Translation
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: Nicca Chemical Co., Ltd. Stock exchange listing: Tokyo, Nagoya
Stock code: 4463 URL https://www.nicca.co.jp
Representative: President and Representative EMORI Yasumasa Director, Member of the Board
July 31, 2025
Inquiries:
General manager of Administration Division
SAWASAKI Shoya TEL 0776-24-0213
Scheduled date to file Semi-annual Securities Report: August 12, 2025
Scheduled date to commence dividend payments: September 8, 2025 Preparation of supplementary material on financial results: Yes
Holding of financial results meeting: Yes
(Amounts less than one million yen are rounded down)
Consolidated financial results for the six months ended June 30, 2025 (from January 1, 2025 to June 30, 2025)
Consolidated operating results (cumulative) Percentages indicate year-on-year changes
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
Six months ended June 30, 2025
27,180
4.4
1,935
19.0
1,752
(12.7)
997
(18.1)
Six months ended June 30, 2024
26,044
7.1
1,626
275.8
2,007
161.8
1,217
327.0
(Notes) Comprehensive income 2Q of FY12/2025: -441 mil. yen [－%]
2Q of FY12/2024: 3,177 mil. yen [90.2 %]
Earnings per share
Diluted earnings per share
Yen
Yen
Six months ended June 30, 2025
62.93
-
Six months ended June 30, 2024
77.01
-
Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Millions of yen
Millions of yen
%
Yen
As of June 30, 2025
64,772
35,604
50.5
2,063.51
As of December 31, 2024
62,366
36,553
54.0
2,125.60
(Reference) Shareholders equity 2Q of FY12/2025: 32,718 mil. yen
FY12/2024: 33,650 mil. yen
Cash dividends
Annual dividends per share
1st quarter-end
2nd quarter-end
3rd quarter-end
Fiscal year-end
Total
Yen
Yen
Yen
Yen
Yen
Year ended December 31, 2024
-
25.00
-
27.00
52.00
Year ending December 31, 2025
-
30.00
Year ending December 31, 2025 (Forecast)
-
30.00
60.00
(Notes) Revisions to dividends forecasts published most recently: No
Forecast of consolidated financial results for the year ending December 31, 2025 (from January 1, 2025 to December 31, 2025)
Percentages indicate year-on-year changes
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Earnings per share
Full year
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
Yen
57,000
5.4
3,600
2.3
3,400
(14.5)
2,400
(12.9)
151.49
(Notes) Revisions to performance forecasts published most recently: Yes
Notes
Significant changes in the scope of consolidation during the six months ended June 30, 2025: No
Application of special accounting methods for preparing semi-annual consolidated financial statements: Yes
Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements 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
Number of issued shares (common shares)
As of June 30, 2025 | 17,710,000 | shares | As of December 31, 2024 | 17,710,000 | shares |
As of June 30, 2025 | 1,854,331 | shares | As of December 31, 2024 | 1,879,105 | shares |
Total number of issued shares at the end of the period (including treasury shares) Number of treasury shares at the end of the period
Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2025 | 15,842,116 | shares | Six months ended June 30, 2024 | 15,808,260 | shares |
Summary of financial results for the second quarter (1st half) is not included in a biannual review by a certified public accountant or an auditing firm.
Explanation regarding appropriate use of the performance forecasts and other special notes (Notes on descriptions about the future, etc.)
Descriptions about the future such as performance forecasts contained in this document are based on information currently available to the Company and certain presumptions considered as reasonable, and those are not intended to indicate the Company should assure that it would realize such forecasts. Meanwhile, actual performance may differ substantially, influenced by a wide variety of factors in the future.
