PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
With KH Group now installed as controlling shareholder, CSA Cosmic has added casino and real estate development to its corporate purpose, yet its core cosmetics business has posted declining revenue and operating losses for four straight years.
Through a November 2025 third-party share issuance, the KH Group-linked G&B Union acquired roughly 11.02 million new shares (15.25%) to become the largest shareholder.
2025 consolidated revenue fell to KRW 27.93 billion from the prior year, while the operating loss widened to KRW 5.63 billion, marking a fourth straight year of losses.
New management added numerous business purposes to the articles of incorporation, including casino operations, real estate development, smart farming, and AI, but questions have been raised about the funding and execution capability behind them.
Five KH Group-affiliated listed companies were delisted in succession in early 2026, highlighting governance-related uncertainty tied to the new controlling shareholder.
In the second quarter of 2026 the operating loss ballooned to KRW 5.69 billion while the net loss narrowed to KRW 0.42 billion, an unusual pattern that warrants closer scrutiny of non-operating items.
CSA Cosmic was founded in 1989 and listed on KOSDAQ in 2006, and after adding cosmetics as a new business line in 2015 it built a portfolio of brands including Chosungah Beauty, 16 Brand, and Wonderbath.
The company develops color and basic cosmetics lines tailored to different age groups and sells them through e-commerce, home shopping, and duty-free channels.
Its subsidiary, Jentro Group, operates a separate construction-materials business making synthetic resin products, which is part of why the company is classified under the KOSDAQ chemicals sector.
According to recent disclosures, customer concentration in the cosmetics segment is high, with the top two clients accounting for more than 30% of total revenue.
In the second half of 2025, after a series of failed ownership-change attempts involving financial investors such as TheKimFarm and V-Pink Holdings, KH Group affiliate IHQ funded the G&B Union, which participated in a third-party share issuance and became the largest shareholder.
The new management team amended the articles of incorporation at an extraordinary shareholders' meeting to add roughly 93 new business purposes, including casino operations, real estate development, smart farming, new drug development, software/big data/AI, and renewable energy, signaling an intent to diversify.
Former CEO Chosungah, who had led the cosmetics business, stepped down from her registered-executive role but retains a related-party status and continues brand cooperation. KH Group has stated its intent to leverage its global distribution and sales network to strengthen the cosmetics business's overseas footprint.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩6.4B | -₩1.7B | −27.0% |
| 2025Q3 | ₩8.1B | -₩800M | −9.8% |
| 2025Q4 | ₩5.8B | -₩2.2B | −37.8% |
| 2026Q1 | ₩7.1B | -₩1.6B | −22.3% |
| 2026Q2 | ₩8.4B | -₩5.7B | −67.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩61.2B | -₩9.3B | -₩12.3B | −15.1% | −420.5% | 1088.3% |
| 2023 | ₩44.6B | -₩5.9B | -₩6.6B | −13.3% | −31.0% | 98.5% |
| 2024 | ₩36.4B | -₩3.8B | -₩6B | −10.4% | −38.0% | 109.8% |
| 2025 | ₩27.9B | -₩5.6B | -₩6.7B | −20.2% | −40.3% | 82.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue fell for four consecutive years, from KRW 61.20 billion in 2022 to KRW 44.59 billion in 2023, KRW 36.38 billion in 2024, and KRW 27.93 billion in 2025.
The operating loss narrowed from KRW 9.27 billion in 2022 to KRW 5.91 billion in 2023 and KRW 3.77 billion in 2024, before widening again to KRW 5.63 billion in 2025, pushing the operating margin from -10.4% in 2024 to -20.2% in 2025.
Net income attributable to owners improved from -KRW 12.25 billion in 2022 to -KRW 6.01 billion in 2024 before deteriorating again to -KRW 6.67 billion in 2025. Operating cash flow turned positive only in 2024, at KRW 0.29 billion, before reverting to a cash outflow of -KRW 4.51 billion in 2025.
The capital structure moved from severe impairment in 2022 (total equity of KRW 2.91 billion, debt ratio of 1,088.3%) to a much healthier KRW 21.31 billion in equity and a 98.5% debt ratio in 2023, with the debt ratio further improving to 82.3% by 2025.
