Organic Tea Cosmetic announced on August 4 that it had disclosed the establishment of a new subsidiary and revealed its roadmap for listing the subsidiary on a U.S. stock exchange.
Organic Tea Cosmetic will invest $27.86 million (approximately 39 billion KRW) to establish the subsidiary Organic Gaohang Tea Co., Ltd. Organic Gaohang Tea Co., Ltd. will be a joint venture, with Organic Tea Cosmetic holding a 66.7% stake. The company plans to acquire a China-based company in the future, with the goal of completing a U.S. listing within 2025 through this acquisition.
The company explained that if the U.S. listing is completed under this investment structure, not only will the value of Organic Tea Cosmetic's stake increase significantly, but the company will also be able to secure raw materials, develop new products, and expand into overseas markets through the new subsidiary.
The planned U.S. listing of Organic Gaohang Tea Co., Ltd. will be pursued through the acquisition of Hubei Gaoxing Tea Industry Co., Ltd., a company based in China. Established in October 2020, this company is engaged in tea leaf cultivation, processing, and distribution. As of last year, it recorded sales of 71 million yuan (approximately 13.4 billion KRW) and a net profit of 20 million yuan (approximately 3.8 billion KRW). Sales for this year are expected to surpass 100 million yuan (approximately 18.9 billion KRW).
This investment by Organic Tea Cosmetic will not only yield results in the capital market but also lead to business expansion utilizing tea leaves. The company plans to extract tea polyphenols from premium tea leaves to develop functional organic cosmetics. Tea polyphenols are raw materials with excellent antioxidant and antibacterial properties, making them widely applicable in cosmetics.
With this, the company plans to upgrade its existing children's skincare products and develop differentiated new products such as children's sun care mist and soothing creams. The company expects that from the first half of 2026, these new products will begin full-scale production and sales, which will be reflected in revenue.
A representative of Organic Tea Cosmetic stated, "We expect that listing in the U.S. will not only enhance our corporate value but also provide an opportunity to broaden our connections with global investors," adding, "From a business perspective, it will be an important turning point for the strategic expansion of our cosmetics portfolio."
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