Summary of Non-consokidated Financial Results for the Fiscal Year Ended March 31, 2026

April 24, 2026

Company name: JAPAN PURE CHEMICAL CO.,LTD.

Listing: Tokyo Stock Exchange

Securities code: 4973

URL: https://www.netjpc.com

Representative: Tomoyuki Kojima, Representative Director and President

Inquiries: Motoki Watanabe, Senior Director, General Manager of Corporate Planning Division and Finance Division Telephone: +81-3-3550-1048

Scheduled date of annual general meeting of shareholders: June 24, 2026 Scheduled date to commence dividend payments: June 9, 2026

Scheduled date to file annual securities report: June 17, 2026

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

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

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

      	Net sales		Operating profit		Ordinary profit		Profit
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	18,073	43.3	576	14.7	776	18.0	1,803	14.2
      March 31, 2025	12,611	10.4	502	41.8	657	18.8	1,579	188.1

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	311.86	309.20	11.5	4.1	3.2
      March 31, 2025	273.73	271.36	11.3	4.0	4.0

   2. Non-consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	21,738	18,064	82.7	3,098.03
      March 31, 2025	15,856	13,594	85.2	2,338.53

      Reference: Equity

      As of March 31, 2026: ¥17,978 million

      As of March 31, 2025: ¥13,508 million

   3. Non-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	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   March 31, 2026	(772)	1,113	(673)	6,952
   March 31, 2025	579	1,522	(676)	7,284

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio	Ratio of dividends to net assets
   	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	-	63.00	-	63.00	126.00	727	46.0	5.2
   Fiscal year ended March 31, 2026	-	63.00	-	137.00	200.00	1,159	64.1	7.4
   Fiscal year ending March 31, 2027 (Forecast)		115.00		115.00	230.00		-

3. Forecast of non-consolidated financial results 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	6,067,200 shares
      As of March 31, 2025	6,067,200 shares

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

      As of March 31, 2026	264,039 shares
      As of March 31, 2025	290,707 shares

   3. Average number of shares outstanding during the period

• 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

  • Forward-looking statements, such as earnings forecasts, contained in this material are based on information available to the Company and certain assumptions that the Company deems reasonable, and actual results may differ due to various factors. For details on the conditions on which earnings forecasts are based and precautions for using earnings forecasts, please refer to the "Overview of Operating Results and others"

    on page 3 of the Appendix.

  • The Company plans to hold a full-year earnings briefing for institutional investors and analysts on Friday, April 24, 2026. Financial results briefing materials are scheduled to be posted on the Company's website at 2 p.m. on Friday, April 24, 2026.

１．Overview of operating results and others

（１）Overview of operating Results for the fiscal year

During the fiscal year under review, the global economy showed a moderate recovery trend; however, the outlook remained uncertain due to developments in monetary policies in various countries, rising geopolitical risks, and uncertainties surrounding trade policies. Amid the prolonged situation in Ukraine and heightened tensions in the Middle East, resource and energy prices remained elevated, and inflationary pressures persisted. Under these circumstances, financial markets, including foreign exchange and equity markets, exhibited unstable movements influenced by monetary policy developments. In the United States, the economy remained resilient, supported by a solid employment environment and steady personal consumption. However, concerns over a resurgence of inflation due to prolonged high interest rates and the impact of trade policies persisted, requiring continued close monitoring. In Europe, while personal consumption remained relatively firm, economic growth slowed, particularly in the manufacturing sector, due to the impact of energy prices and high interest rates. In China, although the effects of government stimulus measures were partially observed, the economy remained sluggish due to the continued downturn in the real estate market and delays in the recovery of personal consumption. In Japan, the economy continued on a moderate recovery path, supported by improvements in employment and income conditions and a recovery in inbound demand. However, in addition to the impact of rising prices and exchange rate fluctuations, weakness in external demand was observed in the manufacturing sector.

In the electronic components industry, demand for AI servers and data centers grew significantly, driven by expanding AI infrastructure investments by hyperscalers. Demand for personal computers recovered steadily, while demand for consumer electronics such as smartphones and industrial equipment including factory automation (FA) equipment remained on a moderate recovery trend. With respect to automotive electronic components, demand growth remained limited. Although the proliferation of ADAS (Advanced Driver Assistance Systems) and SDVs (Software Defined Vehicles) provided some support, the market was affected by U.S. tariff measures, revisions to electric vehicle policies in Europe and the United States, and a slowdown in domestic demand in China. At the Company, sales of plating chemicals for printed circuit boards and semiconductor package substrates performed strongly, particularly for semiconductor packages, modules, and memory applications, supported by expanding demand related to generative AI. Demand for personal computer applications remained generally firm, while demand for smartphone applications continued to recover but lacked strong momentum.

