REG - Maruwa Co Ld - Annual Financial Report
31/07/2025 07:01
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250731:nRSe2918Ta&default-theme=true
RNS Number : 2918T Maruwa Co Ld 31 July 2025
Annual Financial Report
MARUWA CO.,LTD.
Consolidated Financial Statements
For the fiscal year ended March 31, 2025
TABLE OF CONTENTS
1. Consolidated Financial
Statements…………………………………………………………………………………………………..3
(i) Consolidated Balance
Sheet………………………………………………………………………………………………………3
(ii) Consolidated Statement of Income and Consolidated Statement of
Comprehensive Income…………………………………...5
(iii) Consolidated Statement of Changes in
Equity…………………………………………………………………………………..7
(iv) Consolidated Statement of Cash
Flows………………………………………………………………………………………….9
Notes to the Consolidated Financial
Statements……………………………………………………………………………………14
Independent Auditor's
Report………………………………………………………………………………………………………39
2. Business
Review……………………………………………………………………………………………………………………44
3. Risk
Factors………………………………………………………………………………………………………………………....48
4. Responsibility
Statement……………………………………………………………………………………………………………49
1. Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements
(i) Consolidated Balance Sheet
(Millions of yen)
As of March 31, 2024 As of March 31, 2025
Assets
Current assets
Cash and deposits 55,250 71,793
Notes receivable - trade *5 360 139
Accounts receivable - trade 13,960 12,420
Electronically recorded monetary claims - operating *5 1,746 1,319
Merchandise and finished goods 2,248 2,645
Work in process 2,960 3,803
Raw materials and supplies 4,575 5,398
Other 2,516 2,832
Allowance for doubtful accounts (133) (62)
Total current assets 83,485 100,290
Non-current assets
Property, plant and equipment
Buildings and structures, net *2, *3 15,947 *2, *3 14,996
Machinery, equipment and vehicles, net *2, *3 12,040 *2, *3 13,039
Land 5,005 5,047
Construction in progress 2,952 5,474
Other, net *2, *3 786 *2, *3 798
Total property, plant and equipment 36,733 39,356
Intangible assets
Other 318 444
Total intangible assets 318 444
Investments and other assets
Investment securities *1 433 *1 482
Deferred tax assets 487 639
Investment property, net *3 935 *3 920
Other *1 121 *1 152
Allowance for doubtful accounts (0) (0)
Total investments and other assets 1,977 2,194
Total non-current assets 39,029 41,995
Total assets 122,515 142,285
(Millions of yen)
As of March 31, 2024 As of March 31, 2025
Liabilities
Current liabilities
Notes and accounts payable - trade 2,957 2,965
Electronically recorded obligations - operating 2,355 840
Current portion of long-term borrowings 400 -
Income taxes payable 2,851 4,929
Provision for bonuses 1,042 1,191
Provision for bonuses for directors (and other officers) 124 149
Other *4 3,091 *4 3,856
Total current liabilities 12,821 13,933
Non-current liabilities
Deferred tax liabilities 127 131
Other 361 366
Total non-current liabilities 489 498
Total liabilities 13,311 14,431
Net assets
Shareholders' equity
Share capital 8,646 8,646
Capital surplus 12,031 12,103
Retained earnings 87,573 105,705
Treasury shares (210) (198)
Total shareholders' equity 108,042 126,257
Accumulated other comprehensive income
Valuation difference on available-for-sale securities 171 39
Foreign currency translation adjustment 989 1,556
Total accumulated other comprehensive income 1,161 1,596
Total net assets 109,203 127,854
Total liabilities and net assets 122,515 142,285
(ii) Consolidated Statement of Income and Consolidated Statement of
Comprehensive Income
[Consolidated Statement of Income]
(Millions of yen)
Fiscal year ended Fiscal year ended
March 31, 2024
March 31, 2025
Net sales *1 61,564 *1 71,849
Cost of sales *6 30,570 *6 32,377
Gross profit 30,994 39,472
Selling, general and administrative expenses *2, *3 11,192 *2, *3 12,558
Operating profit 19,801 26,914
Non-operating income
Interest income 225 331
Rental income 119 126
Foreign exchange gains 958 -
Other 90 110
Total non-operating income 1,394 567
Non-operating expenses
Interest expenses 1 0
Foreign exchange losses - 382
Rent expenses on real estate for investments 55 53
Other 16 11
Total non-operating expenses 73 448
Ordinary profit 21,121 27,033
Extraordinary income
Gain on sale of non-current assets *4 0 *4 0
Gain on sale of investment securities 39 -
Subsidy income *7 209 *7 2,592
Other 14 -
Total extraordinary income 264 2,592
Extraordinary losses
Loss on sale and retirement of non-current assets *5 158 *5 105
Loss on tax purpose reduction entry of non-current assets *7 202 *7 2,360
Other 8 -
Total extraordinary losses 369 2,466
Profit before income taxes 21,016 27,159
Income taxes - current 5,767 8,069
Income taxes - deferred 33 (152)
Total income taxes 5,800 7,917
Profit 15,216 19,242
Profit attributable to owners of parent 15,216 19,242
[Consolidated Statement of Comprehensive Income]
(Millions of yen)
Fiscal year ended Fiscal year ended
March 31, 2024
March 31, 2025
Profit 15,216 19,242
Other comprehensive income
Valuation difference on available-for-sale securities 46 (131)
Foreign currency translation adjustment 737 567
Total other comprehensive income *1, *2 784 *1, *2 435
Comprehensive income 16,000 19,677
(Comprehensive income attributable to:)
Owners of parent 16,000 19,677
(iii) Consolidated Statement of Changes in Equity
Fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Share capital Capital surplus Retained earnings Treasury shares Total shareholders' equity
Balance at beginning of period 8,646 12,018 73,381 (209) 93,838
Changes during period
Dividends of surplus (1,024) (1,024)
Profit attributable to owners of parent 15,216 15,216
Purchase of treasury shares (5) (5)
Disposal of treasury shares 13 4 17
Net changes in items other than shareholders' equity
Total changes during period - 13 14,192 (1) 14,203
Balance at end of period 8,646 12,031 87,573 (210) 108,042
Accumulated other comprehensive income Total net assets
Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income
Balance at beginning of period 125 251 377 94,215
Changes during period
Dividends of surplus (1,024)
Profit attributable to owners of parent 15,216
Purchase of treasury shares (5)
Disposal of treasury shares 17
Net changes in items other than shareholders' equity 46 737 784 784
Total changes during period 46 737 784 14,988
Balance at end of period 171 989 1,161 109,203
Fiscal year ended March 31, 2025
(Millions of yen)
Shareholders' equity
Share capital Capital surplus Retained earnings Treasury shares Total shareholders' equity
Balance at beginning of period 8,646 12,031 87,573 (210) 108,042
Changes during period
Dividends of surplus (1,110) (1,110)
Profit attributable to owners of parent 19,242 19,242
Purchase of treasury shares (1) (1)
Disposal of treasury shares 72 13 85
