’s issued shares.

The laminating business division GMP has been considered a discount factor for VT GMP among the market and stakeholders, including issues related to COVID-19. In contrast, VT GMP’s core business and growth engine, the cosmetic division VT, has shown a high growth rate with a compound annual growth rate (CAGR) of approximately 33% over six years since its launch in 2017. The company’s position is to carry out the physical spin-off to focus on advancing the VT business and expanding its global market. The newly established spun-off company GMP will remain an unlisted company and continue to operate the laminating business steadily.

Since launching the ‘CICA’ line at the 2018 Shanghai Beauty Expo in China, VT has focused heavily on overseas markets, with overseas sales accounting for nearly 90% last year. Instead of the Chinese market, where K-beauty has been sluggish due to the Hanban ban and Guochao phenomenon, VT launched the ‘VT CICA Daily Soothing Mask’ in Japan in 2020, which has become a battleground for K-beauty. The product has achieved high sales on various cosmetic and online platforms such as @cosme, Qoo10, Rakuten, Amazon, and Loft, and has won numerous awards, solidifying its success in the market.

Additionally, VT has demonstrated its product development capabilities in the beauty market, where discerning value consumption trends have taken hold, by continuously launching new products such as the ‘VT Needle Shot Line,’ which combines proprietary CICA-based ingredients with microneedles, and the ‘CICA Retinol Line,’ effective for skin anti-aging care, in Japan.

VT’s strategy is to leverage its success in the Japanese market as a stepping stone to focus on expanding into Southeast Asian markets as well as the global market through this physical spin-off. It is also preparing for the reopening of the Chinese market, where K-beauty has cooled, with proven new products and marketing power.

A VT GMP company official stated, “Through the physical spin-off, we aim to strengthen the specialized business capabilities of each division to realize business advancement and enhance corporate and shareholder value. If the agenda passes at the shareholders’ meeting scheduled for May 30, the spin-off registration is planned for July 4.”

Meanwhile, VT GMP plans to develop its secondary battery business, which successfully developed pilot equipment for manufacturing electrode structures for lithium-sulfur batteries, and the hydrogen fuel cell power generation business, which is scheduled for bidding in June, as future growth engines under VT.

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