ARE Holdings, Inc.

Business Details

The business recycles gold, silver, palladium, platinum, rhodium, and other precious metals from scrap containing precious metals (electronic materials, dental materials, jewelry, automotive catalysts), and sells them as high-purity bullion to trading companies, jewelry manufacturers, semiconductor manufacturers, and others. Domestically, Asahi Pretec and Asahi Metal Fine are the core operators. Overseas, North America (Asahi Refining USA/Canada) handles gold and silver refining, processing, and warehousing, while recycling operations are also conducted in Asia (Malaysia, South Korea, Thailand, India). Sales of premium-priced recycled precious metals and retail precious metal products are also expanding.

Recent Overview

Operating profit increased significantly, up approximately 93% year on year, driven by rising precious metal prices and expansion of the North America refining business.

Operating profit in the Precious Metals segment for FY2026 (ending March 2026) was ¥35,424 million (prior period: ¥18,339 million), a substantial increase of approximately 93% year on year. Domestically, profitability improved in the jewelry, dental, and electronics fields, while in the North America refining business, in addition to increased receipts of gold and silver raw materials, profits expanded across the trading, warehousing, and product segments by taking advantage of fluctuations in gold and silver supply and demand associated with changes in U.S. trade policy. Impairment loss decreased substantially from ¥2,038 million in the prior period to ¥494 million (associated with disposal and retirement related to the closure of the Nagano plant and restructuring of the Ijuin plant). Sales volume of premium recycled precious metals and retail products also increased year on year.

Key Products

Growth Drivers

• Expansion of sales amounts driven by rising prices of gold, silver, platinum, and other precious metals (gold ¥450,530 million, platinum up 168.9%, silver up 188.2%)
• Increased receipt volume of gold and silver raw materials in the North America refining business and profit expansion across the product, warehousing, and trading segments
• Increased trading profit through flexible response to fluctuations in gold and silver supply and demand arising from changes in U.S. trade policy and global financial conditions
• Improved profitability and cost structure in the jewelry, dental, and electronics fields
• Expansion of sales volume of premium-priced recycled precious metals and retail precious metal products
• Geographic expansion of the precious metals recycling business in Asia (Thailand, India, etc.)

Risks

• Precious metal price volatility risk (market fluctuations in gold, silver, palladium, platinum, rhodium, etc. directly affect earnings; hedging instruments for rhodium are limited)
• Foreign exchange risk (a high proportion of overseas operations in North America, Asia, and elsewhere means the business is affected by yen depreciation/appreciation)
• Risk of changes in international trade policy and regulations (changes to U.S. tariff systems, etc. affect gold and silver distribution, supply and demand, and North American operations)
• Geopolitical risk and economic security risk (supply chain disruption due to tightened export/import restrictions on strategic materials)
• Impairment risk related to goodwill and fixed assets (potential for impairment losses due to deteriorating profitability of acquired assets or fixed assets used in operations)
• Compliance risk related to responsible precious metals management (issues such as human rights violations or money laundering in the supply chain could hinder certification maintenance and continuity of transactions)