CROSSFOR Co.,Ltd.

Business Details

The sole segment of CROSSFOR Co., Ltd. Its core offerings include the proprietary patented "Dancing Stone" (a technology enabling gemstones to sway without drilling holes), the one-handed removable "EXL-LOCK," and the in-house-manufactured "Tennis Chain," through which the company manufactures and sells OEM and proprietary-brand products domestically and sells parts overseas. Domestically, the business centers on OEM orders from major retailers and wholesalers, while overseas it mainly supplies parts to jewelry manufacturers in India, Thailand, China, and other markets. The company operates globally through a six-company structure (Japan, Hong Kong, China, Thailand, India, and D.Tech).

Recent Overview

Net sales grew 55.5% in cumulative Q3, with profitability achieved at all income levels

For the cumulative nine months of FY2026 (ending March 2026) Q3 (August 2025 to April 2026), the company recorded net sales of ¥4,179 million (up 55.5% year on year), operating profit of ¥155 million (up 413.6% year on year), ordinary profit of ¥149 million (versus an ordinary loss of ¥13 million in the prior-year period), and net profit attributable to owners of parent of ¥96 million (versus a net loss of ¥12 million in the prior-year period), achieving profitability at all income levels. The main drivers were strong domestic exhibition and live sales, increased sales of bullion-related products, and steady order intake from major retailers and wholesalers. Meanwhile, overseas sales were sluggish due to the impact of U.S. tariffs and soaring bullion prices, though they slightly exceeded the prior-year period. The issuance of ¥700 million in convertible bond-type bonds with subscription rights to shares expanded fixed liabilities, causing the equity ratio to decline from 35.7% at the end of the previous fiscal year to 31.7%. The company has revised its full-year earnings forecast and now expects net sales of ¥5,428 million, operating profit of ¥78 million, and a year-end dividend of ¥0.63 (versus ¥0.35 in the prior fiscal year).

Key Products

Growth Drivers

• Sales expansion driven by strong domestic exhibition sales and live sales
• Increased sales of bullion-related products and gains from mark-to-market valuation in bullion re-refining processing
• Steady order intake through continued proposal of merchandising plans tailored to demand from major retailers and wholesalers
• Securing growth investment funds through the issuance of ¥700 million in convertible bond-type bonds with subscription rights to shares
• Development of emerging markets such as India and Southeast Asia (establishment of CROSSFOR INDIA PRIVATE LIMITED in December 2024)
• Overseas sales exceeding the prior-year period through order acquisition at exhibitions and new customer development
• Development of original products that can coexist with brands worldwide, promotion of DX, and sustainability initiatives

Risks

• Continued impact of U.S. tariffs (Trump tariffs) leading to weaker demand and a soft order environment in the U.S. market
• Rising bullion prices leading to higher overseas sales prices and declining demand
• Increased interest expense due to rising borrowing rates (up ¥12 million year on year to ¥39 million in cumulative Q3)
• Pressure on working capital due to a significant increase in inventory (merchandise and products up ¥260 million, work in process up ¥160 million)
• Expansion of interest-bearing debt and decline in equity ratio (31.7%) due to the issuance of ¥700 million in convertible bond-type bonds with subscription rights to shares
• Risk of extraordinary losses, such as the ¥19 million business withdrawal loss recorded in cumulative Q3
• Risk of maintaining competitive advantage after the expiration of the Dancing Stone patent period
• Risk of intellectual property infringement from counterfeit products