- Table of Contents: Appendix
Qualitative Information on the Financial Results for the Period under Review 2
Overview of Operating Results for the Interim Period 2
Overview of Financial Position for the Interim Period 3
Descriptions Regarding Future Prospects Such as Consolidated Performance Forecasts 3
Interim Consolidated Financial Statements and Principal Notes 4
Interim Consolidated Balance Sheets 4
Interim Consolidated Statements of Income and Statements of Comprehensive Income 6
Interim Consolidated Statements of Income 6
Interim Consolidated Statements of Comprehensive Income 7
Interim Consolidated Statements of Cash Flows 8
Notes on Interim Consolidated Financial Statements 9
(Notes on the Application of Special Accounting Methods to the Preparation of Interim Consolidated Financial Statements) 9
(Notes on Segment Information, Etc.) 10
(Notes when there are Significant Changes in Amounts of Equity) 12
(Notes on Going Concern Assumption) 12
Qualitative Information on the Financial Results for the Period under Review
Overview of Operating Results for the Interim Period
During the interim period of the current fiscal year ending December 2025 (January 1, 2025 to June 30, 2025), the global economy remained concerned about the impact of geopolitical risks in Ukraine and the Middle East. In addition, the global economic outlook has become increasingly complex and uncertain due to reciprocal tariffs and other protectionist measures under the renewed Trump administration in the United States. As for the Japanese economy, while it is on a gradual recovery path due to a pickup in consumer spending and the positive effect of inbound tourists, there are concerns about the impact of the U.S. tariff policy going forward.
Under such circumstances, the NICCA CHEMICAL Group (the "Group"), based on its corporate purpose expressed as "Activate Your Life" (which means resolving various social issues, in cooperation with its stakeholders, through the infinite power of surface science and contributing to a better life and brilliant future), has set its medium-long term growth vision as "the most respected innovation company for customers all over the world." With these corporate purpose and vision, the Company established "INNOVATION25" (2023-2025), its three-year medium-term business plan, and is working to promote five major strategies under the plan: "major transformation of business structure," "selective and focused investment" "productivity reform," "promotion of sustainable management," and "evolution of the extended family policy."
Going forward, as we aim to achieve persistent growth, we will keep turning the rapidly changing management environment into business opportunities and focus our efforts on operations that offer the values increasingly needed by society.
In the interim period of the current fiscal year, the final year of the "INNOVATION25" three-year medium-term business plan, the Company posted net sales of 27,180 million yen (up 4.4%), operating profit of 1,935 million yen (up 19.0%), ordinary profit of 1,752 million yen (down 12.7%), and profit attributable to owners of parent for the interim period of 997 million yen (down 18.1%), all on a year-on-year basis.
Operating results by segment are as follows. Note that sales of each segment, as shown below, do not include inter-segment sales. [Chemicals Business]
The segment recorded sales of 19,602 million yen (up 2.2% year on year), with segment profit amounting to 2,106 million yen (up 13.5% year on year). In the Textile Chemicals segment, sales increased due to a higher sales ratio of high-value-added EHD (environment, health, and digital)-related products, such as fluorine-free water repellent agents and process streamlining agents, primarily at production sites in China, and obtained new clients. However, from the middle of the second quarter, the segment was affected by a slowdown in the operations of overseas textile processing customers due to the impact of the Trump tariffs. Meanwhile, electronic materials-related process agents expanded sales in association with the partial recovery of the semiconductor market. Although manufacturing costs and selling and administrativ e expenses increased, the Chemicals Business achieved higher revenue and profit as a result of the above-mentioned sales growth.
[Cosmetics Business]
The segment recorded sales of 7,337 million yen (up 9.4% year on year), with segment profit amounting to 818 million yen (up 21.3% year on year). In the Company's DEMI cosmetics brand, core hair care products and new items performed strongly despite rising general prices and other uncertainties in the domestic economy. Among consolidated subsidiaries, sales at DEMI KOREA CO., LTD. declined due to the worsening market conditions, but the contracted business of Yamada Pharmaceutical Co., Ltd. remained strong. As a result, the Cosmetics Business achieved both higher sales and profit year on year.
[Other Business]
The segment recorded sales of 240 million yen (up 60.3% year on year), with segment profit amounting to 39 million yen (in contrast to segment loss of 9 million yen a year earlier).
