Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 PDF

May 12, 2026

Company name: EIKEN CHEMICAL CO.,LTD. Listing: Tokyo Stock Exchange

Securities code: 4549

URL: https://www.eiken.co.jp

Representative: Yuji Segawa President & CEO

Inquiries: Tomohiro Kudo Executive Officer Telephone: +81-3-5846-3379

Scheduled date of annual general meeting of shareholders: June 23, 2026 Scheduled date to commence dividend payments: June 9, 2026 Scheduled date to file annual securities report: June 18, 2026

Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 41,899 40,539	% 3.4 1.2	Millions of yen 2,919 2,999	% (2.7) (11.2)	Millions of yen 2,844 3,198	% (11.1) (10.4)	Millions of yen 3,708 2,228	% 66.5 (15.4)

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥	3,716 million [	83.5%]
      	For the fiscal year ended March 31, 2025:	¥	2,025 million [	(30.9) %]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	112.52	112.08	8.5	4.5	7.0
      March 31, 2025	64.82	64.27	5.0	5.2	7.4

      Reference: Share of profit (loss) of entities accounted for using equity method

      For the fiscal year ended March 31, 2026:	¥	(89) million
      For the fiscal year ended March 31, 2025:	¥	- million

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of March 31, 2026 March 31, 2025	Millions of yen 62,657 62,372	Millions of yen 44,034 43,598	% 70.1 69.3	Yen 1,333.07 1,294.08

      Reference: Equity

      As of March 31, 2026:	¥	43,945 million
      As of March 31, 2025:	¥	43,240 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 4,045 6,033	Millions of yen (3,423) (4,499)	Millions of yen (322) (4,857)	Millions of yen 7,943 7,640

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	-	26.00	-	27.00	53.00	1,802	81.8	4.1
   Fiscal year ended March 31, 2026	-	29.00	-	29.00	58.00	1,912	51.5	4.4
   Fiscal year ending March 31, 2027 (Forecast)	-	29.00	-	29.00	58.00		92.2

   Note: Breakdown of the year-end dividend for the fiscal year ended March 31, 2026 : Commemorative dividend - yen

   Special dividend - yen

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

1. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

2. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	34,541,438 shares
      As of March 31, 2025	38,541,438 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2026	1,575,865 shares
      As of March 31, 2025	5,127,632 shares

   3. Average number of shares outstanding during the period

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 41,867 40,483	% 3.4 1.3	Millions of yen 2,962 3,048	% (2.8) (10.9)	Millions of yen 2,981 3,233	% (7.8) (9.7)	Millions of yen 3,024 2,514	% 20.3 (5.0)

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2026	91.77	91.41
   March 31, 2025	73.17	72.54

2. Non-consolidated financial position

Reference: Equity

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

Table of Contents - Attachments

1. Overview of Consolidated Business Performance 2

   1. Summary of Consolidated Business Performance for This Term 2

   2. Summary of Consolidated Financial Position for This Term 2

   3. Summary of Cash Flows for This Term 3

   4. Future Prospects 4

   5. Policy on the Determination of Dividends from Surplus, etc. 4

2. Basic Stance Concerning Choice of Accounting Standards 4

3. Consolidated Financial Statements and Principal Notes 5

   1. Consolidated Balance Sheets 5

   2. Consolidated Statements of Income and Comprehensive Income 7

   3. Consolidated Statements of Changes in Equity 9

   4. Consolidated Statements of Cash Flows 11

   5. Notes to Consolidated Financial Statements 13

      (Notes on going concern assumption) 13

      (Material basis for the preparation of consolidated financial statements) 13

      (Notes to Consolidated Balance Sheets) 16

      (Notes to Consolidated Statements of Income) 16

      (Notes to Consolidated Statements of Comprehensive Income) 18

      (Notes to Consolidated Statements of Changes in Net Assets) 18

      (Notes to Consolidated Statements of Cash Flows) 21

      (Lease transactions) 23

      (Business combinations and related matters) 25

      (Segment information) 27

      (Per share information) 27

      (Significant subsequent events) 27

4. Non-consolidated Financial Statements and Principal Notes 28

   1. Non-consolidated Balance Sheets 28

   2. Non-consolidated Statements of Income 31

   3. Non-consolidated Statements of Changes in Equity 32

   4. Notes to Non-consolidated Financial Statements 36

      (Notes on going concern assumption) 36

      (Significant accounting policies) 36

      (Notes to Non-consolidated Balance Sheets) 38

      (Notes to Non-consolidated Statements of Income) 39

      (Significant subsequent events) 39

5. Others 40

   1. Changes in Officers 40

   2. Sales 41

1. Overview of Consolidated Business Performance

   1. Summary of Consolidated Business Performance for This Term

      During the consolidated fiscal year under review, the domestic and overseas economies remained uncertain due to downside risks affected by surging resource prices, geopolitical risks,

      U.S. trade policies and the monetary policy of major countries. The business environment became increasingly severe in the clinical diagnostics industry due to measures to cap medical expenses and rising costs such as for logistics and raw material procurement, on account of yen depreciation and high crude oil prices. Corporations were obliged to focus on cost competitiveness and to actively expand overseas.

