Note: This is an English translation 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 Statements
for the first half of the fiscal year ending of March 31, 2025
〔Under Japanese GAAP〕
November 11, 2024
Registered Company Name: V-TechnologyCo., Ltd.
Code Number: 7717, Tokyo Stock Exchange
URL: https://www.vtec.co.jp
Representative: Shigeto Sugimoto (President & CEO)
Contact: Shogo Yoshimura (Leader of IR Group, Office of the President) TEL: 045-338-1980
Planned Date for Submission of the Semi-annual securities report: November 12, 2024
Supplementary materials for the financial statements: Yes
Briefing session on financial results: None
Planned Date for Start of Dividend Payment: December 5, 2024
(Amounts less than one million yen have been omitted.)
1. Business Performance(April 1, 2024 through September 30, 2024)
- Consolidated Results of Operations
Six months ended | Six months ended | ||||||||||||||
September 30, 2023 | September 30, 2024 | ||||||||||||||
Amount | YoY(%) | Amount | YoY(%) | ||||||||||||
Net sales (Millions of Yen) | 12,334 | △36.1 | 22,345 | ＋81.2 | |||||||||||
Operating profit or loss(△) | (Millions of Yen) | △880 | ― | △136 | ― | ||||||||||
Ordinary profit or loss(△) | (Millions of Yen) | △592 | ― | △275 | ― | ||||||||||
Net profit or loss(△) attributable to owners of the parent (Millions of Yen) | △647 | ― | △218 | ― | |||||||||||
Net profit per share (Yen) | △66.95 | ― | △22.81 | ― | |||||||||||
(2) Consolidated Financial Position | |||||||||||||||
As of | As of | ||||||||||||||
March 31 ,2024 | September 30, 2024 | ||||||||||||||
Total assets(Millions of Yen) | 75,606 | 77,483 | |||||||||||||
Net assets(Millions of Yen) | 34,639 | 33,154 | |||||||||||||
Equity ratio(％) | 45.5 | 42.6 | |||||||||||||
*Reference: Shareholders’ equity (Millions of Yen) | 32,976 | 34,732 | |||||||||||||
2. Dividends | |||||||||||||||
Year ended | Year ending | FY2025 Forecast | |||||||||||||
March 31 2024 | March 31 2025 | ||||||||||||||
1Q-end dividends per share (Yen) | ― | ― | ― | ||||||||||||
2Q-end dividends per share (Yen) | 30.00 | 40.00 | ― | ||||||||||||
3Q-end dividends per share (Yen) | ― | ― | |||||||||||||
Year-end dividends per share (Yen) | 30.00 | 40.00 | |||||||||||||
Anual dividends per share (Yen) | 60.00 | 80.00 | |||||||||||||
Note: Revision of dividend forecast from the most recently announced dividend forecast is None.
3. Forecast for the Fiscal Year ending March 31, 2024 (April 1, 2024 through March 31, 2025)
Amounts | YoY(％) | ||
Net sales (Millions of Yen) | 47,000 | 25.9 | |
Operating profit (Millions of Yen) | 1,600 | 89.1 | |
Ordinary profit (Millions of Yen) | 1,400 | 25.9 | |
Net profit attributable to owners of the parent (Millions of Yen) | 1,000 | 28.5 | |
Net profit per share (Yen) | 105.82 | ― | |
Note: Revision of the forecast from the most recently announced dividend forecast is None. |
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- Changes in significant subsidiaries during the Six months ended(April 1, 2024 through September 30, 2024) : None.
- Application of Special Accounting Methods for Preparation of the 1st half Consolidated Financial Statements: None
- Changes in accounting policies, Changes in accounting estimates, or Restatement ⅰ. Changes in accounting policies due to changes in accounting standards: yes
ⅱ. Changes other than “i.” above: None
ⅲ. Changes in accounting estimates: None
ⅳ. Restatements: None
Please refer to Page7 “（4) Notes to the interiem Consolidated Financial Statements “ for more information.
- Number of Shares Outstanding (Common stock)
- Number of shares outstanding at end of year (Including treasury stock)
- Number of treasury shares at end of year
- Average number of shares outstanding
(Cumulative 1st half period)
As of | Number of shares | As of | Number of shares |
September 30, 2024 | 10,057,600 | March 31, 2024 | 10,057,600 |
September 30, 2024 | 607,386 | March 31, 2024 | 433,086 |
September 30, 2024 | 9,594,354 | Septeber 30, 2023 | 9,669,782 |
*This Brief Report “Summary of Consolidated Financial Statements” is not subject to an audit by a certified public accountant or an audit corporation.
