Financial Supplementary Materials Third Quarter of Fiscal Year Ending March 2026

Performance Overview

Consolidated net sales for the third quarter of the fiscal year ending March 2026 were 145,176 million yen, a 6.1% increase year-over-year. Domestic business sales were 125,543 million yen (2.2% increase YoY), and sales from the China business were 19,632 million yen (41.3% increase YoY), highlighting strong growth in the China business. Meanwhile, operating income was 28,862 million yen, a 10.9% decrease YoY, and net income attributable to owners of parent declined to 23,151 million yen (12.9% decrease YoY). The gross profit margin declined to 47.8%, with increased selling, general and administrative expenses being the primary cause of the profit decrease. The amount of investments, etc., was 28,866 million yen, representing a 34.9% increase YoY, and tangible fixed asset investments also significantly increased to 27,799 million yen.

Financial Position and Cash Flow

On the consolidated balance sheet, total assets rose by 85,304 million yen from the previous fiscal year-end to 549,684 million yen, with increases in both current and fixed assets. Total liabilities also increased to 211,040 million yen, especially with a significant rise in current liabilities. Total net assets increased to 338,643 million yen, showing an upward trend. The consolidated cash flow statement shows cash flows from operating activities decreased to 4,046 million yen, while cash flows from investing activities were a significant outflow of 35,822 million yen. Conversely, cash flows from financing activities recorded an inflow of 34,458 million yen. The cash and cash equivalents balance at the end of the period was 69,237 million yen, down 13,704 million yen from the same period last year.