1. What Happened?
Major shareholders of CNC International, Bae Eun-chul and two others, sold a total of 2,002,788 shares (approximately 20% stake) over-the-counter. This significantly reduced their total stake from 66.03% to 46.03%. The sale was reportedly due to a share purchase agreement and a major contract related to the held shares.
2. About CNC International
CNC International is a color cosmetics ODM company, showing robust earnings growth in the first half of 2025. Lip cosmetics are their core business, and they possess high technical capabilities and quality management systems. However, financial risks such as decreasing cash and cash equivalents and a rising debt ratio exist.
3. Current Market Conditions
The global cosmetics market is steadily growing, with particularly high growth rates in emerging markets. However, fluctuations in macroeconomic indicators such as exchange rates, interest rates, and oil prices can impact CNC International’s business.
4. Impact on Stock Price
In the short term, downward pressure on the stock price is high. Large-scale stake sales can dampen investor sentiment and create supply and demand imbalances. However, depending on the buyer and their future management plans, the stock price could rebound. Currently, uncertainty remains very high.
5. What Should Investors Do?
- Short-term investors: A conservative approach is necessary. Closely monitor additional disclosures and market conditions.
- Mid- to long-term investors: CNC International’s growth potential remains valid. However, carefully examine the buyer’s identity, future management plans, and financial risk management.