Nippon Chemi Con : Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

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May 10, 2024

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2024
	(Under Japanese GAAP)
Company name:	NIPPON CHEMI-CON CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	6997
URL:	https://www.chemi-con.co.jp/
Representative:	Norio Kamiyama, Representative Director and President
Inquiries:	Osamu Ishii, Director
Telephone:	[phone]

Scheduled date of annual general meeting of shareholders:	June 27, 2024
Scheduled date to commence dividend payments:	-
Scheduled date to file annual securities report:	June 27, 2024
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for institutional investors and securities analysts)
	(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024 )

(1) Consolidated operating results							(Percentages indicate year-on-year changes.)
	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of
				parent
Fiscal year ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
March 31, 2024	150,740		(6.9)	9,422		(27.2)	7,913		(28.0)	(21,291)		-
March 31, 2023	161,881		15.4	12,939		47.1	10,994		36.8	2,273		-

Note: Comprehensive income For the fiscal year ended March 31, 2024:

¥ (13,667) million

[ - % ]

For the fiscal year ended March 31, 2023:

¥ 5,943 million

[ - % ]

Basic earnings per share

Diluted earnings per share

Return on equity

Ratio of ordinary profit to

Ratio of operating profit

total assets

to net sales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2024

(1,029.15)

-

(41.2)

4.7

6.3

March 31, 2023

112.09

-

4.8

6.9

8.0

Reference: Share of profit (loss) of entities accounted for using equity method

For the fiscal year ended March 31, 2024:

¥ 508 million

For the fiscal year ended March 31, 2023:

¥ 619 million

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

Net assets per share

As of

Millions of yen

Millions of yen

%

Yen

March 31, 2024

172,921

53,610

30.7

1,776.97

March 31, 2023

162,741

50,678

30.9

2,478.43

Reference: Equity

As of March 31, 2024: ¥ 53,097 million

As of March 31, 2023: ¥ 50,257 million

(3) Consolidated cash flows

Cash flows from operating

Cash flows from investing

Cash flows from financing

Cash and cash equivalents at end

activities

activities

activities

of period

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2024

(12,959)

(4,817)

35,421

45,295

March 31, 2023

(4,862)

(6,834)

12,049

26,135

2. Cash dividends

Annual dividends per share

Total cash dividends

Payout ratio

Ratio of dividends

First

Second

Third

Fiscal

Total

(Total)

(Consolidated)

to net assets

quarter-end

quarter-end

quarter-end

year-end

(Consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

0.00

-

0.00

0.00

-

-

-

March 31, 2023

Fiscal year ended

-

0.00

-

0.00

0.00

-

-

-

March 31, 2024

Fiscal year ending

March 31, 2025

0.00

-

(Forecast)

Note: The year-end dividend forecast for the fiscal year ending March 31, 2025 is undecided at this time.

Note: The above "Cash dividends" refers to dividends on common shares. Please refer to "Cash dividends on class shares" below for the status of dividends on class shares (unlisted) that have different rights from those of common shares issued by the Company.

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit		Ordinary profit		Profit attributable to		Basic earnings per share
				owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Six months ending	66,500		(17.2)	3,200		(37.5)	2,200		(58.6)	1,600		-	74.91
September 30, 2024
Fiscal year ending	153,000		1.5	11,500		22.0	10,000		26.4	7,400		-	346.47
March 31, 2025

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of	March 31, 2024	21,939,933 shares
As of	March 31, 2023	20,314,833 shares

(ii) Number of treasury shares at the end of the period

As of	March 31, 2024	581,744 shares
As of	March 31, 2023	37,017 shares

(iii) Average number of shares outstanding during the period

Fiscal year ended	March 31, 2024	20,688,128 shares
Fiscal year ended	March 31, 2023	20,278,579 shares

