Summary of Consolidated Financial Statements for 2Q of Fiscal Year Ending March 31, 2025(Japan GAAP)

Nov 12, 2024 at 7:39 AM UTC · Issued by Ishihara Sangyo Kaisha, Ltd.

Summary of Consolidated Financial Statements

for the six-month period ended September 30, 2024 (Japan GAAP)

			November 8, 2024
			Listed Exchanges: TSE
Name of Listed Company: Ishihara Sangyo Kaisha, Ltd.
Code:	4028	URL http://www.iskweb.co.jp
Representative:	(Title) Executive Director President	(Name) Hiroshi Okubo
Contact:	(Title) Director		(Name) Yasunobu Kawazoe Tel +81-6-6444-1850

Scheduled date of securities report submission: November ,11, 2024

Scheduled date of dividend payment: -

Supplementary materials for financial results: Yes

Holding of financial results presentation: Yes (for analysts)

(Any amount less than one million yen is rounded down to the nearest million yen or nil.)

1. Consolidated Financial Results for Second Quarter of Fiscal Year Ending March 31, 2025(April 1, 2024 to September 30, 2024)

Consolidated Operating Results

(Percentages represent changes from same period in previous year.)

Net sales

Operating income

Ordinary income

Net income

millions of yen

2Q, 2024

74,522

10.4

2,653

16.4

2,486

-55.0

727

-80.6

2Q, 2023

67,529

5.1

2,280

-32.2

5,528

-13.9

3,748

-15.0

(Note) Comprehensive income:

As of September 30, 2024: 2,895million yen (-51.4 %)

As of September 30, 2023: 5,953million yen (-7.4%)

Net income per share

Net income per share after full dilution

Yen

2Q, 2024

19.03

⎯

2Q, 2023

98.24

⎯

(2) Consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

millions of yen

Millions of yen

2Q, 2024

220,685

106,392

48.2

Year ended March 31, 2024

224,324

106,116

47.3

(Reference) Equity capital:

As of September 30, 2024: 106,307million yen

As of March 31, 2024: 106,068million yen

2. Dividends

Dividends per share

(Record date)

June 30

September 30

December 31

March 31

Annual

(Q1-end)

(Q2-end)

(Q3-end)

(Year-end)

Yen

Year ended March 31, 2024

⎯

0.00

⎯

70.00

Year ending March 31, 2025

⎯

0.00

Year ending March 31, 2025

⎯

70.00

(Forecast)

(Note) 1. Modification in the dividend forecast for current quarter: None

3. Forecast for Consolidated Results for the Full Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)

(Percentages represent forecasted changes from the previous year for the full year results, and forecasted changes from the same period in the previous year for the interim results.)

		Net sales	Operating income	Ordinary income	Net income		Earnings per share
		millions	%	millions	%	millions	%	millions	%	Yen
		of yen	of yen	of yen	of yen


	Full year	148,000	6.9	10,000	-13.0	9,500	-36.0	6,000	-24.9	156.98

(Note) Modification in the dividend forecast for current quarter: Yes

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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4. Other information

Significant changes in subsidiaries during the period
(changes in specified subsidiaries resulting in the change in consolidation scope): None
Adoption of simplified accounting treatment and special accounting treatment for quarterly consolidated statement: None
Changes in accounting principles, procedures, and the method of presentation

1) Changes due to revisions of accounting standards etc.	: Yes
2)	Changes other than those defined in 1) above	: None
3)	Changes in accounting procedures	: None
4)	Changes in the method of presentation	: None
(4) Issued shares (common shares)
1)	Issued shares as of period-end (including repurchased treasury shares)
	As of September 30, 2024: 40,383,943 shares	As of March 31, 2024: 40,383,943 shares
2)	Number of shares of treasury stock as of period-end
	As of September 30, 2024: 2,153,921 shares	As of March 31, 2024: 2,186,519 shares
3) Average number of outstanding shares during period
	As of September 30, 2024: 38,211,060 shares	As of September 30, 2023: 38,151,268 shares

*This semi-annual financial results statement is exempt from the review procedures by certified public accountants or audit corporations.

