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. 2017, consolidated sales were JPY 59,375 million, operating income was JPY 8,516 million, ordinary income was JPY 8,629 million, and net income attributable to the parent's stock was JPY 4,883 million.

Factors by Region

Japan
-Overall sales were JPY 31,651 million, compared to JPY 28,781 million in FY2016, due to a recovery in sales in Japan and strong demand in overseas markets. Operating income was JPY 2,323 million, compared to JPY 1,562 million in FY2016, thanks to cost cutting efforts.  

North America
-Sales in North America, which remained strong last year thanks to stable employment and low gasoline prices, slowed down. Overall sales declined to JPY 12,464 million (JPY 13,013 million in FY2016) and operating profit fell to JPY 658 million (JPY 927 million in FY2016).  

China
-A slow recovery in the Chinese economy and strong demand for SUVs despite the cutback on tax reduction on small cars pushed up overall sales to JPY 11,452 million from JPY 9,175 million in FY2016. Operating profit rose to JPY 1,887 million from JPY 1,109 million in FY2016 due to an improvement in productivity and the positive effect of mass production.  


Asia
-In FY2017, sales of motorcycle brake hoses and newly launched fuel hoses were brisk. In addition, dampened sales due to the political turmoil in Thailand recovered. As a result, overall sales increased to JPY 14,240 million from JPY 11,683 million in FY2016, with operating income of JPY 3,752 million from JPY 2,806 million in FY2016. 


Europe
-Ovrall sales increased to JPY 5,938 million, compared to JPY 3,102 million in FY2016, and ordinary income increased to JPY 121 million, compared to JPY 117 million in FY2016. This was a favorable result of making Hutchinson Nichirin Brake Hoses into its consolidated subsidiary in Oct. 2016 and steady orders taken from its customers. 



Hutchinson Nichirin Brake Hoses converted into consolidated subsidiary

-In Oct 2016, the Company announced that it has turned Hutchinson Nichirin Brake Hoses, S.L. (HNBH), its joint venture with the French auto parts supplier Hutchinson S.A. (Hutchinson), into a consolidated subsidiary. Nichirin has acquired 40% of the shares of HNBH from Hutchinson and increased its stake in it from the previous 30% to 70% for approximately EUR 6 million. In 2012, Nichirin entered into a joint venture agreement and shareholders' agreement with Hutchinson for purposes including expanding sales to European OEMs. In 2013, Nichirin took an equity stake in HNBH, and has expanded its joint venture operations. As a result, HNBH has been expanding its business as initially planned, with examples including winning a deal with General Motors Company for Nichirin's Vietnamese subsidiary, and clinching a large order more recently. Sales for 2015 reached EUR 21.7 million. Given this situation, Nichirin has increased its stake in HNBH according to plan and in line with its shareholders' agreement with Hutchinson. (From an article in the Nikkan Jidosha Shimbun on October 24, 2016)

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, 2017)
Name or Company name Investment Ratio (%)
Taiyo Koko Co., Ltd. 22.96
Sojitz Corporation 7.96
Japan Trustee Services Bank, Ltd. (Trust Account) 5.28
BNP PARIBAS SECURITIES SERVICES LUXEMBOURG/JASDEC/FIM/LUXEMBOURG FUNDS 4.79
Tokyo Century Corporation 3.31
Mizuho Bank Ltd. 2.60
Nippon Fine Chemical Co., Ltd. 1.99
Mizuho Investors Securities Co., Ltd. 1.36
Goldman Sachs International 1.35
Employees' ownership association 1.13
Total 52.72

Products

Automotive Hoses
-Hydraulic brake hoses
-Ultra low-expansion brake hoses
-Brake oil reservoir hoses
-Air conditioning hoses
-Power steering hoses
-Fluid hoses for automatic transmissions
-Air brake hoses
-Clutch hoses
-Electric Stability Control hoses
-CO2 refrigerant air conditioning system hoses "EF-TUBE"
-Hydraulic hoses for roll control system
-CNG hoses
-Oil cooler hoses
-Suspension hoses
-Urea SCR hoses
-Radiator hoses
-Vacuum brake hoses
-Torque converter hoses
-Engine oil hoses
-Fuel hoses
-Hoses for auto cruise system

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, 2017)
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