SUMMARY OF CONSOLIDATED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
(Under Japanese GAAP)
Fiscal year ending December 31, 2025
November 14, 2025
SANDEN CORPORATION
20 Kotobuki-cho, Isesaki-shi, Gunma, Japan 372-8502 Code No: 6444
(URL: https://www.sanden.co.jp/english/index.html) Shares listed: Tokyo Stock Exchange
Representative Director & President: Zhan Xu For further information, please contact
Junya Takahashi
Division General Manager of
Corporate Financial Management Division Contact Number: +81-3-5828-5582
Scheduled date to commence dividend payments: -Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None
(Fractions less than 1 million omitted)
-
Consolidated Financial Results For The Nine Months Ended September 30,2025 (January 1, 2025- September 30, 2025)
Results of operations (%: percentage change from previous fiscal year)
Net sales (Millions of , %)
Operating income
(Millions of , %)
Income before extraordinary items (Millions of , %)
Net income (Millions of , %)
Nine months ended September 30, 2025
138,512
0.5
(2,299)
-
75
55.8
(3,206)
-
Nine months ended September 30, 2024
137,827
4.6
(4,341)
-
48
-
128
-
Notes: Equity in Comprehensive Income: For the nine months ended September 30, 2025 (3,154)million -%
For the nine months ended September 30, 2024 (200)million -%
Net income per
share basic ()
Net income per
share diluted ()
Nine months ended September 30, 2025
(28.78)
-
Nine months ended September 30, 2024
1.16
-
Financial positions (Fractions less than1 million omitted)
Total assets
(Millions of )
Net assets
(Millions of )
Equity Ratio of equity over total assets
(%)
Net assets per share
()
As of September 30, 2025
175,831
20,427
11.0
173.95
As of December 31, 2024
175,459
23,582
12.9
203.03
Notes: Equity capital As of September 30, 2025 19,386million
As of December 31, 2024 22,628million
-
Dividends
Dividend per share ()
1Q 2Q 3Q 4Q Total
Fiscal year ended December 31, 2024
-
0.00
-
0.00 0.00
Fiscal year ending December 31, 2025
-
0.00
-
Fiscal year ending December 31, 2025 (Forecast)
0.00
0.00
Note: Revisions made since the most recently published dividends forecast: None
-
Forecast of business results for the next fiscal year (January 1, 2025-December 31, 2025)
(%: percentage change from the same period of the previous fiscal year)
Net sales (Millions of , %)
Operating income
(Millions of , %)
Income before extraordinary items (Millions of , %)
Net income (Millions of , %)
Net income per share basic
()
Fiscal year ending December 31, 2025
184,700
0.5
(4,000)
-
(1,500)
-
(300)
-
(2.69)
Note: Revisions made since the most recently published earnings forecast: None
*NotesSignificant changes in the scope of consolidation during the period: None
Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes. For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to Quarterly
Consolidated Financial Statements (Specific accounting treatment used in the creation of the quarterly consolidated financial statements)" on page 7 of the attached document.
Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
Changes in accounting policies due to other reasons: None
Changes in accounting estimates: None
Restatement: None
For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)" on page 7 of the attached document.
Number of issued shares (common stock, shares)
(a) Issued shares (including treasury shares) | As of September 30, 2025: | 111,693,313 | As of December 31, 2024: | 111,693,313 |
(b) Treasury shares | As of September 30, 2025: | 243,709 | As of December 31, 2024: | 243,577 |
(c) Average number of shares outstanding during the period (cumulative) | As of September 30, 2025: | 111,449,696 | As of September 30, 2024: | 111,450,085 |
Review of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)
Cautionary statement regarding forecasts of operating results and special notes (Note regarding the forward-looking statements)
The forward-looking statements contained in this report are based on information currently available to the Company and certain assumptions which are regarded as legitimate. These statements are not promised by the Company regarding future performance. Actual results may differ significantly from these forecasts due to various factors. For information about the forecasts, please see "1. Results of Operations-(3) An explanation of future, predictive data, such as consolidated earnings forecasts" on page 2 of Supplementary Information.
