In the optical products business, Keiwa prioritized securing market share, resulting in higher revenue but lower profit, while the functional products business posted substantial profit growth as its cost ratio declined. The main factors cited were unstable demand for notebook computers, the adoption status of new products, and progress in overseas expansion.
Keiwa's results for the current fiscal year are presented in two segments: optical products and functional products. Optical products revenue was ¥8,654 million, up 7.2% year on year, while segment profit was ¥3,331 million, down 8.3%. Despite supply instability for its mainstay notebook computer products, the company pursued higher value-added products using Opaski and Opalus, which have shown strong growth, and benefited from measures to increase market share starting in the fiscal year ending December 2025. Meanwhile, the functional products business showed substantial improvement, with revenue of ¥1,882 million, up 2.4%, and segment profit of ¥193 million, up 73.6%.
By optical products category, notebook computer products generated ¥6,390 million, up 2.6%; automotive products generated ¥1,696 million, up 6.0%; and monitors and other products generated ¥567 million, up 129.3%. The adoption ratio of Opaski expanded from 2:1 in the first half to 2:3 in the first half of the second half. Price revisions progressed smoothly in part of the automotive business, but the company did not enter price negotiations for notebook computer products because of its policy of securing market share. As a result, the overall segment profit margin declined by 6.5 percentage points year on year. In the functional products business, process paper revenue was ¥252 million, up 11.0% from the previous fiscal year, while A!Prog-UF, which began generating overseas sales, showed substantial growth.
Among the other functional products businesses, clean-energy materials and medical and hygiene products generated revenue of ¥358 million, down 4.2%; building materials generated ¥302 million, down 16.0%; rust-prevention materials generated ¥798 million, up 8.5%; and agricultural materials and other products generated ¥171 million, up 20.5%. These businesses pursued price revisions to offset higher raw material costs, lowering the cost ratio and improving the segment profit margin by 4.3 percentage points.