*Explanation of the appropriate use of earnings forecasts and other special notes
The forward-looking statements in this document, including earnings forecasts, are based on information currently available to the Company and certain assumptions that the Company believes to be reasonable. Actual results may differ materially from these statements due to a variety of factors.
Refer to page 3, "1. Qualitative Information on Quarterly Results (3) Explanation of Forward-Looking Statements" for the assumptions used and precautions regarding the use of earnings forecasts and more information.
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1. Qualitative Information on Quarterly Results
（１）Explanation of Business Results
During the first half of the consolidated accounting period, the global economy continued to face an uncertain outlook, with geopolitical tensions rising worldwide due to the situation in the Middle East and Ukraine, etc., and with regional differences seen in Europe, where stagnation continued, China, where recovery was slowing, and the United States, where the economy was robust.
The US economy remained steady, supported by strong consumer spending and capital investment. In China, the recovery slowed further as consumer spending stagnated amid the prolonged slump in the real estate market. In Japan, the economy continued to grow at a moderate pace, with corporate capital investment remaining strong,
but consumer spending weak.
As for the consolidated business results of V Technology group (herein after “the group” or “the company”) for the first half of the current fiscal year, net sales amounted to 22,345 million yen (12,334 million in same period last year, hereinafter figures in brackets() refer to the same period of the previous year), and operating loss amounted to 136 million yen (operating loss 880 million), Ordinary loss was 275 million(ordinary loss 592 million yen), Net loss attributable to owners of the parent amounted to 218 million(net loss of 647 million yen).
Orders received by the Group in the first half of the recent consolidated fiscal year totaled 17,561 million yen(20,474 million yen ). As a result, the order backlog at the first half of the recent consolidated fiscal year under review amounted to 32,316 million yen (44,787 million yen).
Segment results are as follows.
(FPD Equipment Business)
In the flat panel display (FPD) equipment business, panel market conditions recovered slightly and capital investment was generally in line with plans. Under these circumstances, orders received in the Group's FPD equipment business during the first half totaled 10,484 million yen (11,510 million yen), with an order backlog of 14,147 million yen (24,978 million yen), net sales amounted to 16,237 million yen (8,436 million yen), and operating profit was 107 million yen (operating loss 544 million yen).
(Semiconductor and Photomask Equipment Business)
In the semiconductor and photomask equipment business, capital investment related to our group generally progressed as planned. Under these circumstances, orders received by the Group in the semiconductor and photomask equipment business during the first half of the year totaled 6,374 million yen (8,464 million yen), and the order backlog totaled 18,168 million yen (19,809 million yen), net sales amounted to 5,406 million yen (3,397 million yen), and operating loss was 74 million yen (operating loss 200 million yen).
(2) Explanation of Financial Condition
#1 Condition of Assets, Liabilities & Net assets
(Assets)
Total assets at the end of the first half of the current fiscal year increased by 1,877 million yen from the end of the last last fiscal year to 77,483 million yen. This was mainly due to an increase in “Cash and deposits” of 5,834 million yen, and a decrease in "Notes and accounts receivable" of 3,034 million yen.
(Liabilities)
Total liabilities at the end of the first half of the current fiscal year year increased by 3,362 million yen from the end of the last last fiscal year to 44,329 million yen. This was mainly due to an increase of 6,195 million yen in “Long-term borrowings”, and a decreases of 2,711 million yen in "Long-term loans payable due within one year “.
(Net assets)
Net assets decreased by 1,484 million yen from the end of the last fiscal year to 33,154 million yen. This was mainly due to a decrease of 530 million yen in "Retained earnings " including 467 million yen in”Acquisition of treasury stock “.
#2 Condition of Cash flows
Cash and cash equivalents ('funds') at the end of the first half of financial year increased by 5,619 million compared to the same period of the previous financial year, to 28,512 million. The status of each cash flow is as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 3,033 million yen (compared to 1,568 million yen used in the same period of the previous year). The main factors contributing to the cash inflow were a decrease in notes and accounts receivable-trade of 2,678 million yen and an increase in advances received of 1,147 million yen. The main factor contributing to the cash outflow was a decrease in notes and accounts payable-trade of 1,702 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 747 million yen (versus 418 million yen used the previous period) . The main use of funds was 336 million yen in expenditure associated with the acquisition of shares in subsidiaries involving a change in the scope of consolidation.
(Cash flows from financing activities)
Net cash provided by financing activities was 3,444 million yen (versus 219 million yen used the previous period) . The main factor in the increase in cash was a net increase in long-term loans payable of 3,422 million yen.
