1. What is Cosmax’s new patented technology?

The patent acquired by Cosmax on September 1, 2025, enhances both the adhesion and moisturizing properties of color cosmetics such as foundation. This technology promises to overcome limitations of existing products, boosting consumer satisfaction and strengthening premium product lines.

2. Why is this technology important?

The global beauty market is experiencing consistent growth, particularly in indie brands and personalized trends. Cosmax is expanding its ODM business to capitalize on these changes, strengthening its presence in China, Southeast Asia, and the US. This innovative patent strengthens Cosmax’s technological competitiveness and can contribute to attracting new clients and business expansion. Furthermore, coupled with its ESG management initiatives (EcoVadis Gold, CDP A-), it is expected to positively impact corporate value.

3. What is Cosmax’s current situation?

While Cosmax achieved robust growth with sales of KRW 1.2121 trillion in the first half of 2025, net income declined. Its debt-to-equity ratio is also increasing, raising concerns about financial stability. In this context, the successful commercialization and market reception of the patented technology are crucial. Macroeconomic factors such as fluctuations in exchange rates and raw material prices require close monitoring.

4. Action Plan for Investors

Cosmax’s new patent has the potential to become a long-term growth driver. However, considering current financial conditions and market uncertainties, a dramatic short-term stock surge is unlikely. Investors should carefully consider the following factors and make prudent investment decisions:

  • • Market response and business performance of the patented technology
  • • Impact of exchange rate and raw material price fluctuations on earnings
  • • Efforts to improve debt-to-equity ratio and strengthen financial health
  • • Changes in the competitive landscape of the global cosmetics market