Consolidated Basis Results of the First Quarter for FY2025 (April 1, 2025 - June 30, 2025)
August 5, 2025
Registered Company name: TOPY INDUSTRIES, LIMITED Stock listing: Tokyo, Nagoya stock exchanges Code number: 7231 URL: https://www.topy.co.jp/en/index.html
Representative: Hiromi Ishii, Representative Director, President and CEO
Contact: Tomoki Oyaizu, Operating Officer and General Manager, General Affairs Department Telephone: 03-3493-0141 / (Overseas) 81-3-3493-0141
Scheduled date for dividend payment: －
Preparation of supplementary materials: | YES |
Holding of financial results meeting: | No |
(Figures of less than ¥1 million have been omitted)
Consolidated Financial and Operating Results of the First Quarter for Fiscal 2025 (April 1, 2025 - June 30, 2025)
Consolidated Operating Results (Cumulative)
(Percentage figures are changes from the previous corresponding period)
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Million yen
%
Million yen
%
Million yen
%
Million yen
%
First Quarter of Fiscal 2025
71,213
(3.3)
1,603
-
1,672
22.6
1,007
38.8
First Quarter of Fiscal 2024
73,636
(9.7)
135
(91.3)
1,364
(42.2)
725
(58.2)
(Note) Comprehensive income:
First Quarter of Fiscal 2025
¥(1,628) million
－%
First Quarter of Fiscal 2024
¥1,857 million
(63.7)%
Profit per share
Profit per share after full dilution
Yen
Yen
First Quarter of Fiscal 2025
45.66
-
First Quarter of Fiscal 2024
31.77
-
Consolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen
%
Yen
First Quarter of Fiscal 2025
268,602
133,470
49.2
5,9989.31
Fiscal 2024
281,751
136,713
48.0
6,133.88
(For reference) Shareholders' equity:
First Quarter of Fiscal 2025
¥132,088 million
2. Dividends
Fiscal 2024
¥135,278 million
Dividends per share
1Q-end
2Q-end
3Q-end
End of FY
Annual
Yen
Yen
Yen
Yen
Yen
Fiscal 2024
-
30.00
-
73.00
103.00
Fiscal 2025
-
Fiscal 2025 (Forecasts)
40.00
-
90.00
130.00
(Note) Whether changes to the latest dividend forecasts have been made: None
Consolidated Financial Forecasts for Fiscal 2025 (April 1, 2025- March 31, 2026)
(Percentage figures are changes from the previouscorresponding period)
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Profit per share
Million yen
%
Million yen
%
Million yen
%
Million yen
%
Yen
First half of Fiscal 2025
147,000
(1.0)
1,700
182.2
1,600
83.9
900
20.2
40.81
Full year
302,000
0.5
7,000
32.1
7,100
13.7
7,800
22.1
363.84
(Note) Whether changes to the latest forecasts for consolidated figures have been made: None
NOTE
Changes in the State of Material Subsidiaries during the Period: None
Newly included: - (Name) - Excluded: - (Name) -
Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements: Yes
Note: For details, please refer to "(3) Notes Regarding Quarterly Consolidated Financial Results (Application of special accounting methods for
presenting quarterly consolidated financial statements)" under "2. Quarterly Consolidated Financial Statement and Important Notes" on page 8 of
the attached materials.
Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements
Changes in accounting principles accompanying the amendment of accounting standards: None
Changes other than those in (a) above: None
Changes in accounting estimates: None
Retrospective restatements: None
Number of Shares Issued (Common shares)
Number of shares issued at the end of the period (including treasury shares)
First Quarter of Fiscal 2025 24,077,510 shares Fiscal 2024 24,077,510 shares
Number of treasury shares at the end of the period
First Quarter of Fiscal 2025 2,023,510 shares Fiscal 2024 2,023,266 shares
Average number of shares issued during the period
First Quarter of Fiscal 2025 22,054,125 shares First Quarter of Fiscal 2024 22,825,790 shares
* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
* Explanation of the Appropriate Use of Performance Forecasts and Other Related Items
(Caution concerning future descriptions etc.)
The above estimate has been compiled based on information available at the time this disclosure was made. The actual earnings are subject to change from the estimated values due to various factors. For assumed conditions underlying the earnings forecast and cautionary statements in using the earnings forecast, please refer to "Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates" on page 3.
Index of Attached Documents
Overview of Operating Results 2
Overview of Quarterly Operating Results 2
Overview of Quarterly Financial Position 3
Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates 3
Quarterly Consolidated Financial Statements and Important Notes 4
Quarterly Consolidated Balance Sheets 4
Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income 6
Quarterly Consolidated Statements of Income ............................................................................................................