*Notes on proper use of forecast and other matters

The forecast of financial results presented in this document is the result of management's assessment based upon currently available assumptions, prospects and plans for the future. Actual results and dividend payments may differ from these forecasts, due to risks and uncertain factors, such as the global economy, competition, and foreign currency fluctuations.

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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5. Semi-annual Consolidated Financial Statements, and Main Notes

Consolidated Balance Sheet

		(Unit: millions of yen)
Account Category	As of March,2024	As of September,2024
(summary)


ASSETS
Current Assets
Cash and deposits	19,982	26,268
Notes and accounts receivable-trade and contract assets	42,859	36,814
Electronically recorded monetary claims - operating	1,617	1,806
Merchandise and finished goods	52,371	50,483
Work in process	8,132	8,373
Raw materials and supplies	30,871	27,114
Other	5,640	4,143
Allowance for doubtful accounts	-302	-245

Total current assets	161,173	154,759
Non-current assets

Property, plant and equipment
Machinery and equipment, net	12,913	12,720
Others, net	28,646	29,829

Total property, plant and equipment	41,560	42,549

Intangible assets	2,052	2,106
Investments and other assets
Investment securities	9,648	11,547
Deferred tax assets	7,630	6,623
Net defined benefit asset	29	37
Other	2,281	3,113
Allowance for doubtful accounts	-52	-52

Total investments and other assets	19,537	21,269

Total non-current assets	63,150	65,926

Total Assets	224,324	220,685

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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		(Unit: millions of yen)
Account Category	As of March,2024	As of September, 2024
(summary)


LIABILITIES
Current Liabilities
Notes and accounts payable - trade	20,974	22,779
Electronically recorded obligations - operating	1,979	1,520
Short-term loans payable	15,280	15,151
Current portion of bonds	968	863
Income taxes payable	1,439	508
Reserve	1,324	1,636
Other	11,090	11,067
Total current liabilities
53,056	53,529
Noncurrent liabilities

Bonds payable	1,991	1,627
Long-term loans payable	47,839	44,047
Provision for environment and safety improvement	195	－
Net defined benefit liability	12,007	12,016
Other	3,116	3,072
Total non-current liabilities
65,150	60,763
Total Liabilities
118,207	114,293
NET ASSETS

Shareholders' equity
Capital stock	43,420	43,420
Capital surplus	10,672	10,694
Retained earnings	50,489	48,542
Treasury stock	-2,653	-2,621
Total shareholders' equity
101,928	100,036
Accumulated other comprehensive income

Valuation difference on available-for-sale securities	817	675
Foreign currency translation adjustment	2,989	5,418
Remeasurements of defined benefit plans	333	176
Total accumulated other comprehensive income
4,139	6,270
Non-controlling interests
48	85
Total net assets
106,116	106,392
Total Liabilities and Net Assets
224,324	220,685

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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(2) Consolidated Statements of Income

		(Unit: millions of yen)
Account Category	Six Months Ended	Six Months Ended
September 30,2023	September 30,2024


Net sales	67,529	74,522
Cost of sales	52,553	57,615

Gross profit	14,975	16,906

Selling, general and administrative expenses	12,695	14,253

Operating income	2,280	2,653
Non-operating income

Interest income	57	98
Dividend income	199	181
Equity in earnings of affiliates	897	1,252
Foreign exchange income	2,434	―
Reversal of allowance for doubtful accounts	41	61
Gain on sales of raw materials	153	94
Other	164	77

Total non-operating income	3,948	1,766
Non-operating expenses

Interest expenses	291	363
Financial Fees	305	248
Foreign exchange losses	―	1,158
Other	103	162

Total non-operating expenses	699	1,933

Ordinary income	5,528	2,486
Extraordinary income

Gain on sale of non-current assets	39	―
Gain on sale of investment securities	47	47

