NEXYZ. Group Corporation

Business Details

The core service is "NEXYZ.ZERO," which provides commercial LED lighting, air conditioning, refrigerators, kitchen equipment, agricultural equipment, industrial equipment, and other equipment to customers with zero initial investment, including installation costs. The company's business model earns usage fee income, including interest, in installments or lump sums. With sales offices nationwide, the company is expanding referral cases via partner financial institutions such as regional banks and credit unions. In addition to commercial and agricultural applications, expansion into the industrial field (cubicle-type high-voltage receiving equipment, etc.) is also broadening, making this the Group's largest segment, accounting for approximately 82% of consolidated net sales.

Recent Overview

Referral cases via financial institutions trended at record-high levels, with double-digit growth in both sales and profit

In H1 of FY2026 (ending September 2026) (October 2025 to March 2026), the Embedded Finance Business recorded sales of ¥11,100 million (up 10.7% year on year) and segment profit of ¥649 million (up 10.1% year on year). Referrals from financial institutions steadily increased, trending at record-high levels. In addition to stable demand for LED lighting, orders for commercial air conditioning continued to increase. Orders for cubicle-type high-voltage receiving equipment, which have long construction periods and high unit prices, also continued to expand steadily.

Key Products

Growth Drivers

• Increase in referral cases via partner financial institutions driven by expanded business alliances with regional banks and credit unions (renewed record-high levels in the current H1)
• Increase in high-unit-price orders through expansion of products into the industrial field (cubicle-type high-voltage receiving equipment, etc.)
• Continued upward trend in orders for commercial air conditioning, advancing diversification of the product portfolio
• Strengthening of the community-based sales structure leveraging nationwide offices and continued increase in sales personnel
• Strengthened expertise in the electrical construction field and expanded pool of licensed personnel through the full consolidation of Daiichi Denki Setsubi Kogyo Co., Ltd. (effective September 30, 2025)
• Acquisition of large-scale projects through strengthened bidding for public works by national and local governments
• Enhancement of the product lineup to meet the diverse needs of commercial, agricultural, and industrial customers

Risks

• Sales dependence on Rakuten Bank, Ltd. (¥4,334 million in sales in the current fiscal year, 15.2% of total sales)
• Risk of rising cost of sales ratio due to increased merchandise procurement costs accompanying the increase in NEXYZ.ZERO orders
• Timing discrepancies in revenue recognition due to extended construction periods for cubicle-type high-voltage receiving equipment and similar products
• Risk of decreased referral cases due to deteriorating relationships with partner financial institutions or changes in their policies
• Asset impairment risk, as evidenced by the impairment loss on fixed assets recorded in the current fiscal year (¥25 million)
• Expanding credit risk on trade receivables, as indicated by the increase in allowance for doubtful accounts (from ¥1,010 million at the end of the prior fiscal year to ¥1,321 million at the end of H1)