(For the Three-month Period) 6
Quarterly Consolidated Statements of Comprehensive Income...................................................................................
(For the Three-month Period) 7
Notes Regarding Quarterly Consolidated Financial Results 8
8
8
(Accounting treatment specific to the preparation of quarterly consolidated financial statements)…………………….
(Segment information) …………………………………………………………………………………………………
(Note on significant changes in the amount of shareholders' equity) 10
(Note related to going-concern assumption) 10
(Quarterly Consolidated Cash Flow Statements) 10
Note: This document has been translated from the original Japanese version for reference purposes only. In the event of any discrepancy between this translated document and the original Japanese version, the original shall prevail.
The original disclosure in Japanese was released on August 5, 2025 at 13:30 (GMT+9).
The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
Overview of Operating Results
Overview of Quarterly Operating Results
Domestic demand for steel products continued to be sluggish within the Group business environment for the first quarter of the fiscal year despite a year-on-year increase in automobile production volume in Japan due to a rebound from the effect of certification issues.
Under this business environment, we have developed and launched our Medium-term Management Plan, "TOPY Active & Challenge 2027," which covers the period from FY2025 to FY2027. We have set our basic policies to improve profitability through structural innovation of existing businesses and to sow seeds for growth businesses that leverage core competencies, and are committed to achieving our FY2027 management target of an ROE of 6% or more.
Net sales for the first quarter of the fiscal year were ¥71,213 million (down 3.3% year on year), operating profit was ¥1,603 million (up 1,080.3% year on year), ordinary profit was ¥1,672 million (up 22.6% year on year), and profit attributable to owners of parent was ¥1,007 million (up 38.8% year on year). This was mainly due to a recovery in sales volume as well as progress in structural reforms and the establishment of sustainable sales pricing in the Automotive & Industrial Machinery Components Business, despite a decrease in sales volume in the Steel Business.
Performance by Segment
(Steel Business)
In the steel industry, domestic demand for steel products remained weak due to construction project delays. Also, prices for steel scrap, a raw material, fell year on year.
Under these conditions, a decline in sales volumes and sales prices due to weak demand and an increase in various costs such as repair costs led to the Group net sales of ¥23,394 million (down 12.2% year on year) and operating profit of ¥1,214 million (down 36.0% year on year).
(Automotive & Industrial Machinery Components Business)
In the automobile industry, production volume increased compared to the level in the previous fiscal year in Japan due to a rebound from the effect of certification issues in the same period of the previous fiscal year. Production volume decreased in the overseas market including the U.S. and Southeast Asia region and the share for the Japanese manufacturers in China continued to decline. In the construction machinery industry, worldwide demand for hydraulic shovels remained weak. Furthermore, demand for mining machinery remained stagnant.
Under the circumstances, the Group net sales were ¥46,148 million (up 2.1% year on year) and operating profit was ¥1,786 million (compared to operating loss of ¥527 million in the previous fiscal year) mainly due to a recovery in sales volume as well as progress in structural reforms and the establishment of sustainable sales pricing.
(Others)
The Group is involved in the manufacture and sale of synthetic mica, civil engineering and construction, real estate leasing, and the operation of a sports club. Net sales decreased to ¥1,670 million (down 8.3% year on year) and operating profit was ¥211 million (down 7.1% year on year).
Overview of Quarterly Financial Position
Total assets at the end of the first quarter of the fiscal year under review stood at ¥268,602 million, a decrease of ¥13,149 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥5,637 million in notes and accounts receivable - trade, and contract assets, a decrease of ¥1,494 million in machinery, equipment and vehicles, and a decrease of
¥1,275 million in cash and deposits.
Total liabilities were ¥135,131 million, a decrease of ¥9,906 million compared with the end of the previous fiscal year. This was mainly due to a decrease of ¥4,318 million in short-term borrowings, a decrease of ¥4,283 million in notes and accounts payable - trade, and a decrease of ¥1,334 million in income taxes payable.
Total net assets amounted to ¥133,470 million, a decrease of ¥3,242 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥2,021 million in foreign currency translation adjustment, a decrease of ¥606 million in retained earnings, and a decrease of ¥484 million in valuation difference on available-for-sale securities.
Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates
The future business environment surrounding the Group is expected to remain uncertain, influenced by factors such as trends in domestic demand for steel products and developments in automobile and construction machinery production, including the impact of U.S. trade policy.
With the impact of U.S. tariffs expected to emerge going forward, the Group continues to pay close attention to market and customer trends.
We will also promote the business strategy developed in the new Medium-term Management Plan and work on measures to strengthen the business foundation of existing businesses and to sow seeds for businesses that can grow sustainably.
