Miyakoshi Holdings Reports Loss Amid WIC Project Challenges

Miyakoshi Holdings, Inc. [6620.T]

TOKYO, May 13 (Pulse News Wire) – Miyakoshi Holdings,inc. (6620.T) reported a lower net profit of ¥1.937 billion for the fiscal year ended March 31, 2026, compared to a profit of ¥365 million in the previous year.

Operating revenue decreased by 14.8%, resulting in an lower operating profit of ¥333 million, while ordinary income turned negative at ¥839 million due to significant impairment losses related to its World Innovation Center (WIC) project in Shenzhen, China. The WIC project, aimed at attracting global companies to establish headquarters and research facilities in Shenzhen, secured formal development approval but incurred substantial costs. The company recorded impairment losses of ¥848 million and demolition expenses totaling ¥944 million. Despite these challenges, the project remains a cornerstone of the company's growth strategy, expected to drive innovation and expansion through partnerships with Chinese tech firms and startups. For the next fiscal year ending March 31, 2027, Miyakoshi forecasts a continued decline in operating revenue, expecting a decrease of 14.8%.

However, the company plans to launch innovative services leveraging technology from local partners, aiming to diversify revenue streams beyond rental income once the WIC opens in 2030. The company’s balance sheet showed total assets declining by ¥456 million to ¥26.51 billion, primarily due to asset impairments. Total liabilities fell by ¥456 million to ¥413 million, mainly attributed to reduced advance payments. Shareholders’ equity also declined by ¥456 million to ¥26.51 billion, reflecting lower retained earnings. Miyakoshi continues to prioritize sustainable development through projects aligned with environmental, social, and governance (ESG) principles, positioning the WIC as more than just a real estate venture but a catalyst for value creation and long-term growth.

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