NIHON KAGAKU SANGYO CO.,LTD.
4094・Standard Market・Chemicals
Chemicals Business
Core business operating domestically and internationally, centered on metal compounds and surface treatment chemicals
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥24,136 million | ¥21,716 million | ↑ |
| Segment Profit | ¥3,867 million | ¥3,170 million | ↑ |
| Segment Assets | ¥22,033 million | ¥19,491 million | ↑ |
| Depreciation | ¥921 million | ¥931 million | ↓ |
| Increase in Tangible and Intangible Fixed Assets | ¥2,197 million | ¥2,065 million | ↑ |
Business Details
Manufactures and sells metal compounds such as copper, tin, nickel, and cobalt, metallic soaps such as octylate, battery chemicals, brighteners and additives for surface treatment, and electroless nickel plating solutions, and undertakes contract processing of cathode materials for secondary batteries. In addition to the domestic Chemicals Sales Division and Chemicals Production Division, the Thai subsidiary Siam NKS Co., Ltd. serves East Asia and Southeast Asia. This is the core segment, accounting for approximately 86% of consolidated net sales.
Recent Overview
Achieved increased revenue and profit, but recorded an impairment loss of ¥453 million related to contract processing of cathode materials
In the Chemicals Business for FY2026 (ending March 2026), expansion of domestic sales volume against a backdrop of a gradual recovery trend in the electronics industry, a surge in non-ferrous metal prices, and sales growth at the Thai subsidiary drove net sales up ¥2,421 million (up 11.1%) year on year to ¥24,136 million, and segment profit up ¥697 million (up 22.0%) year on year to ¥3,867 million, achieving both increased revenue and profit. On the other hand, an impairment loss of ¥453 million related to the contract processing of cathode materials for lithium-ion batteries was recorded as an extraordinary loss. This contract business is scheduled to end in mid-August 2026, and an impact on next fiscal year's results is unavoidable.
Key Products
Growth Drivers
- Expansion of domestic sales volume due to a gradual recovery trend in electronics industry shipment value
- Boost to net sales from rising non-ferrous metal prices
- Growth in performance at the Thai subsidiary Siam NKS Co., Ltd. (responding to expanding demand in East Asia and Southeast Asia)
- Improved profit margins through higher selling prices and reduced production costs
- Early realization of results from new products and newly developed applications, and continued pursuit of new customer development
- Development of new business areas through technical verification of the lithium-ion battery recycling business (Iwaki Technology Center)
Risks
- Decline in sales and profit due to the termination of contract manufacturing of lithium-ion battery cathode materials in mid-August 2026
- Risk of a downturn in electronics industry demand due to a slowdown in the Chinese economy or growing instability in global political conditions
- Fluctuations in non-ferrous metal prices (a headwind to sales and profit during downturns)
- Risk of declining demand for battery chemicals and related businesses due to a stall in global EV market growth
- Cost pressure from rising fixed costs such as labor and logistics costs
- Impact on exports and overseas business from changes in US tariff policy and instability in Japan-China relations
- Upfront fixed cost burden during the demonstration phase of the recycling business
Last updated: June 23, 2026