Overview of Financial Position for the Interim Period
① Assets, Liabilities, Net assets
(Assets)
Total assets at the end of the interim period of the current fiscal year increased by 2,406 million yen from the end of the previous fiscal year to 64,772 million yen. The increase was mainly due to a decrease of 1,205 million yen in notes and accounts receivable - trade, and contract assets, a decrease of 472 million yen in buildings and structures (net), and an increase of 4,257 million yen in "Other" under property, plant and equipment (net).
(Liabilities)
Total liabilities at the end of the interim period of the current fiscal year increased by 3,355 million yen from the end of the previous fiscal year to 29,168 million yen. The increase was mainly due to an increase of 1,752 million yen in short-term borrowings and 1,316 million yen in long-term borrowings.
(Net assets)
Total net assets at the end of the interim period of the current fiscal year decreased by 949 million yen from the end of the previous fiscal year to 35,604 million yen. The decrease was mainly due to a decrease of 893 million yen in foreign currency translation adjustment.
② Cash flow status
Cash and cash equivalents at the end of the interim period of the current fiscal year increased by 146 million yen from the end of the previous fiscal year to 9,027 million yen.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to 2,268 million yen. This was mainly due to income such as profit before income taxes of 1,884 million yen and depreciation of 1,044 million yen, and an outflow of 655 million yen for income taxes paid.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to 4,528 million yen. This was mainly due to an outflow of 5,114 million yen for the acquisition of property, plant and equipment.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to 2,910 million yen. This was mainly due to inflows of 35,704 million yen from short-term borrowings and 1,859 million yen from long-term borrowings, and outflows of 33,952 million yen for the repayment of short-term borrowings and 427 million yen for dividends paid.
Descriptions Regarding Future Prospects Such as Consolidated Performance Forecasts
Consolidated performance forecasts for the full term of FY12/2025 were revised from those published on February 14, 2025, based on currently available information and predictions. For details, please refer to "Notice Regarding Revisions to Full-Year Consolidated Earnings Forecast" published on July 31, 2025.
Interim Consolidated Financial Statements and Principal Notes
Interim Consolidated Balance Sheets
(Millions of yen)
As of December 31, 2024
As of June 30, 2025
Assets
Current assets
Cash and deposits
10,726
10,617
Notes and accounts receivable - trade, and contract
assets
11,996
10,791
Merchandise and finished goods
5,314
5,155
Work in process
818
752
Raw materials and supplies
4,372
4,655
Other
1,005
1,033
Allowance for doubtful accounts
(13)
(12)
Total current assets
34,221
32,994
Non-current assets
Property, plant and equipment
Buildings and structures, net
12,401
11,928
Machinery, equipment and vehicles, net
2,365
2,161
Land
7,760
7,792
Other, net
1,475
5,732
Total property, plant and equipment
24,002
27,614
Intangible assets
Other
510
627
Total intangible assets
510
627
Investments and other assets
Other
3,631
3,535
Total investments and other assets
3,631
3,535
Total non-current assets
28,144
31,777
Total assets
62,366
64,772
(Millions of yen)
As of December 31, 2024
As of June 30, 2025
Liabilities
Current liabilities
Notes and accounts payable - trade
6,181
5,806
Short-term borrowings
4,300
6,052
Current portion of long-term borrowings
1,368
1,868
Income taxes payable
534
380
Provision for bonuses
961
853
Provision for bonuses for directors (and other
officers)
15
9
Other
3,783
3,723
Total current liabilities
17,143
18,694
Non-current liabilities
Long-term borrowings
4,234
5,550
Retirement benefit liability
3,132
3,238
Provision for share-based payments
210
216
Other
1,091
1,468
Total non-current liabilities
8,668
10,473
Total liabilities
25,812
29,168
Net assets
Shareholders' equity
Share capital
2,898
2,898
Capital surplus
2,960
2,960
Retained earnings
24,251
24,821
Treasury shares
(1,407)
(1,386)
Total shareholders' equity
28,703
29,294
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
719
569
Foreign currency translation adjustment
4,119
3,226
Remeasurements of defined benefit plans
107
(372)
Total accumulated other comprehensive income
4,946
3,424
Non-controlling interests
2,903
2,885
Total net assets
36,553
35,604
Total liabilities and net assets
