Kyosan Electric Manufacturing Co., Ltd.TSE: 6742

Summary of Financial Result(Six Months Ended September 30, 2024)

Nov 25, 2024 at 10:04 PM UTC · Issued by Kyosan Electric Manufacturing Co., Ltd.

Six Months Ended September 30, 2024 (April 1, 2024 to September 30, 2024)

Financial Results

Stock exchange listings : Tokyo Prime

Securities code : 6742

Six Months Ended September 30, 2024 (April 1, 2024 to September 30, 2024)

Summary of Financial Result

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.

Consolidated Financial Results

Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 to September 30, 2024)

(Millions of yen)

	Six months ended	Six months ended	Six months ended	Change
	September 30,	September 30,	September 30,
	(Rate of change)
	2022	2023	2024


Orders received	49,583	37,399	43,053	5,654
15.1%


Net sales	26,919	23,915	26,186	2,271
9.5%


Operating profit	(2,085)	(2,920)	(1,412)	1,508
%	( 7.7% )	( 12.2% )	( 5.4% )	( ― )

Ordinary profit	(1,756)	(2,378)	(1,118)	1,259
%	( 6.5% )	( 9.9% )	( 4.3% )	( ― )

Profit attributable to owners of parent	(1,497)	(730)	(597)	133
%	( 5.6% )	( 3.1% )	( 2.3% )	( ― )

Backlog of orders(Six months ended September 30, 2024) : 126.2 billion yen

Interim Dividend : 5 yen per share

Business Segment Information

			(Millions of yen)

Six months ended	Six months ended	Six months ended
September 30,	September 30,	September 30,	Change (Rate of change)
2022	2023	2024

Signaling Solutions Business

Orders received	42,336	32,604	34,142	1,537	4.7%

Backlog of orders	115,846	114,091	117,110	3,019	2.6%

Net sales	18,615	20,043	20,357	313	1.6%

Segment profit	(976)	324	517	193	59.5%

Power Electronics Business

Orders received	7,246	4,794	8,910	4,116	85.8%

Backlog of orders	8,054	5,680	9,163	3,483	61.3%

Net sales	8,303	3,871	5,828	1,957	50.6%

Segment profit	1,242	(955)	360	1,316	( ― )


Corporate expenses	2,352	2,289	2,290	1	0.1%

Operating income	(2,085)	(2,920)	(1,412)	1,508	( ― )

Net Sales Change Factors (Year-on-Year)

【Signaling Solutions Business】

Increase year-on-year as a result of steady sales of orders received.

【Power Electronics Business】

Sales of power supplies for semiconductor manufacturing equipment increased due to recovery in demand for logic semiconductors, and sales of power supplies for flat panel display manufacturing equipment increased mainly from overseas customers, resulting in a

total increase over the same period of the previous fiscal year.

26.1 billion yen, up 2.2 billion yen from 23.9 billion yen in the previous fiscal year.

Signalling: Signaling Solutions Business

PE: Power Elictronics Bussiness

		PE		PE
Signaling	(Domestic)		(Overseas)	+2.2B
(Overseas)	+300M yen		+1.6B yen
	yen
+800M yen

26.1B yen

Signaling

(Domestic) -400M yen

23.9B yen

Six months ended	Six months ended
September 30, 2023	September 30, 2024

Operating Profit Change Factors (Year-on-Year)

【Increasing factor】

260 million yen due to higher sales.
1.53 billion yen due to price negotiations and other efforts to reduce the cost ratio.

【Decreasing factor】

290 million yen due to an increase in selling, general and administrative expenses.

September 30, 2023	September 30, 2024
Operating profit	Operating profit

-1.4B yen

-2.9B yen

		cost ratio	increase in
		SG & A
		improvement
increase in		expenses
	+1.5B yen	1.5B
net sales		-290M yen
		yen
+260M yen

Consolidated Financial Statements

				(Millions of yen)

		Six months ended	Six months ended
		September 30,	September 30,	Change
		2023	2024

● Current assets	94,873	91,864	(3,009)		【Assets】
	Cash and deposits	9,487	6,232	(3,255)		• Inventory increased due to
							increase in orders
	Notes and accounts receivable	31,720	21,266	(10,453)			outstanding in the signaling
	- trade, and contract assets			solutions business and
		50,498	60,237	9,738
	Inventories			continued correction in the
							semiconductor market in the
● Non-current assets	34,689	34,186	(503)
		power electronics business.
						•	Steadily reduce investment
	Property, plant and equipment	14,873	14,442	(431)
							securities.
	Investment securities	13,868	12,139	(1,728)


	Total assets	129,563	126,051	(3,512)

● Liabilities	79,916	79,461	(455)		【Liabilities】
	Trade payables	15,691	14,092	(1,598)		•	Increase in borrowings
							mainly due to increase in
	Contract liabilities	14,149	15,821	1,672			inventories
		【Net assets】
						• Decreased due to net loss
	Borrowings	36,000	37,050	1,050

	Income taxes payable	2,082	714	(1,367)

● Net assets	49,647	46,590	(3,057)
Total liabilities and net assets	129,563	126,051	(3,512)

Consolidated Statements of Cash Flows

			(Millions of yen)
	Six months ended	Six months ended
	September 30,	September 30,	Change
	2023	2024
Net cash provided by (used in) operating activities	(6,031)	(2,763)	3,268
Net cash provided by (used in) investing activities	543	(1,431)	(1,974)
Net cash provided by (used in) financing activities	4,353	12	(4,341)
Cash and cash equivalents	4,678	4,983	305

Point of change ▼〔Loss before income taxes 〕

-900M yen

▼〔Increase in inventories〕

-9.7B yen

▼〔Decrease in trade payables〕

-1.4B yen

▼〔Decrease in trade receivables〕

10.2B yen

▼〔Increase in contract liabilities〕

1.6B yen

▼〔Purchase of non-current assets〕

-400M yen

▼〔Payments into time deposits〕

-1B yen

Net cash provided by (used in) operating activities

3B yen

Net cash provided by (used in) investing activities

1.4B yen

▼〔 Decrease in borrowings / Dividends paid〕

Decrease in borrowings	1B yen




Dividends paid	-900M yen

Net cash provided by (used in) financing activities

12M yen