Total extraordinary income	87	47
Extraordinary loss

Loss on disposal of non-current assets	300	189

Total extraordinary loss	300	189

Income before income taxes and minority interests	5,315	2,344

Income taxes-current	407	466
Income taxes - deferred	1,154	1,113

Total income taxes	1,561	1,580

Net income	3,754	763

Profit attributable to non-controlling interests	5	36

Profit attributable to owners of parent	3,748	727

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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		(Unit: millions of yen)

Account Category	Six Months Ended	Six Months Ended
September 30,2023	September 30,2024


Profit	3,754	763
Other comprehensive income
Valuation difference on available-for-sale securities	225	-141
Foreign currency translation adjustment	1,572	1,985
Remeasurements of defined benefit plans, net of tax	34	-156
Share of other comprehensive income of entities accounted	365	443
for using equity method


Total other comprehensive income	2,198	2,131

Comprehensive income	5,953	2,895
(Breakdown)

Comprehensive income attributable to owners of parent	5,947	2,858
Comprehensive income attributable to non-controlling interests	5	36

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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(3) Statement of Consolidated Cash Flows

		(Unit: millions of yen)
Account Category	Six Months Ended	Six Months Ended
September 30,2023	September 30,2024


Cash flows from operating activities
Income before income taxes	5,315	2,344
Depreciation and amortization	2,745	2,580
Increase (decrease) in allowance for doubtful accounts	-34	-61
Increase (decrease) in net defined benefit liability	-116	-263
Increase (decrease) in allowance for doubtful accounts	-174	23
Increase (decrease) in other provision	62	92
Interest and dividend income	-257	-280
Interest expenses	291	363
Foreign exchange losses (gains)	-51	72
Share of (profit) loss of entities accounted for using equity	-897	-1,252
method
Loss (gain) on sale of investment securities	-47	-47
Loss (gain) on disposal of noncurrent assets	38	59
Decrease (increase) in notes and accounts receivable-trade	6,509	7,046
Decrease (increase) in inventories	-9,530	7,132
Decrease (increase) in other current assets	718	428
Increase (decrease) in notes and accounts payable-trade	-1,345	-132
Increase (decrease) in other current liabilities	440	332
Other	1	-16

Subtotal	3,666	18,422

Interest and dividends income received	257	279
Interest expenses paid	-217	-311
Proceeds from insurance income	－	21
Settlement received	－	1,038
Income taxes refund (paid)	-338	-1,204

Cash flows from operating activities	3,367	18,245

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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		(Unit: millions of yen)
Account Category	Six Months Ended	Six Months Ended
September 30,2023	September 30,2024


Cash flows from investing activities
Purchase of investment securities	-4	-407
Purchase of non-current assets	-1,244	-3,857
Proceeds from sales of non-current assets	1,961	0
Payments of loans receivable	-62	-61
Collection of loans receivable	85	128
Proceeds from sales and redemption of short-term and long-term	55	82
investment securities

Others	-498	-976

Cash flows from investing activities	293	-5,093
Cash flows from financing activities

Net increase (decrease) in short-term loans payable	6,770	－
Proceeds from long-term borrowings	13,000	－
Repayments of long-term loans payable	-4,103	-3,920
Redemption of bonds	-469	-469
Cash dividends paid	-1,601	-2,673
Repayments of lease obligations	-232	-216
Repayments of installment payables	-262	-303
Net decrease (increase) in treasury shares	-2	-3
Proceeds from sale of shares of subsidiaries not resulting in	20	－
change in scope of consolidation

Cash flows from financing activities
13,117	-7,587
Effect of exchange rate change on cash and cash equivalents
884	721
Net increase (decrease) in cash and cash equivalents
17,663	6,286
Cash and cash equivalents at beginning of period
17,662	19,982
Cash and cash equivalents at end of period
35,325	26,268

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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6. Segment Information

【Business Segment Information】

Six months ended September 30, 2023(April 1, 2023 to September 30, 2023)