Index for Supplementary InformationQualitative Information on Quarterly Financial Results 2
Explanation of Operating Results 2
Explanation of Financial Position 2
Explanation of Consolidated Earnings Forecasts and Other Future Predictions 2
Quarterly Consolidated Financial Statements and Important Notes 3
Quarterly Consolidated Balance Sheet 3
Statements of quarterly consolidated income and consolidated comprehensive income 5
Quarterly consolidated statement of income 5
First nine months of the fiscal year 5
Quarterly consolidated statement of comprehensive income 6
First nine months of the fiscal year 6
Notes on Quarterly Consolidated Financial Statements 7
(Notes on going concern assumption) 7
(Note on significant change in shareholders' equity) 7
(Application of accounting methods specifically for consolidated quarterly financial statements) 7
(Change in accounting policy) 7
(Segment information) 7
(Notes on statement of cash flows) 7
-
Qualitative Information on Quarterly Financial Results
Explanation of Operating Results
The activities of Sanden Group are guided by the vision of "becoming the global leader in the fields of automotive compressors and integrated thermal management systems." Under the medium-term management plan that Sanden Corporation announced in February 2024, the Company aims to transform from a supplier of components to a "supplier of full solution systems" and achieve sustainable growth and as a leading company in integrated thermal management systems. With the automobile industry currently in the midst of a period of enormous changes, we are focusing on the new energy vehicle (NEV) market. We will offer competitive, flexible integrated thermal management system solutions by utilizing our electric compressor manufacturing capabilities. Our priority will always be our customers.
During the first nine months of the fiscal year under review, the global economy grew moderately. However, the effects of U.S. tariff policies became evident, including a decline in employment statistics in the U.S. The outlook remained uncertain due to geopolitical risks and the policies of various governments, including the prolonged Russo-Ukraine war, the escalating tensions in the Middle East, and the manifestation of a slowdown of the European and Chinese economies.
Looking at the Group's consolidated results in the first nine months of the fiscal year under review, net sales came to 138,512 million yen (up 0.5% year on year) primarily due to a year-on-year increase in global automobile production volume and an increase in sales in Asia. Operating loss was 2,299 million yen (compared to an operating loss of 4,341 million yen in the same period of the previous year), reflecting the improvement of profitability through a range of measures including cost reductions and the curtailment of selling, general and administrative expenses. Ordinary profit amounted to 75 million yen (up 55.8% year on year), reflecting the share of profit of entities accounted for using equity method and gains on evaluation of foreign currency-denominated receivables. Loss attributable to owners of parent was 3,206 million yen, compared with profit attributable to owners of parent of 128 million yen in the same period of the previous year. This reflects the recording of a temporary loss due to the implementation of a voluntary retirement program.
Close attention will be paid to the impact of U.S. tariff and other policies on the Group's performance to ensure that appropriate measures are taken as needed.
Segment information is omitted because the Group operates a single segment of Automotive Systems Business.
Explanation of Financial Position
Cash and cash equivalents were 175,831 million yen at the end of the third quarter, up 371 million yen from the end of the previous fiscal year. Current assets decreased due to the sale of inventory and streamlining. This was partly offset by an increase in trade receivables. Non-current assets increased chiefly due to the acquisition of property, plant and equipment primarily from capital investments, although the appraisal value of investment securities decreased, reflecting dividends received from equity-method associates.
Liabilities increased 3,526 million yen from the end of the previous fiscal year to 155,403 million yen, primarily due to an increase in short-term and long-term borrowings resulting from capital investments and the payment of restructuring costs.
Net assets decreased 3,154 million yen from the end of the previous fiscal year to 20,427 million yen, chiefly due to a decline in retained earnings that was a result of a loss attributable to owners of parent.
Explanation of Consolidated Earnings Forecasts and Other Future Predictions
There has been no revision to the consolidated forecasts for the fiscal year ending December 31, 2025, which were released on August 8, 2025.