[Reference] Overview of non-consolidated financial results

1. Non-Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024 )

(1) Non-Consolidated operating results							(Percentages indicate year-on-year changes.)
	Net sales		Operating profit		Ordinary profit		Profit
Fiscal year ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
March 31, 2024	123,330		(13.9)	5,282		(20.5)	6,413		(3.5)	(20,700)	-
March 31, 2023	143,226		15.4	6,642		59.3	6,645		72.9	113	-

	Basic earnings per share	Diluted earnings per share
Fiscal year ended	Yen	Yen
March 31, 2024	(990.74)	-
March 31, 2023	5.60	-

(2) Non-Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of		Millions of yen	Millions of yen	%	Yen
March 31, 2024		149,907	25,344	16.9	465.73
March 31, 2023		145,212	29,884	20.6	1,473.77
Reference: Equity
As of March 31, 2024: ¥ 25,344 million
As of March 31, 2023:	¥ 29,884 million

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  The forecasts are based on reasonable judgments made by the Company in accordance with information available at the time of preparation of these materials. Please refer to "1. Business Results, (4) Future Outlook" on page 3 of the attached materials for matters related to the above forecasts.

Consolidated balance sheet

			(Millions of yen)
	As of March 31, 2023		As of March 31, 2024
Assets
Current assets
Cash and deposits	26,141	45,300
Notes and accounts receivable - trade	32,555	25,853
Merchandise and finished goods	14,308	11,186
Work in process	11,752	11,731
Raw materials and supplies	6,942	6,236
Accounts receivable - other	5,356	3,714
Other	761	849
Allowance for doubtful accounts	(59)	(58)
Total current assets		97,758	104,815
Non-current assets
Property, plant and equipment
Buildings and structures	43,743	45,276
Accumulated depreciation		(33,262)	(34,863)
Buildings and structures, net		10,481	10,412
Machinery, equipment and vehicles	134,419	141,209
Accumulated depreciation	(119,045)	(125,469)
Machinery, equipment and vehicles, net		15,374	15,739
Tools, furniture and fixtures		16,430	17,591
Accumulated depreciation		(14,293)	(14,858)
Tools, furniture and fixtures, net		2,137	2,733
Land	6,946	6,966
Leased assets	1,568	1,607
Accumulated depreciation		(1,079)	(1,230)
Leased assets, net		489	377
Right of use asset	4,615	5,225
Accumulated depreciation	(1,469)	(2,140)
Right of use asset, net		3,145	3,084
Construction in progress		3,306	8,470
Total property, plant and equipment		41,880	47,784
Intangible assets		2,146	2,339
Investments and other assets
Investment securities	18,318	14,649
Deferred tax assets	1,224	1,307
Other	1,431	2,043
Allowance for doubtful accounts		(17)	(17)
Total investments and other assets		20,957	17,982
Total non-current assets		64,983	68,106
Total assets		162,741	172,921

			(Millions of yen)
	As of March 31, 2023		As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade	9,850	7,143
Electronically recorded obligations - operating	7,569	6,453
Short-term borrowings	23,698	46,560
Lease liabilities	1,086	810
Accounts payable - other	8,932	7,501
Income taxes payable	1,206	1,161
Accrued expenses	2,890	2,254
Provision for bonuses	1,877	1,231
Notes payable - facilities	139	181
Other	1,929	1,719
Total current liabilities		59,181	75,017
Non-current liabilities
Long-term borrowings	42,022	38,904
Lease liabilities	3,402	3,120
Deferred tax liabilities	769	233
Retirement benefit liability	3,784	-
Other		2,903	2,034
Total non-current liabilities		52,881	44,293
Total liabilities		112,062	119,310
Net assets
Shareholders' equity
Share capital	24,310	5,452
Capital surplus	21,224	57,487
Retained earnings	(5,411)	(26,702)
Treasury shares		(110)	(917)
Total shareholders' equity		40,012	35,320
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,314	(8)
Foreign currency translation adjustment	7,322	11,790
Remeasurements of defined benefit plans	1,607	5,994
Total accumulated other comprehensive income		10,244	17,777
Non-controlling interests		421	513
Total net assets		50,678	53,610
Total liabilities and net assets		162,741	172,921

