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
BeautySkin, which combines cosmetics OEM/ODM, brand, and distribution businesses, saw sharp revenue declines and continued losses in 2025, while attempting business diversification through its acquisition of health-supplement firm Fesle.
2025 consolidated revenue fell 32% year-on-year to KRW 54.9 billion, while the operating loss widened to KRW 3.2 billion.
In Q2 2026, revenue jumped to KRW 17.5 billion and operating profit turned positive at KRW 0.41 billion, yet net income attributable to owners posted a large loss of KRW 2.81 billion.
In early 2026, the company acquired a 70% stake in health-supplement distributor Fesle, diversifying its cosmetics-centered business structure.
Acquisition funding relied on convertible and exchangeable bonds, with the sixth CB carrying a call-option window from October 2025 to October 2026, leaving an ownership-structure variable.
In late 2025, the company decided on its first shareholder-return measure since listing, a 3-for-1 bonus share issuance.
BeautySkin was founded in 2011, absorbed JS Global in 2021, and listed on KOSDAQ in July 2023. The company has built a value chain spanning cosmetics manufacturing (OEM/ODM), brand operations, and distribution, with annual production capacity of 59 million mask packs and 54 million basic cosmetics units.
Its flagship brand, the dermocosmetic line Wonjin, has built recognition in the Chinese market, while the company has been strengthening North America-facing distribution to move beyond regional limits. This reflects a strategic move to diversify its portfolio away from dependence on a single market.
The company has five consolidated subsidiaries, and in 2026 it expanded that group by acquiring a 70% stake in health-supplement distributor Fesle.
The Fesle acquisition involved roughly KRW 10.1 billion in cash paid in a down payment, interim payment, and balance, funded through existing cash plus issuance of the seventh convertible bond (CB) and exchangeable bonds.
Fesle, founded in 2023, reportedly recorded revenue of KRW 11.3 billion and operating profit of KRW 0.9 billion as of a recent reporting point.
In terms of competitive positioning, large ODM players such as Cosmax and Kolmar and growth brand companies such as APR occupy the upper tier of the market, while BeautySkin is classified as a small-to-mid-sized manufacturing-and-distribution hybrid.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩14.5B | -₩1.7B | −11.9% |
| 2025Q3 | ₩11.5B | ₩100M | 1.1% |
| 2025Q4 | ₩10.2B | -₩800M | −7.6% |
| 2026Q1 | ₩12.5B | -₩1.5B | −11.9% |
| 2026Q2 | ₩17.5B | ₩400M | 2.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩58.9B | ₩4B | ₩3.4B | 6.9% | 10.3% | 99.4% |
| 2023 | ₩80.9B | -₩6.1B | -₩8.6B | −7.5% | −24.6% | 111.5% |
| 2024 | ₩80.9B | -₩1.2B | -₩5.1B | −1.5% | −14.8% | 137.5% |
| 2025 | ₩54.9B | -₩3.2B | -₩1.7B | −5.8% | −5.4% | 168.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Consolidated revenue rose from KRW 58.9 billion in 2022 to KRW 80.9 billion in 2023 and held near that level in 2024, before falling 32% year-on-year to KRW 54.9 billion in 2025.
Operating profit swung from a KRW 4.0 billion gain (6.9% margin) in 2022 to losses of KRW 6.1 billion (-7.5%) in 2023 and KRW 1.2 billion (-1.5%) in 2024, before the loss widened again to KRW 3.2 billion (-5.8%) in 2025.
Net income attributable to owners followed a similar path, moving from a KRW 3.4 billion profit in 2022 to losses of KRW 8.6 billion in 2023, KRW 5.1 billion in 2024, and KRW 1.7 billion in 2025, with the loss size gradually narrowing after the initial swing to red.
On a quarterly basis, Q3 2025 (revenue KRW 11.4 billion, operating profit KRW 0.12 billion) briefly returned to operating profitability, though net income attributable to owners remained negative at KRW -0.24 billion.
In Q4 2025 (revenue KRW 10.2 billion, operating loss KRW 0.78 billion), the operating loss persisted, yet net income attributable to owners turned positive at KRW 2.13 billion, suggesting a significant non-operating factor.