Net changes in items other than shareholders' equity
Total changes during period - 72 18,131 11 18,215
Balance at end of period 8,646 12,103 105,705 (198) 126,257
Accumulated other comprehensive income Total net assets
Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income
Balance at beginning of period 171 989 1,161 109,203
Changes during period
Dividends of surplus (1,110)
Profit attributable to owners of parent 19,242
Purchase of treasury shares (1)
Disposal of treasury shares 85
Net changes in items other than shareholders' equity (131) 567 435 435
Total changes during period (131) 567 435 18,650
Balance at end of period 39 1,556 1,596 127,854
(iv) Consolidated Statement of Cash Flows
(Millions of yen)
Fiscal year ended Fiscal year ended
March 31, 2024
March 31, 2025
Cash flows from operating activities
Profit before income taxes 21,016 27,159
Depreciation 4,138 4,690
Increase (decrease) in allowance for doubtful accounts 123 (71)
Loss (gain) on sale of investment securities (31) -
Loss (gain) on sale and retirement of non-current assets 158 105
Loss on tax purpose reduction entry of non-current assets 202 2,360
Interest and dividend income (239) (340)
Interest expenses 1 0
Subsidy income (209) (2,592)
Decrease (increase) in trade receivables (3,106) 2,248
Decrease (increase) in inventories (784) (2,001)
Increase (decrease) in trade payables 441 (944)
Other 840 409
Subtotal 22,551 31,023
Interest and dividends received 213 340
Interest paid (1) (0)
Income taxes refund (paid) (5,555) (6,011)
Proceeds from compensation 14 -
Net cash provided by (used in) operating activities 17,222 25,351
Cash flows from investing activities
Net decrease (increase) in time deposits (9) -
Purchase of property, plant and equipment (11,167) (9,912)
Proceeds from sale of property, plant and equipment 8 0
Payments for retirement of property, plant and equipment (83) (74)
Purchase of intangible assets (74) (185)
Purchase of investment securities (123) (219)
Proceeds from sale of investment securities 320 -
Subsidies received 309 2,692
Other 5 15
Net cash provided by (used in) investing activities (10,814) (7,682)
Cash flows from financing activities
Repayments of long-term borrowings (333) (400)
Purchase of treasury shares (5) (1)
Dividends paid (1,024) (1,110)
Net cash provided by (used in) financing activities (1,363) (1,512)
Effect of exchange rate change on cash and cash equivalents 382 398
Net increase (decrease) in cash and cash equivalents 5,427 16,554
Cash and cash equivalents at beginning of period 49,585 55,013
Cash and cash equivalents at end of period * 55,013 * 71,568
Notes to the Consolidated Financial Statements
(Significant Accounting Policies for Preparation of the Consolidated Financial
Statements)
1. Scope of consolidation
(1) Number of consolidated subsidiaries: 10
Names of consolidated subsidiaries:
Maruwa (Malaysia) Sdn. Bhd., MARUWA Electronics (Taiwan) Co., Ltd., Maruwa
Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd., Maruwa (Shanghai)
Trading Co., Ltd., MARUWA Electronic (India) Pvt. Ltd., MARUWA SHOMEI CO.,
LTD., MARUWA MELAKA SDN. BHD., YAMAGIWA CO., LTD.
(2) Names of unconsolidated subsidiaries, etc.
Names of unconsolidated subsidiaries:
Maruwa Electronics Gmbh, and 2 other companies
(Reasons for exclusion from the scope of consolidation)
These subsidiaries are excluded from the scope of consolidation because they
are small in scale, and their total assets, net sales, profit (amount
corresponding to equity interest), and retained earnings (amount corresponding
to equity interest) do not have a material effect on the Company's
consolidated financial statements.
2. Application of equity method
The unconsolidated subsidiaries are not accounted for using the equity method
because they have a negligible effect on profit (loss) attributable to owners
of parent and retained earnings, etc., and they are also not significant
cumulatively.
3. Fiscal years of consolidated subsidiaries
Among consolidated subsidiaries, Maruwa (Shanghai) Trading Co., Ltd. has a
fiscal year ending December 31.
In preparing the consolidated financial statements, its financial statements
as of that date are used, and necessary adjustments are made to reflect
significant transactions that occurred between that date and the Company's
fiscal year end. The fiscal year ends of other consolidated subsidiaries
coincide with the Company's fiscal year end.
4. Accounting policies
(1) Basis and method for valuation of major assets
a. Securities
Available-for-sale securities
Securities other than shares that do not have a market price:
Fair value method (with the entire amount of valuation differences recorded
directly into net assets, and the cost of sales calculated using the moving
average cost method)
Shares that do not have a market price:
Moving average cost method
b. Inventories
The Company and its domestic consolidated subsidiaries mainly adopt the moving
average cost method (with the amounts shown on the balance sheet written down
as profitability declines), while overseas consolidated subsidiaries adopt the
lower of cost or market method by the moving average cost method.
(2) Depreciation method for major depreciable assets
a. Property, plant and equipment and investment property
The Company and its domestic consolidated subsidiaries adopt the
declining-balance method. However, the straight-line method is applied for
buildings (excluding facilities) acquired on or after April 1, 1998, and
facilities attached to buildings and for structures acquired on or after April
1, 2016. Overseas consolidated subsidiaries use the straight-line method based
on the accounting principles of the countries in which they are located.
The useful lives are as follows.
Buildings and structures: 2 to 50 years
Machinery, equipment and vehicles: 2 to 15 years
b. Intangible assets
Software for internal use: Straight-line method over the period of internal
use (5 years)
Other: Straight-line method
(3) Recognition criteria for major provisions
a. Allowance for doubtful accounts
To provide for the non-payments for trade receivables, loans receivable, and
other receivables, the historical default rate is used for general
receivables, and for receivables designated as potentially irrecoverable, an
allowance is made for the amount deemed irrecoverable using actual default
rates on an individual claim basis.
b. Provision for bonuses
To provide for bonuses to be paid to employees, a provision for bonuses is
recorded based on the estimated amount of payment.
c. Provision for bonuses for directors
To provide for bonuses to be paid to directors, a provision for bonuses is
recorded based on the estimated amount of payment in the fiscal year under
review.