      In the context of this business environment, the Eiken Group is implementing key measures focused on the three key business fields of "Contribution to cancer prevention and treatment," "Contribution to the eradication and control of infectious diseases," and "Provision of products and services useful for health care," while also advancing fundamental reforms aimed at strengthening the Group's overall earnings base, in accordance with the Medium-term Management Plan. In addition, as a Group with a mission to protect the health of people worldwide, the Eiken Group is addressing issues not only in "Medical," but also in "Environment," "Society," and "Governance." Through these efforts, we strive to further enhance our corporate value and achieve a sustainable society.

      The net sales for the consolidated fiscal year under review remained strong growth in both domestic and overseas markets and amounted to 41,899 million yen (up 3.4% year-on-year), representing a 0.7% decrease over our company's forecast. For net sales by product class and type, sales of microbiological testing reagents were 4,284 million yen (down 4.8% year-on-year), and sales of urinalysis reagents were 4,623 million yen (up 0.1% year-on-year). For sales of immunological and serological reagents were 23,287 million yen (up 3.3% year-on-year) amid sales of fecal immunochemical test reagents increased in overseas markets and products introduced and sold from Tosoh Corporation were strong growth. Sales of clinical chemistry reagents were 579 million yen (up 1.1% year-on-year), and sales of equipment and culture medium for food and environment related category were 1,818 million yen (down 7.2% year-on-year). Sales in other categories (medical devices, genetic-related products, etc.) were 7,305 million yen (up 15.2% year-on-year) amid a significant increase in sales of medical devices and royalty revenue for the LAMP method.

      For overseas sales were 11,457 million yen (up 7.0% year-on-year) amid an increase in sales of fecal immunochemical test reagents and medical devices.

      Regarding profit, although net sales remained strong growth, amid fluctuations in overseas markets following the closure of USAID and changes in the sales mix, operating profit was 2,919 million yen (down 2.7% year-on-year) and ordinary profit was 2,844 million yen (down 11.1% year-on-year). As a result of recording extraordinary income from the transfer of equity interests of consolidated subsidiary, profit attributable to owners of parent increased to 3,708 million yen (up 66.5% year-on-year).

   2. Summary of Consolidated Financial Position for This Term

      The financial position at the end of the consolidated fiscal year under review was as follows.

      When compared to the end of the previous consolidated fiscal year, total assets increased by 285 million yen, liabilities decreased by 151 million yen, and net assets increased by 436 million yen.

      Major increases and decreases in the category of assets include an increase of 1,069 million yen in cash and deposits. Property, plant and equipment increased by 1,216 million yen amid the construction of the new manufacturing building at Nogi Division and the relocation of the Head Office. In the category of liabilities, long-term borrowings increased by 2,650 million yen, and the current portion of long-term borrowings increased by 300 million yen. In the category of net assets, despite dividend payments and the purchase of treasury shares, shareholders' equity increased by 697 million yen amid the recording of profit attributable to owners of parent.

      As a result of the above, the equity ratio increased to 70.1% from 69.3% at the end of the previous consolidated fiscal year.

   3. Summary of Cash Flows for This Term

      Cash and cash equivalents for the consolidated fiscal year under review (hereinafter referred to as "net cash") increased by 303 million yen compared to the end of the previous consolidated fiscal year to 7,943 million yen on March 31, 2026.

      The following is a summary of cash flows and related causes for the consolidated fiscal year under review.

      Cash flows from operating activities

      Net cash provided by operating activities was 4,045 million yen (compared to net cash provided of 6,033 million yen in the previous consolidated fiscal year). This was mainly due to 341 million yen proceed due to decreased trade receivables, 507 million yen proceed caused by a decrease in inventories, 1,029 million yen expenditure caused by a decrease in trade payables, and 4,834 million yen in profit before income taxes.

      Depreciation totaled 2,536 million yen.

      Cash flows from investing activities

      Net cash used in investing activities was an expenditure of 3,423 million yen (compared to net cash expenditure of 4,499 million yen in the previous consolidated fiscal year). This was mainly due to 5,756 million yen in purchase of property, plant and equipment, and 2,074 million yen in proceeds from sales of capital of subsidiaries resulting in change in scope of consolidation.

      Cash flows from financing activities

      Net cash used in financing activities was 322 million yen (compared to the net cash expenditure of 4,857 million yen in the previous consolidated fiscal year). This was mainly due to 3,000 million yen in proceeds from long-term borrowings, 1,675 million yen expenditure due to purchase of treasury shares, and dividends paid of 1,858 million yen.

      (Reference) Change in cash flow related indicators

      	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
      Equity ratio (%)	72.8	74.2	74.0	69.3	70.1
      Equity ratio based on fair value (%)	102.1	87.3	112.2	121.4	160.7
      Years of debt redemption (Years)	0.2	0.4	0.9	0.6	1.6
      Interest coverage ratio (Times)	983.3	468.5	222.9	344.0	136.9

      Equity ratio: Shareholders' equity / Total assets

      Equity ratio based on fair value: Total market value of shares / Total assets Years of debt redemption: Interest-bearing debts / Cash flow

      Interest coverage ratio: Cash flow / Interest paid

      (Note 1) The indicators were calculated using consolidated financial figures.

      (Note 2) The total market value of shares was calculated based on the total number of issued shares (excluding treasury shares).

