ADVANEX INC.
Flash Report (Consolidated Basis)
Results for FY2025 first half (six months ended September 30, 2024)
November 11, 2024 | ||
2Company name: ADVANEX INC. | Stock listings: Tokyo Stock Exchange | |
Code number: | 5998 | URLhttp://www.advanex.co.jp |
Representative: | Eitaro Asada, Chairman & President | |
Inquiries: | Tetsuya Yoshihara, Executive Director & CFO | Telephone: +81-3-3822-5865 |
Filing date of quarterly securities report: | November 13, 2024 |
Supplementary explanation material for quarterly financial results | Yes |
Holding of presentation meeting for quarterly financial results | Yes |
1. Performance (April 1, 2024 through September 30, 2024) | (Figures less than ¥1 million have been omitted.) |
(1) Consolidated operating results (For the six months ended September 30.).
Percentages indicate year-on-year increase (decrease)
Net sales | Operating | Ordinary | Net income | |||||||||||||||||
income | income | |||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||||||
Six months ended | 13,837 | 4.5 | 336 | 160.3 | (816) | - | (924) | - | ||||||||||||
September 30, 2024 | ||||||||||||||||||||
Six months ended | 13,238 | 11.4 | 129 | - | 502 | (15.0) | 358 | 57.9 | ||||||||||||
September 30, 2023 | ||||||||||||||||||||
[Note] Comprehensive income: | Six months ended September 30,2024 (466)million yen | |||||||||||||||||||
Six months ended September 30,2023 1,037million yen | ||||||||||||||||||||
Net income | Net income per share | |||||||||||||||||||
per share | after dilution | |||||||||||||||||||
Yen | Yen | |||||||||||||||||||
Six months ended | (225.03) | - | ||||||||||||||||||
September 30, 2024 | ||||||||||||||||||||
Six months ended | 87.18 | 87.06 | ||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||||||||
As of September 30, | 28,191 | 7,740 | 27.4 | |||||||||||||||||
2024 | ||||||||||||||||||||
As of March 31,2024 | 28,457 | 8,289 | 29.1 | |||||||||||||||||
[Reference] Total shareholder's equity: 7,731 million yen at September 30, 2024 | 8,281 million yen at March 31, 2024 | |||||||||||||||||||
2. Dividends | ||||||||||||||||||||
Dividends per share | ||||||||||||||||||||
Record date | First quarter | Second quarter | Third quarter | Year-end | Total | |||||||||||||||
-end dividends | -end dividends | -end dividends | dividends | |||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
Year ended | -- | -- | -- | 20.00 | 20.00 | |||||||||||||||
March 31, 2023 | ||||||||||||||||||||
Year ended | -- | -- | -- | -- | -- | |||||||||||||||
March 31, 2024 | ||||||||||||||||||||
Year ended | ||||||||||||||||||||
March 31, 2025 | -- | -- | -- | 20.00 | 20.00 | |||||||||||||||
(forecast) |
[Note1] Revisions to the latest forecast of cash dividends: No
- 1 -
3. Forecast of consolidated results for FY2024 (April 1, 2023 through March 31, 2024)
Percentages indicate year-on-year increase (decrease)
Net sales | Operating | Ordinary | Net income | Net income | |||||||
income | income | (loss) | (loss) per share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Year ended March | 26,000 | (2.1) | 300 | (18.0) | 200 | (76.0) | 300 | 11.6 | 73.05 | ||
31, 2025 | |||||||||||
[Note1] Revisions to the latest forecasts of consolidated results: No |
4. Others
-
Significant changes in subsidiaries during the subject fiscal year: No
Additions: 0 Deletions: 0 - Application of simplified accounting and specific accounting: No
- Changes in accounting principles, procedures, presentations, etc.
- Changes associated with revision of accounting standards, etc: Yes
- Changes other than a.: No
- Change in accounting estimate: No
- Restatement: No
- Number of shares outstanding (Common stock)
-
Number of shares outstanding at end of period (Including treasury stock) 4,153,370 shares at September 30, 2024
4,153,370 shares at March 31, 2024 - Number of shares of treasury stock at end of period
-
Number of shares outstanding at end of period (Including treasury stock) 4,153,370 shares at September 30, 2024
47,076 shares at September 30, 2024
46,761 shares at March 31, 2024
-
Average number of shares issued and outstanding in each period: 4,106,471 shares at September 30, 2024
4,107,579 shares at September 30, 2023
[Notes]
1. Explanation for related to implementation of the quarterly review procedures
When disclosing this Brief Report of Financial Results, the review procedures for quarterly financial statements under the Financial Instruments and Exchange Law have not been brought to completion.
