Daiki Aluminium Industry Co., Ltd. TSE:5702

Daiki Aluminium Industry : Consolidated Financial Results for the Six Months Ended September 30, 2024 （166KB）

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Consolidated Financial Results

for the Six Months Ended September 30, 2024

[Japanese GAAP]

November 14, 2024

Company name: Daiki Aluminium Industry Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 5702

URL: https://www.dik-net.com/

Representative: Shigenori Hayashi, President, Representative Director, Executive Officer

Contact: Hiroto Kurosu, Managing Executive Officer, General Manager of Administration Department

Phone: +81-6-6444-2751

Scheduled date to file semi-annual securities report: November 14, 2024

Scheduled date of commencing dividend payments: December 5, 2024

Availability of supplementary explanatory materials on financial results: Available

Schedule of financial results briefing session: No

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 - September 30,

2024)

(1) Consolidated Operating Results (Cumulative)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Six months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

September 30, 2024

137,147

3.8

2,640

(3.8)

2,520

(5.9)

1,596

(38.2)

September 30, 2023

132,120

(8.4)

2,745

(74.5)

2,678

(75.5)

2,585

(64.5)

(Note) Comprehensive

income: Six months

ended September 30, 2024: ¥4,324 million [(28.5)%]

Six months ended September 30, 2023: ¥6,049 million [(48.2)%]

Basic earnings

Diluted earnings

per share

per share

Six months ended

Yen

Yen

September 30, 2024

39.55

38.96

September 30, 2023

63.82

62.86

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of September 30, 2024

160,274

74,763

46.1

As of March 31, 2024

138,679

72,062

51.4

(Reference) Equity: As of September 30, 2024: ¥73,880 million As of March 31, 2024: ¥71,247 million

2. Dividends

Annual dividends

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year ended

Yen

Yen

Yen

-

30.00

-

March 31, 2024

Fiscal year ending

-

25.00

March 31, 2025

Fiscal year ending

March 31, 2025

-

(Forecast)

(Note) Revisions from the most recently announced dividends forecast: No

Year-end

Yen

20.00

30.00

Total

Yen

50.00

55.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

291,200

10.9

4,790

3.7

3,750

(10.0)

2,110

(35.0)

53.32

(Note) Revisions from the most recently announced financial results forecast: No

* Notes:

  1. Significant changes in the scope of consolidation during the period under review: Yes
    Newly included: 1 company (company name) Daiki Aluminium Vietnam Co., Ltd.
    Excluded: -
  2. Adoption of special accounting methods for the preparation of semi-annual consolidated financial statements: No
  3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
    1. Changes in accounting policies due to the revision of accounting standards: No
    2. Changes in accounting policies other than 1) above: No
    3. Changes in accounting estimates: No
    4. Retrospective restatement: No
  5. Total number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares):

As of September 30, 2024:

43,629,235 shares

As of March 31, 2024:

43,629,235 shares

2) Total number of treasury shares at the end of the period:

As of September 30, 2024:

4,056,711 shares

As of March 31, 2024:

3,117,611 shares

3) Average number of shares during the period:

Six months ended September 30, 2024:

40,377,466 shares

Six months ended September 30, 2023:

40,511,684 shares

  • Semi-annualfinancial results reports are exempt from the scope of review conducted by certified public accountants or an audit firm.
  • Explanation on the proper use of financial results forecast and other notes(Cautionary note regarding forward-looking statements, etc.)
    The earnings forecasts and other forward-looking statements herein are based on information available to the Company at the time of preparation and certain assumptions deemed to be reasonable, and actual results may vary significantly due to various factors. For the assumptions used for the earnings forecasts and the notes regarding the use thereof, please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the attached document.

