SOFT99corporation

Business Details

Manufactures and sells automotive chemical products (car wash products, repair and maintenance products, etc.) for general consumers and automotive coating applicators, and also handles the planning, development and sales of household eyeglass care products, TPMS (Tire Pressure Monitoring System), and the development and sales of electronic devices and software. In addition to domestic sales, the segment also expands overseas into China, East Asia, Europe, South America and other regions. Consolidated subsidiaries Asmo (container planning), Shanghai Sotec 99 Chemical (China sales), Orange Japan Co., Ltd. (TPMS), Anteria Co., Ltd. (import of overseas products), and Haneron Co., Ltd. (electronic devices and software) are responsible for these operations.

Recent Overview

Net sales up 2.2% year on year, but operating profit down 14.5% due to increased strategic expenses and depreciation

In the fiscal year under review (FY2026, ending March 2026), the Fine Chemical business achieved net sales of ¥13,957 million (up 2.2% year on year), driven by sales to general consumers (strong glass care products), sales of professional-use products (exceeding the prior period for both new and used cars), and the planning, development and sales of TPMS. On the other hand, an increase in strategic expenses including advertising expenses and an increase in depreciation (from ¥292 million to ¥428 million) associated with the launch of a core system pressured profit, and operating profit came to only ¥1,570 million (down 14.5% year on year). Overseas sales grew in Europe, South America and East Asia, but this could not offset declines in China and Russia, and overall overseas sales fell short of the prior period. In addition, an impairment loss of ¥82 million was recorded during the period (versus ¥1 million in the prior period).

Key Products

Growth Drivers

• Growth in domestic sales to general consumers driven by price revisions and new product launches of glass care products
• Solid shipments of professional-use coating products (G'zox) for both new and used cars
• Increase in TPMS-equipped vehicles and expanding demand for sensor replacement
• Growth in overseas sales to Europe, South America and East Asia
• Progress in inspections and acceptance in the electronic devices and software development and sales business due to improved component supply

Risks

• Profit pressure from increased strategic expenses such as advertising
• Increased depreciation associated with the launch of the core system
• Contraction of the domestic market due to sluggish new and used car sales volumes
• Weak overseas sales to China and Russia
• Intensifying competition from competing and private-brand products in eyeglass care products
• Risk of deteriorating profitability due to soaring prices and rising raw material costs