DAISHINKU CORP.
Summary of Financial Results for the Second Quarter Ended Sep. 30, 2023
Tokyo, Nov. 6, 2023 - Daishinku Corp. today announced its consolidated financial results for the second quarter ended Sep. 30, 2023.
1. Operating Results for the Second Quarter ended Sep. 30, 2023 (April 1, 2023 to Sep. 30, 2023)
(1) Consolidated operating results | (Figures in % are a comparisons with the same period of the previous 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 | % | ||||||||
Six months ended Sep. 30, 2023 | 19,332 | (4.7) | 901 | (67.9) | 1,977 | (58.4) | 1,391 | (53.4) | |||||||
Six months ended Sep. 30, 2022 | 20,292 | (5.3) | 2,810 | 1.7 | 4,751 | 56.2 | 2,986 | 68.4 | |||||||
Note: Comprehensive Income | Six months ended Sep. 30, 2023 ; 3,054 Yen-million, Six months ended Sep. 30, 2022 ; 3,977 Yen-million | ||||||||||||||
Net Income per | Net Income per share | ||||||||||||||
after adjustment with | |||||||||||||||
share | |||||||||||||||
potential shares | |||||||||||||||
Yen | Yen | ||||||||||||||
Six months ended Sep. 30, 2023 | 43.10 | - | |||||||||||||
Six months ended Sep. 30, 2022 | 92.51 | - | |||||||||||||
(2) Consolidated financial status | |||||||||||||||
Total Assets | Net Assets | Stockholders' equity ratio | |||||||||||||
Millions of Yen | Millions of Yen | % | |||||||||||||
Six months ended Sep. 30, 2023 | 89,720 | 45,786 | 42.1 | ||||||||||||
Year ended March 31, 2023 | 83,622 | 43,182 | 42.9 | ||||||||||||
ref. Stockholders' equity : As of Sep. 30, 2023 ; 37,762 Yen-million, As of March 31, 2023 ; 35,901 Yen-million | |||||||||||||||
2. Dividends | |||||||||||||||
Dividends per share | |||||||||||||||
End of 1st quarter | End of 2nd quarter | End of 3rd quarter | Year-end | Annual | |||||||||||
(Results) | Yen | Yen | Yen | Yen | Yen | ||||||||||
Year ended March 31, 2023 | - | 14.00 | - | 14.00 | 28.00 | ||||||||||
Year ending March 31, 2024 | - | 14.00 | |||||||||||||
(Forecast) | |||||||||||||||
Year ending March 31, 2024 | - | 14.00 | 28.00 |
3. Forecast for the fiscal year ending March 31, 2024 (April 1, 2023 - March 31, 2024)
(Figures in % are a comparisons with the same period of the previous year.)
Net Sales | Operating Income | Ordinary Income | Profit attributable to | Net Income | |||||
owners of parent | per share | ||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Yen | |
Year ending March 31, 2024 | 38,000 | (1.1) | 1,500 | (64.4) | 1,700 | (66.7) | 1,100 | (65.7) | 34.08 |
Note: Revision of the fiscal year result forecast for during this period: Applicable
4.Notes
- Changes for important subsidiaries during this period : None
- Application of particular accounting procedures to preparation of
quarterly consolidated financial statements: Applicable
(3) Changes in accounting policies and changes or restatement of accounting estimates
1. | Changes in accounting policies related to accounting standard revisions | None |
2. | Other changes in accounting policies | None |
3. | Changes in accounting estimates | None |
4. | Modified restatements | None |
(4) Outstanding shares (Common shares)
1. | Number of shares outstanding (including treasury stock) | |||||
As of Sep. 30, 2023 : | 36,196,968 | shares | As of March 31, 2023 : | 36,196,968 | shares | |
2. | Number of treasury stock | |||||
As of Sep. 30, 2023 : | 3,918,816 | shares | As of March 31, 2023 : | 3,918,416 | shares | |
3. Average number of shares during the period | ||||||
April-Sep. 2023 : | 32,278,348 | shares | April-Sep. 2022 : | 32,279,428 | shares |
- The forecasts are based on assumptions of the future economic environment using the data available at the time of disclosure. Actual earnings may differ from the forecasts, due to a range of factors.
