Yuhan Care, a subsidiary of Yuhan Corporation, is gearing up for an initial public offering (IPO) to enhance its corporate value. Specializing in health products like 'Inner Flora,' 'Estrition,' 'Core Reset,' 'a2,' and 'Sooncho Yakbang,' the company operates within Yuhan's Food and Health division, utilizing natural substance-based research and development processes. As of Q3 2023, Yuhan Corporation maintains a significant 78.7% stake in Yuhan Care.

With an eye on the post-COVID-19 landscape, Yuhan Care plans to expand its market share in the growing South Korean health food market. The company's strategy involves releasing more internally developed natural products, with a focus on materials such as industrial hemp ('Hemp') and composite extracts like 'Cynanchum Wilfordii.' Notable developments include 'Hevolrex,' a soothing hemp ingredient, and improved effects on menopausal symptoms from a blend of Cynanchum Wilfordii, Hansokdan, and Chinese angelica root extracts. Operating through the Yuhan Natural Substance Research Institute, Yuhan Care aims to solidify its position in the market.

In the pursuit of individual recognition material research, Yuhan Care has set a goal to secure approval and certification from the Ministry of Food and Drug Safety (MFDS) for individual recognition health food materials this year. The company has also forged strategic partnerships, including a memorandum of understanding (MOU) with Naturalendo Tech, the raw material supplier, and SuHeung, the manufacturer, to facilitate material exports.

Korea Investment & Securities serves as the lead manager for Yuhan Care's IPO, estimating the company's corporate value at approximately $119.8 million during the external investment attraction process. Despite annual losses, Yuhan Care aims for profitability this year through increased sales. The company emphasizes a commitment to reinvesting profits earned from sales into research and development (R&D) for further advancement. The revenue has demonstrated consistent annual growth from $24 million in 2020 to $38.2 million in 2021 and $38.8 million in 2022. In terms of operating profit, losses have gradually decreased from -$14.5 million in 2020 to -$9.2 million in 2021 and -$8.1 million in 2022. Net profit has also followed a declining trend from -$15.7 million in 2020 to -$14.2 million in 2021 and -$11.9 million in 2022.