Consolidated statement of income

			(Millions of yen)
	Fiscal year ended		Fiscal year ended
	March 31, 2023		March 31, 2024
Net sales	161,881	150,740
Cost of sales	124,954	118,875
Gross profit		36,927	31,865
Selling, general and administrative expenses		23,987	22,442
Operating profit		12,939	9,422
Non-operating income
Interest income	91	140
Dividend income	134	82
Foreign exchange gains	-	85
Share of profit of entities accounted for using equity method	619	508
Other		61	77
Total non-operating income		906	893
Non-operating expenses
Interest expenses	1,001	1,472
Financing expenses	636	687
Foreign exchange losses	1,115	-
Other		98	242
Total non-operating expenses		2,852	2,401
Ordinary profit		10,994	7,913
Extraordinary income
Gain on sale of non-current assets	0	4
Gain on sale of investment securities	-	2,686
Total extraordinary income		0	2,691
Extraordinary losses
Loss on disposal of non-current assets	55	43
Loss on antitrust law	6,409	29,604
Total extraordinary losses		6,465	29,647
Profit (loss) before income taxes		4,528	(19,041)
Income taxes - current	1,857	2,209
Income taxes - deferred	320	9
Total income taxes		2,177	2,219
Profit (loss)		2,350	(21,261)
Profit attributable to non-controlling interests		77	29
Profit (loss) attributable to owners of parent		2,273	(21,291)

Consolidated statement of comprehensive income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2023	March 31, 2024
Profit (loss)	2,350	(21,261)
Other comprehensive income
Valuation difference on available-for-sale securities	425	(1,308)
Foreign currency translation adjustment	3,402	4,518
Remeasurements of defined benefit plans, net of tax	(226)	4,395
Share of other comprehensive income of entities accounted for using equity	(8)	(10)
method
Total other comprehensive income	3,592	7,594
Comprehensive income	5,943	(13,667)
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	5,819	(13,758)
Comprehensive income attributable to non-controlling interests	124	91

Consolidated statement of changes in equity

Fiscal year ended March 31, 2023

(Millions of yen)

Shareholders' equity

Share capital

Capital surplus

Retained

Treasury shares

Total shareholders'

earnings

equity

Balance at beginning

24,310

21,224

(7,684)

(108)

37,741

of period

Issuance of new

shares

Transfer from share

capital to other

capital surplus

Loss attributable to

2,273

2,273

owners of parent

Purchase of treasury

(2)

(2)

shares

Shares of parent

company held by

equity method

affiliates

Net changes in items

other than

shareholders' equity

Total changes during

-

-

2,273

(2)

2,270

period

Balance at end of

24,310

21,224

(5,411)

(110)

40,012

period

Accumulated other comprehensive income

Valuation

Foreign

Total accumulated

Non-controlling

Total net assets

difference on

currency

Remeasurements of

other comprehensive

interests

available-for-

translation

defined benefit plans

income

sale securities

adjustment

Balance at

904

3,970

1,800

6,676

297

44,715

beginning of period

Issuance of new

shares

Transfer from

share capital to

other capital

surplus

Loss attributable

to owners of

2,273

parent

Purchase of

(2)

treasury shares

Shares of parent

company held by

equity method

affiliates

Net changes in

items other than

410

3,351

(193)

3,568

124

3,692

shareholders'

equity

Total changes

410

3,351

(193)