(4) Recognition criteria for major revenue and expenses
The major performance obligations of the Company and its consolidated
subsidiaries in their principal businesses with regard to revenue from
contracts with customers and the normal time at which such performance
obligations are satisfied (the normal time at which revenue is recognized) are
as follows.
a. Ceramic components business
In the ceramic components business, the Group manufactures and sells ceramic
components, including electronic components, and identifies the delivery of
finished goods or merchandise based on contracts with customers as performance
obligations. For sales of these finished goods or merchandise, revenue is
recognized when the control of the finished goods or merchandise is considered
to have been transferred to the customer at the time of delivery. For the sale
to customers in Japan, revenue is recognized at the time of shipment because
the period from the shipment to the time at which the control of the finished
goods or merchandise is transferred to the customer is within the normal
period of time, which is very close to the shipment.
b. Lighting equipment business
In the lighting equipment business, the Group manufactures and sells LED
lighting, LED light source modules, etc., and purchases and sells design
lighting, and other products. The Group identifies the delivery of finished
goods or merchandise based on contracts with customers as performance
obligations. For the sale of these finished goods or merchandise, revenue is
recognized when the control of the finished goods or merchandise is considered
to have been transferred to the customer at the time of delivery. For sales to
customers in Japan, revenue is recognized at the time of shipment because the
period from the shipment to the time at which the control of the finished
goods or merchandise is transferred to the customer is within the normal
period of time, which is very close to the shipment.
(5) Scope of cash and cash equivalents in consolidated statement of cash flows
Cash and cash equivalents in the consolidated statement of cash flows comprise
cash on hand, deposits that can be withdrawn on demand, and short-term
investments with maturities of three months or less at the time of acquisition
that are readily convertible into cash and are exposed to insignificant risk
of changes in value.
(Significant Accounting Estimates)
1. Inventory valuation in the ceramic components business
The following is the item for which amounts have been recorded on the
consolidated financial statements for the fiscal year under review based on
accounting estimates, which may have a material effect on the consolidated
financial statements for the following fiscal year.
(1) Amount recorded in the consolidated financial statements for the fiscal
year under review
(Millions of yen)
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
Inventories of ceramic components business (MARUWA CO., LTD.) 7,859 9,766
(Note) The above amounts are the total of merchandise and finished goods, work
in process, raw materials and supplies.
(2) Information on significant accounting estimates for the identified item
The Group writes down the carrying amount of inventories according to their
declining profitability and measured them at the lower of the acquisition cost
or the net selling price at the end of the fiscal year. For slow-moving
inventories that are outside of the normal operating cycle, the carrying
amount is reduced to the estimated disposal value in order to reflect their
reduced profitability.
Slow-moving inventories that are outside of the normal operating cycle are
identified based on a comprehensive review of the actual results of
slow-moving inventories or disposal of inventories, the product lifecycle, and
other factors.
Therefore, if there is an excess in inventories held due to market trends,
changes in demand forecasts by electronic component manufacturers, or other
factors, inventories that should be deemed as obsolete may increase, which may
affect inventory valuation.
(Change in Accounting Policy)
(Application of the Accounting Standard for Current Income Taxes, etc.)
The Company has applied the Accounting Standard for Current Income Taxes
(Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28,
2022; hereinafter referred to as the "2022 Revised Accounting Standard")
effective from the beginning of the fiscal year ended March 31, 2025.
With regard to the revision in classification to record income taxes (taxation
on other comprehensive income), the Company follows the transitional
treatments set forth in the proviso of Paragraph 20-3 of the 2022 Revised
Accounting Standards and the proviso of Paragraph 65-2 (2) of the
"Implementation Guidance on Tax Effect Accounting" (ASBJ Guidance No. 28,
October 28, 2022; hereinafter referred to as the "2022 Revised Implementation
Guidance"). This change has no impact on the consolidated financial
statements.
In addition, the Company has adopted the 2022 Revised Implementation Guidance,
effective from the beginning of the fiscal year ended March 31, 2025, for the
amendment related to the revised accounting treatment for consolidated
financial statements in cases where gains or losses arising from the sale of
shares of subsidiaries, etc., between consolidated companies are deferred for
tax purposes. The change in accounting policy has been applied
retrospectively, and the consolidated financial statements for the previous
fiscal year have been presented on a retrospective basis.
This change has no impact on the consolidated financial statements for the
previous fiscal year.
(Accounting Standards Not Yet Adopted)
(Accounting Standard for Leases, etc.)
・"Accounting Standard for Leases" (ASBJ Statement No. 34, September 13, 2024
by the ASBJ)
・"Implementation Guidance on Accounting Standard for Leases" (ASBJ Guidance
No. 33, September 13, 2024 by the ASBJ)
(1) Overview
As part of the Accounting Standards Board of Japan's initiative to align
Japanese GAAP with international accounting standards, a new lease accounting
standard has been developed requiring lessees to recognize assets and
liabilities for all leases. This standard is fundamentally based on a single
accounting model under IFRS 16 "Leases," but only incorporates its principal
requirements rather than adopting the standard in its entirety. The aim is to
provide a simpler and more practical approach, while ensuring that the use of
this standard in non-consolidated financial statements would not require
adjustments in general when compared with IFRS 16.
For lessee accounting treatment, similar to IFRS 16, a single accounting model
will be applied, regardless of whether a lease is classified as a finance
lease or an operating lease. Under this model, lessees will recognize both
depreciation on the right-of-use asset and interest on the lease liability for
all leases.
(2) Scheduled Date of Adoption
The new standard is scheduled to be applied from the beginning of the fiscal
year ending March 31, 2028.
(3) Impact of Adoption
The Company is currently evaluating the impact that the adoption of the new
lease accounting standard on its consolidated financial statements. At this
time, the amount of the impact has not yet been determined.
(Notes to Consolidated Balance Sheet)
*1 Information related to non-consolidated subsidiaries and affiliates is as
follows.
As of March 31, 2024 As of March 31, 2025
Investment securities (shares) 0 million yen 0 million yen
Other (investments in capital) 7 7
*2 Accumulated amounts of tax purpose reduction entry pertaining to the
receipt of national subsidies are as follows.
As of March 31, 2024 As of March 31, 2025
Buildings and structures 986 million yen 2,413 million yen
Machinery, equipment and vehicles 1,063 1,985
Other (tools, furniture and fixtures) 36 48
*3 Accumulated depreciation is as follows.
As of March 31, 2024 As of March 31, 2025
Accumulated depreciation on property, plant and equipment 36,024 million yen 39,342 million yen
Accumulated depreciation on investment property 506 520
*4 Contract liabilities included in other are as follows.
As of March 31, 2024 As of March 31, 2025
Contract liabilities 371 million yen 801 million yen
*5. Notes due at the end of the fiscal year
For accounting treatment of notes, etc., maturing at the end of the fiscal
year, settlement is made on the clearing date or settlement date. As the last
day of the previous fiscal year fell on a holiday for financial institutions,
the following notes maturing on the last day of the fiscal year were included
in the ending balance for the previous fiscal year.
As of March 31, 2024 As of March 31, 2025
Notes receivable - trade 56 million yen - million yen
Electronically recorded monetary claims - operating 192 -
(Notes to Consolidated Statement of Income)
*1 Revenue from contracts with customers
With regard to net sales, revenues arising from contracts with customers and
other revenues are not separately presented. The amount of revenue from
contracts with customers is presented in "Notes (Revenue Recognition), 1.
