JCU : Summary of Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2026

November 7, 2025

Company name: JCU CORPORATION Listing: Tokyo Stock Exchange

Stock code: 4975 URL: https://www.jcu-i.com/english/ Representative: Masashi Kimura, Chairman & CEO

Contact: Yoji Inoue, Director, Managing Executive Officer, General Manager of Corporate Strategy Office Tel: +81-3-6895-7004

Scheduled date to file Semi-annual Securities Report: November 12, 2025

Scheduled date of payment of dividend: December 1, 2025 Preparation of supplementary material on financial results: Yes

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

Note: The original disclosure in Japanese was released on November 7, 2025 at 15:30. (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated results of operations (Percentages represent year-over-year changes)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
   	Million yen	%	Million yen	%	Million yen	%	Million yen	%
   Six months ended Sep. 30, 2025	14,258	12.0	5,781	23.9	5,780	16.0	4,360	28.8
   Six months ended Sep. 30, 2024	12,736	17.2	4,665	50.7	4,983	55.6	3,385	55.5

   Note: Comprehensive income (million yen) Six months ended Sep. 30, 2025: 3,365 (down 35.7%)

   Six months ended Sep. 30, 2024: 5,237 (up 42.4%)

   	Net income per share	Diluted net income per share
   	Yen	Yen
   Six months ended Sep. 30, 2025	175.06	-
   Six months ended Sep. 30, 2024	133.72	-

2. Consolidated financial position

Note: Revisions to the most recently announced dividend forecast: None

(Percentages represent year-over-year changes)

Note: Revisions to the most recently announced consolidated forecast: None

1. Significant changes in the scope of consolidation during the period: None

   Newly added: - Excluded: -

2. Application of special accounting methods for presenting semi-annual consolidated financial statements: None

3. Changes in accounting policies and accounting estimates, and restatements

   1. Changes in accounting policies due to revisions in accounting standards, others: None

   2. Changes in accounting policies other than 1) above: None

   3. Changes in accounting estimates: None

   4. Restatements: None

4. Number of issued shares (common stock)

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

      As of Sep. 30, 2025: 26,529,949 shares As of Mar. 31, 2025: 26,529,949 shares

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

      As of Sep. 30, 2025: 1,683,005 shares As of Mar. 31, 2025: 1,608,714 shares

   3. Average number of shares outstanding during the period

Six months ended Sep. 30, 2025: 24,909,954 shares Six months ended Sep. 30, 2024: 25,318,298 shares

• Semi-annual financial results reports are exempt from interim review conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

Forecasts of future performance in this report are based on assumptions judged to be valid and information currently available to the Company. Actual results may differ substantially from these forecasts for a number of reasons.

(Change in Unit of Monetary Amount Displayed)

Monetary amounts shown for account items and other matters in the semi-annual consolidated financial statements had previously been presented in thousands of yen. However, beginning with the six-month period ended September 30, 2025, the Company has changed the unit to millions of yen. For the purpose of comparison, figures for the previous fiscal year and the six-month period of the previous fiscal year are also presented in millions of yen.

Contents of Attachments

Please note English translation is available with respect to major sections of the following only.

1. Qualitative Information on Semi-annual Consolidated Financial Performance 2

   1. Explanation of Results of Operations 2

   2. Explanation of Financial Position 3

   3. Explanation of Consolidated Forecast and Other Forward-looking Statements 4

2. Semi-annual Consolidated Financial Statements and Notes 5

1. Semi-annual Consolidated Balance Sheet 5

2. Semi-annual Consolidated Statements of Income and Comprehensive Income 7

3. Semi-annual Consolidated Statement of Cash Flows 9

4. Notes to Semi-annual Consolidated Financial Statements 11

Going Concern Assumption 11

Significant Changes in Shareholders' Equity 11

Segment Information 11

1. Qualitative Information on Semi-annual Consolidated Financial Performance
   1. Explanation of Results of Operations

      During the first six months of the fiscal year ending March 31, 2026 (hereinafter the "period under review"), the domestic economy continued to show a modest recovery mainly due to the improving employment environment and corporate earnings, in addition to signs of recovery in consumer sentiment regarding consumer spending. In the manufacturing sector, production activity experienced ups and downs, with some signs of recovery in the weak demand for electronic components. Corporate investment remains firm, particularly in the manufacturing sector, with signs of recovery mainly in digitalization and labor-saving measures.