2. Explanation for appropriate use of financial forecasts and other special remarks
The above-mentioned forecasts are based on the information available as of the date when this information is disclosed, as well as on the assumptions as of the disclosing date of this information related with unpredictable parameters that are probable to affect our future business performances. Our actual performance is likely to differ greatly from these estimates depending on various factors in the future.
- 2 -
(Attachment)
Index
1. Qualitative Information and Financial Statements
(1) Qualitative Information Regarding Consolidated Business Results…………………………………
- Qualitative Information Regarding Consolidated Financial Position…………………………………… 4
- Explanation of Consolidated Business Forecast and other Forecasts……………………. ………… 4 5
2. Quarterly Consolidated Financial Statements
- Quarterly Consolidated Balance Sheets………………………….……………………………………….6, 7
- Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income …………………………………………………………………………………… 8, 9
- Consolidated cash flow …………………………………………………………………………………… 10,11
- Notes Concerning Quarterly Consolidated Financial Statements………………………………………12
- Segment Information, etc………………………….………………………………………………………. 12,13
- 3 -
1．Qualitative Information on Financial Results For This Quarter
(1)Explanation of Business Results
We have operations in 12 countries, including Japan, the Americas, Europe, and Asia. We manufacture and sell precision springs and other metalworking components primarily for automotive, healthcare, OA, and aerospace applications.
In the interim term under review, business conditions for automotive applications were sluggish due to the emergence of Chinese manufacturers and the impact of certification improprieties. However, sales for OA equipment were favorable, and the healthcare business continued to expand steadily, particularly in Europe and the United States.
Under these circumstances, for the same period, net sales increased 4.5% year on year to ¥13,837 million and operating income increased 160.3% to ¥336 million. On the other hand, ordinary loss was 816 million yen and interim loss attributable to owners of parent was 924 million yen, mainly due to foreign exchange losses (1,055 million yen) arising from revaluation of assets and liabilities held by us and our overseas consolidated subsidiaries associated with exchange rate fluctuations.
Segment results are as follows.
[Japan]
Net sales increased 1.8% year on year to 4,458 million yen due to favorable sales for OA equipment and price increases. Segment income was 55 million yen, compared with segment income of 9 million yen in the same period of the previous fiscal year.
[Americas]
Net sales increased 18.0% year on year to ¥2,550 million due to a significant increase in production for medical use at our U.S. plant. Segment loss was 23 million yen (compared with a loss of 163 million yen in the same period of the previous fiscal year), largely due to an increase in profits at the U.S. plant.
[Europe]
Net sales increased 5.4% year on year to 1,618 million yen, but segment income decreased 74.1% year on year to 18 million yen due to a decrease in sales on a local currency basis and increases in personnel and energy costs.
[Asia]
Net sales increased 0.9% year on year to ¥5,210 million due mainly to strong sales for OA equipment. Segment income increased 21.5% year on year to ¥273 million.
-
Explanation of Financial Position ① Financial position
Assets
otal assets at the end of the current interim consolidated accounting period were 28,191 million yen, a decrease of 266 million yen from the end of the previous consolidated accounting year.
In the Assets section, total current assets increased 85 million to 15,062 million. This was mainly due to an increase of 317 million yen in notes and accounts receivable-trade, despite decreases of 232 million
- 4 -
yen in cash and deposits and 39 million yen in inventories. Total non-current assets decreased ¥351 million to ¥13,129 million. This was mainly due to a decrease in property, plant and equipment.
Liabilities
In the Liabilities section, total liabilities increased 282 million yen from the end of the previous fiscal year to 20,451 million yen. This was mainly due to an increase of 1,244 million yen in borrowings despite decreases of 820 million yen in electronically recorded obligations-operating and 230 million yen in other current liabilities.
Net assets
In net assets, total net assets decreased by 549 million yen from the end of the previous fiscal year to 7,740 million yen. This was mainly due to a decrease of ¥1.006 billion in total shareholders' equity due to the occurrence of an interim net loss attributable to owners of the parent company, despite an increase of ¥495 million in foreign currency translation adjustment due to exchange rate fluctuations.
- Analysis of Cash Flows
Cash and cash equivalents at the end of the current interim consolidated accounting period were 4,295 million yen, an increase of 314 million yen from the end of the previous consolidated accounting year. Cash flows for each category and factors affecting cash flows are as follows.
Cash flows from operating activities
Net cash provided by operating activities decreased by 456 million yen (an increase of 60 million yen in the same period of the previous fiscal year).
Major inflows included cash reserves of ¥791 million for depreciation and amortization.