The consolidated earnings forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) have not been changed from those announced on May 9, 2025. This decision has been made based on information available to the Group as of the date of issuance of this release. The actual results may vary from the forecast due to various factors that will arise in the future.
Quarterly Consolidated Financial Statements and Important Notes
Quarterly Consolidated Balance Sheets
(Millions of yen)
As of March 31, 2025
As of June 30, 2025
Assets
Current assets
Cash and deposits
27,474
26,199
Notes and accounts receivable - trade, and contract
assets
62,090
56,453
Merchandise and finished goods
27,800
28,833
Work in process
7,313
7,639
Raw materials and supplies
19,734
19,647
Other
10,865
6,951
Allowance for doubtful accounts
(93)
(70)
Total current assets
155,185
145,654
Non-current assets
Property, plant and equipment
Buildings and structures
100,081
99,732
Accumulated depreciation
(75,469)
(75,519)
Buildings and structures, net
24,611
24,213
Machinery, equipment and vehicles
233,339
231,939
Accumulated depreciation
(198,138)
(198,234)
Machinery, equipment and vehicles, net
35,200
33,705
Land
15,573
15,514
Leased assets
1,754
1,668
Accumulated depreciation
(942)
(935)
Leased assets, net
812
732
Construction in progress
2,577
2,815
Other
43,750
43,521
Accumulated depreciation
(41,908)
(41,766)
Other, net
1,841
1,755
Total property, plant and equipment
80,616
78,736
Intangible assets
Other
3,436
3,224
Total intangible assets
3,436
3,224
Investments and other assets
Investment securities
30,748
29,986
Long-term loans receivable
219
229
Deferred tax assets
819
959
Retirement benefit asset
494
494
Other
10,310
9,399
Allowance for doubtful accounts
(80)
(80)
Total investments and other assets
42,512
40,987
Total non-current assets
126,566
122,947
Total assets
281,751
268,602
(Millions of yen)
As of March 31, 2025
As of June 30, 2025
Liabilities
Current liabilities
Notes and accounts payable - trade
30,375
26,091
Electronically recorded obligations - operating
15,775
16,848
Short-term borrowings
26,280
21,961
Current portion of bonds payable
5,000
5,000
Lease liabilities
228
205
Income taxes payable
2,171
837
Other
16,021
15,551
Total current liabilities
95,852
86,495
Non-current liabilities
Bonds payable
25,000
25,000
Long-term borrowings
11,891
11,307
Lease liabilities
394
353
Deferred tax liabilities
1,088
875
Provision for corporate officers' retirement benefits
157
176
Provision for share awards for directors (and other
officers)
42
65
Provision for retirement benefits for directors (and
other officers)
19
20
Reserve for repairs
265
272
Retirement benefit liability
7,240
7,496
Asset retirement obligations
1,658
1,660
Other
1,427
1,408
Total non-current liabilities
49,186
48,636
Total liabilities
145,038
135,131
Net assets
Shareholders' equity
Share capital
20,983
20,983
Capital surplus
18,622
18,622
Retained earnings
73,984
73,378
Treasury shares
(4,210)
(4,211)
Total shareholders' equity
109,379
108,772
Accumulated other comprehensive income
Valuation difference on available-for-sale
securities
12,968
12,483
Deferred gains or losses on hedges
(9)
(5)
Foreign currency translation adjustment
10,868
8,847
Remeasurements of defined benefit plans
2,070
1,989
Total accumulated other comprehensive income
25,898
23,315
Non-controlling interests
1,435
1,382
Total net assets
136,713
133,470
Total liabilities and net assets
281,751
268,602
Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income Quarterly Consolidated Statements of Income
(For the Three-month Period)
(Millions of yen)
Three months ended June 30, 2024
Three months ended June 30, 2025
Net sales
73,636
71,213
Cost of sales
64,431
60,072
Gross profit
9,205
11,141
Selling, general and administrative expenses
9,069
9,537
Operating profit
135
1,603
Non-operating income
Interest income
51
46
Dividend income
489
499
Foreign exchange gains
400
-
Share of profit of entities accounted for using equity
method
88
-
Compensation income
513
-
Other
64
95
Total non-operating income
1,607
641
Non-operating expenses
Interest expenses
171
168
Foreign exchange losses
-
235
Share of loss of entities accounted for using equity
method
-
67
facilities relocation expenses
104
-
Other
103
101
Total non-operating expenses
379
572
Ordinary profit
1,364
1,672
Extraordinary income
Gain on sale of non-current assets
6
2
Subsidy income
-
26
Gain on reversal of foreign currency translation
adjustment
-
101
Total extraordinary income
6
129
Extraordinary losses
Loss on sale of non-current assets
0
2
Loss on retirement of non-current assets
21
52
Loss on valuation of investment securities
-
1
Loss on tax purpose reduction entry of non-current
assets
-
26
Total extraordinary losses
22
82
Profit before income taxes
1,348
1,719
Income taxes
588
681
Profit
760
1,037
Profit attributable to non-controlling interests
