Mipox : Financial Statement for the Year Ended March 31, 2023

Financial Statement for the Year Ended March 31, 2023

				May 15, 2023
Name of listed company:	Mipox Corporation	Stock exchange:	Tokyo Stock Exchange Inc., Standard Market
Stock code:	5381		URL	5381
Name and title of Representative:	Jun Watanabe, President
Inquiries to:	Munehisa Uetani, Director	(TEL)	[phone]
Expected date of the Shareholders' Meeting:	June 27, 2023
Expected start date of dividend payment:	June 28, 2023
Expected date of the release of Asset Security	June 28, 2023
Report:
Preparation of supplementary materials for financial results:	Yes
Holding of financial results briefing:			Yes (for institutional investors)

(Figures are rounded down to the nearest million)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022, to March 31, 2023)

(1) Consolidated operating results

(% implies the rate of increase/decrease year-on-year)

		Net sales		Operating income	Ordinary income		Profit attributable to
					owners of parent
		Millions of yen		%		Millions of yen		%	Millions of yen		%		Millions of yen	%
FY2023		10,029		(4.0)		212		(85.5)		426		(73.6)			45	(97.1)
FY2022		10,449		41.9		1,467		308.3	1,613		435.4			1,550	―
(Note) Comprehensive income:	FY2023					120 million yen	[(92.9%)]
	FY2022				1,691 million yen	[606.1%]
		Net Income Per			Diluted Net	Net income /				Ordinary		Operating
					income / total		income / net
		Share				Income Per Share	capital equity
								assets				sales
				Yen			Yen		%					%			%
FY2023			3.18			―		0.6					2.8			2.1
FY2022		124.89		124.68		24.9					12.5			14.0
(Reference) Share of profit of entities accounted for using equity method:
		FY2023					― million yen
		FY2022					― million yen

(2) Consolidated Financial Position

			Total assets		Net assets	Shareholders' Equity	Net assets per share
				Ratio
			Millions of yen		Millions of yen	%	Yen
FY2023			16,195		7,997	49.4	561.67
FY2022			14,606		8,091	55.4	568.24
(Reference) Equity capital:	FY2023	7,997 million yen
	FY2022	8,091 million yen

(3) Consolidated Statement of Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	operating activities	investing activities	financing activities	equivalents at end of year
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
FY2023	(423)	(1,068)	1,638	2,452
FY2022	1,656	(3,336)	932	2,234

2. Status of Distribution

Dividends per share

Total

Dividend

Net asset

dividend

First quarter

Second

Third

dividend

ratio

Year end

Total

rate

end

quarter end

quarter end

(Year)

(Consolidated)

(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

Yen

FY2022

―

0.00

―

15.00

15.00

213

12.0

3.2

FY2023

―

0.00

―

10.00

10.00

142

314.5

1.8

FY2024 (Expected)

―

0.00

―

―

―

―

(Note) Dividend for the fiscal year ending March 31, 2024 (Expected) has not been determined.

3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023, to March 31, 2024)

(% changes as compared with the previous fiscal year)

	Net sales		Operating income	Ordinary income	Profit attributable to	Net income per
		owners of parent		share
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Full FY2023	10,500		4.7	500	134.8	600	40.7	500		―	35.11

*	Others
(1)	Change in important subsidiaries during the period	:	None
	(Changes in certain specified subsidiaries resulting in revised scope of consolidation)
	Addition	― company (Company name)
	Excluded	― company (Company name)

1. Changes in accounting principles, changes in accounting estimates and restatement

(i)	Changes in accounting principles associated with revisions to accounting standards and	:	None
	other regulations
(ii)	Changes in accounting principles due to other reasons	:	None
(iii)	Changes in accounting estimates	:	None
(iv)	Restatement	:	None

1. Shares outstanding (common shares)
2. 1. Number of shares outstanding (including treasury shares)
   2. Number of treasury shares
   3. Average number of shares outstanding

As of March 31, 2023	14,451,920	As of March 31, 2022	14,451,920
As of March 31, 2023	212,630	As of March 31, 2022	212,610
As of March 31, 2023	14,239,299	As of March 31, 2022	12,413,221

• The number of treasury shares as of March 31, 2022 and 2023 includes the Company's shares of 23,300 shares and 23,300 shares that are held by the trust account, respectively.