Regarding plating chemicals for connectors, demand showed a moderate recovery in smartphone and industrial equipment applications, while demand for automotive applications remained sluggish. For lead frame plating chemicals, demand for consumer applications remained firm, and inventory adjustments in automotive applications progressed toward normalization in the second half of the fiscal year.

As a result, net sales amounted to ¥18,073 million (up 43.3% year on year), operating profit was ¥576 million (up 14.7% year on year), ordinary profit was ¥776 million (up 18.0% year on year), and profit attributable to owners of parent was

¥1,803 million (up 14.2% year on year).

The results by end-use application are as follows:

(Printed Circuit Boards and Semiconductor Package Substrates)

For noble metal plating chemicals used in printed circuit boards and semiconductor package substrates, demand for consumer applications such as smartphones and personal computers recovered moderately, while demand for semiconductor packages and modules related to generative AI remained strong. As a result, net sales increased to ¥8,680 million, up 52.1% year on year.

(Connectors and Micro Switches)

In sales of plating chemicals for connectors, demand for smartphone applications remained firm, supported by the advantages of the Company's products, particularly their gold-saving properties. Demand for automotive applications remained weak due to inventory adjustments, while signs of recovery emerged in industrial equipment applications. As a result, net sales increased to ¥2,599 million, up 40.6% year on year.

(Lead Frames)

In sales of plating chemicals for lead frames, demand for automotive applications showed signs of recovery, while consumer applications remained firm. In addition, the rise in noble metal prices contributed to sales growth. As a result, net sales increased to ¥6,424 million, up 35.5% year on year.

＜Outlook for the next fiscal year＞

Demand for AI servers and data centers is expected to remain strong, supported by the continued expansion of AI infrastructure investment. In addition, demand for high-end smartphones is expected to remain firm, and overall demand for plating chemicals used in printed circuit boards, semiconductor package substrates, connectors, and lead frames is projected to follow a recovery trend. With respect to automotive applications, although the impact of inventory adjustments associated with slowing demand for electric vehicle-related components remains a concern, demand is expected to expand over the medium to long term, supported by the proliferation of ADAS (Advanced Driver Assistance Systems) and SDVs (Software Defined Vehicles). Accordingly, shipments of related plating chemicals are expected to remain solid.

For the next fiscal year, while there is a possibility of production adjustments in certain personal computer and smartphone applications due to supply constraints arising from the prioritization of memory for AI-related demand, growth is expected to be driven by AI servers/data centers and high-end smartphones. In addition, elevated prices of noble metals such as gold and palladium are expected to contribute to revenue growth.

The Company plans to continue proactive investment in research and development, focusing on plating chemicals for new materials and battery materials. While implementing these initiatives, operating profit is expected to increase. Furthermore, profit attributable to owners of parent is projected to grow, reflecting gains on the sale of policy shareholdings exceeding those of the previous fiscal year.

As a result, for the next fiscal year, the Company forecasts net sales of ¥24,000 million (up 32.8% year on year), operating profit of ¥610 million (up 5.8% year on year), ordinary profit of ¥800 million (up 3.1% year on year), and profit attributable to owners of parent of ¥2,170 million (up 20.3% year on year).

（２）Summary of Financial Position

a Description of financial position

(Million yen）

b Analysis of cash flows

(Million yen）

(Reference) Trends in cash flow indicators

Equity ratio: shareholders' equity/total assets

Equity ratio based on market value: Market capitalization / Total assets

(Note) Market capitalization is calculated by multiplying the closing stock price at the end of the fiscal year by the total number of shares issued and outstanding (less treasury shares) at the end of the fiscal year.

（３）Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years

The Company's basic policy on profit distribution is to flexibly return profits to shareholders in accordance with earnings conditions while securing internal reserves necessary for future business development, strengthening of the management base, and investment for growth.

In addition to the dividend payout ratio, the Company has introduced a dividend on equity ratio (DOE) with a minimum limit of 5% starting with the year-end dividend for the fiscal year ending March 31, 2024, in order to proactively provide a certain level of shareholder return that is not greatly influenced by the Company's immediate performance as a prime market listed company, while maintaining a balance between capital efficiency and financial soundness for the purpose of achieving long-term growth.

Regarding dividends of retained earnings for the current fiscal year, in addition to the above basic policy, and taking into account the progress in the sale of policy shareholdings, we have revised our dividend forecast in accordance with the shareholder return policy set forth in the financial strategy of the Mid-Term Management Plan FY2025-2027. Specifically,