Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
Consolidated Financial Results | |
for the Six Months Ended September 30, 2023 | |
[Japanese GAAP] | |
October 31, 2023 | |
Company name: | ISHIHARA CHEMICAL CO.,LTD. |
Stock exchange listing: Tokyo | |
Code number: | 4462 |
URL: | https://www.unicon.co.jp/english/ |
Representative: | Yasuyuki Sakai | President and Representative Director |
Contact: | Yasumasa Yamaguchi | Director, General Manager of Administration Department and Administrative Manager |
Phone: | +81-78-681-4801 |
Scheduled date of filing quarterly securities report: | November 10, 2023 | ||||||||||
Scheduled date of commencing dividend payments: | December 1, 2023 | ||||||||||
Availability of supplementary briefing material on quarterly financial results: Yes | |||||||||||
Schedule of quarterly financial results briefing session: | Yes | ||||||||||
(Amounts of less than one million yen are rounded down.) | |||||||||||
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023) | |||||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
September 30, 2023 | 10,035 | (3.2) | 1,062 | (15.6) | 1,152 | (15.5) | 903 | (4.3) | |||
September 30, 2022 | 10,369 | 7.9 | 1,259 | (5.9) | 1,363 | (4.1) | 944 | (16.9) |
(Note) Comprehensive income: | Six months ended September 30, 2023: |
Six months ended September 30, 2022: |
¥ | 911 million | [ | 9.9%] |
¥ | 829 million | [ | (22.2) %] |
Basic earnings | Diluted earnings | |||||
per share | per share | |||||
Six months ended | Yen | Yen | ||||
September 30, 2023 | 60.36 | - | ||||
September 30, 2022 | 61.63 | - | ||||
(2) Consolidated Financial Position | ||||||
Total assets | Net assets | Capital adequacy ratio | ||||
As of | Millions of yen | Millions of yen | % | |||
September 30, 2023 | 27,125 | 22,229 | 81.9 | |||
March 31, 2023 | 26,505 | 21,900 | 82.6 | |||
(Reference) Equity: As of | September 30, 2023: | ¥ | 22,229 million | |||
As of | March 31, 2023: | ¥ | 21,900 million |
2. Dividends
Annual dividends | |||||||
1st | 2nd | 3rd | Year-end | Total | |||
quarter-end | quarter-end | quarter-end | |||||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended March 31, 2023 | - | 17.00 | - | 17.00 | 34.00 | ||
Fiscal year ending March 31, 2024 | - | 18.00 | |||||
Fiscal year ending March 31, 2024 | - | 18.00 | 36.00 | ||||
(Forecast) | |||||||
(Note) Revision to the forecast for dividends announced most recently: | No |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024(April 1, 2023 to March 31, 2024)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 21,400 | 5.2 | 2,700 | 26.2 | 2,780 | 23.1 | 2,010 | 19.3 | 134.45 | |
(Note) Revision to the financial results forecast announced most recently: | No |
* Notes:
- Changes in significant subsidiaries during the six months ended September 30, 2023: No
- Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: No
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
September 30, 2023: | 16,308,280 | shares |
March 31, 2023: | 16,308,280 | shares |
2) Number of treasury shares at the end of the period: | ||
September 30, 2023: | 1,381,818 | shares |
March 31, 2023: | 1,174,708 | shares |
3) Average number of shares outstanding during the period: | ||
Six months ended September 30, 2023: | 14,973,203 | shares |
Six months ended September 30, 2022: | 15,318,782 | shares |
*These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants and audit corporations.
*Explanation for the appropriate use of performance forecast and other special notes:
The statements regarding forecast of financial results in this report are based on the information that is available to the Company, as well as certain assumptions that are deemed to be reasonable by management, and they are not meant to be a commitment by the Company. Therefore, there might be cases in which actual results differ materially from forecast values due to various factors. For the suppositions that form the assumptions for earnings forecast and cautions concerning the use thereof, please refer to "1. Qualitative Information on Quarterly Financial Results (2) Explanation of Forecast of Consolidated Financial Results and Other Forward- Looking Information" on page 2 of this report.
ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Six Months Ended September 30, 2023
1
ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Six Months Ended September 30, 2023
1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Results of Operations
For the six months ended September 30, 2023, Japanese economy continues to recover moderately. However, the outlook is uncertain due to price hikes and the sluggishness of the global economy.
Under such circumstances, the group has been working on the development of high value-added products, conducting sales activities in Japan and abroad, and striving to expand the market. However, the group has been affected by production adjustments on the semiconductor market.
As a result, net sales for the six months ended September 30, 2023 were 10,035 million yen (down 3.2% year on year), operating profit was 1,062 million yen (down 15.6% year on year) due to an increase in selling, general and administrative expenses, including travel, depreciation and freight costs, ordinary profit was 1,152 million yen (down 15.5% year on year), and profit attributable to owners of parent was 903 million yen (down 4.3% year on year).
Overview of financial results by segment are as follows.From the 3rd quarter of the previous consolidated fiscal year, the electronic components industry entered a phase of production cutbacks and adjustments as negative factors in personal consumption, such as the prolonged situation in Ukraine, the global inflation, and ending the demand for stay-at-home, affected end products such as personal computers, smartphones, and LCD TVs.
In addition, sales of Automated chemical analyzer were affected by the production adjustment due to the decrease of demand for the semiconductor, especially for the smartphone and personal computers related products.
As a result, net sales in this segment were 4,868 million yen (down 10.6% year on year).
As for processed functional materials, the semiconductor market was stagnant, and sales of ceramics and engineering plastics for semiconductor manufacturing equipment and semiconductor inspection equipment decreased.
As a result, net sales in this segment were 328 million yen (down 24.9% year on year).
Sales of air conditioner cleaners and coating agents increased from the previous year due to expanding the number of car dealers that deal with our products. In addition, we raised the prices of products for car dealers and repair products such as compounds in response to soaring raw material prices. Meanwhile, sales of products to Japanese car dealers in China were significantly lower than in the previous year.
As a result, net sales in this segment were 1,895 million yen (down 0.2% year on year).
Sales of Industrial chemicals increased significantly from the previous year due to raising the prices of existing products, the expansion of market share, and expanding sales of new products while the recovery of steel demand has been delayed.
As a result, net sales in this segment were 2,942 million yen (up 13.8% year on year).
(2) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information
There is no change to the consolidated earnings forecast for the full-year earnings of the fiscal year ending March 31, 2024, which were announced on May 15, 2023.
2
ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Six Months Ended September 30, 2023
2. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Thousands of yen) | ||||
As of March 31, 2023 | As of September 30, 2023 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 5,927,981 | 5,736,695 | ||
Notes and accounts receivable - trade | 4,433,512 | 4,787,777 | ||
Electronically recorded monetary claims - | 647,016 | 880,295 | ||
operating | ||||
Securities | - | 100,220 | ||
Merchandise and finished goods | 1,046,653 | 1,051,688 | ||
Work in process | 225,338 | 258,370 | ||
Raw materials and supplies | 1,139,127 | 1,276,442 | ||
Other | 183,401 | 100,500 | ||
Total current assets | 13,603,030 | 14,191,991 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 3,126,265 | 3,046,372 | ||
Other, net | 2,373,531 | 2,693,836 | ||
Total property, plant and equipment | 5,499,797 | 5,740,209 | ||
Intangible assets | 70,993 | 64,944 | ||
Investments and other assets | ||||
Investment securities | 6,273,988 | 6,061,065 | ||
Other | 1,062,522 | 1,072,965 | ||
Allowance for doubtful accounts | (5,250) | (5,250) | ||
Total investments and other assets | 7,331,260 | 7,128,780 | ||