In Q1 2026, losses widened again with revenue of KRW 12.5 billion, an operating loss of KRW 1.48 billion, and a net loss of KRW 2.03 billion; according to Company Guide data, this corresponded to a 33.1% year-on-year revenue decline, a 91.0% increase in operating loss, and a 44.5% increase in net loss.
In Q2 2026, revenue jumped to KRW 17.5 billion from the prior quarter and operating profit turned positive at KRW 0.41 billion, but net income attributable to owners posted a large loss of KRW 2.81 billion, highlighting a notable gap between operating recovery and bottom-line results.
The trailing four quarters (Q3 2025 through Q2 2026) combined for a net loss attributable to owners of KRW 2.94 billion, pointing to significant quarter-to-quarter volatility and a meaningful non-operating impact.
Operating cash flow improved from KRW -18.3 billion in 2023 to KRW 8.9 billion in 2024 before shrinking again to KRW 0.6 billion in 2025.
Shinhan Investment Corp assessed that the cosmetics sector in the second half of 2026 is undergoing three simultaneous shifts: sustained export demand, category expansion, and margin recovery.
The report noted that for brand companies, the key is whether they can expand sales through category and regional growth while absorbing higher operating costs, while for ODM firms the key is maintaining order flow sufficient to generate economies of scale.
The global penetration of Korean cosmetics is described as structurally driven, with expectations that export growth centered on the US and Europe and continued personal-care category growth could persist.
However, concerns were also raised that Red Sea and Suez Canal-related logistics risk and rising oil prices could add to raw material and freight cost burdens.
In the mask pack category, companies that were heavily dependent on China sales are seeing a slower recovery, while a clear trend of export diversification toward the US, Japan, and Southeast Asia is underway.
Recent mask pack exports have been expanding around higher value-added formats such as hydrogel, with distribution also broadening into North American offline channels including Sephora, Target, and Costco.
BeautySkin is responding to this regional diversification trend by combining its China-recognized Wonjin brand with strengthened North America-facing distribution, though its revenue scale remains smaller than large ODM firms or growth-stage brand companies.
In early 2026 the company acquired a 70% stake in health-supplement distributor Fesle, broadening its portfolio beyond cosmetics.
The M&A was aimed at enhancing corporate value through business diversification, with the acquisition funded through existing cash plus issuance of the seventh convertible bond (CB) and exchangeable bonds.
At the end of 2025, the company decided on its first shareholder-return measure since listing, a 3-for-1 bonus share issuance.
However, in the course of this M&A and bond issuance, the sixth CB's call-option exercise window is set from October 2025 to October 2026, meaning bondholders' conversion rights remain restricted during this period, leaving a structural variable.
The company has stated a strategic direction of pursuing continued growth through resource efficiency, market diversification, and functional cosmetics/dermocosmetic new business development.
The sharp sequential revenue increase and return to operating profit in Q2 2026 could reflect a combination of the Fesle consolidation effect and recovery in the core cosmetics business, though segment-level contributions are not yet clearly disclosed.
Going forward, whether Fesle's results are reflected on a full-quarter basis and whether the sixth CB call option is exercised will both be variables for consolidated earnings and the ownership structure.
With net income attributable to owners in the red for four consecutive quarters, the stock currently sits in a range where traditional earnings-based valuation metrics are difficult to apply.
Looking at the relationship between share price and book value per share, the stock trades relatively close to net asset value without a large premium or discount. No dividend has been paid since listing, placing it outside a dividend-yield framework for now.
Over multiple years, results moved from profit in 2022 to consecutive losses from 2023 through 2025, with the size of losses fluctuating along the way, suggesting that confirming future earnings stability should precede any valuation judgment.
How the business diversification from the Fesle acquisition feeds into the future earnings structure and valuation framework also remains a point to watch.
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 2026-09-05
Q2 2026 revenue jumped to KRW 17.5 billion from KRW 12.5 billion in the prior quarter, and operating profit turned positive at KRW 0.41 billion. Operating profit had also briefly turned positive in Q3 2025, indicating repeated attempts at quarterly recovery. Whether this trend extends into net income improvement remains to be seen.
