# KH Neochem Co.,Ltd.: business model and financials

> Latest period: FY ending Dec 2025, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第16期(2025/01/01－2025/12/31) (S100XT28)
> Page: https://vizora.meequs.com/en/company/kh-neochem
> Retrieved: 2026-09-30T17:49:12.585Z

## Company

KH Neochem, founded in 1966, is a company in Chemicals listed on TSE Prime. It has 863 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | KH Neochem Co., Ltd. |
| Ticker | 4189 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4189.T) |
| Listing | TSE Prime |
| Head office | 東京都中央区日本橋室町二丁目3番1号 |
| Representative (per filing) | 代表取締役社長 髙橋 理夫 |
| Founded | Nov 1966 |
| Share capital | ¥8.86B |
| Employees (consolidated) | 863 |
| Average salary (parent only) | ¥7.3M |
| Fiscal year end | December |
| Website | www.khneochem.co.jp (https://www.khneochem.co.jp/) |
| Corporate number | 8010001136966 |
| EDINET | E32642 |
| Industries (Vizora) | Chemicals |

> Profile source: annual securities report (S100XT28, filed 2026-03-25). As of filing

## Five-axis industry profile

Primary industry: Chemicals (2025-12-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 76.6 | 96 |
| Profitability | 74.5 | 100 |
| Cash conversion | 33.9 | 96 |
| Efficiency | 79.5 | 100 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- KH Neochem brought in ¥115.1B in revenue.
- Out of every ¥100 of sales, about ¥10 is left as operating profit.
- Revenue changed -3.9% from the prior year, operating profit -7.8%.

## Company structure

- Segment revenue mix: Segment revenue breakdown is not disclosed
- Revenue → net income: ¥115098000000 → ¥7953000000
- Net income → operating cash flow: ¥7953000000 → ¥13783000000（difference ¥5830000000）
- Main uses of operating cash flow: CapEx ¥4802000000 / dividends ¥3540000000 / buybacks ¥5054000000
- Change in cash: ¥-439000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥115.1B |  |
| Operating income | ¥11.2B | Margin 9.8% |
| Net income | ¥7.8B | Margin 6.8% |
| Free cash flow | ¥8.98B |  |
| Employees (consolidated) | 863 |  |
| EPS | ¥214.22 |  |
| Book value per share | ¥1832.08 |  |
| Equity ratio | 53.6% |  |
| Shares outstanding | 37,149,400 |  |
| Treasury shares | 1,993,400 |  |
| Shareholders | 13,306 |  |
| Average salary (parent only) | ¥7.3M | Filing company only |
| Cash ratio | 5.2% | Cash ÷ revenue 5.8% |
| Vs. industry median margin | +2.2 pp | Chemicals |
| ROE | 11.7% | Derived from disclosed figures |
| ROA | 6.0% | Derived from disclosed figures |

## Notable figures

- FY2025, buybacks were 1.4× dividends

## What changed in 5 years

| Metric | FY ending Dec 2020 | FY ending Dec 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥77332000000 | ¥115098000000 | +48.8% |
| Operating income | ¥5642000000 | ¥11248000000 | +99.4% |
| Operating margin | 7.3% | 9.8% | +2.5 pp |
| Employees | 829 people | 863 people | +4.1% |
| Cash and equivalents | ¥9066000000 | ¥6719000000 | -25.9% |

### Change in segment revenue mix

Span: FY ending Dec 2020 → FY ending Dec 2025. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

## Income statement（FY ending Dec 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 115,098 | 100.0% | S100XT28 |
| Cost of revenue | 90,232 | 78.4% | S100XT28 |
| Gross profit | 24,866 | 21.6% | S100XT28 |
| SG&A | 13,618 | 11.8% | S100XT28 |
| Operating income | 11,248 | 9.8% | S100XT28 |
| Ordinary income | 10,793 | 9.4% | S100XT28 |
| Pretax income | 10,793 | 9.4% | S100XT28 |
| Income tax | 2,839 | 2.5% | S100XT28 |
| Net income | 7,953 | 6.9% | S100XT28 |
| Net income attributable to owners | 7,799 | 6.8% | S100XT28 |

## Per ¥100 of revenue（FY ending Dec 2025）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 78 |
| SG&A | 12 |
| Operating income | 10 |
| (Ref.) Net income | 7 |

