Remixpoint,inc.

Business Details

The Energy Business is primarily engaged in electricity retail, selling electricity to high-voltage customers (corporate) and low-voltage customers (corporate and individual). The segment offers multiple pricing plans, including the "Market-Linked Electricity Plan," "Fixed-Rate Electricity Plan," and "Market-Linked/Fixed-Rate Hybrid Electricity Plan," establishing a framework to secure stable earnings while mitigating the risk of fluctuations in JEPX transaction prices. The segment is promoting customer acquisition in both high-voltage and low-voltage categories through the strengthening of its sales agent network.

Recent Overview

Number of customers increased significantly, but JEPX price declines and capacity contribution burden pushed profit down 25.7% YoY

In FY2026 (ending March 2026), the Energy Business saw JEPX transaction prices decline by approximately ¥1.25 per kWh on average compared to the prior fiscal year, which pushed down unit sales prices. Nevertheless, the number of customers and volume of electricity sold increased steadily across both high-voltage and low-voltage categories, resulting in revenue growth (revenue of ¥21,092 million, up 2.1% YoY). On the other hand, the recording of ¥583 million in capacity contribution as cost of sales pressured profit, and segment profit came to only ¥1,036 million (down 25.7% YoY). The capacity contribution burden for FY2027 (ending March 2027) is expected to increase to ¥1,035 million, raising concerns about further profit pressure. In addition, the surge in crude oil prices following the closure of the Strait of Hormuz from late February 2026 raises concerns about future impacts on electricity prices, and the earnings forecast was not disclosed. As a subsequent event, a resolution was passed to spin off the Energy Business into a wholly owned subsidiary via a company split, effective October 1, 2026.

Key Products

Growth Drivers

• Expansion of total contracted capacity for high-voltage customers through strengthening of the sales agent network (up approximately 16.4% year-on-year as of the end of FY2026 (ending March 2026))
• Accumulation of contracts through development of new agents and strengthening of relationships with existing agents for low-voltage corporate customers (up approximately 77.2% year-on-year)
• Increase in contract units through proactive sales promotion activities targeting low-voltage individual customers (up approximately 79.2% year-on-year)
• Minimization of JEPX price fluctuation risk and establishment of a stable earnings base through combinations of diverse pricing plans
• Improved operational agility through the spin-off of the Energy Business via company split, and potential business portfolio restructuring utilizing M&A

Risks

• Profit pressure from an increase in the capacity contribution amount (expected to rise significantly to ¥1,035 million in FY2027 (ending March 2027) from ¥583 million in FY2026 (ending March 2026))
• Risk to business earnings from fluctuations in JEPX transaction prices (average decline of ¥1.25 per kWh YoY pushed down unit sales prices)
• Risk that surging crude oil prices due to escalating tensions in the Middle East and the closure of the Strait of Hormuz will spread to electricity prices via LNG procurement costs
• Risk of surging energy prices due to international conflicts, geopolitical risks, etc. (earnings forecast undisclosed due to difficulty in reasonable estimation)
• Risk of profit pressure from increased SG&A expenses such as agent commissions and sales promotion costs
• Operational risk during the business transfer process associated with the company split (scheduled to take effect October 1, 2026)