Breakdown of revenue from contracts with customers" in the Consolidated
Financial Statements section.
*2 Major items and amounts of selling, general and administrative expenses are
as follows.
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
Remuneration for directors (and other officers) 160 million yen 163 million yen
Payroll and allowances 2,453 2,919
Provision for bonuses 519 653
Provision for bonuses for directors (and other officers) 124 149
Retirement benefit expenses 56 60
Depreciation 859 871
Research and development expenses 1,409 1,673
Freight and packing costs 832 697
Provision of allowance for doubtful accounts 123 (67)
*3 Total research and development expenses included in general and
administrative expenses
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
1,409 million yen 1,673 million yen
*4 Details of gain on sale of non-current assets are as follows.
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
Machinery, equipment and vehicles 0 million yen 0 million yen
*5 Details of loss on sale and retirement of non-current assets are as
follows.
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
Buildings and structures 43 million yen 12 million yen
Machinery, equipment and vehicles 30 1
Other 83 91
Total 158 105
*6 The amount of write-down of inventories held for sale in the ordinary
course of business due to a decline in profitability is as follows.
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
Cost of sales 211 million yen 33 million yen
*7 Details of subsidy income and loss on tax purpose reduction entry of
non-current assets are as follows.
Fiscal year ended March 31, 2024
Subsidy income consists of a subsidy granted by Fukushima Prefecture to
support companies located in Fukushima Prefecture to contribute to the
recovery of local industry.
Loss on tax purpose reduction entry of non-current assets was recorded for the
amount directly deducted from the acquisition cost of property, plant and
equipment due to the above subsidy income.
Fiscal year ended March 31, 2025
Subsidy income primarily consists of the Subsidy for Domestic Investment
Promotion Projects for Supply Chain Countermeasures granted by the Ministry of
Economy, Trade and Industry.
Loss on tax purpose reduction entry of non-current assets was recorded for the
amount directly deducted from the acquisition cost of property, plant and
equipment due to the above subsidy income.
(Notes to Consolidated Statement of Comprehensive Income)
*1. Reclassification adjustments for other comprehensive income
Fiscal year ended Fiscal year ended
March 31, 2024
March 31, 2025
Valuation difference on available-for-sale securities:
Amount recognized during period 96 million yen (170) million yen
Reclassification adjustments (31) -
Total 64 (170)
Foreign currency translation adjustment:
Amount recognized during period 737 567
Total 737 567
Total before income taxes and tax effect adjustments 802 397
Income taxes and tax effects (18) 38
Total other comprehensive income 784 435
*2 Income taxes and tax effects related to other comprehensive income
Fiscal year ended Fiscal year ended
March 31, 2024
March 31, 2025
Valuation difference on available-for-sale securities:
Before income taxes and tax effect adjustments 64 million yen (170) million yen
Income taxes and tax effects (18) 38
After income taxes and tax effect adjustments 46 (131)
Foreign currency translation adjustment:
Before income taxes and tax effect adjustments 737 567
Income taxes and tax effects - -
After income taxes and tax effect adjustments 737 567
Total other comprehensive income
Before income taxes and tax effect adjustments 802 397
Income taxes and tax effects (18) 38
After income taxes and tax effect adjustments 784 435
(Notes to Consolidated Statement of Changes in Equity)
Fiscal year ended March 31, 2024
1. Matters concerning the class and total number of issued shares and the
class and number of treasury shares
Number of shares at beginning of period (thousand shares) Number of shares increased during period (thousand shares) Number of shares decreased during period (thousand shares) Number of shares at end of period (thousand shares)
Issued shares
Common shares 12,372 - - 12,372
Total 12,372 - - 12,372
Treasury shares
Common shares (note) 34 0 0 34
Total 34 0 0 34
(Note) The increase of 0 thousand shares of common shares in treasury shares
is due to the purchase of odd-lot shares. The decrease of 0 thousand shares of
common shares in treasury shares is due to the delivery of restricted shares
for share-based remuneration.
2. Matters regarding share options and treasury share options
Not applicable.
3. Matters regarding dividends
(1) Amounts of dividends paid
(Resolution) Class of shares Total amount of dividends Dividend per share (yen) Record date Effective date
(millions of yen)
Annual General Meeting of Shareholders on June 22, 2023 Common shares 493 40.00 March 31, 2023 June 23, 2023
Board of Directors Meeting on October 26, 2023 Common shares 530 43.00 September 30, 2023 December 4, 2023
(2) Of dividends for which record dates belong to the fiscal year under
review, those for which the effective date will be in the subsequent period
(Resolution) Class of shares Total amount of dividends Source of dividends Dividend per share (yen) Record date Effective date
(millions of yen)
Annual General Meeting of Shareholders on June 20, 2024 Common shares 530 Retained earnings 43.00 March 31, 2024 June 21, 2024
Fiscal year ended March 31, 2025
1. Matters concerning the class and total number of issued shares and the
class and number of treasury shares
Number of shares at beginning of period (thousand shares) Number of shares increased during period (thousand shares) Number of shares decreased during period (thousand shares) Number of shares at end of period (thousand shares)
Issued shares
Common shares 12,372 - - 12,372
Total 12,372 - - 12,372
Treasury shares
Common shares (note) 34 0 2 32
Total 34 0 2 32
(Note) The increase of 0 thousand shares of common shares in treasury shares
is due to the purchase of odd-lot shares. The decrease of 2 thousand shares of
common shares in treasury shares was due to the delivery of restricted shares
for share-based remuneration.
2. Matters regarding share options and treasury share options
Not applicable.
3. Matters regarding dividends
(1) Amounts of dividends paid
(Resolution) Class of shares Total amount of dividends Dividend per share (yen) Record date Effective date
(millions of yen)
Annual General Meeting of Shareholders on June 20, 2024 Common shares 530 43.00 March 31, 2024 June 21, 2024
Board of Directors Meeting on October 29, 2024 Common shares 579 47.00 September 30, 2024 December 2, 2024
(2) Of dividends for which record dates belong to the fiscal year under
review, those for which the effective date will be in the subsequent period
(Resolution) Class of shares Total amount of dividends Source of dividends Dividend per share (yen) Record date Effective date
(millions of yen)
Annual General Meeting of Shareholders on June 20, 2025 Common shares 579 Retained earnings 47.00 March 31, 2025 June 23, 2025
(Notes to Consolidated Statement of Cash Flows)
* Relationship between cash and cash equivalents at the end of period and the
amount of items shown on the consolidated balance sheet
Fiscal year ended Fiscal year ended
March 31, 2024
March 31, 2025
Cash and deposit account 55,250 million yen 71,793 million yen
Time deposits with maturities longer than three months (237) (225)
Cash and cash equivalents 55,013 71,568
(Lease Transactions)
Lease transactions are omitted due to immateriality and the small amount per
contract.