### Margin funnel

Gross margin 21.6% → Operating margin 9.8% → Net margin 6.8%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -3.9%; Core profit growth: -7.8%
Operating leverage (core profit growth ÷ revenue growth): 2.00×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Dec 2024 → FY ending Dec 2025、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 119,758 | 115,098 | -4,660 | -3.9% |
| Gross profit | 25,253 | 24,866 | -387 | -1.5% |
| Operating income | 12,195 | 11,248 | -947 | -7.8% |
| Net income attributable to owners | 8,360 | 7,799 | -561 | -6.7% |
| Operating cash flow | 6,982 | 13,783 | 6,801 | +97.4% |
| Free cash flow | -1,642 | 8,981 | 10,623 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Dec 2019 | 94,209 | 9,559 | 10.1% | 6,917 | 10,962 | 7,569 | S100L07K |
| FY ending Dec 2020 | 77,332 | 5,642 | 7.3% | 4,046 | 6,931 | -4,201 | S100NQ6I |
| FY ending Dec 2021 | 117,110 | 19,685 | 16.8% | 13,691 | 17,402 | 12,998 | S100QFJ1 |
| FY ending Dec 2022 | 114,880 | 12,456 | 10.8% | 8,073 | 5,131 | -5,363 | S100T3XF |
| FY ending Dec 2023 | 115,217 | 9,946 | 8.6% | 6,826 | 13,201 | 7,944 | S100VGFI |
| FY ending Dec 2024 | 119,758 | 12,195 | 10.2% | 8,360 | 6,982 | -1,642 | S100XT28 |
| FY ending Dec 2025 | 115,098 | 11,248 | 9.8% | 7,799 | 13,783 | 8,981 | S100XT28 |

## People and productivity（FY ending Dec 2025, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥133.4M |
| Operating income per employee (consolidated) | ¥13M |
| Net income per employee (consolidated) | ¥9M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 809 | 825 | 831 | 829 | 863 |
| Average salary (parent company) | ¥6.8M | ¥7.3M | ¥7.1M | ¥7M | ¥7.3M |
| Average age (parent company) | 39.9 years | 40.0 years | 40.0 years | 40.6 years | 40.8 years |
| Average tenure (parent company) | 15.6 years | 15.0 years | 14.8 years | 14.9 years | 14.8 years |

Year over year: Employees (consolidated) +4.1% · Revenue (consolidated) -3.9%

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Dec 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 13,783 | 12.0% | S100XT28 |
| Capital expenditure | 4,802 | 4.2% | S100XT28 |
| Free cash flow | 8,981 | 7.8% | 算出 |
| Investing cash flow | -4,627 | -4.0% | S100XT28 |
| Financing cash flow | -9,566 | -8.3% | S100XT28 |
| Dividends paid | 3,540 | 3.1% | S100XT28 |
| Share buyback | 5,054 | 4.4% | S100XT28 |
| Change in cash | -439 | -0.4% | S100XT28 |
| Cash and equivalents | 6,719 | 5.8% | S100XT28 |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 16,934 | 10,926 | 9,684 | 7,158 | 6,719 | S100T3XF, S100VGFI, S100XT28 |
| Total assets | 122,069 | 131,247 | 124,498 | 131,462 | 130,101 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Net assets | 57,505 | 62,066 | 66,493 | 71,919 | 72,629 | S100T3XF, S100VGFI, S100XT28 |
| Share capital | 8,855 | 8,855 | 8,855 | 8,855 | 8,855 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Trade receivables | 33,186 | — | — | — | — | S100QFJ1 |
| Property, plant and equipment | 39,170 | 45,693 | 46,762 | 49,980 | 48,932 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Intangible assets excluding goodwill | 1,825 | 1,642 | 1,535 | 1,346 | 1,153 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Goodwill | 1,243 | 1,109 | 974 | 840 | 705 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Investment securities | 8,176 | 6,396 | 6,899 | 7,370 | 8,640 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Current assets | 70,291 | 74,239 | 66,244 | 69,366 | 67,253 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Current liabilities | 53,276 | 56,758 | 51,332 | 46,649 | 45,231 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Trade payables | 25,640 | 30,359 | 25,825 | 24,408 | 22,398 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Short-term borrowings | 10,210 | 9,870 | 9,820 | 9,750 | 9,950 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Bonds | 5,000 | 5,000 | — | 5,000 | 5,000 | S100QFJ1, S100T3XF, S100XT28 |
| Total liabilities | 64,564 | 69,180 | 58,004 | 59,542 | 57,472 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Non-controlling interests | 2,587 | 2,718 | 2,748 | 2,830 | 2,953 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Equity attributable to owners of parent | 53,751 | 58,483 | 62,030 | 66,978 | 66,208 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Retained earnings | 38,841 | 43,663 | 47,239 | 52,256 | 56,514 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |
| Treasury stock | -132 | -222 | -267 | -337 | -5,364 | S100QFJ1, S100T3XF, S100VGFI, S100XT28 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 5% | S100XT28 |
| Property, plant and equipment | 38% | S100XT28 |
| Intangibles and goodwill | 1% | S100XT28 |
| Investment securities | 7% | S100XT28 |
| Other assets | 49% | S100XT28 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 17% | S100XT28 |
| Other liabilities | 27% | S100XT28 |
| Equity | 56% | S100XT28 |