35
30
Profit attributable to owners of parent
725
1,007
Quarterly Consolidated Statements of Comprehensive Income (For the Three-month Period)
(Millions of yen)
Three months ended June 30, 2024
Three months ended June 30, 2025
Profit
760
1,037
Other comprehensive income
Valuation difference on available-for-sale securities
(1,192)
(480)
Deferred gains or losses on hedges
(0)
3
Foreign currency translation adjustment
2,073
(1,732)
Remeasurements of defined benefit plans, net of tax
(93)
(79)
Share of other comprehensive income of entities
accounted for using equity method
310
(377)
Total other comprehensive income
1,097
(2,666)
Comprehensive income
1,857
(1,628)
Comprehensive income attributable to
Comprehensive income attributable to owners of
parent
1,767
(1,575)
Comprehensive income attributable to non-controlling
interests
90
(52)
Notes Regarding Quarterly Consolidated Financial Results
(Accounting treatment specific to the preparation of quarterly consolidated financial statements)
(Calculation of tax expenses)
Tax expenses were calculated by multiplying the rationally estimated effective tax rate after applying tax effect accounting to profit before income taxes for the consolidated fiscal year, which includes the current first quarter under review, by profit before income taxes for the first quarter.
(Segment information)
I Three months ended June 30, 2024 (April 1, 2024 - June 30, 2024)
Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment
(Millions of yen)
Reportable segment
Others (Note) 1
Total
Amount of adjustment (Note) 2
Amount
recorded in the quarterly consolidated financial
statements
(Note) 3
Steel
Automotive & Industrial Machinery Components
Total
Net sales
Net sales to outside customers
26,630
45,184
71,815
1,821
73,636
-
73,636
Internal sales or transfer between segments
5,133
-
5,133
-
5,133
(5,133)
-
Total
31,764
45,184
76,948
1,821
78,770
(5,133)
73,636
Segment profit
(loss)
1,898
(527)
1,371
228
1,599
(1,463)
135
(Notes) 1. The category "Others" includes the business segment not included in the reportable segments and includes synthetic mica, indoor and outdoor sign systems, civil engineering and construction, real estate leasing, and the operation of a sports club.
Profits of segment in an amount of a loss of ¥1,463 million are common corporate expenses, etc. not allocated to the respective reportable segments. The common corporate expenses are mainly the expenses related to the administrative divisions of the Company that are not attributable to the reportable segments.
Segment profit (loss) is adjusted with operating profit recorded under the quarterly consolidated financial statements.
Information regarding impairment losses or goodwill of non-current assets by reportable segment Not applicable.
II Three months ended June 30, 2025 (April 1, 2025 - June 30, 2025)
Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment
(Millions of yen)
Reportable segment
Others (Note) 1
Total
Amount of adjustment (Note) 2
Amount
recorded in the quarterly consolidated financial
statements
(Note) 3
Steel
Automotive & Industrial Machinery Components
Total
Net sales
Net sales to outside customers
23,394
46,148
69,543
1,670
71,213
-
71,213
Internal sales or transfer between segments
5,227
-
5,227
-
5,227
(5,227)
-
Total
28,621
46,148
74,770
1,670
76,440
(5,227)
71,213
Segment profit
1,214
1,786
3,001
211
3,213
(1,609)
1,603
(Notes) 1. The category "Others" includes the business segment not included in the reportable segments and includes synthetic mica, indoor and outdoor sign systems, civil engineering and construction, real estate leasing, and the operation of a sports club.
Profits of segment in an amount of a loss of ¥1,609 million are common corporate expenses, etc. not allocated to the respective reportable segments. The common corporate expenses are mainly the expenses related to the administrative divisions of the Company that are not attributable to the reportable segments.
Segment profit is adjusted with operating profit recorded under the quarterly consolidated financial statements.
2. Information regarding impairment losses or goodwill of non-current assets by reportable segment Not applicable.
(Note on significant changes in the amount of shareholders' equity) Not applicable.
(Note related to going-concern assumption) Not applicable.
(Quarterly Consolidated Cash Flow Statements)
Cash flow calculation for the consolidated financial statement regarding the end of first quarter of the fiscal year under review has not been prepared. Depreciation (including depreciation fees of intangible assets without goodwill) and amortization of goodwill regarding the end of first quarter of the fiscal year under review are as follows:
Three months ended June 30, 2024 Three months ended June 30, 2025
Depreciation | 2,852 million yen | 2,827 million yen |
Amortization of goodwill | 31 | 31 |