(Reference) Overview of Non-Consolidated Financial Results

1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022, to March 31, 2023)

(1) Non-Consolidated Operating Result

(% changes as compared with the previous fiscal year)

	Net sales		Operating income	Ordinary income	Profit
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY2023	8,401	(12.0)		(402)	―	15	(99.2)	(151)	―
FY2022	9,550		47.2		1,406	386.5	1,892	539.1	1,728	―
	Net income per share	Diluted Net Income Per Share
				Yen			Yen
FY2023			(10.62)			―
FY2022			139.26			139.03

(2) Consolidated financial position

		Total assets	Net assets	Shareholders' equity ratio	Net assets per share
		Millions of yen	Millions of yen	%	Yen
FY2023		15,266	7,523	49.3	528.38
FY2022		13,839	7,889	57.0	554.03
(Reference) Equity capital:	FY2023	7,523 million yen
	FY2022	7,889 million yen

• Consolidated Financial Results are not subject to audit by certified public accountants or audit firms.
• Explanation on proper use of financial forecasts and other special notes
• • The financial forecasts and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions deemed to be reasonable. Actual results may differ significantly due to various factors.

• Table of Contents for Attachments

1.	Information on Financial Results	2
(1)	Explanation of Operating Results	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Cash Flows	3
(4)	Future Outlook	4
2.	Basic Policies Concerning Selection of Accounting Standards	4
3.	Consolidated Financial Statements and Key Notes	5
(1)	Consolidated balance sheet	5
(2)	Consolidated Income Statements & Comprehensive Income	7
(3)	Consolidated Statement of Changes in Equity	9
(4)	Consolidated Statement of Cash Flows	11
(5)	Notes to Consolidated Financial Statements	13
	(Notes on Going Concern Assumptions)	13
	(Change in Presentation Method)	13
	(Additional Information)	13
	(Consolidated income statements of and consolidated comprehensive income)	14
	(Segment Information, etc.)	15
	(Per Share Information)	19
	(Significant Subsequent Event)	19

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1. Information on Financial Results

1. Explanation of Operating Results

For the consolidated fiscal year ended March 31, 2023, the Japanese economy experienced a surge in energy prices arising from the global impacts from the prolonged situation in Ukraine, geopolitical risks in U.S.-China relations, and monetary tightening measures aimed at controlling inflation, as well as a price increases stemming from volatile FX rates mainly a weaker yen, though restrictions on economic activities due to COVID-19 were eased. Recently, growing concerns over bankruptcy or financial difficulties of financial institutions in Europe and the U.S. have put downward pressure on the Japanese economy. Thus, we have to pay attention to future interest rate policies and foreign exchange movements though the number of foreign visitors to Japan has increased and consumer spending has also recovered as we are in the age of living with COVID-19.

Under these circumstances, at the Group we have continued to make efforts to "Change The World by our C onverting and Polishing Technologies," which is our value, based on our management policies of "Add value to the pro duct business with an engineering approach," "Change from the Processing S ervice Business to Engineering Services," and "Impro ve the management base to respond to rapid changes and diversity."

In terms of our business environment, the semiconductor market remained strong in the first half of the current fiscal year as it had been in the previous fiscal year. But due to world monetary tightening measures aimed at controlling inflation, from the second half, we witnessed inventory adjustments for semiconductors and high-tech products, and employment adjustments and a restraint in investment mainly by GAFAM in the U.S. These things led to a rapid decline in investments in data centers and demand for semiconductor-related products related to hard disk drives, optical fibers, PCs and electronic devices, which are markets of our major customers. On the other hand, the reorganization of our production system centered on the Kanuma Plant, which was acquired and started operation in the current fiscal year, under review has shown certain progress and results, and we are increasing our production capacity including the acquisition of new OEM needs, and improving the production efficiency.

As a result, for the consolidated fiscal year ended March 31, 2023, the Group posted net sales of 10,029 million yen (down 4.0% year-on-year), operating income of 212 million yen (down 85.5% year-on-year), ordinary income of 426 million yen (down 73.6% year-on-year), and profit attributable to owners of parent of 45 million yen (down 97.1% year-on-year).

Results by segment are as follows:

• Product Business
  In the Product Business, net sales were 7,948 million yen (up 5.0% year-on-year), and segment profit was 753 million yen (down 14.9% year-on-year). Sales increased but profit decreased as sales of hard disk drives declined due to a restraint in investment in data centers worldwide and a slump in the electronic-device-related market while sales of general polishing products for automobiles and steel-related products remained stable.
• Processing Service Business
  The Processing Service Business posted net sales of 2,080 million yen (down 27.7% year-on-year), and segment loss of 540 million yen (segment profit of 582 million yen in the previous year). Sales dropped due to a decrease in orders affected by inventory adjustments and production changes of customers, and increased fixed costs, mainly office maintenance costs, reduced profit.

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