Nihon Seimitsu Co., Ltd. Financial Summary for the Half Year Ended March 2027 (Second Quarter)

Business Performance Overview

Nihon Seimitsu Co., Ltd. recorded consolidated net sales of 4,954,718 thousand yen for the interim period from April 1, 2026 to September 30, 2026, a 32.1% increase year-over-year. Strong orders and sales in watch-related products contributed to revenue growth. However, higher subcontracting costs due to rising raw material prices and an impairment loss on inventories at NISSEY VIETNAM affected results, resulting in operating income of 246,733 thousand yen and an operating margin of 5.0%. Ordinary income was 128,648 thousand yen, down from 163,503 thousand yen in the same period last year. Interim net income attributable to owners of parent was 76,599 thousand yen, a decline year-over-year. The full-year forecast is maintained as previously announced.

Segment Performance and Outlook

The watch-related segment achieved a 33.9-fold increase in sales, expanding segment income to 151,074 thousand yen. Conversely, eyeglass frames saw a decline in sales and a segment loss despite expectations of recovery in the second half at the sales subsidiary. Fishing tackle and accessories maintained increases in both sales and profits. Overall, currency movements and high raw material costs are expected to continue exerting cost pressure, and future performance may be affected by exchange rate trends and raw material cost developments.