Summary of Non-Consolidated Financial Results for the Three months ended June 30, 2025 (Based on Japanese GAAP)

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Company name: JAPAN PURE CHEMICAL CO.,LTD.

Stock exchange listing: Tokyo

Stock code: 4973 URL https://www.netjpc.com

Representative: Representative Director and President Tomoyuki Kojima Senior Director, General Manager of Corporate

July 25, 2025

Inquiries:

Planning Division and Finance Division

Motoki Watanabe TEL 03-3550-1048

Preparation of supplementary material on financial results: Yes Holding of financial results meeting: No

(Amounts less than one million yen are rounded down)

1. Non-consolidated financial results for the Three months ended June 30, 2025 (April 1, 2025 to June 30, 2025)

1. Operating results (Percentage figures represent changes from the same period of the previous year.)

   	Net sales		Operating profit		Ordinary profit		Net profit
   	Million yen	％	Million yen	％	Million yen	％	Million yen	％
   Three months ended June 30, 2025	3,406	10.7	92	(37.8)	184	△23.6	135	(50.2)
   Three months ended June 30, 2024	3,079	8.3	149	173.2	241	56.6	271	127.3

   	Earnings per share	Diluted earnings per share
   	Yen	Yen
   Three months ended June 30, 2025	23.40	23.22
   Three months ended June 30, 2024	47.09	46.65

2. Financial position

(Note) Revision of dividend forecast from the latest announcement: No

1. Forecast for the fiscal year ending March 31, 2026 (April 1, 2025 - march 31, 2026)

   	Net sales		Operating profit		Ordinary profit		Net Profit		Earnings per share
   Full year	Million yen 14,000	% 11.0	Million yen 510	% 1.5	Million yen 670	% 1.9	Million yen 500	% (68.3)	Yen 86.56

   (Percentage figures are changes from the previous year)

   (Note) Revision of dividend forecast from the latest announcement: No Notes

   1. Adoption of accounting methods specific to the preparation of quarterly financial statements: No

   2. Changes in accounting policies, changes in accounting estimates, and restatements

      Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: No

      Changes in accounting estimates: No

      Restatement of prior period financial statements: No

   3. Number of shares issued and outstanding (Common Stock)

      (a) Number of shares issued and outstanding at the end of the period (including treasury shares)	As of June 30, 2025	6,067,200	Shares	As of Mar 31, 2025	6,067,200	Shares
      (b) Number of treasury shares at end of period	As of June 30, 2025	290,607	Shares	As of Mar 31, 2025	290,707	Shares
      (c) Average number of shares during the period (cumulative quarterly period)	Three months ended June 30, 2024	5,776,529	Shares	Three months ended June 30, 2024	5,759,072	Shares

      Review of the accompanying interim financial statements by a certified public accountant or auditing firm: No Explanation of appropriate use of earnings forecasts and other special notes:

      • The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual results may differ significantly due to various factors.

      • The supplementary financial results presentation materials are available on our website.

1. Qualitative Information on Quarterly Financial Statements

   1. Explanation of Operating Results for the current quarter

      In the electronic components industry, demand related to AI servers and data centers remained strong, driven by robust demand for generative AI. However, demand in the consumer segment-such as for smartphones and personal computers-showed signs of stagnation due to the impact of ongoing U.S.-China trade tensions. In the industrial equipment segment, including factory automation (FA) machinery, demand remained sluggish as inventory adjustments continued. As for automotive electronic components, although there was a moderate increase in demand due to greater electrification-such as the adoption of advanced driver assistance systems (ADAS)-overall demand struggled to grow amid inventory adjustments stemming from a slowdown in the growth of electric vehicles (EVs).

      For our company, sales of plating chemicals for printed circuit boards and semiconductor substrates remained strong in applications related to semiconductor packages and modules for generative AI. However, sales for consumer electronics-such as smartphones and personal computers-as well as for memory applications, were sluggish. Sales of plating chemicals for connectors showed signs of recovery in the automotive and industrial equipment segments, while demand in the smartphone segment remained flat.

      Sales of plating chemicals for lead frames remained firm in the consumer electronics segment, but were sluggish in the automotive segment due to the effects of ongoing inventory adjustments.

      As a result, net sales totaled 3,406 million yen, a 10.7% increase compared to the same quarter of the previous year. Operating profit was 92 million yen, a 37.8% decrease, ordinary profit was 184 million yen, a 23.6% decrease, and quarterly net profit was 135 million yen, a 50.2% decrease year-on-year.

      Net sales by application were 1,819 million yen for printed circuit boards and semiconductor substrates, 516 million yen for connectors and micro switches, 1,004 million yen for lead frames, and 66 million yen for other applications.

   2. Summary of Financial Position

      1. Description of financial position

         	March 31, 2025	June 30,
         		2025	Increase/Decrease	Main reasons for increase/decrease
         Current assets	9,544	8,922	(621)	Cash and deposits (582)、 Raw materials and supplies (91)
         Non-current assets	6,312	7,059	746	Investment securities＋766
         Total assets	15,856	15,981	125	-
         Current liabilities	784	332	(452)	Income taxes payable (532)、 Allowance for bonus (35)、Accounts payable＋62
         Non-current liabilities	1,477	1,757	280	Deferred tax liabilities＋280
         Total liabilities	2,261	2,089	(171)	-
         Total net assets	13,594	13,891	297	Net unrealized gains (losses) on investment securities＋522、Retained earnings (228)
         Total liabilities and net assets	15,856	15,981	125	-

         Net assets totaled 13,891 million yen, an increase of 297 million yen from the end of the previous fiscal year. This increase was primarily due to an increase in the valuation difference on securities resulting from an increase in the fair value of investment securities.

   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 June 30, 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. The Company has introduced a dividend on equity ratio (DOE) with a minimum limit of 5% in addition to the dividend payout ratio, effective from the fiscal year ending June 30, 2024.

      Based on this policy, the Board of Directors is scheduled to approve an ordinary dividend of 63 yen at its May 2025 meeting with respect to the year-end dividend for the current fiscal year. As a result, the annual dividend per share, including the interim dividend, will be 126 yen.

      For the next fiscal year, we plan to pay an annual dividend of 126 yen per share.

   4. Policy on Specified Investment Shares

In terms of business strategy and business relationships with business partners, the Company hold shares only of companies that are expected to provide feedback on our product development and problem-solving. The Company have set a policy to reduce such strategic shareholdings to less than 20% of net assets.

The appropriateness of these holdings is regularly reviewed through discussions at the CX Progress Committee-which includes both members of the Board of Directors and external experts-as well as at Board meetings, and shares that do not meet the above conditions are subject to sale in line with this policy.

*Sales during the relevant quarter

1. Financial Statements and Notes

   1. Non-consolidated Balance Sheet

Previous fiscal year (March 31, 2025)

(Unit: Thousand yen)

Current fiscal year (June 30, 2025)

Assets