(3) Explanation of Forward-Looking Statements
As a result of taking into account the results for the first halfr of the year under review and future trends, there are currently no changes to the forecast for the year ending 31 March 2025 from the forecast in the 'Summary of financial results for the year ended 13 May 2024'.
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2．Consolidated Financial Statements and Major Notes
（1）Consolidated Balance Sheets | (Millions of yen) | |||||
(Millions of yen) | ||||||
As of March 31, 2024 | As of September 30, 2024 | |||||
Assets | ||||||
Current assets | ||||||
Cash and deposits | 23,096 | 28,930 | ||||
Notes and accounts receivable - trade | 24,716 | 21,681 | ||||
Electronically recorded | monetary claims | - | 165 | 504 | ||
operating | ||||||
Merchandise and finished goods | 477 | 787 | ||||
Work in process | 12,274 | 11,374 | ||||
Raw materials and supplies | 2,780 | 2,891 | ||||
Other | 3,980 | 3,211 | ||||
Allowance for doubtful accounts | △445 | △308 | ||||
Total current assets | 67,045 | 69,073 | ||||
Non-current assets | ||||||
Property, plant and equipment | 4,098 | 4,261 | ||||
Intangible assets | ||||||
Goodwill | 515 | 639 | ||||
Other | 371 | 318 | ||||
Total intangible assets | 886 | 957 | ||||
Investments and other assets | 3,575 | 3,190 | ||||
Total non-current assets | 8,560 | 8,409 | ||||
Total assets | 75,606 | 77,483 | ||||
Liabilities | ||||||
Current liabilities | ||||||
Notes and accounts payable - trade | 5,429 | 4,778 | ||||
Electronically recorded obligations - operating | 5,956 | 4,919 | ||||
Short-term borrowings | 866 | 1,704 | ||||
Current portion of long-term borrowings | 9,009 | 6,297 | ||||
Income taxes payable | 285 | 158 | ||||
Advances received | 4,496 | 5,638 | ||||
Provision for product warranties | 865 | 724 | ||||
Other provisions | 390 | 506 | ||||
Other | 2,000 | 1,745 | ||||
Total current liabilities | 29,299 | 26,474 | ||||
Non-current liabilities | ||||||
Long-term borrowings | 10,550 | 16,745 | ||||
Retirement benefit liability | 456 | 484 | ||||
Asset retirement obligations | 208 | 210 | ||||
Provisions | 310 | 316 | ||||
Other | 140 | 96 | ||||
Total non-current liabilities | 11,666 | 17,854 | ||||
Total liabilities | 40,966 | 44,329 | ||||
Net assets | ||||||
Shareholders' equity | ||||||
Share capital | 2,847 | 2,847 | ||||
Capital surplus | 2,503 | 2,503 | ||||
Retained earnings | 29,387 | 28,856 | ||||
Treasury shares | △2,011 | △2,479 | ||||
Total shareholders' equity | 32,727 | 31,728 | ||||
Accumulated other comprehensive income | ||||||
Valuation difference | on | available-for-sale | 242 | 16 | ||
securities | ||||||
Foreign currency translation adjustment | 1,402 | 1,230 | ||||
Total accumulated other | comprehensive | 1,644 | 1,247 | |||
income | ||||||
Non-controlling interests | 267 | 178 | ||||
Total net assets | 34,639 | 33,154 | ||||
Total liabilities and net assets | 75,606 | 77,483 | ||||
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（2) Consolidated Statements of Income
(Millions of yen)(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2023 | September 30, 2024 | ||
Net sales | 12,334 | 22,345 | |
Cost of sales | 8,528 | 17,196 | |
Gross profit | 3,805 | 5,148 | |
Selling, general and administrative expenses | 4,685 | 5,284 | |
Operating loss | △880 | △136 | |
Non-operating income | |||
Interest and dividend income | 18 | 30 | |
Penalty income | － | 48 | |
Foreign exchange gains | 357 | － | |
Other | 89 | 54 | |
Total non-operating income | 465 | 133 | |
Non-operating expenses | |||
Interest expenses | 28 | 49 | |
Share of loss of entities accounted for using equity | 139 | 154 | |
method | |||
Foreign exchange losses | － | 65 | |
Other | 8 | 2 | |
Total non-operating expenses | 176 | 272 | |
Ordinary loss | △592 | △275 | |
Extraordinary income | |||
Gain on sale of non-current assets | 12 | 58 | |
Gain on change in equity | 11 | － | |
Total extraordinary income | 24 | 58 | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 0 | 0 | |
Impairment losses | 2 | 0 | |
Total extraordinary losses | 2 | 1 | |
Loss before income taxes | △570 | △217 | |
Income taxes - current | 138 | 146 | |
Income taxes - deferred | 19 | △51 | |
Total income taxes | 158 | 95 | |
Loss | △728 | △312 | |
Loss attributable to non-controlling interests | △81 | △94 | |
Loss attributable to owners of parent | △647 | △218 |