(Financial Instruments)
1. Matters regarding the status of financial instruments
(1) Policy for financial instruments
For fund management, the Group invests temporary surplus funds in deposits or
highly secure financial assets. Funding is procured through long-term and
short-term borrowings from financial institutions, the issuance of shares, and
the issuance of bonds, etc., based on the funding plan established and by
taking into consideration the intended use of the required funds. The Group
does not engage in derivative transactions.
(2) Description of financial instruments and their risks
Trade receivables, such as notes and accounts receivable and electronically
recorded monetary claims, are exposed to customer credit risk. In addition,
trade receivables denominated in foreign currencies arising from overseas
operations are exposed to the risk of fluctuations in foreign exchange rates.
Investment securities are mainly equity securities and are exposed to market
price fluctuation risk.
Trade payables, such as notes and accounts payable and electronically recorded
obligations, are mostly due within four months. Certain items denominated in
foreign currencies are exposed to the risk of fluctuations in foreign exchange
rates.
(3) Risk management system for financial instruments
(i) Management of credit risks (risk related to nonperformance by
counterparties)
In accordance with the Company's credit management regulations, the
administrative department periodically monitors the status of major customers
with respect to trade receivables and manages due dates and outstanding
balances for each customer in order to identify and mitigate concerns at an
early stage regarding the collection of receivables from customers who may be
experiencing deteriorating financial conditions or other factors. Consolidated
subsidiaries are also managed in the same manner in accordance with the
Company's credit management regulations.
(ii) Management of market risks (risk of fluctuations in foreign exchange
rates, etc.)
In order to manage the risk of fluctuations in foreign exchange rates
associated with trade receivables and payables denominated in foreign
currencies, the Company monitors net changes in foreign exchange rates on a
monthly basis for each currency.
With regard to investment securities, the Company periodically monitors the
market value and financial conditions of the issuers and continuously reviews
its holdings in consideration of market conditions.
(iii) Management of liquidity risks related to financing (risks of failure to
make a payment on the due date)
In order to manage liquidity risks associated with trade payables, the Company
uses cash management plans that the department in charge prepares and updates
in a timely manner based on reports from each department, while maintaining
liquidity on hand.
(4) Supplementary explanation on matters regarding fair value, etc., of
financial instruments
Since variable factors are incorporated in the calculation of the fair value
of financial instruments, such values may vary due to the adoption of
different assumptions and other factors.
2. Matters regarding fair value, etc., of financial instruments
The carrying values, the fair values and their differences are as follows.
As of March 31, 2024
Carrying values Fair value Difference
(millions of yen) (millions of yen) (millions of yen)
Accounts receivable - trade 13,960
Allowance for doubtful accounts (*2) (133)
13,827 13,827 -
Investment securities (*3) 432 432 -
Total assets 14,259 14,259 -
Long-term borrowings 400 400 0
(including current portion)
Total liabilities 400 400 0
As of March 31, 2025
Carrying values Fair value Difference
(millions of yen) (millions of yen) (millions of yen)
Accounts receivable - trade 12,420
Allowance for doubtful accounts (*2) (62)
12,358 12,358 -
Investment securities (*3) 481 481 -
Total assets 12,839 12,839 -
Long-term borrowings - - -
(including current portion)
Total liabilities - - -
(*1) "Cash and deposits," "notes receivable - trade," "electronically recorded
monetary claims - operating," "notes and accounts payable - trade,"
"electronically recorded obligations - operating," and "income taxes payable"
are omitted because they are cash or their fair value approximates their book
value due to their short maturities.
(*2) Allowance for doubtful accounts posted for accounts receivable - trade is
deducted.
(*3) Shares and other securities without market prices are not included in
"investment securities." The carrying values of such financial instruments on
the consolidated balance sheet are as follows.
Classification As of March 31, 2024 As of March 31, 2025
Unlisted shares 1 1
(Note) 1. Scheduled redemption amount of monetary claims after the
consolidated balance sheet date
As of March 31, 2024
Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years and not later than 10 years Later than 10 years
(millions of yen) (millions of yen) (millions of yen) (millions of yen)
Cash and deposits 55,250 - - -
Notes receivable - trade 360 - - -
Accounts receivable - trade 13,837 122 - -
Electronically recorded monetary claims - operating 1,746 - - -
Total 71,194 122 - -
As of March 31, 2025
Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years and not later than 10 years Later than 10 years
(millions of yen) (millions of yen) (millions of yen) (millions of yen)
Cash and deposits 71,793 - - -
Notes receivable - trade 139 - - -
Accounts receivable - trade 12,365 55 - -
Electronically recorded monetary claims - operating 1,319 - - -
Total 85,618 55 - -
(Note) 2. Scheduled redemption amount of monetary obligations after the
consolidated balance sheet date
As of March 31, 2024
Not later than 1 year Later than 1 year and not later than 2 years Later than 2 years and not later than 3 years Later than 3 years and not later than 4 years Later than 4 years and not later than 5 years Later than 5 years
(millions of yen) (millions of yen) (millions of yen) (millions of yen) (millions of yen) (millions of yen)
Long-term borrowings 400 - - - - -
Total 400 - - - - -
As of March 31, 2025
Not applicable.
3. Matters regarding the breakdown of financial instruments by each fair value
level
The fair values of financial instruments are categorized into the following
three levels, in accordance with the observability and significance of the
inputs used in the fair value calculation.
Level 1 fair value: Fair values calculated using the market price formed in
active markets, applied to the assets and liabilities subject to fair value
calculation, among observable inputs to the fair value calculation
Level 2 fair value: Fair values calculated using inputs to the fair value
calculation other than those used in Level 1, among observable inputs to the
fair value calculation
Level 3 fair value: Fair values calculated using unobservable inputs to the
fair value calculation
When multiple inputs that have a significant effect on the fair value
calculation are used, the fair value is categorized at the level of the lowest
priority in the fair value calculation among the levels to which the
respective inputs belong.
(1) Financial instruments recorded at fair value on the consolidated balance
sheet
As of March 31, 2024
Classification Fair value (millions of yen)
Level 1 Level 2 Level 3 Total
Investment securities
Available-for-sale securities
Shares 432 - - 432
Total assets 432 - - 432
As of March 31, 2025
Classification Fair value (millions of yen)
Level 1 Level 2 Level 3 Total
Investment securities
Available-for-sale securities
Shares 481 - - 481
Total assets 481 - - 481
(2) Financial instruments other than those recorded at fair value on the
consolidated balance sheet
As of March 31, 2024
Classification Fair value (millions of yen)
Level 1 Level 2 Level 3 Total
Accounts receivable - trade - 13,827 - 13,827
Total assets - 13,827 - 13,827
Long-term borrowings - 400 - 400
Total liabilities - 400 - 400
As of March 31, 2025
Classification Fair value (millions of yen)
Level 1 Level 2 Level 3 Total
Accounts receivable - trade - 12,358 - 12,358
Total assets - 12,358 - 12,358
Long-term borrowings - - - -
Total liabilities - - - -
(Note) Explanation of the valuation methods and inputs used in the fair value
calculation
Accounts receivable - trade
Since accounts receivable - trade are settled in a short period of time, their
fair value approximates their book value, and their fair value is calculated
by deducting allowance for doubtful accounts equivalent to credit risk from
their book value and categorized as Level 2 fair value.