      Overseas, the Chinese economy remained at a standstill due to the impact of a prolonged real estate recession, with consumer spending remaining largely flat despite the effect of various policy measures. Manufacturing industry in China remained strong mainly due to the diversification of export markets, although exports to the United States declined due to the impact of U.S. trade policy. In Europe and the United States, the outlook remains uncertain, despite signs of continuous economic recovery in some areas. Looking ahead, the situation needs close monitoring on an ongoing basis of the impact of policy trends in the United States, the situation in the Middle East, and other factors.

      As for the business environment surrounding the JCU Group, in the electronics industry, various high-performance electronic devices such as smartphones and PCs, for which the inventory adjustment appears to have run its course, remained firm, leading to an increase in shipments of various products. In the automotive industry, production volume increased in China due to demand being boosted by the effect of various policy measures.

      The results of operations of the JCU Group were as follows.

      (Millions of yen, unless otherwise stated)

      	Previous period (Apr. 1, 2024-Sep. 30, 2024)	Current period (Apr. 1, 2025-Sep. 30, 2025)	Year-over-year change
      Net sales	12,736	14,258	Up 12.0%
      Operating profit	4,665	5,781	Up 23.9%
      Ordinary profit	4,983	5,780	Up 16.0%
      Profit attributable to owners of parent	3,385	4,360	Up 28.8%

      The results of operations by segment were as follows.

      Chemicals Business

      Chemicals for electronics components

      China: Demand for PWBs and semiconductor package substrates for high-performance electronic devices such as smartphones and PCs remained strong, resulting in a year-over-year increase in sales of chemicals.

      Taiwan: Demand for semiconductor package substrates for high-performance electronic devices such as smartphones and servers remained strong. As a result, sales of chemicals substantially increased year over year.

      South Korea: Due to the bottoming out of the semiconductor market and the progress in inventory adjustment by customers, demand for semiconductor package substrates continued a moderate recovery. As a result, sales of chemicals increased year over year.

      Chemicals for decoration

      Japan: Demand for chemicals declined due to changes in design trends. As a result, sales of chemicals stayed flat year over year.

      China: Despite increases in automobile production due to the effect of various policy measures boosting demand, demand for automobile parts which is subject to our business decreased. As a result, sales of chemicals decreased year over year.

      (Millions of yen, unless otherwise stated)

      	Previous period (Apr. 1, 2024-Sep. 30, 2024)	Current period (Apr. 1, 2025-Sep. 30, 2025)	Year-over-year change
      Net sales	11,384	12,501	Up 9.8%
      Segment profit	4,967	5,972	Up 20.2%

      Machine Business

      Sales increased thanks to the ordered projects progressing on schedule. However, order backlog decreased substantially due to a decline in new orders for large projects.

      (Millions of yen, unless otherwise stated)

      	Previous period (Apr. 1, 2024-Sep. 30, 2024)	Current period (Apr. 1, 2025-Sep. 30, 2025)	Year-over-year change
      Net sales	1,352	1,757	Up 30.0%
      Segment profit	172	295	Up 71.3%
      Orders received	647	759	Up 17.4%
      Order backlog	3,560	337	Down 90.5%

   2. Explanation of Financial Position
      1. Assets, liabilities and net assets Assets

         Total assets at the end of the period under review increased 184 million yen from the end of the previous fiscal year to 55,025 million yen.

         Current assets decreased 948 million yen to 39,275 million yen mainly due to decreases in accounts receivable -trade as well as advance payments-trade and consumption taxes refund receivable included in other, which were partially offset by an increase in cash and deposits.

         Non-current assets increased 1,132 million yen to 15,750 million yen mainly due to increases in construction in progress and investment securities.

         Liabilities

         Total liabilities at the end of the period under review decreased 1,875 million yen from the end of the previous fiscal year to 5,153 million yen.

         Current liabilities decreased 1,793 million yen to 4,554 million yen mainly due to decreases in notes and accounts payable-trade and income taxes payable.

         Non-current liabilities decreased 81 million yen to 599 million yen mainly due to decreases in long-term borrowings and deferred tax liabilities.

         Net assets

         Total net assets at the end of the period under review increased 2,059 million yen from the end of the previous fiscal year to 49,872 million yen, mainly due to an increase in retained earnings from profit attributable to owners of parent.

      2. Cash flows

      Cash and cash equivalents at the end of the period under review increased 958 million yen from the end of the previous fiscal year to 25,771 million yen.