- Quarterly Consolidated Financial Statements and Important Notes
Quarterly Consolidated Balance Sheet
(Million yen)
Fiscal year ended December 2024
(As of December 31, 2024)
First nine months ended September 2025
(As of September 30, 2025)
ASSETS
Current assets
Cash and deposits
17,893
17,680
Notes and accounts receivable - trade, and contract assets
49,812
53,466
Merchandise and finished goods
15,479
14,529
Work in process
10,928
10,136
Raw materials
10,056
8,183
Other inventories
1,349
1,283
Accounts receivable - other
2,999
1,657
Consumption taxes receivable
2,839
3,562
Other
7,994
7,428
Allowance for doubtful accounts
(18,716)
(17,510)
Total current assets
100,636
100,417
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
14,148
13,503
Machinery, equipment and vehicles, net
15,757
14,415
Tools, furniture and fixtures, net
3,474
3,080
Land
6,713
6,514
Lease assets, net
1,565
2,349
Construction in progress
7,442
10,918
Total property, plant and equipment
49,101
50,783
Intangible assets
Other
1,586
1,563
Total intangible assets
1,586
1,563
Investments and other assets
Investment securities
22,642
21,443
Retirement benefit asset
99
99
Deferred tax assets
572
545
Other
3,746
3,334
Allowance for doubtful accounts
(2,924)
(2,355)
Total investments and other assets
24,135
23,066
Total noncurrent assets
74,823
75,413
Total assets
175,459
175,831
(Million yen)
Fiscal year ended December 2024
(As of December 31, 2024)
First nine months ended September 2025
(As of September 30, 2025)
LIABILITIES
Current liabilities
Notes and accounts payable - trade
37,727
38,678
Short-term borrowings
65,514
71,711
Current portion of long-term borrowings
379
461
Accounts payable - other
11,783
7,992
Lease obligations
1,138
1,371
Income taxes payable
906
681
Provision for bonuses
2,554
1,906
Provision for product warranties
6,175
5,435
Allowance for structural reform
2,708
2,077
Other
10,904
11,318
Total current liabilities
139,792
141,634
Noncurrent liabilities
Long-term borrowings
3,952
5,838
Lease obligations
2,387
2,572
Deferred tax liabilities
1,894
1,809
Retirement benefit liability
1,689
1,604
Provision for environmental measures
507
416
Other
1,653
1,526
Total noncurrent liabilities
12,085
13,769
Total liabilities
151,877
155,403
NET ASSETS
Shareholders' equity
Share capital
21,741
21,741
Capital surplus
14,039
14,039
Retained earnings
(20,903)
(24,110)
Treasury shares
(532)
(532)
Total shareholders' equity
14,345
11,138
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
75
51
Deferred gains or losses on hedges
22
(12)
Foreign currency translation adjustment
6,484
6,619
Remeasurements of defined benefit plans
1,700
1,588
Total accumulated other comprehensive income
8,282
8,248
Non-controlling interests
954
1,040
Total net assets
23,582
20,427
Total liabilities and net assets
175,459
175,831
Statements of quarterly consolidated income and consolidated comprehensive income Quarterly consolidated statement of income
First nine months of the fiscal year
(Million yen)
First nine months ended Sep. 2024
(Jan. 1, 2024 -
Sep. 30, 2024)
First nine months ended Sep. 2025
(Jan. 1, 2025 -
Sep. 30, 2025)
Net sales
137,827
138,512
Cost of sales
117,570
118,299
Gross profit
20,256
20,213
Selling, general and administrative expenses
24,598
22,512
Operating profit (loss)
(4,341)
(2,299)
Non-operating income
Interest income
230
120
Dividend income
27
11
Foreign exchange gains
402
-
Share of profit of investments accounted for using equity method
3,865
3,973
Rental income
610
652
Other
1,534
803
Total non-operating income
6,671
5,561
Non-operating expenses
Interest expenses
1,074
1,639
Foreign exchange losses
-
832
Other
1,206
714
Total non-operating expenses
2,281
3,187
Ordinary profit
48
75
Extraordinary income
Gain on sale of non-current assets
18
439
Reversal of allowance for doubtful accounts
20
230
Reversal of allowance for restructuring initiatives
-
232
Reversal of provision for loss on compensation for damage
1,201
-
Other
16
4
Total extraordinary income
1,256
906
Extraordinary losses
Loss on disposal of non-current assets
23
157
Structural reform expenses
-
2,854
Other
276
155
Total extraordinary losses
299
3,167
Profit (loss) before income taxes
1,005
(2,186)
Income taxes
703
824
Profit (loss)
301
(3,010)
Profit attributable to non-controlling interests
172
196
Profit (loss) attributable to owners of parent