Investment securities
Listed shares are valued using the market price. Since listed shares are
traded on active markets, their fair value is categorized as Level 1 fair
value.
Long-term borrowings
The fair value of long-term borrowings is calculated by the present value
obtained by discounting the total of principal and interest at an interest
rate that would be charged for similar new borrowings and categorized as Level
2 fair value.
(Securities)
1. Available-for-sale securities
As of March 31, 2024
Class Carrying values Acquisition cost (millions of yen) Difference (millions of yen)
(millions of yen)
Securities whose carrying values exceed acquisition cost Shares 432 203 228
Subtotal 432 203 228
Securities whose carrying values do not exceed acquisition cost Shares - - -
Subtotal - - -
Total 432 203 228
As of March 31, 2025
Class Carrying values Acquisition cost (millions of yen) Difference (millions of yen)
(millions of yen)
Securities whose carrying values exceed acquisition cost Shares 185 95 89
Subtotal 185 95 89
Securities whose carrying values donot exceed acquisition cost Shares 296 328 (31)
Subtotal 296 328 (31)
Total 481 423 58
2. Available-for-sale securities sold
Fiscal year ended March 31, 2024
Class Sales amount (millions of yen) Total gain on sales (millions of yen) Total loss on sales (millions of yen)
Shares 320 39 8
Other - - -
Total 320 39 8
Fiscal year ended March 31, 2025
Not applicable.
(Derivative Transactions)
1. Derivative transactions for which hedge accounting is not applied
Not applicable.
2. Derivative transactions for which hedge accounting is applied
Not applicable.
(Retirement Benefits)
1. Outline of retirement benefit plan adopted
The Company and its domestic consolidated subsidiaries have adopted a defined
contribution pension plan.
2. Defined contribution plan
Required contributions to the defined contribution plan by the Company and its
domestic consolidated subsidiaries were 103 million yen in the previous fiscal
year and 105 million yen in the fiscal year under review.
(Stock Options, etc.)
Not applicable.
(Tax Effect Accounting)
1. Breakdown of deferred tax assets and deferred tax liabilities by major
cause
As of March 31, 2024 As of March 31, 2025
Deferred tax assets
Accrued retirement benefits 47 million yen 49 million yen
Provision for bonuses 313 362
Loss on valuation of inventories 34 37
Allowance for doubtful accounts 38 17
Loss on valuation of investment securities 15 16
Depreciation 32 33
Impairment losses 61 63
Enterprise tax payable 173 267
Unused tax losses 232 228
Other 288 281
Subtotal deferred tax assets 1,238 1,358
Valuation allowance (234) (230)
Total deferred tax assets 1,004 1,127
Deferred tax liabilities
Depreciation (264) (287)
Valuation difference on available-for-sale securities (56) (18)
Liability adjustment account (84) (71)
Tax effect against retained earnings of foreign subsidiaries (201) (243)
Other (37) (0)
Total deferred tax liabilities (644) (620)
Net deferred tax assets 359 507
2. Major causes of significant differences between the statutory effective tax
rate and the actual effective income tax rate after application of deferred
tax accounting
As of March 31, 2024 As of March 31, 2025
Statutory effective tax rate 30.33% Notes are omitted because the difference between the statutory effective tax
rate and the actual effective income tax rate after application of deferred
tax accounting is not more than 5/100 of the statutory effective tax rate.
(Adjustment)
Inhabitant tax per capita basis 0.15
Difference in tax rates for subsidiaries (0.57)
Tax credits (1.83)
Other (0.48)
Effective income tax rate after application of deferred tax accounting 27.60
3. Adjustments to deferred tax assets and deferred tax liabilities due to
changes in income tax rates
Following the enactment of the Act for Partial Amendment of the Income Tax
Act, etc. (Act No. 13 of 2025) by the Diet on March 31, 2025, Special Defense
Surtax will be imposed from the fiscal years beginning on or after April 1,
2026.
Accordingly, the effective statutory tax rate was changed from 30.33% to
31.22% for the calculation of deferred tax assets and deferred tax liabilities
related to temporary differences expected to be eliminated in the fiscal years
beginning on or after April 1, 2026.
The impact of this change is immaterial.
(Asset Retirement Obligations)
As of March 31, 2024
Omitted due to lack of materiality.
As of March 31, 2025
Omitted due to lack of materiality.
(Leased Real Property)
The Company has an office building (including land) for lease in Aichi
Prefecture. Profit or loss from the leased property amounted to 4 million yen
and △8 million yen for the previous fiscal year and the fiscal year under
review, respectively (lease revenue was recorded under non-operating income
and lease expenses were recorded under non-operating expenses).
The carrying amount, changes during the period, and fair value of the leased
real property are as follows.
(Millions of yen)
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
Carrying amount
Balance at beginning of period 933 935
Increase/decrease during period 1 (14)
Balance at end of period 935 920
Fair value at end of period 1,535 1,500
(Notes) 1. The carrying amount is the acquisition cost less accumulated
depreciation.
2. The main increase in "increase/decrease during period" in the previous
fiscal year was the acquisition of non-current assets (15 million yen). The
main decrease was depreciation (13 million yen).
The main decrease in "increase/decrease during period" in the fiscal year
under review was depreciation (14 million yen).
3. The "fair value at end of period" is based on a real estate appraisal
report by an outside real estate appraiser. However, if there have been no
significant changes in certain valuations or indicators that are considered to
reflect market prices since the most recent valuation, those valuations are
used.
(Revenue Recognition)
1. Breakdown of revenue from contracts with customers
Fiscal year ended March 31, 2024
(Millions of yen)
Reportable segment Total
Ceramic components business Lighting equipment business
Telecommunication 21,230 - 21,230
Automobile 13,097 - 13,097
Semiconductor 10,731 - 10,731
Industrial equipment 8,172 - 8,172
Lighting - 8,332 8,332
Revenue from contracts with customers 53,232 8,332 61,564
Revenues from external customers 53,232 8,332 61,564
Fiscal year ended March 31, 2025
(Millions of yen)
Reportable segment Total
Ceramic components business Lighting equipment business
Telecommunication 27,341 - 27,341
Automobile 15,899 - 15,899
Semiconductor 10,441 - 10,441
Industrial equipment 8,805 - 8,805
Lighting - 9,362 9,362
Revenue from contracts with customers 62,487 9,362 71,849
Revenues from external customers 62,487 9,362 71,849
2. Basic information for understanding the revenue from contracts with
customers
Notes are omitted because the same information is presented in "Significant
accounting policies for preparation of consolidated financial statements, 4.
