MEIWA CORPORATION

Business Details

The First Business Segment consists of three businesses: the Resources & Environment Business (rare earths and rare metals, environment-related, and metal-related products), the Flame Retardants Business, and the Functional Building Materials Business (insulation materials, waterproofing materials, and interior materials). The majority of segment assets consist of trade receivables and inventories such as rare metals and flame retardants. In the fiscal year under review (FY2025, ended March 2025), net sales were ¥42,340 million and segment profit was ¥2,370 million, driving the improvement in profitability across the group as a whole.

Recent Overview

The Flame Retardants Business remained strong, driving increased revenue and profit even in the nine-month cumulative period

In the full fiscal year ended March 2025, net sales were ¥42,340 million (down 0.9% year on year), while segment profit rose significantly to ¥2,370 million, up 56.1% year on year (an increase of ¥851 million). The Flame Retardants Business performed well, and within the Functional Building Materials Business, waterproofing materials were strong, while the Resources & Environment Business saw sluggish performance in metal-related and environment-related products. In the nine months of FY2026 (ending March 2026, April to December 2025), net sales were ¥33,983 million (up 6.4% year on year) and segment profit was ¥2,014 million (up 28.1% year on year), continuing the strong trend. The Flame Retardants Business remained strong even as market conditions showed some signs of stabilizing.

Key Products

Growth Drivers

• Continued strong performance of the Flame Retardants Business (solid demand even amid stable market conditions)
• Strong performance of waterproofing materials within the Functional Building Materials Business
• Increased revenue and profit in the nine months of FY2026 (ending March 2026), with net sales up 6.4% and segment profit up 28.1% year on year
• Increase in segment assets (inventory growth driven by strong performance in flame retardants and functional building materials)

Risks

• Sluggish performance in metal-related and environment-related products within the Resources & Environment Business
• Risk of fluctuations in rare earth and rare metal market conditions
• Risk of declining profitability of inventories (rare metals, flame retardants, etc.) due to market price fluctuations
• Order backlog down 26.1% year on year (as of the end of FY2025, March 2025)