In early 2026, the company acquired a 70% stake in health-supplement distributor Fesle, broadening its cosmetics-centered business structure. Though only three years old, Fesle reportedly recorded revenue of KRW 11.3 billion and operating profit of KRW 0.9 billion as of a recent point.
This can be read as an attempt to secure a new revenue source that reduces dependence on cosmetics industry swings.
Shinhan Investment Corp assessed the H2 2026 cosmetics sector as undergoing simultaneous sustained export demand, category expansion, and margin recovery. A view was also presented that the global penetration of Korean cosmetics is structurally driven.
BeautySkin's strengthened North America distribution and the Wonjin brand's China recognition could potentially align with this trend.
2025 revenue fell 32% year-on-year to KRW 54.9 billion, and Q1 2026 revenue was down 33.1% year-on-year as well. There is room to view this as a structural step-down from the revenue scale maintained in 2022-2024. Whether the Q2 rebound reverses this trend requires confirmation over additional quarters.
In Q2 2026, despite positive operating profit, net income attributable to owners posted a large loss of KRW 2.81 billion. Conversely, in Q4 2025 net income was positive despite an operating loss, indicating that non-operating items continue to heavily sway results. This volatility makes the earnings trend difficult to interpret.
Funding for the Fesle acquisition relied on issuance of convertible and exchangeable bonds, with the sixth CB carrying a call-option exercise window from October 2025 to October 2026. Whether the call option is exercised will affect future dilution and its scale. The impact of M&A-related cash outflows and debt burden on financial stability also warrants attention.
Because M&A funding relied on CBs and exchangeable bonds, conversion volume and dilution scale could shift around the call-option expiry in October 2026. Financial cost burdens may also be a factor amplifying net income volatility. If the issuer does not exercise the CB call option, bondholder conversion could expand the share count.
Fesle is only three years old, and whether its revenue and profitability contribution remains stable after consolidation is still to be confirmed. Whether synergy can be generated between the disparate cosmetics and health-supplement businesses also needs to be monitored.
There is also potential for short-term cash burden tied to the acquisition's down payment, interim payment, and balance structure.
Red Sea and Suez Canal-related logistics risk and rising oil prices could add to raw material and freight cost burdens. A slowdown in China market growth and intensifying competition in indie beauty could pressure mask pack and basic cosmetics segment results, including the Wonjin brand.
High dependence on specific categories or brands also raises the possibility of margin pressure from intensified competition.
The sixth CB's call-option exercise window expires, and whether the company exercises the option or allows bondholder conversion will affect dilution and cash burden.
Based on past disclosure patterns, Q3 2026 results are expected around this time; it will be worth checking whether the Q2 revenue and operating profit recovery continues and whether net income volatility eases.
This full-quarter results period will allow for a concrete check of how much Fesle's new business contributes to revenue and profit.
It will be worth continuously checking how the export expansion and margin recovery scenario for the cosmetics sector, as presented by Shinhan Investment Corp and others, is reflected in the company's actual results.
BeautySkin moved from profitability in 2022 to consecutive losses from 2023 through 2025, and in the first half of 2026 showed quarter-to-quarter swings in revenue and operating profit. 2025 revenue fell 32% year-on-year and the decline continued into Q1 2026, but Q2 saw both revenue and operating profit recover together.
Even during this period, however, net income attributable to owners posted a large loss, leaving the company in a phase where operating results and bottom-line performance repeatedly diverge.
In early 2026, the company attempted business diversification away from its cosmetics-centered structure by acquiring health-supplement firm Fesle, a move that also brought along ownership and funding-structure variables tied to CB and exchangeable bond issuance.
On the industry side, expectations for expanded US/Europe-centered K-beauty exports and margin recovery have been raised, but downside factors such as rising logistics costs and a China market slowdown coexist.
Going forward, how the CB call option is handled, how Fesle's full-quarter results are reflected, and whether quarterly net income stabilizes will likely be the key points to watch in understanding this company.
Report written 2026-09-05 · Data as of 2026-09-04
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