### Balance sheet history

| Metric | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 122,069 | 131,247 | 124,498 | 131,462 | 130,101 |
| Equity | 57,505 | 62,066 | 66,493 | 71,919 | 72,629 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 16,934 | 10,926 | 9,684 | 7,158 | 6,719 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 42.5% | S100XT28 |
| Fixed assets ÷ total assets | 37.6% | S100XT28 |
| Goodwill ÷ parent equity | 1.1% | S100XT28 |

Goodwill over 4 years: 1,243 → 705 JPY; total investing cash flow: -32,938 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 5.2% |
| Cash ÷ revenue | 5.8% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 122.5% |
| Cash vs. profit gap | 5,984 JPY mn (of net income 76.7%) |
| Shareholder returns / net income | 110.2% |
| Shareholder returns / FCF | 95.7% |
| Shareholder payments — dividends / net income | 45.4% |
| Shareholder payments — dividends / FCF | 39.4% |
| CapEx intensity (capex ÷ revenue) | 4.2% |
| Investing CF relative to operating CF | 33.6% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2021 | 11.7% | 0.96× | 11.2% | 2.27× | 25.5% | S100QFJ1 |
| 2022 | 7.0% | 0.91× | 6.4% | 2.26× | 14.4% | S100T3XF |
| 2023 | 5.9% | 0.90× | 5.3% | 2.12× | 11.3% | S100VGFI |
| 2024 | 7.0% | 0.94× | 6.5% | 1.98× | 13.0% | S100XT28 |
| 2025 | 6.8% | 0.88× | 6.0% | 1.96× | 11.7% | S100XT28 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 14.8% | 2025-12-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 8.0% | 2025-12-31 |
| 東ソー株式会社 | Major shareholder | 5.3% | 2025-12-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 3.4% | 2025-12-31 |
| 株式会社みずほ銀行 | Major shareholder | 2.1% | 2025-12-31 |
| GOVERNMENT OF NORWAY （常任代理人 シティバンク、エヌ・エイ東京支店） | Major shareholder | 1.9% | 2025-12-31 |
| JUNIPER （常任代理人 株式会社三菱ＵＦＪ銀行） | Major shareholder | 1.9% | 2025-12-31 |
| THE BANK OF NEW YORK 133652 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.8% | 2025-12-31 |
| STATE STREET BANK AND TRUST COMPANY 505019 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.5% | 2025-12-31 |
| NORTHERN TRUST CO.(AVFC) RE WS WALES PENSION PARTNERSHIP (WALES PP) ASSET POOLING ACS UMBRELLA （常任代理人 香港上海銀行東京支店） | Major shareholder | 1.5% | 2025-12-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第16期(2025/01/01－2025/12/31) | S100XT28 | 2026-03-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100XT28,, |
| 有価証券報告書－第15期(2024/01/01－2024/12/31) | S100VGFI | 2025-03-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VGFI,, |
| 有価証券報告書－第14期(2023/01/01－2023/12/31) | S100T3XF | 2024-03-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100T3XF,, |
| 有価証券報告書－第13期(2022/01/01－2022/12/31) | S100QFJ1 | 2023-03-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QFJ1,, |
| 有価証券報告書－第12期(令和3年1月1日－令和3年12月31日) | S100NQ6I | 2022-03-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100NQ6I,, |
| 有価証券報告書－第11期(令和2年1月1日－令和2年12月31日) | S100L07K | 2021-03-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100L07K,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).