      (Note 3) Operating cash flow is used in Cash Flows.

      (Note 4) Interest-bearing debts include all debts recorded on the Consolidated Balance Sheets for which interest is paid.

   4. Future Prospects

      Regarding future prospects, difficult conditions will likely continue due to the unstable global situation, soaring resource prices, geopolitical risks, U.S. trade policies and the monetary policy of major countries.

      In addition to responding to the unfolding changes in its business environment, the Eiken Group will identify existing business domains as its core businesses and implement key measures focused on the three key business fields of "Contribution to cancer prevention and treatment," "Contribution to the eradication and control of infectious diseases," and "Provision of products and services useful for health care." In the field of "cancer," we will focus on areas more directly related to treatment, while in the field of "infectious diseases," we will focus on establishing simpler testing technologies. In the field of "health care," the Group will expand products and services to serve the needs of remote diagnosis and home testing.

      With a view to establishing a sustainable society, the Group has identified 11 materialities (key issues) for priority response and is developing detailed action plans for each. The Group sets key performance indicators (KPIs) for each materiality and proceeds with each materiality while monitoring progress toward achievement. As a Group with a mission to protect the health of people worldwide, the Group is addressing issues not only in "Medical," but also in "Environment," "Society," and "Governance." We believe that contributing solutions to social issues in this way will further bolster our corporate value and lead to achieving a sustainable society.

      Regarding the performance forecast for the next fiscal year, we forecast sales of 42,000 million yen (up 0.2% year-on-year) amid increased overseas sales of fecal immunochemical test reagents. Overseas, we forecast sales of 11,790 million yen (up 2.9% year-on-year) and a sales ratio of 28.0%. Regarding profit, we forecast operating profit of 3,070 million yen (up 5.2% year-on-year) and ordinary profit of 2,900 million yen (up 2.0% year-on-year), driven by progress in initiatives aimed at improving profitability. We forecast profit attributable to owners of parent of 2,070 million yen (down 44.2% year-on-year), reflecting the recording of extraordinary income from the transfer of equity interests of consolidated subsidiary in the previous fiscal year.

   5. Policy on the Determination of Dividends from Surplus, etc.

   The Company has positioned the strengthening of its financial structure and the sustainable enhancement of corporate value through proactive business development as its management objectives, and regards distribution of profits to its shareholders as one of the most important management issues. Our Company's basic policy is to distribute profits by paying stable dividends twice annually in the form of an interim dividend and a year-end dividend. Specifically, based on the above-mentioned policies, the Company aims to achieve a total return ratio of 50% or more. In its Articles of Incorporation, the Company has set the decision-making body regarding dividends from surplus as follows: "Dividends from surplus, etc., can be distributed by a resolution of the Board of Directors in accordance with regulations of Article 459, Paragraph 1 of the Companies Act."

   The year-end dividend for the current fiscal year has been set at 29 yen per share. As we have already paid an interim dividend of 29 yen on December 1, 2025, dividends on an annual basis will amount to 58 yen per share.

   In regard to per share dividends for the next fiscal year, we forecast ordinary dividends consisting of an interim dividend of 29 yen and a year-end dividend of 29 yen. Internal reserves will be used effectively from a mid to long-term perspective in investment for R&D aimed at strengthening our business structure, facilities investment, and efforts to improve business efficiency.

2. Basic Stance Concerning Choice of Accounting Standards

Taking into consideration the comparability of consolidated financial statements across periods and among companies, the Group prepares its consolidated financial statements using Japanese GAAP.

Regarding application of International Financial Reporting Standards, the Group's policy is to deliberate in consideration of the future situation in Japan and overseas.

Consolidated Financial Statements and Primary Notes

Consolidated Balance Sheet

(Millions of yen)

As of March 31, 2025 As of March 31, 2026

Assets

Current assets

Notes and accounts receivable - trade, and

contract assets

10,928 10,174

(Millions of yen)

As of March 31, 2025 As of March 31, 2026

Liabilities

Current liabilities

Consolidated Statements of Income and Comprehensive Income

Profit on transfer of capital investments in associated companies

- 2,004

Total extraordinary income 49 2,013

Extraordinary losses

Consolidated Statement of Comprehensive Income

For the fiscal year ended March 31, 2025

(Millions of yen)

For the fiscal year ended March 31, 2026

Profit 2,228 3,708

Other comprehensive income

Valuation difference on available-for-sale

securities

(35)

24

Remeasurements of defined benefit plans, net of

tax

(152)

314

Foreign currency translation adjustment (15) (330)

Comprehensive income 2,025 3,716

Total other comprehensive income (202) 7

Comprehensive income attributable to owners of

parent

2,025

3,716

Comprehensive income attributable to

Comprehensive income attributable to non-

controlling interests - -

Consolidated Statement of Changes in Equity

For the fiscal year ended March 31, 2025

(Millions of yen)

For the fiscal year ended March 31, 2026

(Millions of yen)

Share of loss (profit) of entities accounted for using equity method

- 89

Loss (gain) on sale and retirement of property, plant

and equipment

6

3

(5) Notes to Consolidated Financial Statements (Notes on going concern assumption)

Not applicable.