The main cash outflow factors were a 777 million yen decrease in funds due to loss before income taxes and minority interests and a 464 million yen decrease in funds due to an increase in notes and accounts receivable-trade.
Cash flows from investing activities
Net cash used in investing activities decreased ¥367 million (compared with net cash provided of ¥25 million in the same period of the previous fiscal year).
Major inflows included proceeds from sales of property, plant and equipment of 283 million yen and proceeds from withdrawal of time deposits of 447 million yen.
The main cash outflow factors were capital expenditures of 937 million yen by us and our group companies and expenditures of 40 million yen for the acquisition of shares in affiliated companies.
Cash flows from financing avtivities
Net cash provided by financing activities increased ¥1,217 million (compared with net cash provided by financing activities of ¥1,013 million in the previous fiscal year).
The main cash inflow factor was an increase of ¥1,421 million in interest-bearing debt.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
We have not changed the forecast for the fiscal year ending March 2025 from the forecast released on May 10, 2024.
- 5 -
2．QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS
(1) QUARTERLY CONSOLIDATED BALANCE SHEETS
(Amount: thousands of yen) | ||
FY2025 first half | FY2024 | |
(As of September 30,2024) | (As of March 31,2024) | |
ASSETS | ||
Current assets: | ||
Cash and time deposits | 4,992,856 | 5,225,710 |
Trade notes and accounts receivable | 5,123,750 | 4,806,095 |
Finished goods | 1,953,251 | 1,960,173 |
Work in process | 872,172 | 833,902 |
Raw materials and stored items | 1,433,827 | 1,504,821 |
Other current assets | 718,079 | 677,945 |
Allowance for doubtful accounts | (31,642) | (32,023) |
Total current assets | 15,062,294 | 14,976,625 |
Noncurrent assets: | ||
Tangible noncurrent assets | ||
Buildings and structures | 4,092,302 | 4,307,638 |
Machinery and equipment | 4,146,927 | 4,726,518 |
Land | 1,566,886 | 1,715,825 |
Others | 2,198,017 | 1,749,459 |
Total tangible noncurrent assets | 12,004,133 | 12,499,441 |
Intangible noncurrent assets | 233,541 | 183,957 |
Investments and other assets | 891,749 | 797,921 |
Total noncurrent assets | 13,129,424 | 13,481,321 |
Total assets | 28,191,718 | 28,457,946 |
- 6 -
(Amount: thousands of yen) | ||
FY2025 first half | FY2024 | |
(As of September 30,2024) | (As of March 31,2024) | |
LIABILITIES | ||
Current liabilities: | ||
Trade notes and accounts payable | 2,159,059 | 1,921,021 |
Electronically Recorded Monetary Claims | 757,785 | 1,578,728 |
Short-term borrowings | 6,113,859 | 4,739,303 |
Long-term borrowings due within one year | 2,965,178 | 2,480,699 |
Lease obligations | 214,878 | 229,441 |
Income taxes payable | 42,321 | 109,730 |
Contract liability | 96,945 | 99,674 |
Allowance for bonus | 288,932 | 285,753 |
Other current liabilities | 1,297,254 | 1,527,495 |
Total current liabilities | 13,936,214 | 12,971,847 |
Noncurrent liabilities | ||
Long-term borrowings | 3,930,456 | 4,544,507 |
Lease obligations | 882,322 | 1,021,551 |
Deferred tax liabilities | 395,292 | 364,396 |
Asset retirement obligations | 57,414 | 56,445 |
Liabilities for retirement benefits | 1,140,581 | 1,121,267 |
Other noncurrent liabilities | 108,880 | 88,226 |
Total noncurrent liabilities | 6,514,948 | 7,196,395 |
Total liabilities | 20,451,163 | 20,168,243 |
NET ASSETS | ||
Shareholder's equity | ||
Common stock | 100,000 | 100,000 |
Capital surplus | 1,067,759 | 1,150,000 |
Retained earnings | 4,378,915 | 5,302,982 |
Treasury stock | (79,993) | (79,773) |
Total shareholder' equity | 5,466,681 | 6,473,208 |
Accumulated other comprehensive income | ||
Valuation gain (loss) on other securities | (36,018) | (21,050) |
Foreign exchange adjustment | 2,220,685 | 1,724,740 |
cumulative amount for retirement benefits | 80,614 | 104,210 |
Total accumulated other comprehensive income | 2,265,280 | 1,807,900 |
