First Quarter Financial Summary for the Fiscal Year Ending March 2027 (Japan GAAP, Consolidated)

Overview of earnings

In the first quarter consolidated cumulative period, net sales were 1,748 million yen, up 16.2% year over year, while operating loss was 6,954 thousand yen, ordinary loss 11,597 thousand yen, and quarterly net loss attributable to owners of the parent was 34,496 thousand yen. Profit was pressured by weaker demand for smartphones and by increases in raw material costs and fixed costs. Revenue increased in focus markets such as medical/healthcare and industrial equipment. Despite ongoing AI/IoT-related demand driving the environment, uncertainty remains high. Initiating the medium-term plan 'R2028' to transform the portfolio toward high-value-added products and to fundamentally review the cost structure.

Outlook and capital plan

The outlook for the second quarter and full year has not been changed from the announced figures. If revisions are needed, they will be disclosed promptly. Strengthening pillars of the medium-term plan, such as mass production of the new KCRO-05 and expansion of the automotive-related business. On the asset side, total assets rose due to increases and decreases in buildings and construction in progress. As a priority, strengthen cash generation to restore profitability and improve cash flow.