NEW ART HOLDINGS Co., Ltd.

Business Details

Provides manufacturing and sales of bridal jewelry (engagement rings and wedding rings) and related bridal services, centered on the two brands "Ginza Diamond Shiraishi" and "Excelco Diamond." In addition, the segment handles art sales and the planning and operation of art auctions. In addition to flagship stores in major domestic cities, the segment is expanding overseas into Hong Kong, Singapore, and Taiwan. This segment accounted for 72.1% of the Group's consolidated sales in FY2026 (ending March 2026).

Recent Overview

Sales up 9.3% YoY, segment profit up 20.0% YoY, showing steady growth. Overseas store openings accelerated while impairment losses expanded simultaneously.

In FY2026 (ending March 2026), segment sales reached ¥23,068 million (up 9.3% YoY), and segment profit was ¥5,752 million (up 20.0% YoY), achieving both increased revenue and profit. The establishment of the two-store structure in Ginza and continued branding initiatives contributed to stable sales nationwide. Overseas, a new store opened in Sha Tin, Hong Kong in December 2025, and a store opened at Singapore's Takashimaya in February 2026. The company has also begun initiatives to expand market share in Taiwan over the next five years. On the other hand, impairment losses in the Jewelry, Art & Auction Business expanded significantly to ¥520 million (compared to ¥81 million in the prior period), partly reflecting deteriorating profitability at some store assets. NEW ART Co., Ltd., which operates the jewelry business, is also considering entry into the U.S. market, and is examining store expansion in major cities.

Key Products

Growth Drivers

• Increased per-unit sales prices and improved customer spend through brand value enhancement initiatives (short-film commercials directed by Isao Yukisada, social media campaigns)
• Improved customer traffic and expanded market share through the establishment of a two-store structure in Ginza (Ginza Main Store and Ginza Namiki-dori Main Store)
• Enhanced brand value for Excelco Diamond through the appointment of brand ambassador Kumiko Goto and hosting of the "WORLD JEWELRY DESIGN AWARD 2026"
• Expansion of global sales through new overseas store openings in Hong Kong, Singapore, and Taiwan
• Medium- to long-term growth opportunities from considering entry into the U.S. market (the world's largest diamond consumption market)
• Building an in-house rough diamond procurement structure and strengthening the value chain through the establishment of a subsidiary in Dubai, UAE
• Accumulation of high-value artwork handling track record and market development through Toza New Art's art auction business

Risks

• Risk of a shrinking bridal jewelry market due to the declining trend in domestic marriage numbers (declining birthrate, later marriages)
• Risk of rising procurement costs for raw materials such as diamonds due to exchange rate fluctuations and inflation
• Risk of market saturation due to increasing competition in the semi-order bridal jewelry model
• Risk of deteriorating local economic conditions and regulatory changes in overseas operations (Hong Kong, Singapore, Taiwan)
• Risk of expanding impairment losses related to store assets (¥520 million recorded in FY2026 ending March 2026, a significant increase YoY)
• Risk of difficulty in stably securing high-value and rare works in the auction business
• Risk of increased personnel and management costs associated with accelerated overseas expansion

Business Details

A segment centered on the operation of esthetic salons, which also manufactures and sells cosmetics and health foods, among other products. This segment is small in scale, accounting for 4.5% of Group sales (FY2026 ending March 2026), and has continued to post operating losses as various cost increases have pressured profitability. The segment is working on reducing advertising expenses, revising product unit prices, and strengthening repeat sales to existing customers in order to improve profitability.

Recent Overview

Cost reductions narrowed the loss, but declining customer traffic continued, and profitability has not yet been achieved

Full-year sales for FY2026 (ending March 2026) were ¥1,449 million (up 0.9% YoY), remaining nearly flat. Through fundamental cost reductions, including advertising expenses, and revisions to product unit prices, the segment loss narrowed to ¥246 million from ¥316 million in the prior period. On the other hand, as a side effect of cost reductions, a declining trend in customer traffic was also observed. The company is implementing customer acquisition initiatives utilizing social media affiliate advertising and Hot Pepper Beauty, and is also considering entry into the men's esthetic field targeting customers in their 40s and 50s.

