Nichirin Co., Ltd.

Company Profile

■URL

http://www.nichirin.co.jp/

■Address

Higashimachi-Edomachi Bldg., 98-1 Edo-machi, Chuo-ku, Kobe City, Hyogo Pref., 650-0033, Japan

Business Overview

-An independent, leading manufacturer of hoses for automobiles and motorcycles. The Company supplies nearly 100% of all brake hoses and clutch hoses for motorcycles that are required in Japan.
 

Financial Highlights

-In FY ended Dec. 2018, consolidated sales were JPY 62,413 million, operating income was JPY 8,449 million, ordinary income was JPY 8,512 million, and net income attributable to the parent's stock was JPY 4,644 million.

Factors by Region
 
Japan
-Sales were JPY 33,051 million, compared to JPY 31,651 million in the previous year. Sales in Japan were strong and commercial production started of a new car air-conditioning internal heat-exchanger. Operating income was JPY 2,343 million, compared to JPY 2,323 the previous year, as a result of higher labor costs in line with an increase in the number of product orders.
 
North America
-While production of the IHX started, demand fell for hose used in power-steering systems, one of the Company’s main products. Sales were JPY 11,908 million, compared to JPY 12,464 million in the previous year; and operating income was JPY 534 million, compared to JPY 658 million the previous year.
  
China
-Due to greater demand worldwide for hose used in car air-conditioning, sales were JPY 11,936 million, compared to JPY 11,452 million in the previous year; and operating income was JPY 1,802 million, compared to JPY 1,887 the previous year.
 
Asia
-Due to increased sales of motorcycle brake hose in line with the growth of ABSs and strong sales of new products launched on the market, sales were JPY 15,700 million (JPY 14,240 million in the previous year) and operating income was JPY 3,739 (JPY 3,752 in the previous year).
 
Europe
-Sales were JPY 5,809 million (JPY 5,938 million in the previous year). An operating loss of JPY 20 million resulted from initial startup costs needed to launch production of products for new orders won. An operating income of JPY 121 million was recording in the previous year.

 

Mid-term Management Plan "NICHIRIN Growth Strategy 2020"

-In Nov. 2014, they Company drew up mid-term management plan "2015 - 2020: Nichirin Growth Strategy 2020: NGS2020"
<2020 Consolidated management guideline>

  • Sales: 30% increase since 2013
  • Operating margin: stably achieve 8% or higher margin
  • Net profit margin: stably achieve 5% or higher margin
  • Capital-to-asset rate: 50% or higher

Shareholders

-Listed on the Second Section of the Tokyo Stock Exchange. (As of Dec. 31, 2018)
Name or Company name Investment Ratio (%)
Taiyo Koko Co., Ltd. 23.00
Sojitz Corporation 7.97
Japan Trustee Services Bank, Ltd. (Trust Account) 7.01
BNP PARIBAS SECURITIES SERVICES LUXEMBOURG/JASDEC/FIM/LUXEMBOURG FUNDS 4.33
Tokyo Century Corporation 3.32
Mizuho Bank Ltd. 2.60
Nippon Fine Chemical Co., Ltd. 1.99
Mizuho Investors Securities Co., Ltd. 1.48
NORTHERN TRUST CO. (AVFC) SUB A/C NON TREATY 1.34
STATE STREET CLIENT OMNIBUS ACCOUNT OD11 1.08
Total 54.12