(Material basis for the preparation of consolidated financial statements)

1. The scope of consolidation

   1. Number and name of consolidated subsidiaries: 2 EIKEN MEDICAL AMERICA INC.

      EIKEN MEDICAL SHANGHAI CORPORATION

      EIKEN MEDICAL SHANGHAI CORPORATION was newly established in the consolidated fiscal year under review, it is included in the scope of consolidation. In addition, as a result of the transfer of all equity interests, EIKEN CHINA CO., LTD. was excluded from the scope of consolidation.

   2. Number and name of the principal non-consolidated subsidiary Not applicable.

2. Equity method

   1. Number and Name of associated company: 1 Nanotis Corporation

   2. Names of major companies, etc. among non-consolidated subsidiaries and associated companies to which the equity method is not applied

      Not applicable.

   3. Matters that are found to be particularly necessary to be stated regarding the procedures for application of the equity method

      For companies that are accounted for by the equity method and have different closing dates, the financial statements for the respective fiscal years are used. In addition, goodwill equivalent arising from the application of the equity method is amortized on a straight-line basis over a period of 20.

3. Accounting period of consolidated subsidiaries

   Of the consolidated subsidiaries, the fiscal closing date of EIKEN MEDICAL SHANGHAI CORPORATION is December 31.

   Consolidated financial statements are prepared by implementing closing (provisional closing) in accordance with reasonable procedures based on formal closing.

   The fiscal closing date of the other consolidated subsidiary is in line with the consolidated fiscal closing date.

4. Accounting policies

   1. Valuation standards and methods for significant assets

      1. Securities

         1. Held-to-maturity debt securities

            Stated at amortized cost (straight-line method)

         2. Shares of associated companies

            Stated at cost determined by the moving-average method

         3. Available-for-sale securities

            Securities other than shares, etc., which do not have a market price Market value method

            (The valuation difference is directly included in net assets, and cost of sales is determined by the moving-average method.)

            Shares, etc., which do not have a market price

            Principally the cost method by the moving-average method

      2. Derivative financial instruments Market value method

      3. Inventories

         Merchandise and finished goods, raw materials, and work in process

         Cost method by the moving-average method (carrying amount on the consolidated balance sheet calculated by writing down values based on decreased profitability) is adopted.

         Supplies

         Cost method by the last purchase price method (carrying amount on the consolidated balance sheet calculated by writing down values based on decreased profitability) is adopted.

   2. Depreciation method of significant depreciable assets

      1. Property, plant and equipment (excluding leased assets)

         The Company and its domestic consolidated subsidiaries adopt the declining-balance method, and overseas consolidated subsidiaries adopt the straight-line method.

         However, the straight-line method is adopted for buildings purchased on or after April 1, 1998 (excluding facilities attached to buildings), and for facilities attached to buildings and structures purchased on or after April 1, 2016.

         Major useful lives are as follows:

         Buildings and structures: 7-40 years Machinery, equipment, and vehicles: 4-8 years Tools, furniture and fixtures 2-15 years

      2. Intangible assets (excluding leased assets) Straight-line method

         For internal use software, the straight-line method based on amortization over the internally estimated useful lives (5 years) is adopted.

      3. Leased assets

Leased assets are depreciated over the lease terms as useful lives using the straight-line method without any residual value.

1. Accounting standards for significant reserves and allowances

   1. Allowance for doubtful accounts

      In order to prepare for possible credit losses on trade receivables, etc., the estimated amount of non-recoverable receivables based on the historical loss rate for general receivables and specific collectability for specific doubtful receivables are recorded.

   2. Provision for bonuses

      In order to prepare for payments of bonuses to the employees, the estimated payable amount to be used in the future attributable to the consolidated fiscal year under review is recorded as provision for bonuses.

2. Accounting method for retirement benefits

   1. Period attribution method for estimated retirement benefits

      In calculating retirement benefit obligations, the method of attributing the estimated amount of retirement benefits to the periods up to the end of the consolidated fiscal year under review is based on the benefit formula basis.

   2. Accounting method for actuarial difference and past service cost

      Past service cost is expensed using the straight-line method over a period of definite years (3 years) within the employees' average remaining service years at the time when it is incurred.

      Actuarial differences are accounted for as expenses over a certain number of years within the average remaining years of service of the corresponding employees (12 years) using the straight-line method, commencing with the consolidated fiscal year following the one in which they were incurred.

   3. The accounting methods of unrecognized actuarial gain and loss and unrecognized past service cost

      For the accounting methods of unrecognized actuarial gain and loss and unrecognized past service cost, after adjusting tax effect, they are recorded as remeasurements of defined benefit plans under accumulated other comprehensive income in net assets.

3. Significant revenue and expense recognition standards

   1. Sales of merchandise and finished goods

      Sales of merchandise and finished goods include the manufacture and sale of clinical diagnostic reagents and clinical diagnostic equipment. The Company principally recognizes revenue from sales of merchandise and finished goods when making delivery of the goods to a customer as it satisfies a performance obligation by transferring control of the goods to a customer based on receipt of the goods. For clinical diagnostic equipment which requires installation at the time of sale, the Company recognizes revenue at inspection of installed equipment as it satisfies a performance obligation by transferring control of the goods to a customer based on inspection by a customer.