      Cash flows from operating activities

      Net cash provided by operating activities decreased 643 million yen year over year to 3,984 million yen. This was mainly due to an increase in accounts receivable-trade, and contract assets.

      Cash flows from investing activities

      Net cash used in investing activities increased 968 million yen year over year to 985 million yen. This was mainly due to an increase in purchase of property, plant and equipment.

      Cash flows from financing activities

      Net cash used in financing activities decreased 120 million yen year over year to 1,407 million yen. This was mainly due to a net increase in short-term borrowings.

   3. Explanation of Consolidated Forecast and Other Forward-looking Statements

   Regarding the future outlook, for chemicals for electronics components, we expect demand for PWBs and semiconductor package substrates related to our business to expand in the medium and long term, resulting from innovation of various digital technologies in the semiconductor-related market including the spread of AI and IoT as well as automated vehicle operation. On the other hand, we expect demand for chemicals for decoration to remain flat, affected by situations in the automotive parts category, our main target, such as changes in design trends and sluggish demand resulting from the spread of electronic vehicles.

   Given these circumstances, the Group has set up its medium-to long-term direction, Our Vision for 2035, to become a global organization that continuously grows with society by fully utilizing distinctive strengths and making contributions to society and protecting the environment. We will strive to enhance our corporate value by pursuing social and economic values by constantly strengthening our technology and support system while responding to the ever-changing external environment.

   To that end, we formulated a new medium-term management plan called "JCU VISION 2035-1st stage-" (covering the period from the fiscal year ended March 31, 2025 to the fiscal year ending March 31, 2027). We are committed to implementing this plan based on basic policies: big investments in growing markets; strengthening the management foundation; utilization of data through the promotion of DX; higher profitability in current markets; sustainability management; and utilization of human capital, intellectual property, and intangible assets. Regarding the consolidated forecasts for the fiscal year ending March 31, 2026, there are no revisions to the full -year forecasts announced on May 13, 2025.

2. Semi-annual Consolidated Financial Statements and Notes

1. Semi-annual Consolidated Balance Sheet

   FY3/25

   (As of Mar. 31, 2025)

   (Millions of yen)

   Second quarter of FY3/26 (As of Sep. 30, 2025)

   Assets

   Current assets
   Cash and deposits	26,046	26,532
   Notes receivable-trade	1,714	1,783
   Accounts receivable-trade	8,324	7,492
   Contract assets	356	242
   Securities	66	-
   Merchandise and finished goods	1,496	1,659
   Work in process	106	88
   Raw materials and supplies	711	758
   Other	1,441	760
   Allowance for doubtful accounts	(42)	(42)
   Total current assets	40,223	39,275
   Non-current assets Property, plant and equipment
   Buildings and structures, net	3,401	3,195
   Machinery, equipment and vehicles, net	1,025	896
   Tools, furniture and fixtures, net	839	1,017
   Land	915	1,124
   Leased assets, net	21	17
   Construction in progress	5,626	6,279
   Total property, plant and equipment	11,830	12,531
   Intangible assets
   Other	135	259
   Total intangible assets	135	259
   Investments and other assets
   Investment securities	1,402	1,712
   Deferred tax assets	798	813
   Other	451	433
   Total investments and other assets	2,652	2,959
   Total non-current assets	14,617	15,750
   Total assets	54,841	55,025

   Liabilities

   Current liabilities

   FY3/25

   (As of Mar. 31, 2025)

   (Millions of yen)

   Second quarter of FY3/26 (As of Sep. 30, 2025)

   Notes and accounts payable-trade	1,934	1,237
   Electronically recorded obligations-operating	407	402
   Short-term borrowings	300	300
   Current portion of long-term borrowings	91	60
   Lease liabilities	14	14
   Income taxes payable	2,065	1,227
   Provision for bonuses	407	427
   Provision for loss on construction contracts	-	4
   Other	1,126	881
   Total current liabilities	6,347	4,554
   Non-current liabilities
   Long-term borrowings	30	-
   Lease liabilities	21	14
   Retirement benefit liability	146	168
   Deferred tax liabilities	161	103
   Asset retirement obligations	285	286
   Other	34	25
   Total non-current liabilities	680	599
   Total liabilities	7,028	5,153

   Net assets Shareholders' equity

   Share capital	1,281	1,281
   Capital surplus	1,222	1,226
   Retained earnings	44,060	47,449
   Treasury shares	(4,975)	(5,313)
   Total shareholders' equity	41,589	44,644
   Accumulated other comprehensive income Valuation difference on available-for-sale securities	304	516
   Foreign currency translation adjustment	5,918	4,711
   Total accumulated other comprehensive income	6,223	5,228
   Total net assets	47,812	49,872
   Total liabilities and net assets	54,841	55,025

