JCU : Summary of Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023New! (762.78 KB)

November 7, 2022

Summary of Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

(Six Months Ended September 30, 2022)

		[Japanese GAAP]
Company name: JCU CORPORATION	Listing: Tokyo Stock Exchange
Stock code:	4975	URL: https://www.jcu-i.com/
Representative:	Masashi Kimura, Chairman & CEO
Contact:	Yoji Inoue, Director, Managing Executive Officer, General Manager of Corporate Strategy Office
	Tel: [phone]

Scheduled date of filing of Quarterly Report:	November 10, 2022
Scheduled date of payment of dividend:	December 5, 2022
Preparation of supplementary materials for quarterly financial results:	Yes
Holding of quarterly financial results meeting:	None

Note: The original disclosure in Japanese was released on November 7, 2022 at 15:00. (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 - September 30, 2022)

(1) Consolidated results of operations				(Percentages represent year-over-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Six months ended Sep. 30, 2022	13,117		12.6	4,680	7.6	4,720	6.6	3,326	8.1
Six months ended Sep. 30, 2021	11,654		20.5	4,350	49.1	4,430	50.0	3,078	53.0

Note: Comprehensive income (million yen)

Six months ended Sep. 30, 2022:	5,782 (up 33.8%)
Six months ended Sep. 30, 2021:	4,321 (up 209.0%)

	Net income per share	Diluted net income
	per share
	Yen	Yen
Six months ended Sep. 30, 2022	128.26	-
Six months ended Sep. 30, 2021	117.30	-

(2) Consolidated financial position

	Total assets			Net assets		Equity ratio
		Million yen			Million yen			%
As of Sep. 30, 2022			44,232			38,191			86.3
As of Mar. 31, 2022			40,892			33,166			81.1
Reference: Shareholders' equity (million yen)	As of Sep. 30, 2022: 38,191		As of Mar. 31, 2022: 33,166
2. Dividends
					Dividends per share
	1Q-end		2Q-end	3Q-end		Year-end	Total
	Yen			Yen		Yen			Yen	Yen
FY3/22	-		27.00		-		30.00	57.00
FY3/23	-		33.00
FY3/23 (forecasts)						-		33.00	66.00

Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Percentages represent year-over-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Net income per share
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	26,500		9.3	9,100	1.2	9,100	(1.4)	6,300	(1.1)	242.90

Note: Revisions to the most recently announced consolidated forecast: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scope of consolidation): None

Newly added: -

Excluded: -

1. Application of special accounting methods for presenting quarterly consolidated financial statements: None
2. Changes in accounting policies and accounting estimates, and restatements

1)	Changes in accounting policies due to revisions in accounting standards, others: Yes
2)	Changes in accounting policies other than 1) above:	None
3)	Changes in accounting estimates:	None
4)	Restatements:	None

(4) Number of outstanding shares (common stock)

1)	Number of shares outstanding at the end of the period (including treasury shares)
	As of Sep. 30, 2022:	27,547,477 shares	As of Mar. 31, 2022:	27,541,754 shares
2)	Number of treasury shares at the end of the period
	As of Sep. 30, 2022:	1,608,474 shares	As of Mar. 31, 2022:	1,608,474 shares
3) Average number of shares outstanding during the period
	Six months ended Sep. 30, 2022:	25,934,718 shares	Six months ended Sep. 30, 2021:	26,240,926 shares

Note 1: The quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.

Note 2: Cautionary statement with respect to forward-looking statements and other special items

Forecasts of future performance in this report are based on assumptions judged to be valid and information currently available to the Company. Actual results may differ substantially from these forecasts for a number of reasons.

	JCU CORPORATION (4975) Financial Results for the Second Quarter of FY3/23
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Forecast and Other Forward -looking Statements	4
2. Quarterly Consolidated Financial Statements and Notes	5
(1)	Quarterly Consolidated Balance Sheet	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	7
(3)	Quarterly Consolidated Statement of Cash Flows	9
(4)	Notes to Quarterly Consolidated Financial Statements	11
	Going Concern Assumption	11
	Significant Changes in Shareholders' Equity	11
	Changes in Accounting Policies	11
	Segment Information	11

1

JCU CORPORATION (4975) Financial Results for the Second Quarter of FY3/23

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

During the first six months of the fiscal year ending March 31, 2023 (hereinafter the "period under review"), the domestic economy saw a recovery of consumer spending thanks to eased behavioral restrictions. In the manufacturing industry, both import and production increased on the back of the eased restriction on the parts supply, despite that the increased raw material costs had a negative impact on business sentiment. Companies continued to show a modest recovery trend in their capital investments by resuming investments that had been postponed.

