EDP Corporation
7794・Growth Market・Other Products
Diamond Single Crystal Related Business (Single Segment)
A single-segment company originating from AIST (National Institute of Advanced Industrial Science and Technology) that manufactures and sells large diamond single crystals
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Consolidated, Full Year) | ¥516 million | ¥902 million | ↓ |
| Operating Loss (Consolidated, Full Year) | -¥1,360 million | -¥976 million | ↓ |
| Ordinary Loss (Consolidated, Full Year) | -¥1,341 million | -¥989 million | ↓ |
| Net Loss Attributable to Owners of Parent (Consolidated, Full Year) | -¥2,415 million | -¥2,306 million | ↓ |
| Operating Loss Margin | -263.4% | -108.1% | ↓ |
| Equity Ratio | 68.1% | 78.0% | ↓ |
| ROE (Net Loss to Equity Ratio) | -94.3% | -56.1% | ↓ |
| Total Assets | ¥2,510 million | ¥4,377 million | ↓ |
| Net Assets | ¥1,709 million | ¥3,418 million | ↓ |
| Cash and Cash Equivalents, End of Period | ¥825 million | ¥1,441 million | ↓ |
| Impairment Loss (Extraordinary Loss) | ¥1,067 million | ¥1,300 million | — |
| Net Assets per Share | ¥110.49 | ¥237.48 | ↓ |
Business Details
The company manufactures, sells, and develops large diamond single crystals using the microwave plasma CVD method. Its main products are Seed Crystal, Substrates and Wafers, and jewelry. Customers include LGD manufacturers in India, Europe, and elsewhere, as well as domestic and overseas research institutions and device development companies. The company is working to move away from its heavy reliance on seed crystals and is promoting a business structure shift toward jewelry sales and wafers for diamond devices. In FY2026 (ending March 2026), revenue fell sharply by 42.8% year on year to ¥516 million, and a net loss widened after recording an impairment loss of ¥1,067 million.
Recent Overview
Revenue down 42.8%, impairment loss of ¥1,067 million recorded, net loss widened to ¥2,415 million; going concern note resolved
In FY2026 (ending March 2026), seed crystal revenue plunged 78.0% year on year to ¥117 million, and overall revenue fell to ¥516 million (down 42.8% year on year). Following a review of the recoverability of fixed assets, the company recorded an impairment loss of ¥1,067 million, and the net loss widened to ¥2,415 million. Meanwhile, the exercise of the 17th stock acquisition rights was completed in January-February 2026, raising approximately ¥600 million. Seed crystals for India received orders from multiple users in the fourth quarter and shipments began. A memorandum of intent for joint research was signed with Honda R&D Co., Ltd. SFD was absorbed into the company, streamlining the organization. It was determined that no note regarding going concern assumptions was applicable as of the fiscal year-end. For FY2027 (ending March 2027), the company forecasts revenue of ¥1,100 million (up 113.0% year on year) and an operating loss of ¥283 million.
Key Products
Growth Drivers
- Global expansion of demand for substrates and wafers for diamond devices (power devices, quantum sensors, high-frequency devices) and strengthened development support from governments worldwide
- Expected increase in orders following completion of 2-inch mosaic wafer development (progress made in identifying technical issues, aiming for early commercialization)
- Full-scale launch of seed crystal sales to India following acquisition of SFD India import license (February 2026), with long-term orders already secured from major users in India
- Acceleration of development of large, low-resistance wafers for automotive power devices through joint research with Honda R&D Co., Ltd. (memorandum of intent signed March 19, 2026)
- Expansion of jewelry sales under the Japan Made Diamond brand (ongoing negotiations with domestic jewelry companies and department stores, sale of approximately ¥126 million in loose diamond inventory)
- Strengthening of the high-value-added product lineup through commercialization of 1-inch single-crystal wafers (launched April 2025) and large seed crystals exceeding 15×15mm
- Consideration of securing support from public funding agencies such as NEDO and planning for new fundraising as early as FY2027 (ending March 2027)
Risks
- Structural slump in seed crystal demand due to continued oversupply and price declines for small jewelry in the LGD market (seed crystal revenue fell 78.0% year on year in the current period)
- Intensifying competition from the introduction of low-cost large seed crystals by Indian and Chinese manufacturers and expansion of in-house seed crystal production by LGD manufacturers
- Risk of continued delays in the development of 2-inch mosaic wafers (initial target of end of December 2025 was missed, with technical issues such as bonding stress remaining unresolved)
- Longer lead times and business constraints due to the revised Export Trade Control Order (effective May 28, 2025), which requires more than two months to obtain export approval for India
- Risk of delayed ramp-up of jewelry sales and additional losses due to the temporary suspension of SFD Antwerp BV and review of its business structure
- Deterioration of financial base due to continuing operating and net losses (retained earnings deficit of -¥3,399 million, net assets of ¥1,709 million) and uncertainty regarding additional fundraising
- Risk regarding the recoverability of remaining assets even after significant impairment of fixed assets (¥1,067 million in the current period, ¥1,300 million in the prior period)
- Risk related to the renewal of the patent licensing agreement with AIST (contract expires October 31, 2026)
Last updated: June 24, 2026