Overview of operating results for the second quarter ended Sep. 30, 2023
In the global economy, during the first half of the current fiscal year (April 1, 2023 to September 30, 2023), economic recovery tended to slow down due to soaring prices with inflation, rising policy interest rates and so on. Capital investment is sluggish especially in the manufacturing industry, and geopolitical risks persist at high level, so an outlook remains uncertain.
In such an environment, DAISHINKU CORP. and its affiliates saw an increase in sales in the automotive applications field such as EVs (Electric Vehicles). On the other hand, the telecommunications field remained weak, although there were signs of recovery in Chinese smartphones and communication modules. Furthermore, in the consumer field, demand for telework/stay-at-home peaked out and the adjustment phase continued from the second half of the previous fiscal year, especially for PCs., resulting in net sales of 19,332 million yen (down 4.7% year on year). With regard to profits, operating profit reached 901 million yen (down 67.9% year on year) due to the impact of lower utilization with decreased sales and price fluctuations of some products. Although a foreign exchange gain of 1,119 million yen was recorded as non-operating income and a gain on sale of investment securities of 887 million yen was recorded as extraordinary income, ordinary profit was 1,977 million yen (down 58.4% year on year) and profit attributable to owners of parent was 1,391 million yen (down 53.4% year on year).
Consolidated Financial Statements | ||
(1) Consolidated Balance Sheets | (Unit: Thousands of yen) | |
Year ended March 31, 2023 | Six months ended Sep. 30, 2023 | |
Assets | ||
Current assets | ||
Cash and deposits | 18,517,098 | 21,942,031 |
Notes and accounts receivable - trade, and contract assets | 9,687,625 | 10,965,462 |
Securities | 39,854 | 44,753 |
Merchandise and finished goods | 7,221,518 | 6,293,207 |
Work in process | 5,292,225 | 5,804,198 |
Raw materials and supplies | 4,660,821 | 5,260,520 |
Other | 1,301,442 | 1,590,761 |
Allowance for doubtful accounts | (9,087) | (18,619) |
Total current assets | 46,711,499 | 51,882,317 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 3,132,878 | 3,137,335 |
Machinery, equipment and vehicles, net | 13,069,856 | 13,139,454 |
Tools, furniture and fixtures, net | 1,150,322 | 1,190,859 |
Land | 5,920,297 | 5,936,339 |
Leased assets, net | 414,984 | 300,716 |
Construction in progress | 6,896,838 | 8,065,838 |
Total property, plant and equipment | 30,585,178 | 31,770,544 |
Intangible assets | 1,184,714 | 1,307,143 |
Investments and other assets | ||
Investment securities | 2,812,160 | 2,469,751 |
Long-term loans receivable | 1,285 | 1,208 |
Retirement benefit asset | 678,734 | 718,244 |
Deferred tax assets | 756,688 | 644,180 |
Other | 919,991 | 955,090 |
Allowance for doubtful accounts | (27,800) | (27,800) |
Total investments and other assets | 5,141,060 | 4,760,674 |
Total non-current assets | 36,910,953 | 37,838,362 |
Total assets | 83,622,452 | 89,720,680 |
(Unit: Thousands of yen) | ||
Year ended March 31, 2023 | Six months ended Sep. 30, 2023 | |
Liabilities | ||
Current liabilities | 1,827,047 | 2,334,048 |
Notes and accounts payable - trade | ||
Short-term borrowings | 2,361,569 | 2,294,417 |
Current portion of long-term borrowings | 9,658,529 | 11,495,259 |
Lease obligations | 254,663 | 195,885 |
Accounts payable - other | 2,659,707 | 1,944,348 |
Income taxes payable | 976,237 | 577,646 |
Contract liabilities | 11 | 1,035 |
Provision for bonuses | 800,654 | 757,881 |