62,366
64,772
Interim Consolidated Statements of Income and Statements of Comprehensive Income (Interim Consolidated Statements of Income)
(Millions of yen)
Six months ended
June 30, 2024
Six months ended
June 30, 2025
Net sales
26,044
27,180
Cost of sales
16,747
17,300
Gross profit
9,296
9,879
Selling, general and administrative expenses
7,669
7,943
Operating profit
1,626
1,935
Non-operating income
Interest income
35
49
Dividend income
16
20
Share of profit of entities accounted for using equity
method
5
7
Foreign exchange gains
178
-
Other
176
78
Total non-operating income
412
155
Non-operating expenses
Interest expenses
18
49
Foreign exchange losses
-
116
Commission expenses
-
141
Other
13
31
Total non-operating expenses
31
339
Ordinary profit
2,007
1,752
Extraordinary income
Gain on sale of non-current assets
1
135
Total extraordinary income
1
135
Extraordinary losses
Loss on retirement of non-current assets
1
2
Loss on sale of non-current assets
0
0
Loss on sale of investment securities
0
-
Total extraordinary losses
1
3
Profit before income taxes
2,007
1,884
Income taxes
644
726
Profit
1,362
1,158
Profit attributable to non-controlling interests
145
161
Profit attributable to owners of parent
1,217
997
(Interim Consolidated Statements of Comprehensive Income)
(Millions of yen)
Six months ended
June 30, 2024
Six months ended
June 30, 2025
Profit
1,362
1,158
Other comprehensive income
Valuation difference on available-for-sale securities
14
(149)
Foreign currency translation adjustment
1,782
(971)
Remeasurements of defined benefit plans, net of tax
17
(478)
Total other comprehensive income
1,814
(1,600)
Comprehensive income
3,177
(441)
Comprehensive income attributable to
Comprehensive income attributable to owners of parent
2,825
(525)
Comprehensive income attributable to non-controlling
interests
351
83
Interim Consolidated Statements of Cash Flows
(Millions of yen)
Six months ended
June 30, 2024
Six months ended
June 30, 2025
Cash flows from operating activities
Profit before income taxes
2,007
1,884
Depreciation
1,087
1,044
Increase (decrease) in retirement benefit liability
14
(362)
Increase (decrease) in provision for bonuses
(80)
(106)
Interest and dividend income
(51)
(69)
Interest expenses
18
49
Payment Fees
-
141
Share of loss (profit) of entities accounted for using
equity method
(5)
(7)
Loss (gain) on sale of non-current assets
(1)
(135)
Decrease (increase) in trade receivables
(463)
852
Decrease (increase) in inventories
(71)
(341)
Increase (decrease) in trade payables
186
(162)
Other, net
(107)
89
Subtotal
2,531
2,876
Interest and dividends received
52
97
Interest paid
(18)
(49)
Income taxes paid
(390)
(655)
Net cash provided by (used in) operating activities
2,175
2,268
Cash flows from investing activities
Payments into time deposits
(1,230)
(1,370)
Proceeds from withdrawal of time deposits
375
1,583
Purchase of property, plant and equipment
(601)
(5,114)
Proceeds from sale of property, plant and equipment
25
142
Purchase of investment securities
(3)
(3)
Proceeds from sale of investment securities
0
-
Other, net
(78)
234
Net cash provided by (used in) investing activities
(1,512)
(4,528)
Cash flows from financing activities
Proceeds from short-term borrowings
49,323
35,704
Repayments of short-term borrowings
(49,423)
(33,952)
Repayments of finance lease liabilities
(5)
(18)
Proceeds from long-term borrowings
-
1,859
Repayments of long-term borrowings
(634)
(184)
Purchase of shares of subsidiaries not resulting in
change in scope of consolidation
(105)
-
Dividends paid
(252)
(427)
Dividends paid to non-controlling interests
(202)
(71)
Net cash provided by (used in) financing activities
(1,299)
2,910
Effect of exchange rate change on cash and cash
equivalents
601
(504)
Net increase (decrease) in cash and cash equivalents
(35)
146
Cash and cash equivalents at beginning of period
7,977
8,881
Cash and cash equivalents at end of period
7,942
9,027
Notes on Interim Consolidated Financial Statements
(Notes on the Application of Special Accounting Methods to the Preparation of Interim Consolidated Financial Statements)
(Calculation of Tax Expenses)
Tax expenses are calculated by multiplying the net profit before income taxes by a reasonably evaluated effective tax rate on the net profit before income taxes for the consolidated fiscal year including the current interim consolidated accounting period. However, if the calculation of tax expenses using such evaluated effective tax rate results in a figure significantly lacking reasonableness, the statutory effective tax rate is applied instead.
