YAMATO Mobility & Mfg.Co., Ltd.

Business Details

Manufactures and sells synthetic resin molded products and molds for OA Equipment Components, Sales Promotion Products, Housing Equipment, Automotive Goods, Home Appliance Parts, and information/communication-related products at domestic bases (Yamato Techno Center Co., Ltd., Saitama Yamato Co., Ltd.) and overseas bases (China, Philippines). Major customers are ETRIA TRADING ASIA LIMITED (19.0% of sales) and RICOH ASIA INDUSTRY LIMITED (18.1% of sales). Sales for the fiscal year under review were ¥12,795 million, making this a core segment accounting for approximately 79.6% of consolidated sales.

Recent Overview

Chinese subsidiary converted to an equity-method affiliate; cumulative Q3 sales fell sharply by 27.9% year on year

Effective the deemed transfer date of June 30, 2025, the Company transferred 60% of its equity interest in its Chinese subsidiaries (Hong Kong Yamato Industrial & Trading Co., Ltd. and two other companies) to a Chinese company, changing their status from consolidated subsidiaries to equity-method affiliates. As a result, cumulative sales for the first nine months of FY2026 (ending March 2026) fell sharply to ¥6,300 million (versus ¥8,744 million in the same period of the prior year), resulting in an operating loss of ¥88 million (versus operating profit of ¥58 million in the same period of the prior year). While domestic business performed steadily, sluggish consumer spending in the Chinese economy and the impact of U.S. trade policy worsened the business environment at overseas bases. The Company is also working to expand into high-end, high-value-added products and expand its sales network through business collaboration with the transferee company, as well as reforming its production system.

Key Products

Growth Drivers

• Sales from the SP/Vacuum Forming Business Unit and the Philippine subsidiary performed steadily, offsetting sluggish OA component sales in Japan and China
• Structural reforms including company-wide cost improvement activities ("New New Structural Reform") were successful, resulting in a return to operating profit in the fiscal year under review (from ¥(162) million in the prior year to ¥17 million in the current year)
• Following the conversion of the Chinese subsidiary to an equity-method affiliate, the Company is promoting expansion into high-end, high-value-added products and expanding its sales network through business collaboration with the transferee company
• Order backlog increased to 108.2% year on year, securing a sales foundation for the coming periods
• Maintaining high quality and price competitiveness through an optimal-location production strategy (Japan, China, Philippines)

Risks

• Deterioration of the business environment at overseas bases due to sluggish consumer spending in the Chinese economy and the impact of U.S. trade policy
• Significant reduction in sales scale due to the conversion of the Chinese subsidiary to an equity-method affiliate (down 27.9% year on year for the cumulative first nine months of FY2026 (ending March 2026))
• Risk of sales concentration in major customers (ETRIA TRADING ASIA LIMITED and RICOH ASIA INDUSTRY LIMITED), which together account for approximately 37% of consolidated sales
• An impairment loss of ¥369 million was recorded at the Chinese subsidiary in the fiscal year under review, creating risk of additional impairment on remaining assets
• Upward pressure on manufacturing costs due to yen depreciation and rising raw material prices
• Risk of medium- to long-term demand decline due to structural shrinkage of the OA equipment market (e.g., paperless trends)