Key Products

Growth Drivers

• Strengthening new customer acquisition through social media affiliate advertising and Hot Pepper Beauty
• Narrowing the loss through fundamental cost reductions, including advertising expenses
• Improving average customer spend through revisions to product unit prices and strengthened repeat sales to existing customers
• Opening new markets in the men's esthetic field targeting customers in their 40s and 50s
• Strengthening the business foundation with a view to future partnerships with clinics, among other initiatives

Risks

• Risk that rising employee turnover directly damages profitability, as securing and retaining personnel is directly linked to business performance
• Risk that reduced advertising expenses lower customer traffic and constrain sales growth
• Rising customer acquisition costs due to intensifying competition in the esthetic market
• Risk of losing existing customers due to increased treatment unit prices
• Risk of continued impairment losses (impairment losses of ¥17,156 thousand recorded in FY2026 ending March 2026 and ¥7,346 thousand in FY2025 ending March 2025)
• Risk that the outlook for profitability remains unclear, as the esthetic business alone has not yet achieved stable profitability

Business Details

While maintaining hotel and wedding venue operations as its existing revenue base, the segment is developing the luxury residence "Sampen House of Art" (scheduled for completion in May 2027), designed by globally renowned architect Kengo Kuma, on Kyu-Karuizawa Main Street in the Old Karuizawa area. The core of the project is a roughly ¥10,000 million project combining Phase 1 and Phase 2 sales, and plans for the hotel condominium "Sampen Hotel and Museum" are also underway. The primary target customers are domestic and international high-net-worth individuals and investors.

Recent Overview

Sales of ¥267 million (down 3.6% YoY); segment loss expanded YoY to ¥116 million

In FY2026 (ending March 2026), the Resort Development Business recorded sales of ¥267 million (compared to ¥277 million in the prior period) and a segment loss of ¥116 million (compared to a loss of ¥50 million in the prior period), with the loss expanding. Construction of the luxury residence "Sampen House of Art" is progressing smoothly, and construction of the state-of-the-art video art showroom is also largely complete. The official timing for the resumption of sales will be announced once decided. Capital expenditure decreased significantly to ¥1 million from ¥371 million in the prior period, while depreciation and amortization increased to ¥76 million (from ¥19 million in the prior period).

Key Products

Growth Drivers

• Large-scale sales recognition from FY2028 (ending March 2028) onward following the May 2027 completion and handover of the luxury residence "Sampen House of Art" (envisioned at approximately ¥10,000 million combining Phase 1 and Phase 2 sales)
• Rising land prices in Karuizawa (the quasi-commercial zone along Old Karuizawa's main street is highly scarce, with actual transaction prices continuing to substantially exceed publicly announced land prices, generating significant unrealized gains on held land)
• The large-scale hotel condominium development plan for "Sampen Hotel and Museum" (in collaboration with major developers, envisioned at 5-6 times the scale of "Sampen House of Art")
• Potential to advance the business without straining company management through asset efficiency improvements, assuming land sales to major developers
• Establishment of a sales promotion structure following completion of the state-of-the-art video art showroom
• Enhanced brand value for "Sampen Hotel and Museum" through the planned participation of three renowned curators: Nobuyuki Senzoku, Yuko Hasegawa, and Akashi Hijikata

Risks

• Since property handovers will not occur until FY2028 (ending March 2028) or later, contributions to sales and profit will remain limited until then, with segment losses expected to continue
• The timing for resuming sales of the luxury residence remains undecided, making the outlook for revenue recognition unclear until an official decision is made
• Large-scale development projects such as "Sampen Hotel and Museum" remain at the planning stage, leaving uncertainty regarding commercialization
• While land prices in Karuizawa continue to rise, there is a risk of demand fluctuations in the high-end real estate market for high-net-worth individuals
• Risk of impairment losses (an impairment loss of ¥234 million was recorded in FY2025 ending March 2025; while the impairment in FY2026 ending March 2026 was minor, continued monitoring is necessary)
• Risk of changes to or breakdown of collaboration terms in development plans premised on partnerships with major developers

Business Details

The segment's main businesses are the Credit Business, manufacturing and sale of golf equipment, and development and manufacturing of related sporting goods. This segment is extremely small in scale, accounting for 0.2% of the Group's overall sales (FY2026 ending March 2026), and is a group of developmental-stage businesses that have continued to post losses. The segment is expanding its business domain into sports in general, launching the Belt Business and entering the Apparel Business, while also offering custom-made sales for senior golfers through a partnership with a Taiwanese manufacturer.

