ENVALITH
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Miyakoshi Holdings, Inc.

6620・Prime Market・Real Estate

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宮越ホールディングス株式会社 logo
Miyakoshi Holdings, Inc.6620

Business

Miyakoshi Holdings Co., Ltd. is a pure holding company established in 2011 that, together with its six consolidated subsidiaries, operates "Real Estate Development and Leasing Management" as its single business segment. Its core business is the World Innovation Center (WIC) project in the Chegongmiao area of Futian District, Shenzhen, China (approximately 32 hectares), which involves a public-private redevelopment of a large-scale mixed-use complex including R&D facilities and offices. Over 200 leading major foreign-invested enterprises from 30 countries worldwide, including Fortune Global 500 companies, have expressed intent to establish operations there, and the project aims to build a high-value-added innovation hub located within the high-tech industrial cluster of the Greater Bay Area. Since March 2026, the company has also newly entered the import and sales business for semiconductors, electronic components, and other products.

Business Model

Current revenue is primarily driven by real estate leasing management income from existing properties in Shenzhen (¥391 million in FY2026 (ending March 2026)). After the WIC Grand Opening, the company plans to focus mainly on rental income from tenant companies, while cultivating the Innovation Business (New)—including businesses such as exclusive Japan distributorship arrangements—in collaboration with Chinese companies in AI, robotics, semiconductors, and related fields, as a second pillar of revenue. To fill the revenue gap before opening, the company launched an import and sales business for semiconductors, electronic components, and related products starting in March 2026.

Company Strengths

Subsidiary Shenzhen Crown (China) Electronics Co., Ltd. has obtained qualification as the development implementation entity for the Chegongmiao Area Contiguous Redevelopment Project I, and has already secured from the Shenzhen Municipal Government an effective development permit covering a planned floor area ratio of 348,700㎡ and total floor area of 452,930㎡. The 251,000㎡ of R&D building floor area also secures a preferential government policy exempting land use right fees, and the barrier to entry created by this administrative coordination is high.

Through investment promotion activities commissioned by the Shenzhen Municipal Government, over 200 leading major foreign-affiliated companies—primarily Japanese listed companies and Western Fortune Global 500 companies—have submitted statements of intent to move into WIC or letters of occupancy commitment. Further increases in the number of companies wishing to move in are expected as development procedures progress.

As of the end of FY2026 (ending March 2026), total liabilities stood at ¥413 million (of which interest-bearing debt was nearly zero), against cash and cash equivalents of ¥5,485 million. Net assets of ¥26,093 million are maintained, indicating high financial soundness. Against the total investment of approximately RMB 4.5 billion for the WIC project, the company has capacity to respond initially using funds on hand, while premised on additional fundraising from capital markets and financial institutions.

ENVALITH's Perspective

The substantive acquisition of development permits and commencement of demolition work for the 01-01 parcel can be evaluated as strategic progress. However, during the long-term schedule of construction commencement in 2026 and grand opening in 2030, rental income will remain zero throughout. Whether the import and sales business (forecast revenue of ¥2,000 million), which will newly launch in FY2027 (ending March 2027), ramps up as planned is a near-term point of focus, and uncertainty is high.

In FY2026 (ending March 2026), the company recorded an impairment loss on land use rights of ¥848 million and demolition costs and other items of ¥95 million as extraordinary losses, and a provision for doubtful accounts of ¥944 million against long-term loans receivable as a non-operating loss. Operating revenue was ¥391 million (down 62.0% year on year), and net loss attributable to owners of the parent worsened significantly to ¥1,937 million. While these represent temporary accounting treatments associated with the transition to the development phase, retained earnings declined sharply from ¥6,445 million to ¥4,507 million.

On the balance sheet, long-term loans receivable of ¥13,531 million account for the majority of investments and other assets. Although a provision for doubtful accounts of ¥944 million was recorded this period, the recoverability of the remaining balance continues to warrant close monitoring. In addition, the financing scheme for the WIC total project cost (on the scale of approximately RMB 4.5 billion) has not been disclosed, and the means and terms of external fundraising, should funding through own resources alone prove difficult, constitute the greatest execution risk. As external factors, conditions in China's real estate market and geopolitical risk may also affect project progress.

Growth Strategy

Completion of the large-scale WIC redevelopment and revenue diversification through the import/sales and Innovation businesses

Substantive development approval has been obtained from the Shenzhen municipal government, and demolition work on existing buildings is underway. Nikken Sekkei and Shenzhen Huayang International Engineering Design have completed the schematic design. The company targets construction start in 2026 and grand opening in 2030, with the estimated real estate value upon completion projected at approximately ¥338.5 billion (converted at the exchange rate as of March 31, 2026).

To supplement the revenue gap period until the WIC grand opening, the company will enter the business of importing and selling semiconductors and electronic components from Chinese companies starting from FY2027 (ending March 2027). Sales for FY2027 (ending March 2027) are forecast at ¥2,000 million (up 410.4% year on year). However, an operating loss of ¥700 million is expected, and it will take time to achieve profitability.

After the WIC opens, as a second revenue pillar alongside rental income, the company plans to partner with Chinese companies possessing advanced technology in fields such as AI, robotics, and semiconductors, forming a business in which the Group serves as their Japan agent. Business services, including a corporate information platform through collaboration with 14 provinces and 4 municipalities, are also planned to be offered.

Commissioned by the Shenzhen municipal government, the company has already obtained letters of intent to enter and occupancy consent forms mainly from listed Japanese companies and Western Fortune Global 500 companies. Further increases in the number of companies wishing to move in are expected as development procedures progress.

Last updated: July 19, 2026