128
(3,206)
(Million yen)
First nine months ended Sep. 2024
(Jan. 1, 2024 -
Sep. 30, 2024)
First nine months ended Sep. 2025
(Jan. 1, 2025 -
Sep. 30, 2025)
Profit (loss)
301
(3,010)
Other comprehensive income
Valuation difference on available-for-sale securities
4
(22)
Deferred gains or losses on hedges
13
(34)
Foreign currency translation adjustment
(1,033)
789
Remeasurements of defined benefit plans, net of tax
93
(111)
Share of other comprehensive income of associates accounted for using equity method
419
(765)
Total other comprehensive income
(501)
(144)
Comprehensive income
(200)
(3,154)
Comprehensive income attributable to
Comprehensive income attributable to owners of parent
(388)
(3,241)
Comprehensive income attributable to non-controlling interests
188
86
Quarterly consolidated statement of comprehensive income First nine months of the fiscal year
Notes on Quarterly Consolidated Financial Statements (Notes on going concern assumption)
None
(Note on significant change in shareholders' equity)
None
(Application of accounting methods specifically for consolidated quarterly financial statements)
First nine months of the current fiscal year (January 1 to September 30, 2025)
Calculation of taxes
Taxes are calculated by determining a reasonable estimate of the effective tax rate, after the application of tax effect accounting, for profit before income taxes in the current fiscal year (including the third quarter). Quarterly profit before income taxes is then multiplied by this estimated effective tax rate to calculate taxes.
However, in cases where the calculation of taxes using such estimated effective tax rate yields a result that is not reasonable to a significant extent, the effective statutory tax rate is used.
Income taxes - deferred are included in income taxes.
(Change in accounting policy)
(Application of Accounting Standard for Current Income Taxes, etc.)
The Group has applied Accounting Standard for Current Income Taxes (Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28, 2022; hereinafter referred to as the "Revised Accounting Standard 2022") effective from beginning of the first quarter of the fiscal year. The amendment to categories in which current income taxes should be recorded (taxes on other comprehensive income) follows the transitional treatment prescribed in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment prescribed in the proviso (2) of paragraph 65-2 of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter referred to as the "Revised Implementation Guidance 2022"). This change in accounting policies has no impact on the quarterly consolidated financial statements. This change in accounting policy has no impact on the quarterly consolidated financial statements.
For the amendment related to the revised accounting treatment for consolidated financial statements when gains or losses on sale of shares in subsidiaries resulting from transactions between consolidated companies were deferred for tax purposes, the 2022 Revised Implementation Guidance 2022 has been applied effective as of the beginning of the first quarter of the fiscal year. This change in accounting policies is applied retrospectively, and the quarterly and full-year consolidated financial statements for the previous fiscal year presented herein reflect the retrospective application of this standard. This change in accounting policy has no impact on the quarterly or full-year consolidated financial statements for the previous fiscal year.
(Segment information)
First nine months of the previous fiscal year (January 1, 2024 - September 30, 2024)
Omitted because the Sanden Group has only the single reportable segment of Automotive Systems.
First nine months of the current fiscal year (January 1, 2025 - September 30, 2025)
Omitted because the Sanden Group has only the single reportable segment of Automotive Systems.
(Notes on statement of cash flows)
First nine months ended Sep. 2024 (Jan. 1, 2024 - Sep. 30, 2024) | First nine months ended Sep. 2025 (Jan. 1, 2025 - Sep. 30, 2025) | |
Depreciation | 4,308 | 4,975 |
The quarterly consolidated statement of cash flows has not been prepared for the nine months ended September 30, 2024. Depreciation (including amortization of intangible assets excluding goodwill) for the nine months under review is as follows. (Million yen)