(Millions of yen) | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Loss | △728 | △312 |
Other comprehensive income | ||
Valuation difference on available-for-sale | 19 | △225 |
securities | ||
Foreign currency translation adjustment | 317 | △154 |
Share of other comprehensive income of entities | 103 | △17 |
accounted for using equity method | ||
Total other comprehensive income
Comprehensive income Comprehensive income attributable to
440△397
△288△710
Comprehensive income attributable to owners of | △190 | △611 |
parent | ||
Comprehensive income attributable to non- | △97 | △99 |
controlling interests | ||
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（3) Consolidated Statements of Cash flows
(Millions of yen) | |||||||
Six months ended | Six months ended | ||||||
September 30, 2023 | September 30, 2024 | ||||||
Cash flows from operating activities | |||||||
Loss before income taxes | △570 | △217 | |||||
Depreciation | 367 | 384 | |||||
Amortization of goodwill | 292 | 196 | |||||
Impairment losses | 2 | 0 | |||||
Increase | (decrease) | in | allowance | for | doubtful | △17 | △107 |
accounts | |||||||
Increase (decrease) in provision for bonuses | 28 | 79 | |||||
Increase | (decrease) | in | provision | for | product | △381 | △140 |
warranties | |||||||
Increase (decrease) in retirement benefit liability | 28 | 18 | |||||
Increase (decrease) in provision for loss on orders | △46 | 13 | |||||
received | |||||||
Increase (decrease) in provision for share awards | 40 | 38 | |||||
Interest and dividend income | △18 | △30 | |||||
Interest expenses | 28 | 49 |
Loss on sale of notes receivable - trade
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on change in equity
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of intangible assets
Loss on retirement of property, plant and equipment
Loss on retirement of intangible assets
Loss (gain) on valuation of investment securities
0 | 0 |
139 | 154 |
△11 | － |
△0 | 7 |
△1 | △58 |
△11 | － |
0 | 0 |
0 | 0 |
△19 | △17 |
Decrease (increase) in trade receivables | 4,939 | 2,678 |
Decrease (increase) in inventories | △4,761 | 544 |
Decrease (increase) in advance payments to | △354 | △524 |
suppliers | ||
Decrease (increase) in other current assets | 545 | 1,039 |
Decrease (increase) in other non-current assets | △58 | △63 |
Increase (decrease) in trade payables | 2,182 | △1,720 |
Increase (decrease) in advances received | △3,726 | 1,147 |
Increase (decrease) in other current liabilities | △57 | △283 |
Other, net | 4 | △76 |
Subtotal | △1,435 | 3,114 |
Interest and dividends received | 18 | 30 |
Interest paid | △24 | △57 |
Income taxes paid | △423 | △302 |
Income taxes refund | 296 | 248 |
Net cash provided by (used in) operating activities | △1,568 | 3,033 |
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(Millions of yen) | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Cash flows from investing activities | ||
Payments into time deposits | △0 | △168 |
Purchase of property, plant and equipment | △238 | △473 |
Proceeds from sale of property, plant and | 2 | 32 |
equipment | ||
Purchase of intangible assets | △106 | △8 |
Proceeds from sale of investment securities | － | 33 |
Proceeds from redemption of investment securities | － | 175 |
Purchase of shares of subsidiaries and associates Purchase of shares of subsidiaries resulting in change in scope of consolidation
Loan advances
Proceeds from collection of short-term loans receivable
Other, net
Net cash provided by (used in) investing activities Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
△124 | － |
－ | △336 |
－ | △2 |
40 | 1 |
9△1
△418△747
968 | 2,451 |
△728 | △1,610 |
Proceeds from long-term borrowings | 2,700 | 10,562 |
Repayments of long-term borrowings | △3,030 | △7,140 |
Repayments of lease liabilities | △20 | △26 |
Proceeds from share issuance to non-controlling shareholders
Dividends paid
Purchase of treasury shares
185－
△294 | △292 |
△0 | △499 |
Net cash provided by (used in) financing activities | △219 | 3,444 |
Effect of exchange rate change on cash and cash | 173 | △110 |
equivalents | ||
Net increase (decrease) in cash and cash equivalents | △2,032 | 5,619 |
Cash and cash equivalents at beginning of period | 26,295 | 22,893 |
Cash and cash equivalents at end of period | 24,263 | 28,512 |
（4) Notes to the interiem Consolidated Financial Statements
Application of ‘Accounting Standards for Corporate Tax, Local Tax and Business Tax, etc.’
