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 Six Months Ended September 30, 2024 [Japanese GAAP]
November 13, 2024 | |||||||||||||||
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 file semi-annual securities report: November 14, 2024 | |||||||||||||||
Scheduled date to commence dividend payments: December 3, 2024 | |||||||||||||||
Preparation of supplementary material on financial results: Yes | |||||||||||||||
Holding of financial results briefing: Yes | |||||||||||||||
(Yen amounts are rounded down to millions, unless otherwise noted.) | |||||||||||||||
1. Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 to September 30, 2024) | |||||||||||||||
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes.) | ||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||
owners of parent | |||||||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||
September 30, 2024 | 26,186 | 9.5 | (1,412) | - | (1,118) | - | (597) | - | |||||||
September 30, 2023 | 23,915 | (11.2) | (2,920) | - | (2,378) | - | (730) | - | |||||||
(Note) Comprehensive income: | Six months ended September 30, 2024: | ¥ | (2,116) | million | [ | -%] | |||||||||
Six months ended September 30, 2023: | ¥ | 20 | million | [ | -%] | ||||||||||
Basic earnings | Diluted earnings per | ||||||||||||||
per share | share | ||||||||||||||
Six months ended | Yen | Yen | |||||||||||||
September 30, 2024 | (9.52) | - | |||||||||||||
September 30, 2023 | (11.65) | - | |||||||||||||
(2) Consolidated Financial Position | |||||||||||||||
Total assets | Net assets | Capital adequacy ratio | |||||||||||||
As of | Millions of yen | Millions of yen | % | ||||||||||||
September 30, 2024 | 126,051 | 46,590 | 37.0 | ||||||||||||
March 31, 2024 | 129,563 | 49,647 | 38.3 | ||||||||||||
(Reference) Equity: As of | September 30, 2024: | ¥ | 46,590 | 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 semi-annual 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):
September 30, 2024: | 62,844,251 | shares |
March 31, 2024: | 62,844,251 | shares |
2) Number of treasury shares at the end of the period: | ||
September 30, 2024: | 127,013 | shares |
March 31, 2024: | 126,963 | shares |
3) Average number of shares outstanding during the period: | ||
Six months ended September 30, 2024: | 62,717,271 | shares |
Six months ended September 30, 2023: | 62,717,339 | shares |
- Semi-annualfinancial results reports are exempt from review conducted by certified public accountants or an audit firm.
- 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.
Semi-annual Consolidated Financial Statements
(1) Semi-annual Consolidated Balance Sheets
(Millions of yen) | |||
As of March 31, 2024 | As of September 30, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 9,487 | 6,232 | |
Notes and accounts receivable - trade, and contract | 31,720 | 21,266 | |
assets | |||
Finished goods | 4,740 | 5,328 | |
Semi-finished goods | 10,398 | 12,021 | |
Work in process | 34,845 | 42,417 | |
Raw materials and supplies | 513 | 469 | |
Other | 3,167 | 4,128 | |
Total current assets | 94,873 | 91,864 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 9,925 | 9,639 | |
Other, net | 4,948 | 4,803 | |
Total property, plant and equipment | 14,873 | 14,442 | |
Intangible assets | 566 | 464 | |
Investments and other assets | |||
Investment securities | 13,868 | 12,139 | |
Deferred tax assets | 3,262 | 4,374 | |
Retirement benefit asset | 25 | 10 | |
Other | 2,102 | 2,766 | |
Allowance for doubtful accounts | (9) | (9) | |
Total investments and other assets | 19,249 | 19,280 | |
Total non-current assets | 34,689 | 34,186 | |
Total assets | 129,563 | 126,051 | |
―1―
(Millions of yen) | |||
As of March 31, 2024 | As of September 30, 2024 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 10,313 | 9,941 | |
Electronically recorded obligations - operating | 5,378 | 4,151 | |
Contract liabilities | 14,149 | 15,821 | |
Short-term borrowings | 21,000 | 18,400 | |
Current portion of long-term borrowings | 7,200 | 5,700 | |
Income taxes payable | 2,082 | 714 | |
Provision for bonuses for directors (and other | 148 | 86 | |
officers) | |||
Provision for loss on orders received | 1,169 | 1,308 | |
Other | 6,116 | 5,850 | |
Total current liabilities | 67,556 | 61,974 | |
Non-current liabilities | |||
Long-term borrowings | 7,800 | 12,950 | |
Retirement benefit liability | 3,749 | 3,817 | |
Asset retirement obligations | 129 | 129 | |
Deferred tax liabilities | 3 | 5 | |
Other | 677 | 583 | |
Total non-current liabilities | 12,359 | 17,486 | |
Total liabilities | 79,916 | 79,461 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 6,270 | 6,270 | |
Capital surplus | 4,625 | 4,625 | |
Retained earnings | 32,871 | 31,332 | |
Treasury shares | (45) | (45) | |
Total shareholders' equity | 43,722 | 42,183 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale | 4,691 | 3,495 | |
securities | |||
Foreign currency translation adjustment | 755 | 493 | |
Remeasurements of defined benefit plans | 478 | 417 | |
Total accumulated other comprehensive income | 5,925 | 4,406 | |
