TAKANO CO.,Ltd.

Business Details

Comprised of the Company, consolidated subsidiary Shanghai Takano Trading Co., Ltd., and Yuki Trading Co., Ltd. Core products include office furniture such as swivel chairs and conference chairs, chairs for welfare and medical facilities such as wheelchairs, and clinical diagnostic reagents such as the Allergy Testing System. The main customer is Kokuyo Co., Ltd. (sales of ¥10,751 million in FY2026 (ending March 2026)). In addition to domestic manufacturing and sales, Shanghai Takano Trading Co., Ltd. handles sales to the Chinese market. This core segment accounts for more than half of the Group's total sales.

Recent Overview

Steady growth in office furniture sales drove revenue growth, while cost reduction significantly improved profit margin.

In FY2026 (ending March 2026), efforts to develop and produce new office furniture responding to changes in work styles proved successful, and increased sales of office chairs and other products led to sales of ¥13,392 million (up ¥627 million, or 4.9%, year on year). On the profit side, in addition to an increase in gross profit driven by higher sales, efforts to reduce fixed costs resulted in a significant increase in segment profit to ¥764 million (up ¥291 million, or 61.8%, year on year). On the other hand, an impairment loss of ¥190,985 thousand on goodwill and other assets arising from the business combination with Yuki Trading Co., Ltd. was recorded. The increase in property, plant and equipment and intangible assets was ¥790 million, a significant increase from the prior year, reflecting more active capital investment.

Key Products

Growth Drivers

• Increasing demand for office furniture products responding to new ways of working, such as hybrid work
• Continued expansion of sales to the main customer, Kokuyo Co., Ltd. (¥10,751 million in FY2026 (ending March 2026), up ¥352 million year on year)
• Continued sales of clinical diagnostic reagents (Allergy Testing System)
• Strengthened cost competitiveness and improved profit margin through fixed cost reduction
• Enhanced production capacity and efficiency through more active capital investment (increase in property, plant and equipment and intangible assets of ¥790 million)

Risks

• Risk of a significant decline in demand for office furniture due to weakening corporate capital expenditure appetite
• Risk of a large influx of low-priced office chairs manufactured in Southeast Asia and other regions into the domestic market
• Risk of sales concentration with the main customer, Kokuyo Co., Ltd. (accounting for approximately 80% of segment sales in FY2026 (ending March 2026))
• Risk of increased manufacturing costs due to continued price inflation
• Economic fluctuation and geopolitical risk in the Chinese market (affecting the business of Shanghai Takano Trading Co., Ltd.)
• Risk of additional impairment of assets related to Yuki Trading Co., Ltd.