Kaihan posts Q2 revenue jump, but operating loss widens on expansion costs

Kaihan Co. announced its Q2 2026 financial results, with consolidated revenue reaching JPY 1,615 million, an increase of 22.0% year-on-year. This growth was primarily fueled by the renewable energy business, specifically solar power sales, and the expanding medical business. The existing food and beverage business maintained stable sales but faced challenges from consumer spending habits and rising operational costs.

Despite the revenue growth, Kaihan's operating loss widened to JPY -570 million in Q2 2026, a decrease of JPY 371 million compared to the previous year. This was attributed to increased selling, general, and administrative expenses from new business launches and the medical segment, as well as an impairment loss of JPY 3,345 million related to the Nepal hydropower project. Net assets decreased to JPY 970 million due to the interim net loss attributable to parent company shareholders, although capital increased from stock exchanges and third-party allocations.

The company is accelerating its renewable energy initiatives, with 119 solar power plants already operational and plans to acquire 182 new properties by March 2026. The medical business is also expanding, with new clinics in Azabu and Nagoya contributing to expected revenue and profit growth. However, due to uncertainties regarding the Nepal hydropower project, the consolidated earnings forecast for the fiscal year ending March 2026 has been revised to "undetermined."