Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2024
[Japanese GAAP]
February 12, 2025 | ||||||||||||||
Company name: Kyosan Electric Manufacturing Co.,Ltd. | ||||||||||||||
Listing: Tokyo | ||||||||||||||
Securities code: 6742 | ||||||||||||||
URL: https://www.kyosan.co.jp | ||||||||||||||
Representative: Ryoji Kunisawa | Representative Director, President | |||||||||||||
Inquiries: Aki Sato | General Manager of Finance & Accounting Dept. | |||||||||||||
Telephone: +81-45-503-8106 | ||||||||||||||
Scheduled date to commence dividend payments: - | ||||||||||||||
Preparation of supplementary material on financial results: None | ||||||||||||||
Holding of financial results briefing: None | ||||||||||||||
(Yen amounts are rounded down to millions, unless otherwise noted.) | ||||||||||||||
1. Consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2024 to December 31, 2024) | ||||||||||||||
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes.) | |||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||
December 31, 2024 | 46,240 | 19.2 | (433) | - | 119 | - | 277 | - | ||||||
December 31, 2023 | 38,782 | (16.0) | (2,819) | - | (2,151) | - | (281) | - |
(Note) Comprehensive income: | Nine months ended December 31, 2024: |
Nine months ended December 31, 2023: |
¥ | (1,069) | million | [ | -%] |
¥ | 181 | million | [ | -%] |
Basic earnings | Diluted earnings per | ||||
per share | share | ||||
Nine months ended | Yen | Yen | |||
December 31, 2024 | 4.43 | - | |||
December 31, 2023 | (4.49) | - | |||
(2) Consolidated Financial Position | |||||
Total assets | Net assets | Capital adequacy ratio | |||
As of | Millions of yen | Millions of yen | % | ||
December 31, 2024 | 132,275 | 47,323 | 35.8 | ||
March 31, 2024 | 129,563 | 49,647 | 38.3 | ||
(Reference) Equity: As of | December 31, 2024: | ¥ | 47,323 | million | |
As of | March 31, 2024: | ¥ | 49,647 | million |
2. Dividends
Annual dividends | |||||||
1st | 2nd | 3rd | Year-end | Total | |||
quarter-end | quarter-end | quarter-end | |||||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended March 31, 2024 | - | 5.00 | - | 15.00 | 20.00 | ||
Fiscal year ending March 31, 2025 | - | 5.00 | - | ||||
Fiscal year ending March 31, 2025 | 15.00 | 20.00 | |||||
(Forecast) | |||||||
(Note) Revision to the forecast for dividends announced most recently: | None |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||||
owners of parent | per share | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Full year | 84,000 | 19.1 | 5,700 | 128.8 | 6,000 | 84.1 | 4,400 | 28.1 | 70.16 | ||
(Note) Revision to the financial results forecast announced most recently: | None | ||||||||||
* Notes: | |||||||||||
(1) Significant changes in the scope of consolidation during the period: | None | ||||||||||
Newly included: | - | (Company name: | - | ) | |||||||
Excluded: | - | (Company name: | - | ) |
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
December 31, 2024: | 62,844,251 | shares |
March 31, 2024: | 62,844,251 | shares |
2) Number of treasury shares at the end of the period: | ||
December 31, 2024: | 127,013 | shares |
March 31, 2024: | 126,963 | shares |
3) Average number of shares outstanding during the period: | ||
Nine months ended December 31, 2024: | 62,717,260 | shares |
Nine months ended December 31, 2023: | 62,717,338 | shares |
- Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes(voluntary)
- Proper use of earnings forecasts, and other special matters
The forecasts and other forward-looking statements in this document are based on information currently available to the Company and certain assumptions deemed to be reasonable.
Actual results may differ materially from these forecasts due to various factors.
Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Millions of yen) | ||
As of March 31, 2024 | As of December 31, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 9,487 | 7,040 |
Notes and accounts receivable - trade, and contract | 31,720 | 26,526 |
assets | ||
Finished goods | 4,740 | 5,349 |
Semi-finished goods | 10,398 | 12,449 |
Work in process | 34,845 | 42,011 |
Raw materials and supplies | 513 | 509 |
Other | 3,167 | 4,548 |
Total current assets | 94,873 | 98,436 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 9,925 | 9,581 |
Other, net | 4,948 | 4,740 |
Total property, plant and equipment | 14,873 | 14,321 |
Intangible assets | 566 | 462 |
Investments and other assets | ||
Investment securities | 13,868 | 12,087 |
Deferred tax assets | 3,262 | 4,158 |
Retirement benefit asset | 25 | - |
Other | 2,102 | 2,819 |
Allowance for doubtful accounts | (9) | (9) |
Total investments and other assets | 19,249 | 19,055 |
Total non-current assets | 34,689 | 33,839 |
Total assets | 129,563 | 132,275 |
―1―
(Millions of yen) | ||||
As of March 31, 2024 | As of December 31, 2024 | |||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable - trade | 10,313 | 8,354 | ||
Electronically recorded obligations - operating | 5,378 | 4,827 | ||
Contract liabilities | 14,149 | 15,817 | ||
Short-term borrowings | 21,000 | 25,800 | ||
Current portion of long-term borrowings | 7,200 | 5,700 | ||
Income taxes payable | 2,082 | 509 | ||
Provision for bonuses for directors (and other | 148 | 87 | ||
officers) | ||||
Provision for loss on orders received | 1,169 | 1,434 | ||
Other | 6,116 | 5,580 | ||
Total current liabilities | 67,556 | 68,111 | ||
Non-current liabilities | ||||
Long-term borrowings | 7,800 | 12,300 | ||
Retirement benefit liability | 3,749 | 3,816 | ||
Asset retirement obligations | 129 | 127 | ||
Deferred tax liabilities | 3 | 6 | ||
Other | 677 | 589 | ||
Total non-current liabilities | 12,359 | 16,839 | ||
Total liabilities | 79,916 | 84,951 | ||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 6,270 | 6,270 | ||
Capital surplus | 4,625 | 4,625 | ||
Retained earnings | 32,871 | 31,894 | ||
Treasury shares | (45) | (45) | ||
Total shareholders' equity | 43,722 | 42,745 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale | 4,691 | 3,333 | ||
securities | ||||
Foreign currency translation adjustment | 755 | 858 | ||
Remeasurements of defined benefit plans | 478 | 386 | ||
Total accumulated other comprehensive income | 5,925 | 4,578 | ||
Total net assets | 49,647 | 47,323 | ||
Total liabilities and net assets | 129,563 | 132,275 | ||
―2―
- Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income (For the nine months)
(Millions of yen) | ||||
For the nine months | For the nine months | |||
ended December 31, 2023 | ended December 31, 2024 | |||
Net sales | 38,782 | 46,240 | ||
Cost of sales | 32,986 | 37,560 | ||
Gross profit | 5,796 | 8,680 | ||
Selling, general and administrative expenses | ||||
Salaries and allowances | 2,386 | 2,605 | ||
Bonuses | 641 | 808 | ||
Provision for bonuses for directors (and other officers) | 56 | 56 | ||
Retirement benefit expenses | 139 | 124 | ||
Depreciation | 288 | 259 | ||
Packing and delivery expenses | 738 | 872 | ||
Other | 4,363 | 4,387 | ||
Total selling, general and administrative expenses | 8,615 | 9,113 | ||
Operating loss | (2,819) | (433) | ||
Non-operating income | ||||
Dividend income | 182 | 177 | ||
Insurance claim income | 188 | 172 | ||
Share of profit of entities accounted for using equity | 246 | 243 | ||
method | ||||