   2. Royalty revenue

      Royalty revenue includes upfront payment based on license agreement etc., milestone revenues, and running royalty calculated based on net sales etc. For upfront payment, the Company recognizes revenue at customers' receipt of the right which the Company promised to transfer to a customer based on the contract. For milestone revenues, the Company recognizes revenue at achievement of the milestone defined in the contract. For running royalty calculated based on net sales etc., the Company recognizes revenue when sales or usage occur, or it satisfies a performance obligation for which sales-based or usage-based royalty is allocated, whichever is later.

4. Translation of significant foreign currency denominated assets and liabilities into Japanese yen

   Foreign currency denominated monetary receivables and payables are translated into Japanese yen using the spot exchange rate on the closing date and the translation difference is charged or credited to income. The assets, liabilities, income, and expenses of overseas subsidiaries and affiliates are translated into yen at the year-end spot exchange rate, and translation adjustments are included in foreign currency translation adjustments in net assets.

5. Significant hedge accounting method

   1. Hedge accounting method

      The appropriation procedure is adopted to foreign exchange fluctuation risk hedging that satisfies the relevant requirements.

   2. Hedging instruments and hedged items, hedging policy

      The risks of foreign exchange fluctuation are hedged in accordance with the Company's rules.

      Hedging instruments and hedged items where hedge accounting was applied for the consolidated fiscal year under review are as follows.

      Hedging instruments: Forward exchange contracts

      Hedged items: Foreign currency denominated accounts payable, foreign currency denominated accounts payable - other

   3. Assessment of hedge effectiveness

      For forward exchange contracts, hedged items with the same date and amount and denominated in the same currency are allocated to each account payable, accounts payable - other. Therefore, the correlation by foreign exchange fluctuation thereafter is ensured completely, and the assessment of hedge effectiveness is omitted.

6. Funds covered by consolidated statements of cash flows

Funds (cash and cash equivalents) as used in the consolidated statements of cash flows comprises cash on hand, deposits available for withdrawal as needed, and short-term investments due for redemption within three months from the date of acquisition, which are easily cashable and are subject to minimal risk of fluctuation in value.

(Notes to Consolidated Balance Sheets)

*1. Receivables from contracts with customers in notes and accounts receivable - trade and contract assets are as follows.

(Million yen)

As of March 31, 2025 As of March 31, 2026

Accounts receivable - trade 10,721 10,011

Electronically recorded monetary claims - operating

810 1,202

*2. Contract liabilities in other is as follows.

(Million yen)

As of March 31, 2025 As of March 31, 2026

Contract liability 97 77

3. Overdraft contracts and commitment lines are concluded for efficient procurement of working capital. The balance of unexecuted loans based on these contracts is as follows.

Total of overdraft maximum amount and commitment lines

(Million yen)

As of March 31, 2025 As of March 31, 2026

8,600 8,600

Outstanding borrowings - -

Difference 8,600 8,600

(Notes to Consolidated Statements of Income)

*1. Revenue from contracts with customers is not presented independently. Revenue from contracts with customers is as follows.

For the fiscal year ended March 31, 2025

(Million yen)

For the fiscal year ended March 31, 2026

40,300 41,704

*2. Ending inventory is the amount after being written down due to decreased profitability, and the following loss on valuation of inventory (the amount after offset of reversal with reversal method), is included in total cost of sales.

For the fiscal year ended March 31, 2025

(Million yen)

For the fiscal year ended March 31, 2026

40 84

*3. The main expense items and amounts of selling, general and administrative expenses are as follows.

(Million yen)

Provision of allowance for doubtful accounts

(0) (0)

*4. Research and development expenses included in general and administrative expenses, and manufacturing costs incurred during the period are as follows.

For the fiscal year ended March 31, 2025

(Million yen)

For the fiscal year ended March 31, 2026

4,386 3,676

*5. The details of gains on the sale of fixed assets are as follows.

For the fiscal year ended March 31, 2025

(Million yen)

For the fiscal year ended March 31, 2026

Machinery, equipment and vehicles - 7

Tools, furniture and fixtures - 1

Total - 8

*6. Description of loss on sale and retirement of non-current assets is as follows.

For the fiscal year ended March 31, 2025

(Million yen)

For the fiscal year ended March 31, 2026

Buildings and structures 0 7

Machinery, equipment and vehicles 0 0

Tools, furniture and fixtures 5 4

Software 0 -

Dismantlement cost - 10

Total 6 22

*7 Business structure improvement expenses of subsidiaries

This was amid the restructuring of manufacturing facilities and inventories with the review of business activities of subsidiaries in China and economic compensation for employees.

(Notes to Consolidated Statements of Comprehensive Income)

*1. Reclassification adjustment and tax effect relating to other comprehensive income

(Million yen)

Valuation difference on available-for-sale securities

Foreign currency translation adjustment:

(35) 24

Amount incurred during the period (15) (300) Remeasurements of defined benefit plans, net

Remeasurements of defined benefit plans, net of tax

(152) 314

Total other comprehensive income (202) 7

(Notes to Consolidated Statements of Changes in Net Assets) For the fiscal year ended March 31, 2025

1. Class and total number of issued shares and class and total number of treasury shares

   (Shares)

   	Number of shares at beginning of period	Increase during period	Decrease during period	Number of shares at end of period
   Issued shares
   Common shares (Note) 1.	40,041,438	-	1,500,000	38,541,438
   Total	40,041,438	-	1,500,000	38,541,438
   Treasury shares
   Common shares (Notes) 2. 3.	5,443,508	1,217,919	1,533,795	5,127,632
   Total	5,443,508	1,217,919	1,533,795	5,127,632

   (Notes) 1. The decrease in total number of issued shares by 1,500,000 shares of common shares is due to the cancellation of treasury shares based on a resolution of the Board of Directors.