Products

-Brake Hoses
-Air Conditioning Hoses
-Power Steering Hoses
-Other Products

History

May, 1914 Founded manufacturing business of bicycle tires, tubes, various rubber hoses and industrial rubber products under the name of Nippon Ringyo Goshi Company in Kobe, Japan.(Initial capital: 100,000 yen)
Mar. 1924 Changed the company name to Nippon Ringyo Co., Ltd.
Feb. 1931 Changed the company name to Nippon Ringyo Gomu Co., Ltd.
May, 1934 Started making phenolic molding products for manufacturing artificial silk in Osaka.
Apr. 1937 Began manufacturing business of high pressure hoses for aircraft and rubber hoses for automobiles.
1941-1943 Established additional plants in Osaka, Tsutsui (Kobe), Himeji city to increase production capacity of aircraft hoses and oil resistant seal products.
Mar. 1943 Established Tokyo office to promote sales activities in the eastern region of Japan.
Aug. 1943 Changed the company name to Nichirin Rubber Industrial Co., Ltd.
Aug. 1945 All facilities were destroyed during World War 2.
Aug. 1945 All the plants burned down due to the war.
Mar. 1946 Re-established a new facility in Himeji city and continued manufacturing business.
Apr. 1957 Started production of car air conditioning hoses.
Apr. 1965 Started production of power steering hoses.
Apr. 1967 Started production of hydraulic brake hoses for use in motorcycles.
Mar. 1970 The Himeji Factory was moved from Hojo, Himeji City, because of the Sanyo Shinkansen project. The plant started operations at the new site in Bessho-cho in the same city.
The Company discontinued production of motorcycle tire tubes and hoses for railcars.
Nov. 1975 Raised capital to 100 million yen.
Oct. 1986 Established overseas affiliate, "Sunchirin Industry (M) Sdn. Bhd." in Malaysia. (Currently, Sunchirin Industries (Malaysia Berhad)
Feb. 1987 Established overseas subsidiary, "Nichirin Inc." in Canada.
July, 1989 Established overseas subsidiary, "Nichirin-Flex U.S.A., Inc." in the United States.
Sep. 1989 Moved the Tokyo office to Shibaura, Minato ward, Tokyo.
July, 1991 Changed the company name to "Nichirin C., Ltd."
Jun. 1994 Established overseas affiliate, "Nichirin (Thailand) Co., Ltd." in Thailand.
Aug. 1995 Moved its headquarters to Sannomiya, Chuo-ku, Kobe City.
Oct. 1995 All the hose operations at the Himeji Plant obtained ISO9001 certification.
July, 1996 Sunchirin Industries (Malaysia) Berhad (an affiliated company in Malaysia) was listed on the second section of the Kuala Lumpur Stock Exchange.
Dec. 1996 Established ShanghaiI Nichirin Automobile Accessories Co., Ltd.  as a local subsidiary in China.
Aug. 1997 Listed on the second section of the Osaka Stock Exchange.
Oct. 1998 Established Nichirin Coupler Tech USA Inc. as a local subsidiary in the United States.
Feb. 1999 Established Nichirin UK Limited as a local subsidiary in England.
Jul. 2001 Established a joint venture in the Czech Republic with Visteon, Visteon Nichirin Czech SRO.
Feb. 2002 Obtained ISO14001 certification.
Apr. 2002 Jointly with Nichirin Inc. established Nichirin Tennessee Inc, a new company which manufactures brake and power steering hoses for use in passenger cars and motorcycles in Tennessee, USA. 
July, 2004 Absorbed Nichirin Kohan Co., Ltd., its subsidiary established in June 1966.
Nov. 2004 Established Nichirin Flex (Shanghai) Co., Ltd. in China.
Feb. 2005 Acquired ISO/TS16949: 2002 Certification.
Aug. 2005 Established Nichirin Rubber Industrial (Shanghai) Co., Ltd) in China.
Nov. 2005 The Company issued an additional 1 million shares, increasing the number of outstanding shares to 9 million and registered capital to 1,729 million yen.
Apr. 2006 Established the Nichirin R&D center within the premises of the Himeji plant.
May 2008 Established Nichirin Vietnam Co., Ltd. in Vietnam.
Oct. 2010 Established Nichirin Autoparts India Pvt., Ltd. in India.
Apr. 2011 The Company established PT. Nichirin Indonesia, a subsidiary in Indonesia.
Feb. 2013 Established overseas office Hutchinson Nichirin Brake Hoses, S.L. in Spain.
Feb. 2013 Announced that it plans to close and liquidate its Canada-based subsidiary, Nichirin Inc., effective June 30, 2013.
July 2013 Listed on the second section of the Tokyo Stock Exchange after the market of the Osaka Securities Exchange was integrated with that of the Tokyo Stock Exchange.
Oct. 2016 Converted Hutchinson Nichirin Brake Hoses, S.L., a joint venture with France-based Hutchinson S.A., into a consolidated subsidiary by increasing stake in the company from 70% from the previous 30%.
Dec. 2017 Established a research center for production technologies (production technology center) within the premises of the Himeji plant.
Dec. 2017 Established Suzhou Nichirin Automobile Parts Co., Ltd. in China as a subsidiary.

Supplemental Information 1

Technology Licensed-out Agreement

(As of Dec. 31, 2018)
Company Country Content of Contract Period of Contract
From To
Hwaseung R&A Co.,Ltd. South Korea Manufacturing technology for air conditioner hoses used in automobiles Mar. 5, 2016 Mar. 4, 2019
Manufacturing technology for automotive brake hoses Mar. 5, 2016 Mar. 4, 2019
Manufacturing technology for automotive power steering hoses Mar. 5, 2016 Mar. 4, 2019


>>>Business report FY ended Dec. 31, 2007

>>>Business report FY ended Dec. 31, 2008
>>>Business report FY ended Dec. 31, 2009
>>>Business report FY ended Dec. 31, 2010
>>>Business report FY ended Dec. 31, 2011
>>>Business report FY ended Dec. 31, 2012
>>>Business report FY ended Dec. 31, 2013
>>>Business report FY ended Dec. 31, 2014

>>>IR information of Nichirin Co., Ltd.

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Note: A figure in brackets ( ) indicates a loss