LION OFFICE PRODUCTS CORP.

Business Details

The Group's core business is the manufacture and sale of stationery and office supplies, office furniture, and office/ICT equipment, organized into four units: the Retailer Business, the Enterprise Business, the Education Business, and the EC Business. The Group procures products from contract manufacturers and suppliers and sells them to retailers nationwide, major partner companies, government offices, and local municipalities. Centered on the "Total Office Proposal," the Group provides a consistent one-stop solution from design and planning through construction, while also promoting the expansion of its stock-type business through the EC platform "NAVILION."

Recent Overview

The Education Business expanded sharply, up 63% year on year, driving substantial increases in both interim revenue and profit

For interim FY2026 (October 2025 to March 2026), revenue was ¥25,114 million (up 20.5% year on year) and operating profit was ¥1,429 million (up 37.2% year on year). The Education Business led growth, reaching ¥9,628 million (up 63.0% year on year), driven mainly by orders for GIGA School Program-related projects (four municipalities). The Enterprise Business grew to ¥6,208 million (up 10.3% year on year) and the EC Business grew to ¥1,736 million (up 16.1% year on year), while the Retailer Business was roughly flat at ¥9,276 million (down 0.4% year on year). Inventories decreased significantly from ¥5,609 million to ¥3,510 million, improving inventory efficiency. The full-year earnings forecast was revised upward, with revenue now projected at ¥40,723 million (up 10.0% year on year) and operating profit at ¥1,400 million (up 17.7% year on year). Following the Company's listing on the Tokyo Stock Exchange Standard Market on October 15, 2025, an annual dividend of ¥15 is planned, including a commemorative listing dividend of ¥8.

Key Products

Growth Drivers

• Continued expansion of the Education Business driven by demand under the second phase of the GIGA School Program (procurement for FY2025 through FY2027) and the terminal replacement cycle
• Increasing demand for office renewals, including private booths, against the backdrop of the return to office work and the spread of ABW (Activity Based Working)
• Capturing demand for switching to LED lighting ahead of the discontinuation of fluorescent lamp manufacturing and sales in 2027 (projects already secured from the summer onward)
• Accumulation of stock-type business and acquisition of new customers through the EC platform "NAVILION"
• Securing large-scale workplace renewal projects through deepened collaboration with major partner companies in other industries
• Strengthening the appeal of proposal capabilities and overall strength through relocation of the Tokyo metropolitan area sales base and enhancement of showroom functions

Risks

• Risk of stagnant sales in the Retailer Business due to fluctuations in demand from government offices and municipalities and intensifying competition (down 0.4% year on year in interim FY2026)
• Increase in selling, general and administrative expenses due to rising personnel costs from minimum wage increases and higher logistics costs
• Risk of a decline in the Education Business after GIGA School Program demand runs its course (from FY2027 onward)
• Increased collection risk and working capital burden due to the rise in trade receivables (from ¥6,508 million at the end of FY2025 to ¥8,998 million at the end of interim FY2026)
• Deterioration in consumer sentiment and sluggish demand for durable consumer goods due to foreign exchange instability and geopolitical risks such as tensions in the Middle East
• New cost burdens such as listing-related expenses (¥15 million recorded in interim FY2026)
• Risk of customer concentration due to reliance on major business partners such as Otsuka Corporation for a significant portion of sales