2. The increase in treasury shares by 1,217,919 shares of common shares is due to the 1,217,200 shares increase caused by the purchase of treasury shares based on a resolution of the Board of Directors, the 110 shares increase caused by the purchase of odd-lot shares, the 609 shares increase caused by the free acquisition of restricted stock compensation.

3. The decrease in treasury shares by 1,533,795 shares of common shares is due to the 1,500,000 shares decrease caused by the cancellation of treasury shares based on a resolution of the Board of Directors, the 33,795 shares decrease caused by the disposal of treasury shares as restricted stock units.

1. Share acquisition rights and treasury share acquisition rights

   Category	Description of Share acquisition rights	Class of shares for Share acquisition rights	Number of shares for Share acquisition rights (Share)				Balance at the end of the period (Million yen)
   			Number of shares at beginning of period	Increase during period	Decrease during period	Number of shares at end of period
   The Company (Parent company)	Share acquisition rights as stock options	-	-	-	-	-	358
   Total		-	-	-	-	-	358

2. Dividends

   1. Cash dividends paid

      (Resolution)	Class of shares	Total cash dividends (Million yen)	Dividend per share (Yen)	Record date	Effective date
      May 9, 2024 Board of Directors meeting	Common shares	899	26	March 31, 2024	June 7, 2024
      October 31, 2024 Board of Directors meeting	Common shares	900	26	September 30, 2024	December 2, 2024

   2. Dividends for which the record date falls in the current period, but the effective date falls in the following period

For the fiscal year ended March 31, 2026

1. Class and total number of issued shares and class and total number of treasury shares

   (Shares)

   	Number of shares at beginning of period	Increase during period	Decrease during period	Number of shares at end of period
   Issued shares
   Common shares (Note) 1.	38,541,438	-	4,000,000	34,541,438
   Total	38,541,438	-	4,000,000	34,541,438
   Treasury shares
   Common shares (Notes) 2. 3.	5,127,632	789,442	4,341,209	1,575,865
   Total	5,127,632	789,442	4,341,209	1,575,865

   (Notes) 1. The decrease in total number of issued shares by 4,000,000 shares of common shares is due to the cancellation of treasury shares based on a resolution of the Board of Directors.

2. The increase in treasury shares by 789,442 shares of common shares is due to the 782,800 shares increase caused by the purchase of treasury shares based on a resolution of the Board of Directors, the 96 shares increase caused by the purchase of odd-lot shares, the 6,546 shares increase caused by the free acquisition of restricted stock compensation.

3. The decrease in treasury shares by 4,341,209 shares of common shares is due to the 4,000,000 shares decrease caused by the cancellation of treasury shares based on a resolution of the Board of Directors, the 118,009 shares decrease caused by the disposal of treasury shares as restricted stock units, the 223,200 shares decrease caused by the exercise of stock options.

1. Share acquisition rights and treasury share acquisition rights

   Category	Description of Share acquisition rights	Class of shares for Share acquisition rights	Number of shares for Share acquisition rights (Share)				Balance at the end of the period (Million yen)
   			Number of shares at beginning of period	Increase during period	Decrease during period	Number of shares at end of period
   The Company (Parent company)	Share acquisition rights as stock options	-	-	-	-	-	89
   Total		-	-	-	-	-	89

2. Dividends

   1. Cash dividends paid

      (Resolution)	Class of shares	Total cash dividends (Million yen)	Dividend per share (Yen)	Record date	Effective date
      May 13, 2025 Board of Directors meeting	Common shares	902	27	March 31, 2025	June 10, 2025
      October 30, 2025 Board of Directors meeting	Common shares	956	29	September 30, 2025	December 1, 2025

   2. Dividends for which the record date falls in the current period, but the effective date falls in the following period

(Notes to Consolidated Statements of Cash Flows)

*1. Relationship between cash and cash equivalents at end of year and account items listed in the consolidated balance sheets

For the fiscal year ended March 31, 2025

(Million yen)

For the fiscal year ended March 31, 2026

Cash and deposits 9,873 10,943

Time deposits with deposit terms of more than three months

(2,233) (3,000)

Cash and cash equivalents 7,640 7,943

*2. Major components of assets and liabilities of a company that ceased to be a consolidated subsidiary due to the transfer of equity interests

Previous Consolidated Fiscal Year (From April 1,2024 to March 31, 2025) Not applicable.