On a quarterly basis, the loss narrowed in the third quarter of 2025 (revenue of KRW 8.08 billion, operating loss of KRW 0.79 billion) before widening again in the fourth quarter (revenue of KRW 5.79 billion, operating loss of KRW 2.19 billion), reflecting significant seasonal volatility.
Notably, in the second quarter of 2026 the operating loss surged to KRW 5.69 billion against revenue of KRW 8.40 billion, while the net loss shrank to just KRW 0.42 billion, an unusual divergence suggesting a large non-operating item affected the income statement.
Over the most recent four quarters (Q3 2025 through Q2 2026), cumulative revenue was roughly KRW 29.36 billion and the owners' net loss was roughly KRW 6.03 billion, indicating the loss trend has persisted on an annualized basis.
The domestic color and basic cosmetics market is a mixed competitive landscape of large ODM manufacturers, established brand houses, and rapidly growing digital-native beauty brands, leaving a brand-driven small-cap player like CSA Cosmic to shoulder both distribution expansion and marketing costs simultaneously.
While the company's Chosungah Beauty and other brands reportedly have a history of placement in prominent overseas retail channels, continued revenue declines in recent years point to weakening market position.
A revenue structure concentrated in a small number of major clients can weaken negotiating leverage, as reflected in the fact that the top two customers account for more than 30% of segment revenue.
While industry peers have been strengthening direct-to-consumer online sales and overseas cross-border and local distribution partnerships, CSA Cosmic has gone through a period of constrained marketing and brand investment amid ownership disputes and funding issues.
Should KH Group's stated plan to expand into Southeast Asia and China via its global network materialize, it could serve as a catalyst for distribution-channel diversification, though this remains at the planning stage without concrete results confirmed so far.
After the November 2025 change of controlling shareholder through the G&B Union's third-party share issuance, the company continued to receive capital injections from KH Group affiliates, including an additional early-2026 share issuance funded via KH Fillux-linked entities.
The newly added business purposes—casino operations, real estate development, smart farming, AI, and others—have not yet been accompanied by publicly disclosed, concrete investment plans or licensing progress.
An earlier AI-business partnership collapsed in August 2025 amid ownership instability, which has fed skepticism among industry observers about the feasibility of the newly announced ventures.
The newly installed management team, with backgrounds in entertainment, distribution, and finance, is expected to focus on restructuring the cosmetics brand business and improving operational efficiency.
However, given that KH Group itself faced a cartel-related fine tied to its Alpensia Resort acquisition and that several affiliates were delisted after receiving disclaimed audit opinions amid embezzlement and breach-of-trust allegations against its chairman, the possibility that future capital raising or business execution at CSA Cosmic could be affected by the parent group's situation cannot be ruled out.
Whether the core cosmetics business can reverse its revenue decline, and how concretely the new ventures are funded and licensed, are likely to be the key variables for future earnings.
Because the company has posted continued net losses in recent years, conventional earnings-based valuation metrics are difficult to apply meaningfully, and the shares are understood to trade at a discount to the company's net asset value per share.
On the capital-structure side, the debt ratio's improvement from a state of severe capital impairment in 2022 to 82.3% in 2025 shows a positive directional trend, though this should be understood as a function of external capital injections rather than operational improvement.
The company currently pays no dividend, limiting its appeal from an income-investing perspective.
Given the repeated changes in controlling shareholder and large new-share issuances, the per-share metrics and ownership structure could continue to shift depending on further capital raises or convertible bond issuances, and this should be factored into any interpretation.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
A series of third-party share issuances by KH Group affiliates has injected capital into CSA Cosmic, helping it move away from severe capital impairment and improving its debt ratio. This can ease near-term liquidity pressure.
However, it remains unconfirmed whether these capital injections will translate into a recovery of the core business's competitiveness.
The company has added numerous new business purposes to its articles of incorporation—casino operations, real estate development, smart farming, and AI—in an attempt to move beyond a single-business cosmetics structure. Possible linkages with KH Group's leisure and resort infrastructure have also been mentioned.
However, concrete investment plans and funding capacity have not yet been confirmed, so execution remains to be seen.
Brands such as Chosungah Beauty and 16 Brand reportedly have a track record of placement in prominent overseas retail channels, which could serve as a foundation for expanded international distribution if combined with KH Group's global network. Brand recognition itself remains a core asset for the company.
That said, the sustained revenue decline in recent years suggests brand strength has not been sufficiently converted into sales.
