Riken Corundum Company Limited (E01185) Stock Price

Riken Corundum consists of three companies: its parent company Okamoto Corporation and its consolidated subsidiary Riken Hong Kong Limited. The group operates three main business segments: manufacturing and sales of abrasive cloth and paper products, manufacturing and sales of office automation equipment components and materials, and real estate leasing.

The abrasive cloth and paper products manufacturing and sales business is handled by Riken Corundum itself, leveraging its specialized expertise and technology in this field. The office automation equipment components and materials manufacturing and sales business is conducted jointly by Riken Corundum and its consolidated subsidiary Riken Hong Kong Limited, focusing on the manufacture and sale of components and related products for office automation equipment.

Riken Corundum also operates a real estate leasing business, generating revenue through property rentals as part of the company's asset management strategy. Through these diverse business operations, Riken Corundum pursues a multi-faceted business model that addresses various market needs.

Previously, Riken Precision Equipment (Suzhou) Limited and Zibo Riken Taishan Coated Abrasives Limited were part of the group; however, following the completion of liquidation and equity transfers, these companies have been removed from the group. This reflects the group's current, more integrated business structure.

Riken Corundum operates a diversified business model centered on three core businesses: manufacturing and sales of abrasive cloth and paper products, manufacturing and sales of office automation equipment components, and real estate leasing. The company is guided by the "Riken Corundum Charter" as its management philosophy, emphasizing corporate social responsibility, legal compliance, and fair and honest business practices. The company prioritizes improving customer satisfaction, enhancing shareholder value, and developing employee capabilities as key management initiatives, while aiming to strengthen competitiveness, improve profitability, and reinforce financial stability.

Despite the impact of the COVID-19 pandemic, Riken Corundum has achieved increased sales and profitable operations through growing demand for abrasive materials and stable real estate leasing income. The company recognizes strengthening profitability in its abrasive cloth and paper manufacturing business as a priority, and is implementing measures including enhanced employee training and development, sales expansion, and production efficiency improvements. The company also aims to improve operating profit through capital investments targeting quality and efficiency gains, as well as inventory reduction of finished goods and work-in-process.

In its real estate leasing business, the company benefits from stable income through a business-use fixed-term land lease agreement with Aeon Retail Co., Ltd. Additionally, the company is strengthening compliance and risk management as well as environmental protection measures to fulfill its corporate social responsibility.

Riken Corundum develops and executes its medium-term management plan using a rolling approach, targeting management objectives through objective metrics including sales, operating profit, ordinary profit, and net profit attributable to parent company shareholders. Through these initiatives, the company aims to achieve sustainable growth despite challenging business conditions.