ENVALITH
株式会社アクシージア logo

AXXZIA Inc.

4936・Standard Market・Chemicals

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株式会社アクシージア logo
AXXZIA Inc.4936

Business

AXXZIA Inc. is a company established in 2011 that primarily manufactures and sells cosmetics and health supplements. Guided by its corporate philosophy of being a "comprehensive beauty solutions company that delivers Asian beauty from Japan to the world," the company operates globally across Japan, mainland China, Hong Kong, Singapore, North America, Australia, and other regions. For the China market, it primarily uses e-commerce platforms such as Douyin, Tmall Global, and RED, while in Japan it sells through three channels: 1,179 esthetic salons, 2,267 retail stores, and e-commerce. Net sales for FY2025 (ending July 2025) were ¥13,478 million. The group structure includes 9 subsidiaries and operates under the Cosmetics Business (Single Segment).

Business Model

For the Chinese market, the company combines cross-border e-commerce (Tmall Global, etc.) with general trade (Douyin, Tmall, etc.), stimulating demand through marketing that leverages KOLs and livestream commerce. In the Japanese market, it operates exclusive brands for beauty salons alongside BtoC brands for general consumers in parallel, raising brand awareness through SNS influencer marketing and directly operated store rollout. While the company has a high-margin structure with a gross profit margin of 73.3% (FY2025 ending July 2025), heavy SG&A expenses—including advertising expenses (25.7% of net sales) and commission fees paid (15.0% of net sales)—keep the operating margin at just 3.8%.

Company Strengths

The company operates flagship stores on major Chinese e-commerce platforms including Tmall Global, Douyin, RED, Kuaishou, and Taobao, with China EC sales reaching ¥8,709 million in FY2025 (ending July 2025) (64.6% of sales). It continues to acquire new customers through live commerce leveraging well-known KOLs, establishing brand recognition and a sales foundation in the Chinese market.

The gross profit margin for FY2025 (ending July 2025) reached a record high of 73.3% (gross profit of ¥9,873 million). Brand positioning as prestige cosmetics based on in-house planning and high quality control standards supports this high-margin structure, maintaining a gross margin level that stands out even within the cosmetics industry.

In May 2024, the company completed its proprietary distribution center, the "Fuji Sanroku PLC," in Oyama Town, Shizuoka Prefecture, and obtained warehousing business approval in July 2025. In addition, Yuit Laboratories Co., Ltd., which became a consolidated subsidiary in April 2022, has enabled in-house manufacturing of small-quantity, multi-variety products, achieving a shortened product development cycle and enhanced quality control.

ENVALITH's Perspective

For the cumulative nine months of FY2026 (ending July 2026), net sales were ¥9,886 million (down 1.9% year-on-year), entering the first revenue decline in five fiscal periods, with an operating loss of ¥48 million (versus operating profit of ¥426 million in the same period last year), confirming a sharp deterioration in profitability. The full-year forecast has already been revised to net sales of ¥13,500 million, an operating loss of ¥250 million, and a net loss attributable to owners of the parent of ¥105 million. Continued increases in headcount and advertising investment in priority areas are pushing up costs, making the outlook for investment recovery the focal point of investment decisions.

As an external factor, the number of visitors to Japan from China has declined due to the impact of travel restriction requests and other measures imposed by the Chinese government since November 2025, slowing inbound consumption. Combined with a partial slowdown in growth of China EC sales, uncertainty surrounding the China business, the company's main market, has increased. Intensifying competition from the rise of local Chinese brands also continues, once again bringing to light the earnings volatility risk stemming from the company's high dependence on China.

Ordinary profit of ¥132 million for the cumulative nine months of the third quarter resulted from foreign exchange gains of ¥172 million (recorded under non-operating income) substantially offsetting the operating loss of ¥48 million. As an external factor, the continuation of yen depreciation has supported ordinary profit, but a structure in which foreign exchange gains compensate for an operating loss in the core business lacks sustainability, making the recovery of core business profitability an urgent priority. Quarterly net income attributable to owners of the parent was only ¥30 million (down 85.7% year-on-year), and quarterly net income per share also fell sharply to ¥1.32.

Growth Strategy

Aiming for sustainable growth through three pillars: deepening China e-commerce, expanding domestic Japan operations, and global expansion

Continuing to expand sales of "AG Drink" and "The Pure Drink" while promoting the development of the mid-priced new product "PQ Drink Plus." For the AGTHEORY Cosmetics Series, registration approval for the "UV Protection Cream" as a special cosmetic under Chinese administrative regulations has been completed, aiming to enhance brand power.

Implemented a renewal of the brand concept and price revisions, expanding sales channels centered on specialty cosmetics variety stores from October 2025. Engaged brand ambassadors and implemented SNS influencer tie-ups. In March 2026, newly opened a directly-operated store at Namba CITY, expanding touchpoints with domestic and international customers.

Consolidated subsidiary M&D is transforming its business model from cosmetics import and sales to proprietary brand product sales. Launched "BELLE BAI" and implemented pop-up store openings in shopping centers, among other initiatives. Aiming to pursue group synergies and improve profit margins, though price revisions reflecting the impact of yen depreciation are affecting sales.

Actively conducting livestream sales featuring influencers primarily in Southeast Asia, strengthening e-commerce sales. Also working to expand offline sales channels, including pop-up store openings in department stores. Advancing the establishment of business foundations in regions outside China to reduce risk through regional diversification.

Last updated: July 17, 2026