Total net assets | 49,647 | 46,590 | |
Total liabilities and net assets | 129,563 | 126,051 | |
―2―
(2) Semi-annual Consolidated Statements of Income and Comprehensive Income
(Millions of yen) | |||
For the six months | For the six months | ||
ended September 30, 2023 | ended September 30, 2024 | ||
Net sales | 23,915 | 26,186 | |
Cost of sales | 21,167 | 21,639 | |
Gross profit | 2,747 | 4,547 | |
Selling, general and administrative expenses | |||
Salaries and allowances | 1,580 | 1,735 | |
Bonuses | 450 | 512 | |
Provision for bonuses for directors (and other officers) | 50 | 55 | |
Retirement benefit expenses | 92 | 82 | |
Depreciation | 190 | 171 | |
Packing and delivery expenses | 442 | 535 | |
Other | 2,860 | 2,866 | |
Total selling, general and administrative expenses | 5,667 | 5,959 | |
Operating loss | (2,920) | (1,412) | |
Non-operating income | |||
Dividend income | 120 | 103 | |
Insurance claim income | 179 | 167 | |
Share of profit of entities accounted for using equity | 147 | 182 | |
method | |||
Foreign exchange gains | 99 | - | |
Other | 77 | 97 | |
Total non-operating income | 623 | 551 | |
Non-operating expenses | |||
Interest expenses | 54 | 101 | |
Financing expenses | 15 | 60 | |
Foreign exchange losses | - | 78 | |
Other | 11 | 16 | |
Total non-operating expenses | 81 | 257 | |
Ordinary loss | (2,378) | (1,118) | |
Extraordinary income | |||
Gain on sale of non-current assets | 0 | 0 | |
Gain on sale of investment securities | 1,478 | 151 | |
Total extraordinary income | 1,478 | 151 | |
Extraordinary losses | |||
Loss on sale and retirement of non-current assets | 0 | 2 | |
Loss on sale of investment securities | - | 2 | |
Total extraordinary losses | 0 | 4 | |
Loss before income taxes | (900) | (971) | |
Income taxes | (170) | (373) | |
Loss | (730) | (597) | |
Loss attributable to non-controlling interests | - | - | |
Loss attributable to owners of parent | (730) | (597) | |
―3―
(Millions of yen) | |||
For the six months | For the six months | ||
ended September 30, 2023 | ended September 30, 2024 | ||
Loss | (730) | (597) | |
Other comprehensive income | |||
Valuation difference on available-for-sale securities | 411 | (1,195) | |
Foreign currency translation adjustment | 262 | (161) | |
Remeasurements of defined benefit plans, net of tax | (26) | (61) | |
Share of other comprehensive income of entities | 103 | (100) | |
accounted for using equity method | |||
Total other comprehensive income | 751 | (1,519) | |
Comprehensive income | 20 | (2,116) | |
Comprehensive income attributable to | |||
Comprehensive income attributable to owners of | 20 | (2,116) | |
parent | |||
Comprehensive income attributable to non-controlling | - | - | |
interests | |||
―4―
(3) Semi-annual Consolidated Statements of Cash Flows
(Millions of yen) | |||
For the six months | For the six months | ||
ended September 30, 2023 | ended September 30, 2024 | ||
Cash flows from operating activities | |||
Loss before income taxes | (900) | (971) | |
Depreciation | 895 | 928 | |
Increase (decrease) in retirement benefit liability | 61 | (19) | |
Share of loss (profit) of entities accounted for using | (147) | (182) | |
equity method | |||
Loss (gain) on sale of investment securities | (1,478) | (149) | |
Interest and dividend income | (157) | (148) | |
Interest expenses | 54 | 101 | |
Decrease (increase) in trade receivables | 7,829 | 10,246 | |
Decrease (increase) in inventories | (8,236) | (9,780) | |
Increase (decrease) in trade payables | (3,387) | (1,479) | |
Increase (decrease) in contract liabilities | 1,283 | 1,672 | |
Other, net | (1,360) | (1,492) | |
Subtotal | (5,544) | (1,272) | |
Interest and dividends received | 158 | 150 | |
Interest paid | (65) | (100) | |
Income taxes paid | (580) | (1,540) | |
Net cash provided by (used in) operating activities | (6,031) | (2,763) | |
Cash flows from investing activities | |||
Payments into time deposits | (1,207) | (1,328) | |
Proceeds from withdrawal of time deposits | - | 308 | |
Purchase of investment securities | (12) | (10) | |
Proceeds from sale of investment securities | 2,358 | 229 | |
Purchase of property, plant and equipment | (418) | (384) | |
Proceeds from sale of property, plant and equipment | 1 | 0 | |
Purchase of intangible assets | (40) | (23) | |
Other, net | (137) | (223) | |
Net cash provided by (used in) investing activities | 543 | (1,431) | |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings | 6,396 | (2,600) | |
Proceeds from long-term borrowings | - | 10,000 | |
Repayments of long-term borrowings | (1,129) | (6,350) | |
Dividends paid | (815) | (941) | |
Other, net | (97) | (96) | |
Net cash provided by (used in) financing activities | 4,353 | 12 | |
Effect of exchange rate change on cash and cash | 120 | (17) | |
equivalents | |||
Net increase (decrease) in cash and cash equivalents | (1,014) | (4,199) | |
Cash and cash equivalents at beginning of period | 5,693 | 9,183 | |
Cash and cash equivalents at end of period | 4,678 | 4,983 | |
―5―