Provision for bonuses for directors | - | 16,996 |
Other | 927,382 | 1,086,322 |
Total current liabilities | 19,465,802 | 20,703,840 |
Non-current liabilities | 18,390,443 | 20,104,918 |
Long-term borrowings | ||
Lease obligations | 173,217 | 115,376 |
Deferred tax liabilities | 1,135,633 | 1,630,344 |
Retirement benefit liability | 1,048,161 | 1,153,108 |
Long-term accounts payable - other | 77,838 | 71,058 |
Asset retirement obligations | 27,837 | 28,071 |
Other | 120,898 | 127,009 |
Total non-current liabilities | 20,974,031 | 23,229,886 |
Total liabilities | 40,439,833 | 43,933,727 |
Net assets | ||
Shareholders' equity | 19,344,883 | 19,344,883 |
Share capital | ||
Capital surplus | 7,172,364 | 7,172,364 |
Retained earnings | 6,500,970 | 7,440,152 |
Treasury shares | (1,929,648) | (1,929,933) |
Total shareholders' equity | 31,088,569 | 32,027,467 |
Accumulated other comprehensive income | 1,069,484 | 986,747 |
Valuation difference on available-for-sale securities | ||
Foreign currency translation adjustment | 3,318,351 | 4,535,161 |
Remeasurements of defined benefit plans | 425,069 | 212,683 |
Total accumulated other comprehensive income | 4,812,905 | 5,734,592 |
Non-controlling interests | 7,281,144 | 8,024,892 |
Total net assets | 43,182,619 | 45,786,952 |
Total liabilities and net assets | 83,622,452 | 89,720,680 |
(2) Consolidated Statements of Income | (Unit: Thousands of yen) | |
Six months ended Sep. 30, 2022 | Six months ended Sep. 30, 2023 | |
Net sales | 20,292,298 | 19,332,388 |
Cost of sales | 13,655,136 | 14,698,370 |
Gross profit | 6,637,162 | 4,634,018 |
Selling, general and administrative expenses | 3,826,913 | 3,732,126 |
Operating profit | 2,810,248 | 901,891 |
Non-operating income | 25,670 | 80,153 |
Interest income | ||
Dividend income | 61,751 | 69,362 |
Foreign exchange gains | 1,870,025 | 1,119,840 |
Other | 123,843 | 231,592 |
Total non-operating income | 2,081,290 | 1,500,948 |
Non-operating expenses | 85,706 | 149,333 |
Interest expenses | ||
Cancellation penalty | - | 162,000 |
Other | 54,815 | 113,571 |
Total non-operating expenses | 140,521 | 424,904 |
Ordinary profit | 4,751,017 | 1,977,934 |
Extraordinary income | 12,521 | 63,932 |
Gain on sale of non-current assets | ||
Gain on sale of investment securities | 30,634 | 887,054 |
Total extraordinary income | 43,155 | 950,986 |
Extraordinary losses | 447 | - |
Loss on sale of non-current assets | ||
Loss on retirement of non-current assets | 60 | 1,234 |
Impairment losses | 38,272 | 38,282 |
Total extraordinary losses | 38,780 | 39,516 |
Profit before income taxes | 4,755,393 | 2,889,405 |
Income taxes - current | 1,158,496 | 458,595 |
Income taxes - deferred | 163,845 | 359,876 |
Total income taxes | 1,322,341 | 818,472 |
Profit | 3,433,051 | 2,070,932 |
Profit attributable to non-controlling interests | 446,733 | 679,850 |
Profit attributable to owners of parent | 2,986,318 | 1,391,082 |
(3) Consolidated statement of comprehensive income | (Unit: Thousands of yen) | |
Six months ended Sep. 30, 2022 | Six months ended Sep. 30, 2023 | |
Profit | 3,433,051 | 2,070,932 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | (1,147,283) | (375,488) |
Foreign currency translation adjustment | 1,772,256 | 1,571,118 |
Remeasurements of defined benefit plans | (80,858) | (212,040) |
Total other comprehensive income | 544,115 | 983,589 |
Comprehensive income | 3,977,167 | 3,054,522 |
Total comprehensive income attributable to : | ||
Shareholders of DAISHINKU Corporation | 3,625,992 | 2,312,769 |
