Cha AI Healthcare recorded a surge in stock prices after announcing a significant long-term supply contract with a Japanese company.
According to the Korea Exchange, as of 11:11 a.m. on June 23, Cha AI Healthcare's shares rose by 1,730 won (29.98%) to 7,500 won. The stock initially spiked to the upper limit shortly after the market opened, briefly reducing its gains before climbing back to the maximum price increase allowed.
The surge in investor sentiment is attributed to the announcement that Cha AI Healthcare signed a long-term supply contract worth 526 billion won with Japan's Nissho Medical.
The contract amount is approximately 720% of the company's consolidated revenue of 73 billion won from the previous year. The contract spans five years, ending in 2031, with annual supply amounts set at 5 billion won in the first year, 8.5 billion won in the second year, 12.5 billion won in the third year, 13 billion won in the fourth year, and 13.6 billion won in the fifth year.
Nissho Medical is a company acquired by Invictus Japan Healthcare Fund, in which Cha AI Healthcare has invested. Earlier, on June 18, Cha AI Healthcare announced that it would acquire 20.1 billion won worth of shares in Invictus Japan Healthcare Fund No. 1, representing 26.74% of its equity, as part of its strategy for business diversification.
Cha AI Healthcare expanded its business scope to include cosmetics manufacturing and sales during an extraordinary general meeting on July 8, 2016. In 2025, it changed its name from Jayjun Cosmetic to its current name. The company now focuses on the development, manufacturing, and sales of skincare, makeup, and personal care products.
For the first quarter of this year, the company reported consolidated revenues of 1.9 billion won, an operating loss of 2.4 billion won, and a net loss of 4.6 billion won.
* This article has been translated by AI.
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