2. Semi-annual Consolidated Statements of Income and Comprehensive Income

   Semi-annual Consolidated Statement of Income		(Millions of yen)
   	First six months of FY3/25	First six months of FY3/26
   	(Apr. 1, 2024-Sep. 30, 2024)	(Apr. 1, 2025-Sep. 30, 2025)
   Net sales	12,736	14,258
   Cost of sales	4,121	4,448
   Gross profit	8,615	9,810
   Selling, general and administrative expenses
   Salaries and allowances	1,231	1,257
   Bonuses	358	368
   Retirement benefit expenses	72	91
   Depreciation	277	327
   Provision of allowance for doubtful accounts	-	1
   Other	2,010	1,983
   Total selling, general and administrative expenses	3,950	4,029
   Operating profit	4,665	5,781
   Non-operating income
   Interest income	105	67
   Dividend income	19	23
   Foreign exchange gains	206	-
   Subsidy income	1	30
   Reversal of allowance for doubtful accounts	2	-
   Other	11	4
   Total non-operating income	347	126
   Non-operating expenses
   Interest expenses	2	2
   Foreign exchange losses	-	108
   Share of loss of entities accounted for using equity	24	5
   method
   Other	3	11
   Total non-operating expenses	29	127
   Ordinary profit	4,983	5,780
   Extraordinary income
   Gain on sale of non-current assets	0	11
   Total extraordinary income	0	11
   Extraordinary losses
   Loss on sale of non-current assets	-	0
   Loss on retirement of non-current assets	1	3
   Impairment losses	-	8
   Loss on liquidation of subsidiaries	-	24
   Total extraordinary losses	1	37
   Profit before income taxes	4,981	5,754
   Income taxes-current	1,482	1,576
   Income taxes-deferred	113	(183)
   Total income taxes	1,595	1,393
   Profit	3,385	4,360
   Profit attributable to owners of parent	3,385	4,360

   Semi-annual Consolidated Statement of Comprehensive Income

   First six months of FY3/25 (Apr. 1, 2024-Sep. 30, 2024)

   (Millions of yen) First six months of FY3/26 (Apr. 1, 2025-Sep. 30, 2025)

   Profit 3,385 4,360

   Other comprehensive income

   Valuation difference on available-for-sale securities (78) 211

   Foreign currency translation adjustment 1,926 (1,206)

   Share of other comprehensive income of entities accounted for using equity method	4	(0)
   Total other comprehensive income	1,851	(995)
   Comprehensive income	5,237	3,365
   Comprehensive income attributable to: Owners of parent	5,237	3,365

3. Semi-annual Consolidated Statement of Cash Flows

   First six months of FY3/25 (Apr. 1, 2024-Sep. 30, 2024)

   (Millions of yen) First six months of FY3/26 (Apr. 1, 2025-Sep. 30, 2025)

   Cash flows from operating activities

   Profit before income taxes	4,981	5,754
   Depreciation	400	457
   Impairment losses	-	8
   Loss on liquidation of subsidiaries	-	24
   Increase (decrease) in allowance for doubtful accounts	(2)	1
   Increase (decrease) in provision for bonuses	20	18
   Increase (decrease) in retirement benefit liability	14	23
   Interest and dividend income	(125)	(90)
   Interest expenses	2	2
   Foreign exchange losses (gains)	58	115

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

   24 5

   Loss (gain) on sale of non-current assets (0) (11)

   Loss on retirement of non-current assets 1 3

   Decrease (increase) in accounts receivable-trade, and contract assets	2,173	513
   Increase (decrease) in contract liabilities	190	(107)
   Decrease (increase) in inventories	315	(451)
   Increase (decrease) in trade payables	(1,221)	(458)
   Decrease (increase) in advance payments-trade	(357)	365
   Other, net	(338)	100
   Subtotal	6,138	6,276
   Interest and dividends received	152	96
   Interest paid	(2)	(2)
   Income taxes paid	(1,692)	(2,386)
   Income taxes refund	31	0
   Net cash provided by (used in) operating activities	4,627	3,984
   Cash flows from investing activities
   Decrease (increase) in time deposits	577	503
   Purchase of property, plant and equipment	(622)	(1,369)
   Proceeds from sale of property, plant and equipment	0	11
   Purchase of intangible assets	(5)	(127)
   Purchase of investment securities	(0)	(0)
   Proceeds from sale of investment securities	37	-
   Other, net	(2)	(2)
   Net cash provided by (used in) investing activities	(16)	(985)