Accounting policies (4) Recognition criteria for principal revenue and
expenses" in the Notes to the Consolidated Financial Statements.
3. Relationship between the satisfaction of performance obligations under
contracts with customers and cash flows from such contracts; and information
on the amount and recognition timing of revenue expected to be generated from
contracts with customers existing at the end of the fiscal year under review
and to be recognized in the following fiscal year or later
(1) Balance of contract assets and contract liabilities
(Millions of yen)
As of March 31, 2024 As of March 31, 2025
Receivables arising from contracts with customers (Balance at beginning of 12,864 16,066
period)
Receivables arising from contracts with customers (Balance at end of period) 16,066 13,879
Contract liabilities (Balance at beginning of period) 475 371
Contract liabilities (Balance at end of period) 371 801
(Notes) 1. Contract liabilities are included in other under current
liabilities on the consolidated balance sheets.
2. Contract liabilities mainly represent consideration received from customers
prior to the delivery of finished goods or merchandise, and such contract
liabilities are reclassified to revenue upon satisfaction of the corresponding
performance obligation.
3. The amount of revenue recognized in the beginning balance of contract
liabilities was 454 million yen in the previous fiscal year and 364 million
yen in the fiscal year under review.
(2) Transaction prices allocated to remaining performance obligations
The Group has no significant transactions with an expected contract period
exceeding one year. There are no material amounts of consideration arising
from contracts with customers that are not included in the transaction price.
(Segment Information, etc.)
[Segment Information]
1. Overview of reportable segments
The Company's reportable segments are those of the Company's constituent units
for which segregated financial information is available and is subject to
periodic review by the Board of Directors in order to determine the allocation
of management resources and evaluate performance.
The Company establishes business divisions for each product and service at its
headquarters, and each business division formulates a comprehensive strategy
for the products and services it handles in Japan and overseas and develops
business activities.
Accordingly, the Company is comprised of product and service segments based on
its Business Units, with two reportable segments: the Ceramic Components
Business and the Lighting Equipment Business.
The Ceramic Components Business manufactures and sells electronic components,
ceramic substrates, and products related to semiconductor manufacturing
equipment. The Lighting Equipment Business manufactures and sells lighting
equipment that uses LEDs in addition to conventional lighting equipment.
2. Method of calculating the amount of sales, profits or losses, assets and
other items for each reportable segment
The accounting methods for the reportable business segments are the same as
those described in "Significant accounting policies for preparation of
consolidated financial statements."
Profit in the reportable segments is based on operating income. Transactions
with other segments are based on prevailing market prices.
3. Information on the amount of sales, profits or losses, assets and other
items for each reportable segment
Fiscal year ended March 31, 2024
(Millions of yen)
Reportable segment Adjustment amount (Notes) 1 Amount recorded in consolidated financial statements (Notes) 2
Ceramic components business Lighting equipment business Total
Net sales
Revenues from external customers 53,232 8,332 61,564 - 61,564
Transactions with other segments 6 120 126 (126) -
Total 53,238 8,452 61,691 (126) 61,564
Segment profit 20,026 1,130 21,157 (1,355) 19,801
Segment assets 112,257 8,046 120,304 2,211 122,515
Other items
Depreciation 3,973 88 4,062 76 4,138
Increase in property, plant and equipment and intangible assets 9,534 103 9,638 101 9,739
(Notes) 1. Segment profit adjustment amount of (1,355) million yen includes
(36) million yen in inter-segment eliminations and (1,319) million yen in
corporate expenses that have not been allocated to each reportable segment.
Corporate expenses consist of selling, general and administrative expenses
that do not belong to any reportable segment.
2. Segment profit is adjusted to operating income in the consolidated
statements of income.
3. Adjusted segment assets of 2,211 million yen are corporate assets that have
not been allocated to each reportable segment. These include the parent
company's surplus funds under management (time deposits, etc.), investment
securities, etc., and assets related to the management department.
4. The adjustment for depreciation of 76 million yen is mainly for
depreciation of corporate assets that have not been allocated to each
reportable segment.
5. The adjustment for the increase in property, plant and equipment and
intangible assets of 101 million yen is mainly an increase in corporate assets
that are not allocated to each reportable segment.
Fiscal year ended March 31, 2025
(Millions of yen)
Reportable segment Adjustment amount (Notes) 1 Amount recorded in consolidated financial statements (Notes) 2
Ceramic components business Lighting equipment business Total
Net sales
Revenues from external customers 62,487 9,362 71,849 - 71,849
Transactions with other segments 7 37 45 (45) -
Total 62,494 9,400 71,895 (45) 71,849
Segment profit 27,086 1,437 28,524 (1,609) 26,914
Segment assets 130,554 9,044 139,598 2,687 142,285
Other items
Depreciation 4,461 96 4,557 132 4,690
Increase in property, plant and equipment and intangible assets 8,854 427 9,282 369 9,652
(Notes) 1. The segment profit adjustment amount of (1,609) million yen
includes 53 million yen in inter-segment eliminations and (1,663) million yen
in corporate expenses that have not been allocated to each reportable segment.
Corporate expenses consist of selling, general and administrative expenses
that do not belong to any reportable segment.
2. Segment profit is adjusted to operating income in the consolidated
statements of income.
3. Adjusted segment assets of 2,687 million yen are corporate assets that have
not been allocated to each reportable segment. These include the parent
company's surplus funds under management (time deposits, etc.), investment
securities, etc., and assets related to the management department.
4. The adjustment for depreciation of 132 million yen is mainly for
depreciation of corporate assets that have not been allocated to each
reportable segment.
5. The adjustment for the increase in property, plant and equipment and
intangible assets of 369 million yen is mainly an increase in corporate assets
that are not allocated to each reportable segment.
[Related Information]
Fiscal year ended March 31, 2024
1. Information by product and service
This information is omitted because the same information is disclosed in the
segment information.
2. Information by region
(1) Net sales
(Millions of yen)
Japan China Other Total
19,540 21,414 20,609 61,564
(Note) 1. Net sales are based on the location of customers and classified by
country or region.
(2) Property, plant and equipment
(Millions of yen)
Japan Malaysia Other Total
33,696 2,694 342 36,733
3. Information by major customer
Revenues from external customers are not shown because there are no customers
to which sales account for 10% or more of the net sales in the consolidated
statements of income.
Fiscal year ended March 31, 2025
1. Information by product and service
This information is omitted because the same information is disclosed in the
segment information.
2. Information by region
(1) Net sales
(Millions of yen)
Japan China Other Total
19,917 31,221 20,711 71,849
(Note) 1. Net sales are based on the location of customers and classified by
country or region.
(2) Property, plant and equipment
(Millions of yen)
Japan Malaysia Other Total
36,113 2,902 340 39,356
3. Information by major customer
Revenues from external customers are not shown because there are no customers
to which sales account for 10% or more of the net sales in the consolidated
statements of income.