Subscription rights to shares | 8,594 | 8,594 |
Total net assets | 7,740,555 | 8,289,703 |
Total liabilities and net assets | 28,191,718 | 28,457,946 |
- 7 -
(2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(Amount: thousands of yen) | ||
FY2025 first half | FY2024 first half | |
(April 1, 2024 through | (April 1, 2023 through | |
September 30, 2024) | September 30, 2023) | |
NET sales | 13,837,582 | 13,238,583 |
Cost of sales | 10,600,235 | 10,393,072 |
Gross profit | 3,237,347 | 2,845,511 |
Selling, general and administrative expenses | 2,901,130 | 2,716,350 |
Operating income | 336,217 | 129,160 |
Non-operating revenues | ||
Interest income | 38,308 | 20,892 |
Dividends income | - | 513 |
Rent income | 60,411 | 57,738 |
Foreign exchange gains | - | 488,415 |
Subsidy income | 2,110 | 3,628 |
forgiveness of debts | - | - |
Others | 30,292 | 21,855 |
Total non-operating revenues | 131,122 | 593,043 |
Non-operating expenses | ||
Interest expenses | 187,835 | 175,214 |
foreign exchange loss | 1,055,944 | |
Others | 40,534 | 44,353 |
Total non-operating expenses | 1,284,314 | 219,567 |
Ordinary income(loss) | (816,974) | 502,636 |
Extraordinary gain | ||
Gain on sales of noncurrent assets | 41,173 | 570 |
Gain on bad debts recovered | - | 21,196 |
Total extraordinary gain | 41,173 | 21,767 |
Extraordinary loss | ||
Loss on sales of noncurrent assets | 969 | 1,336 |
Loss on disposal of noncurrent assets | 594 | 1,485 |
Loss on business restructuring | - | - |
A special severance payment | - | 22,006 |
Loss on Covid-19 related | - | - |
Total extraordinary loss | 1,563 | 24,828 |
Net Income (or loss) before income taxes | (777,365) | 499,574 |
Corporate, inhabitant and enterprise taxes | 113,999 | 196,096 |
Corporate tax adjustments | 32,701 | (54,620) |
Total income taxes | 146,701 | 141,475 |
Net income(loss) | (924,067) | 358,099 |
Net income (loss) Attributable to Owners of the Parent | (924,067) | 358,099 |
- 8 -
QUARTERLY CONSOLIDAED STATEMENTS OF COMPREHENSIVE INCOME
(Amount: thousands of yen) | ||
FY2025 first half | FY2024 first half | |
(April 1, 2024 through | (April 1, 2023 through | |
September 30, 2024) | September 30, 2023) | |
Income (or loss) before minority interests | (924,067) | 358,099 |
Other comprehensive income | ||
Valuation gain(loss) on other securities | (14,967) | (6,426) |
Foreign currency translation adjustment | 495,944 | 668,250 |
Remeasurements of defined benefit plans | (23,596) | 17,121 |
Total other comprehensive income | 457,379 | 678,944 |
Comprehensive income | (466,687) | 1,037,044 |
Comprehensive income attributable to owners of | (466,687) | 1,037,044 |
the parent | ||
- 9 -
(3) Consolidated Statements of Cash Flows
(Thousands of yen) | |||
FY2025 first half | FY2024 first half | ||
(April | 1, 2024 through | (April 1, 2023 through | |
September 30, 2024) | September 30, 2023) | ||
Cash flows from operating activities | |||
Gain (Loss) before income taxes and minority interests | (777,365) | 499,574 | |
Depreciation and amortization | 791,022 | 800,732 | |
Impairment loss | 518 | (3,803) | |
Increase (decrease) in allowance for doubtful accounts | 2,674 | 122,657 | |
Increase (decrease) in retirement benefits | (60,513) | 27,993 | |
Interest and dividend income | (38,308) | (21,406) | |
Interest payable | 187,835 | 175,214 | |
(Gain) loss on differences of foreign exchange | 925,627 | (476,417) | |
(Gain) loss on sale of fixed assets | (40,203) | 765 | |
(Gain) loss on disposal of fixed assets | 594 | 1,485 | |
Decrease (increase) in notes and accounts receivable | (464,229) | (1,168,433) | |
Decrease (increase) in inventories | (94,390) | 139,131 | |
Increase (decrease) in notes and accounts payable | (387,781) | 227,449 | |
Others | (106,096) | 118,756 | |
Subtotal | (60,617) | 443,699 | |
Proceeds from interest and dividend receivable | 38,127 | 23,685 | |
Payment of interests | (189,167) | (172,344) | |
Payment of income taxes | (244,376) | (234,923) | |
Others | - | - | |
Net cash provided by operating activities | (456,033) | 60,115 | |
- 10 -