Revenue has declined for four consecutive years since 2022, and the operating loss widened again in 2025, extending the streak of losses to four straight years. A revenue structure concentrated in two major clients can weaken negotiating leverage.
Without a fundamental recovery in the core cosmetics business's competitiveness, there is a risk that reliance on external funding could continue to repeat.
Over the course of 2025, the prospective controlling shareholder shifted several times—from TheKimFarm to V-Pink Holdings to the G&B Union—and concerns were raised in the market about the track record of the financial investors involved.
The new controlling shareholder, KH Group, has also seen group-level risk surface, with five affiliated companies delisted in succession in early 2026. This could act as a source of uncertainty for CSA Cosmic's future fundraising and management stability.
An AI partnership pursued in August 2025 collapsed after the partner withdrew its investment amid ownership instability, and industry observers have assessed that it is unrealistic for a company with four consecutive years of losses to pursue capital-intensive ventures such as casinos, new drug development, and smart farming with only small-scale share issuances.
Concerns have also been raised that further share issuances or convertible bond issuances, driven by insufficient funding capacity, could dilute existing shareholders.
As of the end of September 2025, the consolidated accumulated deficit stood at KRW 66.5 billion, while cash and cash equivalents at the same point were reportedly around KRW 8.9 billion.
The company previously resolved capital impairment through a 2022 no-payment capital reduction, and has since continued to rely repeatedly on external share issuances. The fact that operating cash flow turned negative again in 2025 is also a funding-pressure factor.
The battle over the controlling-shareholder position involved repeated attempted sales entangled with multiple financial investors, and media reports raised concerns about the past stock-manipulation and no-capital M&A history of some individuals involved.
The new controlling shareholder, KH Group, also carries significant group-level risk, including a cartel-related fine against affiliates, embezzlement and breach-of-trust allegations against its chairman, and the delisting of five group-affiliated listed companies.
The pattern of share-issuance recipients rotating among group affiliates is also worth watching from a funding-transparency standpoint.
The newly added business purposes—casino operations, real estate development, smart farming, and AI—are assessed as areas requiring large upfront investment and lengthy licensing and R&D processes. Given that a prior AI partnership collapsed amid ownership instability, a recurrence of similar risk cannot be ruled out.
With the core business remaining loss-making, how the company will fund these new ventures is a key point to watch.
In the Q3 2026 earnings disclosure, it will be worth checking whether the core cosmetics business shows any revenue rebound, and whether the cause of the large operating-loss versus net-loss divergence seen in Q2 2026 is specifically explained.
If additional disclosures emerge regarding third-party share issuances, convertible bonds, or other fundraising, the allotment recipients and the scale of resulting dilution should be checked.
It will be important to continue monitoring whether concrete investment plans, licensing progress, and partner arrangements for the newly added business purposes—such as casino operations and real estate development—are disclosed.
It will be necessary to check the FY2026 business report and external auditor's opinion for any going-concern qualifications, and to see how capital-impairment-related metrics have evolved.
The progress of legal proceedings related to embezzlement and breach-of-trust allegations against the KH Group chairman, and any additional group-affiliate risk, should be continuously monitored for their impact on CSA Cosmic's management stability.
Since KH Group became the controlling shareholder of CSA Cosmic in November 2025, the company has signaled a business overhaul by adding numerous new business purposes—casino operations, real estate development, smart farming, AI, and others—to its articles of incorporation, yet the core cosmetics business has failed to escape four consecutive years of revenue decline and operating losses from 2022 through 2025.
The capital structure has improved, with the debt ratio moving from severe capital impairment in 2022 to 82.3% in 2025, aided by external capital injections, though this should be understood as a function of financing rather than operational improvement.
In the second quarter of 2026, an unusual pattern emerged in which the operating loss ballooned while the net loss narrowed, and the cause will need to be clarified through future disclosures.
The new controlling shareholder, KH Group, itself carries group-level risk, including the delisting of five affiliates and embezzlement and breach-of-trust allegations against its chairman, which remains a variable that could affect the company's future fundraising and management stability.
Whether concrete investment plans and funding are secured for the new ventures, and whether the core business's competitiveness recovers, are likely to be the key factors determining future earnings and governance stability. Investors should continue to monitor further disclosures and audit opinions before forming any judgment.
Report written 2026-09-05 · Data as of 2026-09-04
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