Comprehensive income attributable to non-controlling interests | 351,175 | 741,752 |
Segment information
1. Information on the amount of net sales, profit or loss and disaggregation of revenue by reportable segments The second quarter ended Sep. 30, 2022 (April 1, 2022 to Sep. 30, 2022)
(Unit: Thousands of yen) | |||||||||
Reportable segments | Amounts | ||||||||
Adjustment | recorded in | ||||||||
Japan | North | Europe | China | Taiwan | Asia | Total | consolidated | ||
America | quarterly | ||||||||
financial | |||||||||
statements | |||||||||
Net sales | |||||||||
Revenue from | 4,059,180 | 808,724 | 1,822,898 | 7,020,240 | 5,084,331 | 1,496,923 | 20,292,298 | - | 20,292,298 |
contracts with | |||||||||
customers | - | - | - | - | - | - | - | - | |
Other revenue | - | ||||||||
Sales to external | 4,059,180 | 808,724 | 1,822,898 | 7,020,240 | 5,084,331 | 1,496,923 | 20,292,298 | - | 20,292,298 |
customers | |||||||||
Intersegment | 11,753,725 | 24,408 | 2,558 | 2,418,366 | 1,582,910 | 3,183,748 | 18,965,718 | (18,965,718) | - |
sales or transfers | |||||||||
Total | 15,812,906 | 833,133 | 1,825,457 | 9,438,606 | 6,667,241 | 4,680,672 | 39,258,017 | (18,965,718) | 20,292,298 |
Segment profit | 1,926,626 | 5,727 | 47,375 | 345,701 | 666,567 | (38,134) | 2,953,863 | (143,614) | 2,810,248 |
(loss) | |||||||||
Note1: Segment profit (loss) adjustments of (143,614) Yen-thousand include elimination of intersegment transactions of 6,999 Yen-thousand and other adjustments of (150,614) Yen-thousand.
Note2: Segment profit (loss) is adjusted with operating income in the consolidated statements of income.
Note3: Major countries or regions belonging to each segment other than Japan, China and Taiwan are as follows.
- North America - USA
- Europe - Germany
- Asia - Indonesia, Singapore and Thailand
2. Information on the amount of net sales, profit or loss and disaggregation of revenue by reportable segments The second quarter ended Sep. 30, 2023 (April 1, 2023 to Sep. 30, 2023)
(Unit: Thousands of yen) | |||||||||
Reportable segments | Amounts | ||||||||
Adjustment | recorded in | ||||||||
Japan | North | Europe | China | Taiwan | Asia | Total | consolidated | ||
America | financial | ||||||||
statements | |||||||||
Net sales | |||||||||
Revenue from | 4,268,521 | 1,191,433 | 1,910,571 | 5,636,173 | 4,969,887 | 1,355,800 | 19,332,388 | - | 19,332,388 |
contracts with | |||||||||
customers | - | - | - | - | - | - | - | - | |
Other revenue | - | ||||||||
Sales to external | 4,268,521 | 1,191,433 | 1,910,571 | 5,636,173 | 4,969,887 | 1,355,800 | 19,332,388 | - | 19,332,388 |
customers | |||||||||
Intersegment | 10,275,794 | 26,131 | 937 | 1,616,141 | 1,387,602 | 3,621,402 | 16,928,009 | (16,928,009) | - |
sales or transfers | |||||||||
Total | 14,544,316 | 1,217,565 | 1,911,508 | 7,252,314 | 6,357,490 | 4,977,203 | 36,260,398 | (16,928,009) | 19,332,388 |
Segment profit | 145,777 | 14,909 | 23,580 | (107,790) | 315,928 | 152,258 | 544,663 | 357,228 | 901,891 |
Note1: Segment profit (loss) adjustments of 357,228 Yen-thousand include elimination of intersegment transactions of (50,761) Yen-thousand and other adjustments of 407,989 Yen-thousand.
Note2: Segment profit (loss) is adjusted with operating income in the consolidated statements of income.
Note3: Major countries or regions belonging to each segment other than Japan, China and Taiwan are as follows.
- North America - USA
- Europe - Germany
- Asia - Indonesia, Singapore and Thailand
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Daishinku Corporation published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2023 07:26:50 UTC.