Foreign exchange gains | 54 | 79 | ||
Other | 138 | 147 | ||
Total non-operating income | 809 | 819 | ||
Non-operating expenses | ||||
Interest expenses | 92 | 176 | ||
Financing expenses | 37 | 66 | ||
Other | 10 | 22 | ||
Total non-operating expenses | 140 | 265 | ||
Ordinary profit (loss) | (2,151) | 119 | ||
Extraordinary income | ||||
Gain on sale of non-current assets | 0 | 0 | ||
Gain on sale of investment securities | 1,799 | 175 | ||
Total extraordinary income | 1,799 | 175 | ||
Extraordinary losses | ||||
Loss on sale and retirement of non-current assets | 16 | 9 | ||
Loss on sale of investment securities | - | 2 | ||
Other | 0 | - | ||
Total extraordinary losses | 17 | 11 | ||
Profit (loss) before income taxes | (368) | 283 | ||
Income taxes | (86) | 5 | ||
Profit (loss) | (281) | 277 | ||
Loss attributable to non-controlling interests | - | - | ||
Profit (loss) attributable to owners of parent | (281) | 277 | ||
―3―
(Millions of yen) | ||
For the nine months | For the nine months | |
ended December 31, 2023 | ended December 31, 2024 | |
Profit (loss) | (281) | 277 |
Other comprehensive income |
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
271 | (1,357) |
184 | 65 |
(40) | (92) |
47 | 37 |
463 | (1,347) |
181 | (1,069) |
181 | (1,069) |
- | - |
―4―
(3) Quarterly Consolidated Statements of Cash Flows
(Millions of yen) | |||
For the nine months | For the nine months | ||
ended December 31, 2023 | ended December 31, 2024 | ||
Cash flows from operating activities | |||
Profit (loss) before income taxes | (368) | 283 | |
Depreciation | 1,368 | 1,412 | |
Increase (decrease) in retirement benefit liability | 57 | (66) | |
Share of loss (profit) of entities accounted for using | (246) | (243) | |
equity method | |||
Loss (gain) on sale of investment securities | (1,799) | (173) | |
Interest and dividend income | (241) | (242) | |
Interest expenses | 92 | 176 | |
Decrease (increase) in trade receivables | 4,592 | 5,236 | |
Decrease (increase) in inventories | (12,360) | (9,797) | |
Increase (decrease) in trade payables | (2,835) | (2,533) | |
Increase (decrease) in contract liabilities | 836 | 1,667 | |
Other, net | (1,876) | (2,421) | |
Subtotal | (12,779) | (6,699) | |
Interest and dividends received | 247 | 256 | |
Interest paid | (99) | (180) | |
Income taxes paid | (530) | (1,883) | |
Net cash provided by (used in) operating activities | (13,162) | (8,508) | |
Cash flows from investing activities | |||
Payments into time deposits | (1,217) | (1,328) | |
Proceeds from withdrawal of time deposits | 173 | 306 | |
Purchase of investment securities | (17) | (14) | |
Proceeds from sale of investment securities | 2,756 | 265 | |
Purchase of property, plant and equipment | (568) | (620) | |
Proceeds from sale of property, plant and equipment | 2 | 2 | |
Purchase of intangible assets | (64) | (28) | |
Other, net | (185) | 1 | |
Net cash provided by (used in) investing activities | 878 | (1,414) | |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings | 9,782 | 4,800 | |
Proceeds from long-term borrowings | 5,000 | 10,000 | |
Repayments of long-term borrowings | (1,394) | (7,000) | |
Dividends paid | (1,129) | (1,254) | |
Other, net | (145) | (139) | |
Net cash provided by (used in) financing activities | 12,113 | 6,405 | |
Effect of exchange rate change on cash and cash | 162 | 25 | |
equivalents | |||
Net increase (decrease) in cash and cash equivalents | (7) | (3,492) | |
Cash and cash equivalents at beginning of period | 5,693 | 9,183 | |
Cash and cash equivalents at end of period | 5,685 | 5,691 | |
―5―