Consolidated fiscal year (From April 1,2025 to March 31, 2026)

The breakdown of assets and liabilities at the time of transfer, and the relationship between the transfer price of equity interests and the net proceeds from the transfer, resulting from EIKEN CHINA CO., LTD. ceasing to be a consolidated subsidiary due to the transfer of all equity interests, are as follows:

(Lease transactions) (Lessee)

1. Finance lease transactions

   Finance leases wherein ownership of the leased asset does not transfer to the lessee

   1. Description of leased assets Property, plant and equipment

      Research and development facility, tools, furniture and fixtures, and machinery, equipment and vehicles

   2. Depreciation method of leased assets

      As described in "(2) Depreciation method of significant depreciable assets under 4. Accounting policies" of (Material basis for the preparation of consolidated financial statements).

2. Operating lease transactions

Future lease payments under non-cancelable operating lease transactions

(Million yen)

(Lessor)

Finance lease transactions

1. Description of investments in leases

   1. Current assets

      (Million yen)

      	As of March 31, 2025	As of March 31, 2026
      Lease receivables	402	378
      Interest income equivalents	(24)	(24)
      Investments in leases	377	354

   2. Investments and other assets

      (Million yen)

      	As of March 31, 2025	As of March 31, 2026
      Lease receivables	906	801
      Interest income equivalents	(40)	(38)
      Investments in leases	865	763

2. Scheduled amount of debt recovery after the closing date for lease receivables associated with investments in leases

   1. Current assets

      (Million yen)

      	As of March 31, 2025
      		Due after	Due after	Due after	Due after
      	Due in one	one year	two years	three years	four years	Due after
      	year or less	through two	through	through	through five	five years
      		years	three years	four years	years
      Lease receivables	-	-	-	-	-	-
      Investments in leases	402	-	-	-	-	-

      (Million yen)

      	As of March 31, 2026
      		Due after	Due after	Due after	Due after
      	Due in one	one year	two years	three years	four years	Due after
      	year or less	through two	through	through	through five	five years
      		years	three years	four years	years
      Lease receivables	-	-	-	-	-	-
      Investments in leases	378	-	-	-	-	-

   2. Investments and other assets

(Million yen)

(Million yen)

(Business combinations and related matters) Business Separation

Transfer of Equity Interests of a Consolidated Subsidiary

At a meeting of the Board of Directors held on May 13, 2025, the Company resolved to transfer all equity interests in its consolidated subsidiary, EIKEN CHINA CO., LTD. (hereinafter, "Eiken China"), and entered into an equity transfer agreement on July 31, 2025. Based on this agreement, Eiken China was excluded from the scope of consolidation as of September 30, 2025.

1. Overview of the Business Separation

   1. Name of the transferee

      Shanghai Yizhou Enterprise Management Limited Partnership

   2. Name and business of the separated subsidiary Name: EIKEN CHINA CO., LTD.

      Business: Manufacturing and sales of clinical diagnostics

   3. Main reason for the business separation

      As part of our ongoing review of the product portfolio, we have determined that transferring the raw materials processing currently conducted at Eiken China to our Nogi Factory will lead to improved production efficiency. Furthermore, by switching from indirect sales through Eiken China to direct sales of our products, we expect to enhance management efficiency. Based on these considerations, we have concluded that the transfer of our equity interest in Eiken China will contribute to the enhancement of our company's corporate value.

   4. Date of business separation September 30, 2025

   5. Other details regarding the transaction including legal form

   The transfer of equity interests was conducted in exchange for cash and other assets.

2. Overview of Accounting Treatment Implemented

   1. Amount of gain on transfer

      Profit on transfer of capital investments in associated companies: 2,004 million yen

   2. Book value of assets and liabilities related to the transferred business and major components

      (Million yen)

      Current assets 429

      Non-current assets 415

      Total assets 845

      Current liabilities 1

      Total liabilities 1

   3. Accounting treatment

      The difference between the consolidated book value of the transferred equity interests and the transfer price was recorded as "Profit on transfer of capital investments in associated companies" under extraordinary income.

3. Segment Information

   As our group operates under a single segment of clinical diagnostics business, segment information is omitted.

4. Estimated Profit and Loss of the Separated Business Recorded in the Consolidated Statement of Income for the Consolidated Fiscal Year

Net sales 71 million yen Operating loss (43) million yen

(Segment information) Segment information

Fiscal year ended March 31,2025 and fiscal year ended March 31, 2026

Omitted since the Group's business is a single segment in the clinical diagnostics business.

(Per share information)

(Yen)

(Note) The basis for the calculation of basic earnings per share and diluted earnings per share is as follows.

(Significant subsequent events) Not applicable.

Non-consolidated Financial Statements and Primary Notes

Non-consolidated Balance Sheet

(Millions of yen)

As of March 31, 2025 As of March 31, 2026

Assets

(Millions of yen)

Liabilities

Accounts payable - trade 5,257 4,838

(Millions of yen)

As of March 31, 2025 As of March 31, 2026

Legal retained earnings 338 338

Reserve for tax purpose reduction entry

51 49

Non-consolidated Statement of Income

For the fiscal year ended March 31, 2025

(Millions of yen)

