AXXZIA Inc.
4936・Standard Market・Chemicals
Cosmetics Business (Single Segment)
Manufacturing and sales business of cosmetics and health supplements with global operations centered on Japan and China
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative Q3, FY2026 (ending July 2026)) | ¥9,886 million | ¥10,080 million (cumulative Q3 of prior fiscal year) | ↓ |
| Operating income (cumulative Q3, FY2026 (ending July 2026)) | -¥48 million (operating loss) | ¥426 million (cumulative Q3 of prior fiscal year) | ↓ |
| Ordinary income (cumulative Q3, FY2026 (ending July 2026)) | ¥132 million | ¥342 million (cumulative Q3 of prior fiscal year) | ↓ |
| Quarterly net income attributable to owners of parent (cumulative Q3, FY2026 (ending July 2026)) | ¥30 million | ¥211 million (cumulative Q3 of prior fiscal year) | ↓ |
| Gross profit (cumulative Q3, FY2026 (ending July 2026)) | ¥7,304 million | ¥7,382 million (cumulative Q3 of prior fiscal year) | ↓ |
| Selling, general and administrative expenses (cumulative Q3, FY2026 (ending July 2026)) | ¥7,352 million | ¥6,956 million (cumulative Q3 of prior fiscal year) | ↑ |
| Total assets (end of April 2026) | ¥9,651 million | ¥9,567 million (end of July 2025) | ↑ |
| Net assets (end of April 2026) | ¥7,600 million | ¥7,575 million (end of July 2025) | ↑ |
| Equity ratio (end of April 2026) | 78.7% | 79.1% (end of July 2025) | ↓ |
| Full-year forecast, net sales (FY2026 (ending March 2026)) | ¥13,500 million | ¥13,478 million (FY2025 (ended July 2025) actual) | — |
| Full-year forecast, operating loss (FY2026 (ending March 2026)) | -¥250 million | ¥513 million (FY2025 (ended July 2025) actual) | ↓ |
| Full-year forecast, net loss attributable to owners of parent (FY2026 (ending March 2026)) | -¥105 million | – | ↓ |
| Quarterly net income per share (cumulative Q3, FY2026 (ending July 2026)) | ¥1.32 | ¥8.99 (cumulative Q3 of prior fiscal year) | ↓ |
Business Details
The Group is a single-segment company primarily engaged in the manufacturing and sale of cosmetics and health supplements. Its main market is China, where it operates through multiple channels including cross-border e-commerce, general trade e-commerce, esthetic salons, and retail. In Japan, it sells through esthetic salons, retail, e-commerce, and other channels. The Group also operates in Hong Kong, Singapore, North America, Southeast Asia, and other regions. Under the concept of "inner and outer beauty," its core offering is an aging-care series that combines skincare with beauty drinks.
Recent Overview
Cumulative Q3 operating loss driven by slowing China e-commerce and expanded upfront investment; full-year forecast revised downward
Net sales for the cumulative third quarter of FY2026 (ending July 2026) (August 2025 to April 2026) were ¥9,886 million (down 1.9% year on year for the same cumulative period). This was affected by a partial slowdown in growth of e-commerce sales in China and price revisions at M&D Co., Ltd. reflecting the impact of yen depreciation. Continued increases in personnel and advertising investment in focus areas caused selling, general and administrative expenses to expand to ¥7,352 million (up 5.7% year on year for the same cumulative period), resulting in an operating loss of ¥48 million. Ordinary income was secured at ¥132 million, supported by recording ¥171 million in foreign exchange gains. The full-year earnings forecast has been revised, with an operating loss of ¥250 million and a net loss of ¥105 million now expected. In Japan, a new directly-operated store opened at Namba CITY, while in China, administrative approval registration as a special-use cosmetic was obtained for the UV Protection Cream.
Key Products
Growth Drivers
- Continued sales expansion of the core products "AG Drink" and "The Pure Drink" in the Chinese market
- Expansion of the product lineup in the Chinese market through cultivation of new inner-care products such as "PQ Drink Plus"
- Enhancement of brand strength and reinforced sales in the Chinese market through special-use cosmetic administrative approval registration of the "AGTHEORY" cosmetics series
- Rebuilding of the LisBlanc brand and expansion of sales channels (variety shops, directly-operated stores) in Japan, along with strengthened SNS influencer marketing
- Business model transition from cosmetics import and sales to proprietary brand sales through the expansion of M&D Co., Ltd.'s proprietary brand "BELLE BAI," and improved profit margins
- Expansion of overseas sales channels through influencer live-streaming sales and department store pop-up stores, centered on Southeast Asia
- Creation of new demand through the launch of sales of "The Pure Drink" as a Foods with Function Claims product
Risks
- High dependence on sales in the Chinese market, with risks of a slowdown in Chinese consumer sentiment and intensifying competition with local Chinese brands
- Slowdown in consumption by Chinese tourists and impact on inbound consumption due to travel restriction requests by the Chinese government (from November 2025 onward)
- An operating loss of ¥250 million is forecast for the full year of FY2026 (ending July 2026) due to expanded upfront investment such as advertising and personnel increases, with uncertainty regarding investment recovery
- Risk of significant profitability deterioration as increased SG&A expenses (up 5.7% year on year for the cumulative quarter) coincide with declining sales
- Foreign exchange risk (in both yen depreciation and appreciation directions): affects profitability of cross-border e-commerce and general trade to China; risk of price revisions at M&D Co., Ltd. due to the impact of yen depreciation
- Risk of regulatory changes by the NMPA (National Medical Products Administration of China): administrative approval is required for product sales in the Chinese market
- Risk of slowing growth in China e-commerce sales due to algorithm changes on platforms such as Douyin and intensifying competition
Last updated: June 30, 2026