(Reference)

1. Non-consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 - September 30, 2024)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit

Six months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

September 30, 2024

79,929

4.1

1,136

(8.0)

1,639

(1.5)

1,165

(44.6)

September 30, 2023

76,801

(5.1)

1,234

(66.0)

1,665

(62.0)

2,102

(32.8)

Basic earnings

Diluted earnings

per share

per share

Six months ended

Yen

Yen

September 30, 2024

28.86

28.43

September 30, 2023

51.90

51.12

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit

Basic earnings

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

168,600

11.8

2,200

(2.7)

3,650

(4.7)

2,760

(25.9)

69.75

(Note) Revisions from the most recently announced financial results forecast: No

DAIKI Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Six Months Ended September 30, 2024

Table of Contents - Attachments

1. Overview of Operating Results, etc. .................................................................................................... 2

(1)

Overview of Operating Results for the Period under Review

2

(2)

Overview of Financial Position for the Period under Review

2

(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information

3

2. Semi-annual Consolidated Financial Statements and Principal Notes

4

(1)

Semi-annual Consolidated Balance Sheet

4

(2)

Semi-annual Consolidated Statements of Income and Comprehensive Income

6

Semi-annual Consolidated Statement of Income

6

Semi-annual Consolidated Statement of Comprehensive Income

7

(3)

Semi-annual Consolidated Statements of Cash Flows

8

(4)

Notes to Semi-annual Consolidated Financial Statements

9

(Changes in Scope of Consolidation or Scope of Application of the Equity Method)

9

(Notes in Case of Significant Changes in Shareholders' Equity)

9

(Notes on Going Concern Assumption)

9

1

DAIKI Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Six Months Ended September 30, 2024

1. Overview of Operating Results, etc.

  1. Overview of Operating Results for the Period under Review
    During the six months ended September 30, 2024, the Japanese and global economy recovered slowly although signs of faltering were still remaining partly.
    Amid this economic environment, in the domestic automobile-related market, which is our main source of demand, production activities of some automakers have been restarted in phases from stagnation due to certification irregularities and recall problems, helping the market return on a domestic demand-led growth trajectory.
    As a result, the Group's consolidated net sales for the six months ended September 30, 2024 amounted to a combined total of ¥137,147 million (up 3.8% year on year), including ¥89,025 million in secondary aluminum alloy ingots (up 1.7% year on year) and ¥48,121 million in merchandise and raw materials (up 8.0% year on year).
    Given the shrinkage in the price difference (spread) between raw material prices and product selling prices due to scrap prices remaining high compared to the same period of the previous fiscal year, operating profit was ¥2,640 million (down 3.8% year on year), ordinary profit was ¥2,520 million (down 5.9% year on year), and profit attributable to owners of parent was ¥1,596 million (down 38.2% year on year).
  2. Overview of Financial Position for the Period under Review 1) Current Assets

The balance of current assets as of September 30, 2024 was ¥125,122 million, up ¥19,603 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥2,456 million in cash and deposits, ¥8,070 million in notes and accounts receivable - trade, ¥2,643 million in merchandise and finished goods, and ¥7,877 million in raw materials and supplies.

2) Non-current Assets

The balance of non-current assets as of September 30, 2024 was ¥35,152 million, up ¥1,991 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥1,312 million in property, plant and equipment and ¥764 million in "other" under investments and other assets, and a decrease of ¥159 million in investment securities.

3) Current Liabilities

The balance of current liabilities as of September 30, 2024 was ¥74,107 million, up ¥17,226 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥1,519 million in notes and accounts payable - trade, ¥14,541 million in short-term borrowings, and ¥698 million in other.

4) Non-current Liabilities

The balance of non-current liabilities as of September 30, 2024 was ¥11,403 million, up ¥1,667 million from the end of the previous fiscal year. This was mainly due to an increase of ¥1,668 million in long-term borrowings.

5) Net Assets

The balance of net assets as of September 30, 2024 was ¥74,763 million, up ¥2,700 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥1,041 million in retained earnings and ¥3,034 million in foreign currency translation adjustment and respective decreases of ¥1,049 million in purchase of treasury shares and ¥296 million in valuation difference on available-for-sale securities.

2

DAIKI Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Six Months Ended September 30, 2024

  1. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
    There are no changes to the financial results forecasts for the fiscal year ending March 31, 2025, which were disclosed on October 31, 2024 as part of the "Notice of Revision of Financial Results Forecast."

