OMIKENSHI CO.,LTD.

Business Details

In Japan, the Company processes and sells textile products such as Rayon Fiber, spun yarn, and woven/knitted fabrics, while consolidated subsidiary Kinken (Shanghai) Trading Co., Ltd. handles wholesale sales of textile raw materials and textile products in China. Sales to Pyramid Co., Ltd. are disclosed as a major customer, and the business has sales channels both domestically and overseas. The segment adopts a build-to-forecast production model and depends heavily on imports for raw materials and fuel, meaning yen depreciation and rising energy prices directly affect its cost structure.

Recent Overview

Net sales down 18.6% in the 9-month cumulative period of FY2026 (ending March 2026), with losses widening year on year

In the nine-month cumulative period of the fiscal year ending March 2026 (April 2025 to December 2025), the Textiles segment recorded net sales of ¥1,036 million (down 18.6% year on year) and a segment loss of ¥98 million (versus a loss of ¥80 million in the same period of the prior year). Along with the Food business, this segment has continued to struggle, primarily due to prolonged weak sales in China and rising costs from higher raw material and fuel prices. With losses already widening as of the third quarter, achieving the full-year earnings forecast (net sales of ¥3,100 million, down 9.0% year on year) is under pressure.

Key Products

Growth Drivers

• Rising sustainability-driven demand for environmentally conscious materials such as Rayon Fiber
• Stable sales base with the major customer Pyramid Co., Ltd.
• Improved capital efficiency through real estate development utilization of the former Kakogawa plant site (reducing the financial burden of the Textiles business)

Risks

• Weak sales in China: Kinken (Shanghai) Trading Co., Ltd.'s sales continue to struggle amid sluggish domestic demand in China
• Rising raw material and energy prices: high import dependency creates cost increase risk amid yen depreciation
• Chronic segment losses: losses have continued at -¥133 million in FY2024 (ended March 2024), -¥129 million in FY2025 (ended March 2025), and -¥98 million in the 9-month cumulative period of FY2026 (ending March 2026)
• Sharp decline in net sales: the year-on-year decline widened to 18.6% in the 9-month cumulative period of FY2026 (ending March 2026)
• Shrinking segment assets: assets declined to ¥702 million (from ¥816 million in the prior period), indicating a shrinking asset base