Information relating sales, profits, losses, for each reporting unit

(Unit: millions of yen)

	Organic	Inorganic	Other	Total	Elimination/	Consolidated
	Chemicals	Chemicals	Businesses	Corporate


Sales
(1) Sales to external	33,236	32,875	1,417	67,529	⎯	67,529
customers
(2) Intersegment sales	0	⎯	1,167	1,167	-1,167	⎯
and transfers
Total	33,236	32,875	2,585	68,696	-1,167	67,529

Segment profit or loss (-)	2,087	1,796	-66	3,818	-1,537	2,280

(Note) 1. Adjustment include the following items

1. Adjustment in segment profit or loss(-￥1,537million) includes elimination of transaction between
  segments(￥107million) and corporate expenses not allocated to reporting segments(-￥1,645million). Corporate expenses mainly comprise general expenses not allocated segments.
2. Segment profit or loss is adjusted to be consistent with operating income shown on the quarterly consolidated income statement.
Geographical information

Net Sales						(Unit: millions of yen)
Japan	Asia	America	Europe	Other			Total

27,961	11,233	11,490	16,380		463		67,529

(Note) 1. Net sales by geographic segment are based on nations or regions where customers reside.

2. Grouping of countries and regions is based on the geographic proximity and relevance of businesses. Countries and regions included in each geographic segment are follows, excluding Japan:

(1) Asia	: China, Taiwan, South Korea, Thailand, Indonesia, Singapore, and India
(2) Americas : United States of America, Canada, Brazil, Argentina, and Mexico
(3)	Europe	: Germany, Netherlands, France, the United Kingdom, Belgium, Italy, and East Europe and Middle East regions
(4)	Other	: Australia, New Zealand and Africa

Information concerning impairment loss or goodwill on fixed assets by segment We do not note any significant changes.

【Business Segment Information】

Six months ended September 30, 2024 (April 1, 2024 to September 30, 2024)

(1) Information relating sales, profits, losses, for each reporting unit

						(Unit: millions of yen)
	Organic	Inorganic	Other			Amount reported on
	Total	Adjustment	consolidated financial
	Chemicals	Chemicals	Businesses
			statements


Sales
(1) Sales to external	36,296	36,019	2,206	74,522	⎯	74,522
customers
(2) Intersegment sales	0	⎯	1,480	1,480	-1,480	⎯
and transfers
Total	36,296	36,019	3,687	76,003	-1,480	74,522
Segment profit	2,684	1,743	168	4,597	-1,943	2,653

(Note) 1. Adjustment include the following items

1. Adjustment in segment profit (-￥1,943million) includes elimination of transaction between segments (￥55million) and corporate expenses not allocated to reporting segments(-￥1,999million). Corporate expenses mainly comprise general expenses not allocated segments.
2. Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated income statement.
This is an English translation of Summary originally written in Japanese and disclosed to TSE.

For official purposes, the Japanese version takes preference over this English translation

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(2) Geographical information
Net Sales				(Unit: millions of yen)
Japan	Asia	America	Europe	Other	Total

26,551	15,742	11,860	18,830	1,537	74,522

(Note) 1. Net sales by geographic segment are based on nations or regions where customers reside.

2. Grouping of countries and regions is based on the geographic proximity and relevance of businesses. Countries and regions included in each geographic segment are follows, excluding Japan:

(1) Asia	: China, Taiwan, South Korea, Thailand, Indonesia, Singapore, and India
(2) Americas : United States of America, Canada, Brazil, Argentina, and Mexico
(3)	Europe	: Germany, Netherlands, France, the United Kingdom, Belgium, Italy, and East Europe and Middle East regions
(4)	Other	: Australia, New Zealand and Africa

Information concerning impairment loss or goodwill on noncurrent assets by segment We do not note any significant changes.

This is an English translation of Summary originally written in Japanese and disclosed to TSE. For official purposes, the Japanese version takes preference over this English translation

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