Overseas, in China, consumer spending was sluggish and production in the manufacturing industry declined due to strict activity restrictions in some regions. In Europe and the United States, although behavioral restrictions to prevent the spread of COVID-19 were eased, Russia's invasion of Ukraine caused soaring energy and resource prices and supply-chain disruption, which needs close monitoring on an ongoing basis.

As for the business environment surrounding the JCU Group, although the shipments of smartphones and PCs decreased, with the 5G commercialization, IoT, and teleworking as keywords, the technological innovation and increased volume of data communications contributed to an increase in demand mainly for semiconductor package substrates for 5G related components, infrastructure such as data centers, and high -performance electronic devices. In the automotive industry, we saw a decrease in automobile production and sales volume mainly in China, which was attributable to the shortages in parts supply and supply -chain disruption due to the lockdown caused by the spread of COVID-19 infections.

The results of operations of the JCU Group were as follows.

(Millions of yen, unless otherwise stated)

	Previous period	Current period	Year-over-year
	(Apr. 1, 2021 - Sep. 30, 2021)	(Apr. 1, 2022- Sep. 30, 2022	% change
Net sales	11,654	13,117	Up 12.6%
Operating profit	4,350	4,680	Up 7.6%
Ordinary profit	4,430	4,720	Up 6.6%
Profit attributable to owners of parent	3,078	3,326	Up 8.1%

The results of operations by segment were as follows.

Chemicals Business

Chemicals for electronics industry

China:	Demand for PWBs for high-performance electronic devices increased with IoT and teleworking as
	keywords, despite a decrease in shipments of smartphones. As a result, demand for chemicals
	remained unchanged.
Taiwan:	Demand for semiconductor package substrates for high -performance electronic devices and
	servers increased, and demand for chemicals increased.
Korea:	As a result of demand for the semiconductor market being slacked, demand for chemicals
	decreased because some manufactures of semiconductor package substrates began to reduce
	inventories.
Chemicals for decoration
Japan:	Although semiconductor shortages improved temporarily, demand for chemicals decreased due to
	supply-chain stagnation.
China:	The automobile production and sales volume decreased because of the lockdown caused by the
	spread of COVID-19 infections, the shortage of parts supply and supply-chain disruption. As a
	result, demand for chemicals decreased.

2

JCU CORPORATION (4975) Financial Results for the Second Quarter of FY3/23

(Millions of yen, unless otherwise stated)

	Previous period	Current period	Year-over-year
	(Apr. 1, 2021 - Sep. 30, 2021)	(Apr. 1, 2022- Sep. 30, 2022	% change
Net sales	11,068	12,122	Up 9.5%
Segment profit	4,820	5,008	Up 3.9%

Machine Business

Net sales, orders received and order backlog increased substantially thanks to the resumption of the projects that had been postponed due to the pandemic and an increase in demand for new investments in plating machines for the electronics industry.

(Millions of yen, unless otherwise stated)

	Previous period	Current period	Year-over-year
	(Apr. 1, 2021 - Sep. 30, 2021)	(Apr. 1, 2022- Sep. 30, 2022	% change
Net sales	585	995	Up 69.9%
Segment profit (loss)	(25)	177	-
Orders received	1,443	1,844	Up 27.8%
Order backlog	1,026	2,942	Up 186.6%

Other businesses

The Other businesses posted sales of 0 million yen (down 28.4% year over year) with a segment loss of 8 million yen (as compared with a segment loss of 7 million yen a year earlier).

1. Explanation of Financial Position 1) Assets, liabilities and net assets Assets

Total assets at the end of the period under review increased 3,339 million yen from the end of the previous fiscal year to 44,232 million yen.

Current assets increased 3,614 million yen to 36,121 million yen mainly due to increases in cash and deposits, and notes and accounts receivable-trade, which were partially offset by a decrease in inventories.

Non-current assets decreased 274 million yen to 8,110 million yen mainly due to decreases in investment securities and deferred tax assets, which were partially offset by an increase in property, plant and equipment .

Liabilities

Total liabilities at the end of the period under review decreased 1,685 million yen from the end of the previous fiscal year to 6,040 million yen.

Current liabilities decreased 1,529 million yen to 5,182 million yen. This was mainly due to decreases in notes and accounts payable-trade and income taxes payable as a result of the payment of income taxes.

Non-current liabilities decreased 155 million yen to 858 million yen mainly due to a decrease in long -term borrowings.

Net assets

Total net assets at the end of the period under review increased 5,025 million yen from the end of the previous fiscal year to 38,191 million yen. This was due to increases in foreign currency translation adjustment and retained earnings from profit attributable to owners of parent, which were partially offset by a decrease in retained earnings as a result of payment of cash dividends .

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