ENVALITH
株式会社NEXYZ.Group logo

NEXYZ. Group Corporation

4346・Standard Market・Other Financing Business

Official website
株式会社NEXYZ.Group logo
NEXYZ. Group Corporation4346

Business

NEXYZ.Group Corporation is an operating holding company founded in 1990 (24 consolidated subsidiaries and 4 affiliated companies). In its core Embedded Finance Business, the company operates "NEXYZ.ZERO," a service that provides customers with commercial-use LED lighting, air conditioning, refrigerators, kitchen equipment, agricultural equipment, industrial equipment, and other equipment with zero upfront investment (including installation costs), earning usage fee income through installment or lump-sum payments. Leveraging over 30 sales offices nationwide and a network of business alliances with regional banks and credit unions, the company serves stores and facilities across a wide range of industries as its main customers. In its second pillar, the Media & Promotion Business, the company provides internet-centered services centered on "Axel Japan," which supports corporate promotions featuring well-known celebrities, and the digital magazine "Tabiiro."

Business Model

In the Embedded Finance Business, initial customer burden is reduced to zero to eliminate barriers to adoption, and usage fees—including equipment costs, construction costs, and interest—are collected either in installments or as a lump sum. Referral channels from regional banks and shinkin banks help suppress deal acquisition costs. The Media & Promotion Business generates revenue from monthly flat-rate promotion support and advertising placement fees, with contract retention rate being a key determinant of revenue stability. Combined, these two businesses recorded net sales of ¥28,433 million and operating profit of ¥1,820 million (operating margin of 6.4%).

Company Strengths

Built a community-based sales system through more than 30 sales offices nationwide. Steadily expanded business alliances with regional banks and credit unions (shinkin banks), leading to an increase in referral deals via partner financial institutions. In FY2025 (ended September 2025), sales in the Embedded Finance Business reached ¥23,248 million (up 18.0% year on year), achieving high growth.

NEXYZ.ZERO provides energy-saving equipment with zero upfront investment, including installation costs, resulting in an extremely low adoption barrier for customers. In addition to LED lighting, air conditioning, refrigerators, kitchen equipment, and agricultural equipment, the company has expanded its product lineup into the industrial sector (such as cubicle-type high-voltage receiving equipment), leading to an increase in high-value orders.

Sales grew for five consecutive fiscal periods, from ¥18,763 million in FY2021 (ended September 2021) to ¥28,433 million in FY2025 (ended September 2025). Operating profit turned from an operating loss of ¥351 million in FY2021 (ended September 2021) to operating profit of ¥1,820 million in FY2025 (ended September 2025). Operating profit in FY2025 (ended September 2025) increased 53.1% year on year, showing an accelerating pace of improvement.

ENVALITH's Perspective

Ordinary profit for the first half of FY2026 (ending March 2026) fell sharply to ¥500 million (down 25.0% year on year). Although operating profit increased, non-operating expenses surged in total to ¥261 million (versus ¥34 million in the same period of the prior year), driven mainly by a ¥165 million equity-method investment loss, ¥30 million in share issuance costs, and ¥36 million in interest expense. Meanwhile, the company recorded a ¥2,015 million gain on sale of investment securities as extraordinary income, resulting in profit before income taxes for the interim period of ¥2,515 million and interim net profit attributable to owners of the parent of ¥737 million (up 685.8% year on year), an apparent large increase. It is necessary to distinguish clearly between the profitability of the core business and this one-off extraordinary gain when evaluating performance.

The cancellation adjustment reserve decreased by ¥324 million, from ¥2,977 million at the end of the previous fiscal year to ¥2,653 million, while the allowance for doubtful accounts (current and fixed combined) increased by ¥500 million, from ¥1,301 million to ¥1,801 million. While the decrease in the cancellation adjustment reserve could be interpreted as a decline in cancellation risk, the sharp increase in the allowance for doubtful accounts may suggest rising credit risk among existing contract counterparties. In assessing the soundness of the recurring-revenue business model, ongoing monitoring of the breakdown of these reserves and the status of collections is important.

The full-year forecast remains unchanged at net sales of ¥33,000 million, operating profit of ¥2,000 million, ordinary profit of ¥1,900 million, and net profit of ¥950 million. However, the first-half progress rate stood at only 41.3% for net sales and 37.0% for operating profit, indicating a structure that requires a substantial increase in the second half. In addition, an equity-method investment loss of ¥165 million was recorded in the first half, and if this continues into the second half, it could affect the achievement of the ordinary profit target. As for the external environment, while demand for energy-saving equipment remains solid, attention should also be paid to the potential impact of rising resource and energy prices and monetary policy trends on procurement costs and interest expense burden.

Growth Strategy

Pursuing higher revenue and profit through three pillars: deepening collaboration with financial institutions, expanding into industrial and public-sector fields, and strengthening the media business

Deepening collaboration between nationwide branches and regional financial institutions to expand case referrals via partner financial institutions. Case referrals from financial institutions reached a record high level in the first half of FY2026 (ending March 2026)*, and the Company will continue to expand and deepen its partnerships. *Note: fiscal year end corrected to September per source (2026年9月期).

Orders for high-voltage cubicle-type receiving equipment, which carry large contract values, are steadily increasing. Through the full consolidation of Daiichi Denki Setsubi Kogyo (completed September 30, 2025), the Company is increasing the number of qualified personnel and strengthening its electrical construction expertise. It is also strengthening bidding for public works projects by national and local governments, aiming to secure large-scale contracts.

At Axel Japan, which supports corporate promotions utilizing talent endorsements, collaboration with financial institution partners is beginning to bear fruit, and new contract acquisition is recovering steadily. Renewal revenue is also increasing steadily through careful support aimed at improving customer satisfaction, with the aim of achieving substantial revenue growth.

For the flagship Digital Magazine "Tabiiro," the Company is promoting a strategy of strengthening inbound tourism measures and diversifying products through the addition of new offerings. It has launched a new feature enabling direct accommodation bookings from travel plan articles and travel articles, aiming to establish a new revenue source in addition to advertising revenue.

The Company continuously considers M&A and business alliances with companies possessing know-how, technology, and customer bases it does not currently have, in order to expand the business domain of the Embedded Finance Business. It is also promoting the expansion of the EC Support Service business domain, both domestically and internationally, in parallel.

Last updated: July 17, 2026