(Notes on Segment Information, Etc.)
[Segment information]
Interim period of the previous fiscal year (January 1, 2024 - June 30, 2024)
Information regarding sales and profit/loss by reportable segment
(Millions of yen)
Reportable segments
Other (Note)
Total
Chemicals Business
Cosmetics Business
Total
Net sales
Sales to outside customers
19,186
6,707
25,893
150
26,044
Inter-segment sales or transfers
-
1
1
119
120
Total
19,186
6,708
25,894
270
26,164
Segment profit (loss)
1,856
675
2,531
(9)
2,521
(Note) The "Other" category represents business segments not included in the reportable segments, and involves contract facility works.
Difference between the total amount of profit or loss of reportable segments and the amount recorded in the interim consolidated statements of income, and the main details of such difference (matters related to difference adjustment)
(Millions of yen)
Profit
Amount
Total of reportable segments
2,531
Profit (loss) of "Others" category
(9)
Cancellation of inter-segment transactions
25
Corporate expenses (Note)
(920)
Operating profit in quarterly consolidated financial statements
1,626
(Note) Corporate expenses are mainly general and administrative expenses that do not belong to any reportable segment.
Information about impairment losses on non-current assets or goodwill by reportable segment (Significant impairment losses on non-current assets)
Not applicable.
(Significant changes in the amount of goodwill) Not applicable.
(Significant gain on negative goodwill) Not applicable
Interim period of the current fiscal year (January 1, 2025 - June 30, 2025)
Information regarding sales and profit/loss by reportable segment
(Millions of yen)
Reportable segments
Other (Note)
Total
Chemicals Business
Cosmetics Business
Total
Net sales
Sales to outside customers
19,602
7,337
26,939
240
27,180
Inter-segment sales or transfers
-
2
2
145
148
Total
19,602
7,340
26,942
386
27,328
Segment profit (loss)
2,106
818
2,925
39
2,964
(Note) The "Other" category represents business segments not included in the reportable segments, and involves contract facility works.
Difference between the total amount of profit or loss of reportable segments and the amount recorded in the interim consolidated statements of income, and the main details of such difference (matters related to difference adjustment)
(Millions of yen)
Profit
Amount
Total of reportable segments
2,925
Profit (loss) of "Others" category
39
Cancellation of inter-segment transactions
(4)
Corporate expenses (Note)
(1,023)
Operating profit in quarterly consolidated financial statements
1,935
(Note) Corporate expenses are mainly general and administrative expenses that do not belong to any reportable segment.
Information about impairment losses on non-current assets or goodwill by reportable segment (Significant impairment losses on non-current assets)
Not applicable.
(Significant changes in the amount of goodwill) Not applicable.
(Significant gain on negative goodwill) Not applicable
(Notes when there are Significant Changes in Amounts of Equity)
Not applicable.
(Notes on Going Concern Assumption)
Not applicable.