ENVALITH
パス株式会社 logo

PATH corporation

3840・Standard Market・Information & Communication

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パス株式会社 logo
PATH corporation3840

Business

Pathe Co., Ltd. is a holding company founded in 1990, listed on the Standard Market of the Tokyo Stock Exchange. In its Cosmetics Business (Madrex Co., Ltd.), it develops cosmetics under the "EX:BEAUTE" brand, while in its Beauty & Wellness Business (Jiva Studio Co., Ltd.), it sells beauty and health products through multiple channels centered on TV shopping. These two businesses form the core, accounting for approximately 76% of group sales. In addition, the group operates the manufacturing and sale of Human-Derived Cosmetic Ingredients and OEM services (Regenerative Medicine-Related Business) through RMDC Co., Ltd., the cultivation and R&D of microalgae (Sustainable Business) through Arnour Co., Ltd., and real estate surface rights and renewable energy investments (Investment Business). In FY2026 (ending March 2026), the company is discontinuing its Market Expansion Business and AI & Technology Business, and is in the process of restructuring its business portfolio.

Business Model

In the Cosmetics Business, the company aims to increase the LTV of loyal customers through product planning, OEM manufacturing, and multi-channel sales (EC, malls, DtoC) of its proprietary brands "EX:BEAUTE" and "NOWL." The Beauty & Wellness Business seeks to raise the proportion of proprietary brands and improve gross margins across multiple channels including TV shopping, catalogs, the web, and physical stores. The Regenerative Medicine-Related Business generates revenue through the manufacture and sale of Human-Derived Cosmetic Ingredients and OEM contract manufacturing. The Investment Business derives income from real estate surface rights revenue and renewable energy investments. Upfront investment costs are substantial in each business segment, and the group as a whole continues to record ongoing operating losses.

Company Strengths

The EX:BEAUTE Cooling Cosmetics Series has continued to perform well, with hit products such as "Cool Fit Cover Powder" forming a stable sales base. In FY2026 (ending March 2026), Cosmetics Business sales reached ¥949 million, up 18.8% year on year, indicating that brand recognition and repeat customer purchasing have been established to a certain degree.

The newly established cell culture processing facility in Amagasaki City, Hyogo Prefecture, which opened in April 2025, obtained a "Specified Cell Processed Product Manufacturing License" and began full-scale operations. Joint research with Professor Takahiro Ochiya of Tokyo Medical University has also commenced. In the OEM business for Human-Derived Cosmetic Ingredients, sales reached ¥465 million in FY2026 (ending March 2026), up 27.8% year on year.

The company continues to earn stable income from surface rights on real estate in Kawazu Town, Shizuoka Prefecture (with a term running until January 2039). In FY2026 (ending March 2026), the Investment Business posted sales of ¥40 million and operating profit of ¥38 million, making it the only profitable segment. The contract structure, with total expected monthly land rent of ¥566 million, is expected to provide stable income through the end of the receipt period.

ENVALITH's Perspective

Operating loss for FY2026 (ending March 2026) expanded sharply to ¥774 million (vs. ¥208 million in the prior period), and net loss attributable to owners of the parent surged to ¥1,277 million (vs. ¥277 million in the prior period), both representing the largest losses since the company's founding. Disclosure indicates that events casting substantial doubt on the going concern assumption exist, stemming from two consecutive years of operating losses and negative operating cash flow. The mid-term management plan announced in November 2024 was withdrawn in May 2026, and a new mid-term management plan is currently being formulated (scheduled for announcement from June 2026 onward), with no specific timeline for returning to profitability indicated—representing a significant uncertainty for investment decisions.

During the period, the company recorded a total of ¥720 million in impairment losses across the Regenerative Medicine-Related Business (¥387 million), AI & Technology Business (¥317 million), Sustainable Business (¥16 million), and others. In the AI & Technology Business, the company resolved to transfer all shares of Sanwa Seisakusho, which had become a subsidiary only about one year earlier, and the Market Expansion Business (RIDO Stock) was also dissolved. Questions remain regarding the effectiveness of the new business selection and management process, and the credibility of business investments under the forthcoming new mid-term management plan will be a key issue going forward.

The number of shares issued increased by approximately 12.7%, from 73,377 thousand shares at the end of FY2025 (ended March 2025) to 82,680 thousand shares at the end of FY2026 (ended March 2026). Net assets per share declined from ¥33.47 to ¥23.05, and net loss per share deteriorated sharply to ¥16.52 (vs. ¥4.36 in the prior period). Even the FY2027 (ending March 2027) forecast anticipates a net loss of ¥246 million (¥2.97 per share), and as long as reliance on fundraising through stock acquisition rights continues, the risk of dilution to existing shareholders' equity interests will persist. As an external factor, rising fundraising costs amid an environment of increasing interest rates could also add to the financial burden.

Growth Strategy

Fundamentally reforming the profit structure under a 5-segment framework following the withdrawal from two unprofitable businesses, aiming for early profitability

Continued strengthening of EX:BEAUTE Cooling Cosmetics alongside parallel cultivation of the new NOWL Series brand. Combining new customer acquisition through a media mix strategy with loyal customer development through advanced CRM to improve LTV. In FY2026 (ending March 2026), the effects of upfront advertising investment fell short of plan, expanding the operating loss, making a review of cost-effectiveness an urgent priority.

Expanding production capacity through the full-scale operation of the cell culture processing facility in Amagasaki City (specified cell processing product manufacturing license already obtained). Accelerating the development of new Human-Derived Cosmetic Ingredients products through joint research with Professor Takahiro Ochiya of Tokyo Medical University, creating synergies with the Cosmetics Business. An impairment loss of ¥387 million was recorded during the current period, making it a key challenge to formulate a plan for recovering upfront investment.

In addition to surface rights revenue in Kawazu Town, Shizuoka Prefecture, began cryptocurrency investment management (the only profitable segment in the current period, with sales of ¥40 million and operating profit of ¥38 million). Leveraging the real estate brokerage business license obtained (May 2025), considering expansion into real estate investment and development businesses such as renewable energy facilities and data centers. However, the acquisition of a woody biomass power generation facility was cancelled in April 2026 (subsequent event).

Resolved to dissolve the Market Expansion Business (RIDO Stock) (March 31, 2026) and to discontinue the AI & Technology Business (transfer of all shares in Sanwa Seisakusho), narrowing the business portfolio down to 5 segments. The medium-term management plan announced in November 2024 has been withdrawn, and a new medium-term management plan is currently being formulated. Measures to minimize cash flow outflow are being implemented immediately.

Last updated: July 19, 2026