3

DAIKI Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Six Months Ended September 30, 2024

2. Semi-annual Consolidated Financial Statements and Principal Notes

(1) Semi-annual Consolidated Balance Sheet

(Million yen)

As of March 31, 2024

As of September 30, 2024

Assets

Current assets

Cash and deposits

6,379

8,836

Notes and accounts receivable - trade

52,861

60,931

Merchandise and finished goods

18,639

21,283

Work in process

183

186

Raw materials and supplies

21,227

29,104

Other

6,231

4,793

Allowance for doubtful accounts

(3)

(14)

Total current assets

105,519

125,122

Non-current assets

Property, plant and equipment

Buildings and structures

20,434

21,293

Accumulated depreciation

(10,389)

(10,765)

Buildings and structures, net

10,045

10,528

Machinery, equipment and vehicles

36,248

38,381

Accumulated depreciation

(26,902)

(28,343)

Machinery, equipment and vehicles, net

9,345

10,037

Tools, furniture and fixtures

2,196

2,308

Accumulated depreciation

(1,680)

(1,786)

Tools, furniture and fixtures, net

515

521

Land

4,072

4,115

Leased assets

2,067

2,249

Accumulated depreciation

(407)

(472)

Leased assets, net

1,660

1,776

Construction in progress

375

347

Total property, plant and equipment

26,014

27,326

Intangible assets

151

156

Investments and other assets

Investment securities

5,070

4,910

Long-term loans receivable

1

1

Retirement benefit asset

1,028

1,031

Deferred tax assets

362

449

Other

841

1,606

Allowance for doubtful accounts

(310)

(331)

Total investments and other assets

6,994

7,668

Total non-current assets

33,160

35,152

Total assets

138,679

160,274

4

DAIKI Aluminium Industry Co., Ltd. (5702) Consolidated Financial Results for the Six Months Ended September 30, 2024

(Million yen)

As of March 31, 2024

As of September 30, 2024

Liabilities

Current liabilities

Notes and accounts payable - trade

Short-term borrowings

Accounts payable - other

Income taxes payable

Accrued consumption taxes

Accrued expenses

Provision for bonuses

Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Provision for retirement benefits for directors (and other officers)

Retirement benefit liability

Lease liabilities

Asset retirement obligations

Deferred tax liabilities

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges

Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income

Share acquisition rights

Non-controlling interests

Total net assets

Total liabilities and net assets

10,256

11,775

41,684

56,225

1,851

1,880

586

609

89

269

1,359

1,488

283

388

769

1,468

56,881

74,107

6,435

8,104

10

11

367

406

132

132

298

300

2,342

2,302

148

146

9,735

11,403

66,616

85,510

6,346

6,346

8,863

8,863

49,179

50,220

(1,337)

(2,387)

63,052

63,044

1,917

1,621

(24)

(67)

5,889

8,923

412

358

8,194

10,836

142

142

672

739

72,062

74,763

138,679

160,274

5

DAIKI Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Six Months Ended September 30, 2024

  1. Semi-annualConsolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statement of Income

(Million yen)

For the six months ended

For the six months ended

September 30, 2023

September 30, 2024

Net sales

132,120

137,147

Cost of sales

124,986

130,236

Gross profit

7,133

6,910

Selling, general and administrative expenses

Transportation costs

1,958

1,707

Provision of allowance for doubtful accounts

0

4

Provision for retirement benefits for directors (and

0

0

other officers)

Provision for bonuses

70

98

Other

2,357

2,458

Total selling, general and administrative expenses

4,387

4,270

Operating profit

2,745

2,640

Non-operating income

Interest income

46

44

Dividend income

81

64

Foreign exchange gains

242

257

Technical advisory fee income

2

3

Gain on sales of iron scrap

63

69

Other

133

231

Total non-operating income

570

670

Non-operating expenses

Interest expenses

600

695

Share of loss of entities accounted for using equity

-

52

method

Other

37

42

Total non-operating expenses

637

790

Ordinary profit

2,678

2,520

Extraordinary income

Gain on sale of non-current assets

3

7

Gain on sale of investment securities

1,261

-

Compensation income

66

-

Total extraordinary income

1,331

7

Extraordinary losses

Loss on sale and retirement of non-current assets

63

58

Total extraordinary losses

63

58

Profit before income taxes

3,945

2,469

Income taxes - current

1,180

855

Income taxes - deferred

212

17

Total income taxes

1,392

873

Profit

2,553

1,596

Loss attributable to non-controlling interests

(31)

(0)

Profit attributable to owners of parent

2,585

1,596

6