The Accounting Standard for Corporate, Inhabitant and Business Taxes (ASBJ Statement No. 27, 28 October 2022; hereafter 'the 2022 Revised Accounting Standard') has been adopted. Hereafter referred to as the 'Revised 2022 Accounting Standard'). and others have been applied from the beginning of the first half of the current financial year.
With regard to amendments to the classification of income taxes (taxation on other comprehensive income), the transitional treatment stipulated in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the 'Guidance on Accounting Standard for Tax Effect Accounting' (ASBJ Guidance No. 28, 28 October 2022; hereinafter 'Guidance on Accounting Standard 2022') were applied. Hereinafter referred to as the '2022 Revised Application Guidelines'). The transitional treatment stipulated in the proviso of paragraph 65-2 (2) is followed. This has no impact on the quarterly consolidated financial statements.
With regard to amendments relating to the revised treatment in the consolidated financial statements of the deferral for tax purposes of gains or losses on the sale of shares in subsidiaries and other assets arising on the sale of shares in subsidiaries between consolidated companies, the revised 2022 Application Guidance has been applied from the beginning of the first half of the current financial year. The change in accounting policy has been applied retrospectively and the quarterly consolidated financial statements and consolidated financial statements for the previous year's quarter and the previous financial year have been applied retrospectively.
The change has no impact on the quarterly consolidated financial statements for the previous year's quarter and the consolidated financial statements for the previous financial year.
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I. Previous financial year (1 April 2023 - 30 September 2023)
Information on sales, income (loss) by reportable segment
(Millions of yen)
Reportable segments | ||||||||
Other | Adjustments | Consolidated | ||||||
FPD | Semiconductor, | |||||||
photomask | Total | *1 | *2 | *3 | ||||
equipment | ||||||||
equipment | ||||||||
business | ||||||||
business | ||||||||
Sales | ||||||||
Revenues | from | external | 8,436 | 3,397 | 11,833 | 500 | － | 12,334 |
customers | － | － | － | |||||
Transactions | with | other | 174 | 174 | △174 | |||
segments | ||||||||
total | 8,610 | 3,397 | 12,088 | 500 | △174 | 12,334 | ||
Segment income (△loss) | △544 | △200 | △745 | △135 | － | △880 |
Note
*1. "Other" is a business segment that is not included in the reportable segments and includes OLED lighting and agriculture business.
*2. "Adjustment" refers to elimination of intersegment transactions.
*3. Segment income (loss) is adjusted with operating income in the consolidated financial statements.
II.Current financial year (1 April 2024 - 30 September 2024)>
(Millions of yen)
Reportable segments | ||||||||
Other | Adjustments | Consolidated | ||||||
FPD | Semiconductor, | |||||||
photomask | Reportable | *1 | *2 | *3 | ||||
equipment | ||||||||
equipment | segments | |||||||
business | ||||||||
business | ||||||||
Sales | ||||||||
Revenues | from | external | 16,237 | 5,406 | 21,643 | 701 | － | 22,345 |
customers | － | － | ||||||
Transactions | with | other | 15 | 15 | 161 | △176 | ||
segments | ||||||||
total | 16,252 | 5,406 | 21,658 | 862 | △176 | 22,345 | ||
Segment income (△loss) | 107 | △74 | 33 | △169 | － | △136 |
Note
*1. "Other" is a business segment that is not included in the reportable segments and includes OLED lighting and agriculture business.
*2. "Adjustment" refers to elimination of intersegment transactions.
*3. Segment income (loss) is adjusted with operating income in the consolidated financial statements.
In accordance with a resolution passed at a meeting of the Board of Directors held on 9 August 2024, the Company resolved to acquire treasury stock in accordance with the provisions of Article 156 of the Companies Act, as applied pursuant to Article 165-3 of the same act, and acquired treasury stock in the current interim consolidated accounting period.
As a result, treasury stock increased by 499 million yen in the current interim consolidated accounting period. In addition, it decreased by 32 million yen due to disposal by the stock delivery trust system.
As a result of the above, treasury stock was 2,479 million yen at the end of the current interim consolidated accounting period.
None
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