Recent Overview

A difficult phase marked by a 42.1% decline in sales, an expanding loss, and upfront investment in newly launched businesses

Full-year sales for FY2026 (ending March 2026) were ¥70 million (down 42.1% YoY), and the segment loss expanded to ¥89 million (from a loss of ¥53 million in the prior period). While the company is proceeding with the launch of the Belt Business and entry into the Apparel Business, the contraction in sales scale and the expansion of losses are occurring simultaneously. The company continues custom-made sales for senior golfers through its partnership with a Taiwanese manufacturer, while promoting the expansion of its business domain into sports in general. Segment assets also decreased significantly, from ¥256 million at the end of the prior period to ¥96 million.

Key Products

Growth Drivers

• Expansion of the addressable market through broadening the sports business domain (from golf equipment specialization to sports in general)
• Sales diversification through the new launch of the Belt Business
• Expansion of custom-made sales for senior golfers through partnership with a Taiwanese manufacturer
• Addition of a future revenue source through entry into the Apparel Business
• Development of new customer segments through the creation of high-value-added products and services

Risks

• Risk of continued losses due to fixed cost burdens, given the extremely small sales scale (0.2% of the Group overall)
• Risk of continued business contraction, given the significant 42.1% YoY decline in full-year sales for FY2026 (ending March 2026)
• Risk of expanding losses due to upfront investment during the launch phase of new businesses (Belt and Apparel)
• Risk of intensifying competition and demand fluctuations in the golf equipment market
• Credit management and bad debt risk in the Credit Business
• Unclear outlook for achieving profitability, as the segment loss expanded from ¥53 million in the prior period to ¥89 million

Business Details

A reporting segment newly established following the consolidation of New Art Wah Full Limited as a subsidiary in July 2024. Based primarily in the Hong Kong market, the segment conducts wholesale sales of Processed Frozen Meat & Processed Chilled Meat and Seafood Products. This segment's share of the Group's consolidated sales expanded to 22.4% in FY2026 (ending March 2026). The segment is expanding operations within the Hong Kong-Shenzhen economic zone, and is also promoting the development of the mainland Chinese market by leveraging its Shenzhen base, as well as expanding sales channels in anticipation of the lifting of import restrictions on Japanese wagyu beef.

Recent Overview

Sales expanded sharply, up 51.3% YoY to ¥7,164 million, though various cost increases pressured profit.

In FY2026 (ending March 2026), Food Business sales achieved significant growth, reaching ¥7,164 million (up 51.3% YoY), and segment profit also increased to ¥104 million (up 14.0% YoY). However, in the Hong Kong market, consumer behavior has shifted toward prioritizing cost-performance while maintaining a baseline of quality, and various cost increases have become a factor pressuring profit. Amid the growing habituation of consumers to cross-border purchasing between Shenzhen and Guangzhou and the progress of Hong Kong-Shenzhen economic integration, the company is promoting the development of the mainland Chinese market by leveraging its Shenzhen base.

Key Products

Growth Drivers

• Promotion of mainland Chinese market development based on the sales and logistics base established in Shenzhen
• Development of new business partners and sales channels in anticipation of the lifting of import restrictions on Japanese wagyu beef
• Improved profitability through branding of high-value-added food products
• Capturing consumer demand in Shenzhen, an IT industry cluster, amid the progress of Hong Kong-Shenzhen economic integration
• Diversification of procurement risk through cost reduction efforts and securing multiple suppliers

Risks

• Pressure on profit margins due to the shift among Hong Kong market consumers toward prioritizing cost-performance
• Risk of economic slowdown in Hong Kong and mainland China amid the downturn in China's real estate and manufacturing sectors
• Risk of rising procurement costs due to fluctuations in international market conditions, exchange rates, import regulations, and transportation costs
• Risk of losing market share due to intensifying competition in the food wholesale industry
• Risk of supply disruption of raw materials due to external factors such as epidemics and natural disasters
• Risk of future impairment related to the goodwill balance of ¥961 million