   (Millions of yen)

   	First six months of FY3/25	First six months of FY3/26
   	(Apr. 1, 2024-Sep. 30, 2024)	(Apr. 1, 2025-Sep. 30, 2025)
   Cash flows from financing activities
   Net increase (decrease) in short-term borrowings	(150)	-
   Repayments of long-term borrowings	(104)	(61)
   Repayments of finance lease obligations	(6)	(7)
   Purchase of treasury shares	(381)	(367)
   Dividends paid	(886)	(971)
   Net cash provided by (used in) financing activities	(1,528)	(1,407)
   Effect of exchange rate change on cash and cash equivalents	741	(633)
   Net increase (decrease) in cash and cash equivalents	3,823	958
   Cash and cash equivalents at beginning of period	24,587	24,813
   Cash and cash equivalents at end of period	28,410	25,771

4. Notes to Semi-annual Consolidated Financial Statements Going Concern Assumption

Not applicable.

The Company purchased its own shares totaling 83,700 based on a resolution at the Board of Directors' meeting held on August 7, 2025. As a result, treasury shares increased by 366 million yen during the period under review. In addition, the Company disposed of 9,536 of its treasury shares as restricted stock compensation based on a resolution at the Board of Directors' meeting held on July 25, 2025. As a result, treasury shares decreased by 29 million yen during the period under review. These transactions resulted in a treasury share balance of 5,313 million yen at the end of the period under review.

1. First six months of FY3/25 (Apr. 1, 2024-Sep. 30, 2024)

   1. Information related to sales and profit or loss for each reportable segment

      (Millions of yen)

      	Reportable segment			Adjustments (Note 1)	Amounts shown on semi-annual consolidated statement of income (Note 2)
      	Chemicals Business	Machine Business	Subtotal
      Sales
      Sales to outside customers	11,384	1,352	12,736	-	12,736
      Inter-segment sales and transfers	-	-	-	-	-
      Total	11,384	1,352	12,736	-	12,736
      Segment profit	4,967	172	5,139	(474)	4,665

      Notes: 1. Details of the above adjustments to segment profit are as follows:

      To segment profit (Millions of yen)

      	First six months of FY3/25 (Apr. 1, 2024-Sep. 30, 2024)
      Inter-segment transaction elimination	-
      Corporate expenses*	(474)
      Total	(474)

      * Corporate expenses mainly include general and administrative expenses that cannot be attributed to any reportable segment.

   2. Segment profit is adjusted to be consistent with operating profit shown on the semi-annual consolidated statement of income.

      2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment Significant impairment losses related to non-current assets

      Not applicable.

      Significant change in goodwill Not applicable.

      Significant gain on bargain purchase Not applicable.

2. First six months of FY3/26 (Apr. 1, 2025-Sep. 30, 2025)

   1. Information related to sales and profit or loss for each reportable segment

      (Millions of yen)

      	Reportable segment			Adjustments (Note 1)	Amounts shown on semi-annual consolidated statement of income (Note 2)
      	Chemicals Business	Machine Business	Subtotal
      Sales
      Sales to outside customers	12,501	1,757	14,258	-	14,258
      Inter-segment sales and transfers	-	-	-	-	-
      Total	12,501	1,757	14,258	-	14,258
      Segment profit	5,972	295	6,267	(486)	5,781

      Notes: 1. Details of the above adjustments to segment profit are as follows:

      To segment profit (Millions of yen)

      	First six months of FY3/26 (Apr. 1, 2025-Sep. 30, 2025)
      Inter-segment transaction elimination	-
      Corporate expenses*	(486)
      Total	(486)

      * Corporate expenses mainly include general and administrative expenses that cannot be attributed to any reportable segment.

   2. Segment profit is adjusted to be consistent with operating profit shown on the semi-annual consolidated statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment Significant impairment losses related to non-current assets

Following the resolution to dissolve and liquidate JCU INTERNATIONAL, INC., a consolidated subsidiary of the Company, an impairment loss has been recorded in the Chemicals business segment. The amount of the impairment loss recognized for the period under review was 8 million yen.

Significant change in goodwill Not applicable.

Significant gain on bargain purchase Not applicable.

* This summary report is solely a translation of "Kessan Tanshin" (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.