For the fiscal year ended March 31, 2026

Net sales

Net sales of finished goods 18,175 18,193

Net sales of goods 22,307 23,674

Total net sales 40,483 41,867

Cost of sales

Beginning inventory of merchandise and

finished goods

4,172 4,585

Cost of products manufactured 8,354 9,050

Cost of purchased goods 16,218 16,447

Ending inventory of merchandise and finished

goods

4,585

4,354

Total cost of sales 24,161 25,729

Gross profit 16,321 16,138

Selling, general and administrative expenses 13,273 13,176

Operating profit 3,048 2,962

Interest income 5 14

Non-operating income

Compensation income for damage 64 15

Dividend income 3 4

Outsourcing service income 30 9

Compensation income 12 5

Subsidy income 31 52

Foreign exchange gains 14 15

Total non-operating income 222 168

Other 59 51

Interest expenses 4 15

Non-operating expenses

Commission for purchase of treasury shares 3 2

Interest expenses on bonds 12 12

Compensation expenses - 104

Commitment fees 7 7

Total non-operating expenses 36 150

Other 7 6

Extraordinary income

Ordinary profit 3,233 2,981

Gain on sale of investment securities 49 -

Gain on sale of non-current assets - 8

Total extraordinary income 49 1,192

Profit on transfer of capital investments in associated companies

- 1,183

Extraordinary losses

Non-consolidated Statement of Changes in Equity

For the fiscal year ended March 31, 2025

(Millions of yen)

For the fiscal year ended March 31, 2026

(Millions of yen)

1. Notes to Non-consolidated Financial Statements (Notes on going concern assumption)

Not applicable.

(Significant accounting policies)

1. Valuation standards and methods for Significant Securities

   1. Held-to-maturity debt securities

      Stated at amortized cost (straight-line method)

   2. Shares of subsidiary and shares of associated companies Cost method by the moving-average method

   3. Available-for-sale securities

      Securities other than shares, etc., which do not have a market price Market value method

      (The valuation difference is directly included in net assets, and cost of sales is determined by the moving-average method.)

      Shares, etc., which do not have a market price Principally cost method by the moving-average method

2. Valuation standards and methods for derivative financial instruments Market value method

3. Valuation standards and methods for inventories

   1. Merchandise and finished goods, raw materials, and work in process

      Cost method by the moving-average method (carrying amount is written down due to decreased profitability) is adopted.

   2. Supplies

      Cost method by the last purchase price method (carrying amount is written down due to decreased profitability) is adopted.

4. Depreciation method of non-current assets

   1. Property, plant and equipment (excluding leased assets) Declining-balance method

      However, the straight-line method is adopted for buildings purchased on or after April 1, 1998 (excluding facilities attached to buildings), and for facilities attached to buildings and structures purchased on or after April 1, 2016.

      Major useful lives are as follows:

      Buildings 15-38 years

      Structures 7-40 years Machinery and equipment 8 years Vehicles 4-6 years

      Tools, furniture and fixtures 2-15 years

   2. Intangible assets (excluding leased assets) Straight-line method

      For internal use software, the straight-line method based on amortization over the internally estimated useful lives (5 years) is adopted.

   3. Leased assets

      Leased assets are depreciated over the lease terms as useful lives using the straight-line method without any residual value.

5. Accounting standards for significant reserves and allowances

   1. Allowance for doubtful accounts

      In order to prepare for possible credit losses on trade receivables, etc., the estimated amount of non-recoverable receivables based on the historical loss rate for general receivables and specific collectability for specific doubtful receivables are recorded.

   2. Provision for bonuses

      In order to prepare for payments of bonuses to the employees, the estimated payable amount to be used in the future attributable to the current fiscal year is recorded as provision for bonuses.

   3. Provision for retirement benefits

      In order to prepare for employees' retirement benefits, provision for retirement benefits is recorded based on the retirement benefit obligations and estimated plan assets as of the current fiscal year-end.

      1. Period attribution method for estimated retirement benefits

         In calculating retirement benefit obligations, the method of attributing the estimated amount of retirement benefits to the periods up to the end of the current fiscal year is based on the benefit formula basis.

      2. Accounting method for actuarial difference and past service cost

         Past service cost is expensed using the straight-line method over a period of definite years (3 years) within the employees' average remaining service years at the time when it is incurred.

         Actuarial difference is expensed at the amount divided proportionally using the straight-line method over a period of definite years (12 years) within the employees' average remaining service years in each fiscal year when it is incurred, commencing from the fiscal year following the fiscal year in which the difference is incurred.

6. Revenue and expense recognition standards

   1. Sales of merchandise and finished goods

      Sales of merchandise and finished goods include the manufacture and sale of clinical diagnostic reagents and clinical diagnostic equipment. The Company principally recognizes revenue from sales of merchandise and finished goods when making delivery of the goods to a customer as it satisfies a performance obligation by transferring control of the goods to a customer based on receipt of the goods. For clinical diagnostic equipment which requires installation at the time of sale, the Company recognizes revenue at inspection of installed equipment as it satisfies a performance obligation by transferring control of the goods to a customer based on inspection by a customer.

   2. Royalty revenue

Royalty revenue includes upfront payment based on license agreement etc., milestone revenues, and running royalty calculated based on net sales etc. For upfront payment, the Company recognizes revenue at customers' receipt of the right which the Company promised to transfer to a customer based on the contract. For milestone revenues, the Company recognizes revenue at achievement of the milestone which was defined in the contract. For running royalty calculated based on net sales etc., the Company recognizes revenue when sales or usage occur, or it satisfies a performance obligation which sales-based or usage-based royalty is allocated, whichever is later.