Total non-current assets | 12,902,051 | 12,933,934 | ||
Total assets | 26,505,082 | 27,125,926 | ||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable - trade | 1,951,955 | 1,980,425 | ||
Electronically recorded obligations - operating | 907,889 | 938,843 | ||
Income taxes payable | 387,643 | 407,206 | ||
Provision for bonuses | 223,286 | 233,745 | ||
Provision for bonuses for directors (and other | 18,600 | 19,800 | ||
officers) | ||||
Other | 436,502 | 639,605 | ||
Total current liabilities | 3,925,876 | 4,219,624 | ||
Non-current liabilities | ||||
Retirement benefit liability | 50,737 | 51,451 | ||
Asset retirement obligations | 68,143 | 68,445 | ||
Other | 560,321 | 557,053 | ||
Total non-current liabilities | 679,202 | 676,950 | ||
Total liabilities | 4,605,079 | 4,896,575 | ||
3
ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Six Months Ended September 30, 2023
(Thousands of yen) | ||||
As of March 31, 2023 | As of September 30, 2023 | |||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 1,980,874 | 1,980,874 | ||
Capital surplus | 2,294,566 | 2,297,678 | ||
Retained earnings | 18,356,554 | 19,003,024 | ||
Treasury shares | (1,362,765) | (1,690,928) | ||
Total shareholders' equity | 21,269,230 | 21,590,648 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale | 630,153 | 629,386 | ||
securities | ||||
Foreign currency translation adjustment | 619 | 9,316 | ||
Total accumulated other comprehensive income | 630,772 | 638,702 | ||
Total net assets | 21,900,003 | 22,229,351 | ||
Total liabilities and net assets | 26,505,082 | 27,125,926 | ||
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ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Six Months Ended September 30, 2023
-
Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)
(Thousands of yen) | |||
For the six months | For the six months | ||
ended September 30, 2022 | ended September 30, 2023 | ||
Net sales | 10,369,254 | 10,035,614 | |
Cost of sales | 7,041,930 | 6,832,761 | |
Gross profit | 3,327,324 | 3,202,852 | |
Selling, general and administrative expenses | 2,068,139 | 2,139,860 | |
Operating profit | 1,259,184 | 1,062,991 | |
Non-operating income | |||
Interest income | 7,520 | 3,688 | |
Dividend income | 23,993 | 23,153 | |
Foreign exchange gains | 44,319 | 32,495 | |
Insurance return | 843 | - | |
Other | 30,863 | 32,307 | |
Total non-operating income | 107,540 | 91,645 | |
Non-operating expenses | |||
Interest expenses | 707 | 412 | |
Commission for purchase of treasury shares | 1,054 | 846 | |
Rental expenses | 1,020 | 1,020 | |
Other | 238 | 109 | |
Total non-operating expenses | 3,020 | 2,388 | |
Ordinary profit | 1,363,704 | 1,152,248 | |
Extraordinary income | |||
Gain on sale of investment securities | 4,245 | 131,492 | |
Total extraordinary income | 4,245 | 131,492 | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 2,727 | 230 | |
Total extraordinary losses | 2,727 | 230 | |
Profit before income taxes | 1,365,221 | 1,283,510 | |
Income taxes | 421,186 | 379,769 | |
Profit | 944,035 | 903,740 | |
Profit attributable to non-controlling interests | - | - | |
Profit attributable to owners of parent | 944,035 | 903,740 | |
5
ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Six Months Ended September 30, 2023
Quarterly Consolidated Statements of Comprehensive Income (For the six months)
(Thousands of yen) | |||
For the six months | For the six months | ||
ended September 30, 2022 | ended September 30, 2023 | ||
Profit | 944,035 | 903,740 | |
Other comprehensive income | |||
Valuation difference on available-for-sale securities | (131,104) | (766) | |
Foreign currency translation adjustment | 16,466 | 8,696 | |
Total other comprehensive income | (114,637) | 7,929 | |
Comprehensive income | 829,397 | 911,670 | |
Comprehensive income attributable to | |||
Comprehensive income attributable to owners of | 829,397 | 911,670 | |
parent | |||
Comprehensive income attributable to non-controlling | - | - | |
interests | |||
6
ISHIHARA CHEMICAL CO.,LTD.(4462) Consolidated Financial Results for the Six Months Ended September 30, 2023
-
Notes to Quarterly Consolidated Financial Statements (Notes to Going Concern Assumptions)
Not applicable.
(Notes to Significant Changes in the Amount of Shareholders' Equity)
Not applicable.
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Ishihara Chemical Co. Ltd. published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 07:25:10 UTC.