ENVALITH
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G Three Holdings Corporation

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G Three Holdings Corporation3647

Business

G-3 Holdings Corporation is a holding company established in 2011 (listed on the Tokyo Stock Exchange). It has six consolidated subsidiaries under its umbrella and operates across three business areas: (1) the Renewable Energy Business, centered on the sale, purchase, electricity sales, and O&M of solar power plants; (2) the New Energy Business, responsible for developing and selling emergency generators equipped with LPG and city gas engines; and (3) the Sustainable Business, which handles health foods, cosmetics, and biofuels. Its main customers are real estate and energy-related companies such as Tokyu Fudosan Co., Ltd. In FY2025 (ending August 2025), net sales were ¥606 million, with the Renewable Energy Business accounting for over 95% of sales. Under its corporate philosophy of "Bringing Richness and Color to People and Society" and with the aim of realizing a decarbonized society, the company is also advancing into new areas such as the grid-connected storage battery business.

Business Model

The main revenue sources are a combination of solar power plant procurement and resale (flow revenue) and electricity sales income (stock revenue). In FY2025 (ending August 2025), the sale of a solar power plant to Tokyu Land Corporation (¥467 million, 77.0% of sales) was the primary revenue source. In addition, the company handles contracted operation and maintenance (O&M) of power plants, sales of solar cell modules and other power generation-related products, and procurement and sales of health foods and cosmetics. Fundraising is conducted through a combination of own funds, borrowings from financial institutions, and third-party allotment capital increases.

Company Strengths

In FY2025 (ended August 2025), the company combined the sale of a solar power plant (¥467 million) with reductions in selling, general and administrative expenses, dramatically improving the renewable energy business segment loss from ¥360 million in the prior period to ¥5 million. This track record of profit and loss improvement through a review of the cost structure deserves recognition.

In FY2025 (ended August 2025), the company sold a solar power plant to Tokyu Land Corporation for ¥467 million, making it a major customer accounting for 77.0% of net sales for the period. This transaction track record with a major real estate company demonstrates a certain level of creditworthiness and negotiating power in the buying and selling of renewable energy assets.

In October 2025, following a resolution by the Board of Directors, the company entered into a sale and purchase agreement with Nomuraya Holdings Co., Ltd. covering business land, equipment, and grid connection rights for a grid-connected storage battery facility. Leveraging the expertise accumulated in the renewable energy business to date, the company has taken concrete steps to enter the rapidly growing grid-connected storage battery market.

ENVALITH's Perspective

Of the ¥521 million in cumulative sales for the third quarter of the fiscal year, ¥454 million (87%) came from MF6's live commerce business, resulting in a structure where consolidated revenue depends almost entirely on a single newly acquired subsidiary. MF6's results cover only 3 months (March–May 2026), so its full-year sustainability, seasonal fluctuations, and risk of intensifying competition remain unverified. The Environment-Related Business shrank substantially, with sales down more than 90% year-on-year to ¥54 million, raising concerns about declining profitability in what was originally the core business.

The company has recorded significant operating losses, ordinary losses, and net losses for four consecutive fiscal years since the fiscal year ended August 2023, and posted an operating loss of ¥243 million for the cumulative third quarter (worsening from ¥215 million in the same period last year). The quarterly consolidated financial statements include a note on material uncertainty regarding the going concern assumption, and a review by a certified public accountant has not yet been conducted. Achieving the full-year earnings forecast (net sales of ¥1,185 million, operating loss of ¥229 million) would require a substantial improvement in earnings in the fourth quarter, making verification of its feasibility essential.

Cumulative gross profit for the third quarter improved significantly to ¥129 million (up from ¥21 million in the same period last year, with a gross margin of 24.9%), indicating improved profitability. However, selling, general and administrative expenses surged to ¥372 million (up 58% from ¥236 million in the same period last year), as cost increases associated with MF6's consolidation and new business development expenses are squeezing profits. While there are external tailwinds such as renewable energy policy support (the 7th Strategic Energy Plan), the timing of a return to profitability remains unclear without a fundamental review of the fixed cost structure.

Growth Strategy

Establishing live commerce and grid-connected storage battery businesses as new profit pillars, while securing working capital through the sale of solar power assets

In March 2026, the company acquired MF6 (60% voting rights) for ¥50 million and began selling antiques, jewelry, and other items using SNS platforms. Cumulative results for the third quarter (3 months) recorded revenue of ¥454 million and segment operating income of ¥27 million, exceeding plan. The company aims to create synergies by integrating sales channels with its own products such as cosmetics and portable storage batteries.

Against a backdrop of growing demand for grid stabilization driven by the 7th Strategic Energy Plan (targeting a 73% reduction in greenhouse gas emissions by FY2040), the company is promoting the development, sales, and brokerage of grid-connected storage batteries, as well as power resilience consulting. This is positioned as a new profit pillar for the environment and energy business, but concrete revenue contribution during the cumulative third quarter remains limited.

The company holds ¥521 million in real estate for sale (solar power plants) on its balance sheet and continues to pursue sales activities. As indicated in today's announcement, "Notice Regarding Transfer of Fixed Assets and Recognition of Extraordinary Income," recognition of extraordinary income from the asset sale is expected. Cash and deposits have declined to ¥161 million, making the securing of working capital an urgent priority.

Subsidiary Aslina R&D (formerly G-Three Factory) began manufacturing and selling basic skincare cosmetics it had planned and designed. Cumulative revenue for the third quarter remained at only ¥12 million (down 5.3% year on year), with a segment loss of ¥27 million, indicating the business has not yet become profitable. Expanding sales channels through collaboration with the live commerce business remains a future challenge.

The company implemented a third-party allotment capital increase (increasing capital stock and capital reserves by ¥124 million each) and exercised stock acquisition rights (increasing each by ¥53 million), securing capital stock of ¥1,350 million and net assets of ¥858 million. The company continues to consider a wide range of fundraising options, including the issuance of new shares and stock acquisition rights, as well as financing from financial institutions.

Last updated: July 17, 2026