3,568

124

5,963

during period

Balance at end of

1,314

7,322

1,607

10,244

421

50,678

period

Consolidated statement of changes in equity

Fiscal year ended March 31, 2024

												(Millions of yen)
								Shareholders' equity
			Share capital	Capital surplus	Retained		Treasury shares	Total shareholders'
			earnings			equity
Balance at beginning		24,310		21,224	(5,411)		(110)		40,012
of period
Issuance of new		8,702		8,702					17,405
shares
Transfer from share
capital to other		(27,560)		27,560					-
capital surplus
Loss attributable to							(21,291)				(21,291)
owners of parent
Purchase of treasury									(2)		(2)
shares
Shares of parent
company held by									(803)		(803)
equity method
affiliates
Net changes in items
other than
shareholders' equity
Total changes during		(18,858)		36,263	(21,291)		(806)		(4,692)
period
Balance at end of		5,452		57,487	(26,702)		(917)		35,320
period
				Accumulated other comprehensive income
			Valuation		Foreign					Total accumulated	Non-controlling	Total net assets
		difference on		currency		Remeasurements of
				other comprehensive	interests
		available-for-		translation		defined benefit plans
				income
		sale securities		adjustment
Balance at		1,314		7,322		1,607	10,244	421	50,678
beginning of period
Issuance of new													17,405
shares
Transfer from
share capital to													-
other capital
surplus
Loss attributable
to owners of													(21,291)
parent
Purchase of													(2)
treasury shares
Shares of parent
company held by													(803)
equity method
affiliates
Net changes in
items other than		(1,323)		4,468		4,387	7,532	91	7,623
shareholders'
equity
Total changes		(1,323)		4,468		4,387	7,532	91	2,931
during period
Balance at end of		(8)		11,790		5,994	17,777	513	53,610
period

Consolidated statement of cash flows

			(Millions of yen)
	Fiscal year ended		Fiscal year ended
	March 31, 2023		March 31, 2024
Cash flows from operating activities
Profit (loss) before income taxes	4,528	(19,041)
Depreciation	6,332	6,762
Loss on antitrust law	6,409	29,604
Increase (decrease) in retirement benefit liability	(615)	(416)
Increase (decrease) in allowance for doubtful accounts	49	(9)
Interest and dividend income	(225)	(222)
Interest expenses	1,001	1,472
Foreign exchange losses (gains)	(359)	(72)
Share of loss (profit) of entities accounted for using equity method	(619)	(508)
Loss (gain) on disposal of non-current assets	55	38
Loss (gain) on sale of investment securities	-	(2,686)
Decrease (increase) in trade receivables	(319)	8,425
Decrease (increase) in inventories	246	6,065
Increase (decrease) in trade payables	(182)	(5,802)
Increase (decrease) in accounts payable - other	(663)	(1,368)
Other, net		3,107	1,093
Subtotal		18,747	23,332
Interest and dividends received	422	426
Interest paid	(985)	(1,452)
Income taxes paid	(1,906)	(2,358)
Payments related to antitrust law	(21,140)	(32,907)
Net cash provided by (used in) operating activities		(4,862)	(12,959)
Cash flows from investing activities
Purchase of property, plant and equipment	(6,257)	(8,911)
Proceeds from sale of property, plant and equipment	0	5
Purchase of intangible assets	(571)	(553)
Proceeds from sale of investment securities	-	4,576
Loan advances	(13)	(5)
Proceeds from collection of loans receivable	14	9
Other, net		(6)	61
Net cash provided by (used in) investing activities		(6,834)	(4,817)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	(8,323)	28,791
Proceeds from long-term borrowings	23,000	5,550
Repayments of long-term borrowings	(3,355)	(14,867)
Proceeds from issuance of shares	-	17,405
Repayments of lease liabilities	(1,179)	(1,205)
Purchase of treasury shares	(2)	(2)
Proceeds from sale and installment back transactions	2,000	-
Repayments of installment payables		(89)	(249)
Net cash provided by (used in) financing activities		12,049	35,421
Effect of exchange rate change on cash and cash equivalents		1,029	1,514
Net increase (decrease) in cash and cash equivalents		1,381	19,159
Cash and cash equivalents at beginning of period		24,754	26,135
Cash and cash equivalents at end of period		26,135	45,295