[Information on Impairment Loss on Non-current Assets by Reportable Segment]
Fiscal year ended March 31, 2024
Not applicable.
Fiscal year ended March 31, 2025
Not applicable.
[Information on Amortization of Goodwill and Unamortized Balance by Reportable
Segment]
Fiscal year ended March 31, 2024
Not applicable.
Fiscal year ended March 31, 2025
Not applicable.
[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2024
Not applicable.
Fiscal year ended March 31, 2025
Not applicable.
[Information on Related Parties]
Fiscal year ended March 31, 2024
Not applicable.
Fiscal year ended March 31, 2025
Not applicable.
(Per Share Information)
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
Net assets per share 8,851.10 yen 10,361.04 yen
Earnings per share 1,233.30 yen 1,559.45 yen
(Notes) 1. Since there are no dilutive shares, diluted earnings per share is
not shown on the above table.
2. The basis for the calculation of earnings per share is as follows.
Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025
Earnings per share
Profit attributable to owners of parent 15,216 19,242
(millions of yen)
Amount not attributable to common shareholders (millions of yen) - -
Profit attributable to common shareholders of parent (millions of yen) 15,216 19,242
Average number of shares during period (thousand shares) 12,337 12,339
(Significant Subsequent Events)
Not applicable.
(v) [Supplementary Schedules]
[Schedule of Bonds]
Not applicable.
[Schedule of Borrowings, etc.]
Classification Balance at beginning of period Balance at end of period Average interest rate Repayment date
(millions of yen) (millions of yen) (%)
Short-term borrowings - - - -
Current portion of long-term borrowings 400 - 0.13 -
Current portion of lease obligations - - - -
Long-term borrowings (excluding current portion) - - - -
Lease obligations (excluding current portion) - - - -
Other interest-bearing liabilities - - - -
Total 400 - - -
[Schedule of Asset Retirement Obligations]
Since the amount of asset retirement obligations at the beginning and at the
end of the fiscal year under review is not more than one percent of the
combined total of liabilities and net assets at the beginning and at the end
of the fiscal year under review, the description is omitted pursuant to
Article 92-2 of the Ordinance on Terminology, Forms, and Preparation Methods
of Consolidated Financial Statements.
(2) Other
Semi-annual information for the fiscal year ended March 31, 2025
Six months ended September 30, 2024 Fiscal year ended March 31, 2025
Net sales (millions of yen) 34,822 71,849
Profit before income taxes 12,128 27,159
Profit (millions of yen)
Profit attributable to owners of parent (millions of yen) 8,440 19,242
Earnings per share 684.12 1,559.45
(yen)
Independent Auditors' Report
To the Board of Directors of MARUWA CO.,LTD.
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of MARUWA CO.,LTD. ("the
Company") and its subsidiaries ("the Group"), which comprise the consolidated
balance sheet as of March 31, 2025, the consolidated statements of income,
consolidated statement of comprehensive income, consolidated statement of
changes in equity, and consolidated statement of cash flows for the year then
ended, and notes, comprising material accounting policies and other
explanatory information.
In our opinion, the accompanying consolidated financial statements present
fairly, in all material respects, the consolidated financial position of the
Group as of March 31, 2025 , and its consolidated financial performance and
its consolidated cash flows for the year then ended in accordance with
Japanese generally accepted accounting principles ("GAAP").
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing
(ISAs). Our responsibilities under those standards are further described in
the Auditors' Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Company in
accordance with International Ethics Standards Board for Accountants'
International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code) together with the ethical
requirements that are relevant to our audit of the consolidated financial
statements in Japan and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the IESBA Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were
of most significance in our audit of the consolidated financial statements of
the current period. These matters were addressed in the context of our audit
of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Reasonableness of the valuation of inventories held in the ceramic components
business of MARUWA CO., LTD.
The key audit matter How the matter was addressed in our audit
In the consolidated balance sheet for the current fiscal year, inventories of The primary procedures we performed to assess the reasonableness of the
¥11,846 million were recognized. Included therein were inventories comprising valuation of inventories held in the ceramic components business of the
merchandise and finished goods, work in process, and raw materials and Company included the following:
supplies held in the ceramic components business of the Company, totaling to
¥9,766 million, which represented approximately 6.9% of total assets in the (1) Internal control testing
consolidated balance sheet.
We tested the design and operating effectiveness of certain of the Company's
As described in Note, "Significant accounting estimates" to the consolidated internal controls relevant to the valuation of inventories.
financial statements, inventories are valued by writing down the carrying
amount according to their declining profitability and are measured them at the In this assessment, we focused our testing on the design and operating
lower of the acquisition cost or the net selling price at the end of the effectiveness of controls relevant to the process of managing slow-moving
fiscal year. For slow-moving inventories that are outside of the normal inventories.
operating cycle, the carrying amount is reduced to the estimated disposal
value in order to reflect their reduced profitability. (2) Assessment of the reasonableness of the valuation of inventories
The main customers of the Company's ceramic components business are We assessed the appropriateness of the identification and valuation of
manufacturers in the electronics market, where, supported by continuing slow-moving inventories of which the carrying amounts are subject to write
technology innovations, new products are consistently delivered to the market. down, by performing the following procedures on the inventories of specific
The Company strives to increase market demand and expand into new markets by departments within the ceramic components business:
enhancing its development of leading products which are differentiated in the
electronics market. However, there is a possibility that the Company's ・assessed the effect on the valuation of inventories by examining the
inventories may become in excess due to market conditions, changes in demand turnover period of each product and work in process and inquiring of the
forecasts of electronic component manufacturers and other factors, resulting personnel in charge about the possibility of future sales of those products
in slow-moving inventories. The Company has established the policies by which and work in process that exceeded a certain turnover period; and
it identifies and evaluates slow-moving inventories of which the carrying
amounts are subject to write down, considering the product lifecycle based on ・assessed the appropriateness of the exclusion from the slow-moving
the actual results of slow-moving inventories or disposal of inventories. If inventories of products and work in process that were expected to be sold in
the policies are not appropriately applied to inventories, it may have a the future by inquiring of the personnel in charge about the feasibility of
significant effect on the consolidated financial statements due to the their future sales.
materiality of inventories in the ceramic components business of the Company.
We, therefore, determined that our assessment of the reasonableness of the
valuation of inventories held in the ceramic components business of the
Company was of most significance in our audit of the consolidated financial
statements for this fiscal year, and accordingly, a key audit matter.
Other Information
Management is responsible for the other information. The other information
comprises the information included in the Annual report, but does not include
the consolidated financial statements and our auditors' report thereon.
Our opinion on the consolidated financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our
responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and the audit and supervisory committee for the
Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the
consolidated financial statements in accordance with accounting principles
generally accepted in Japan, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements, management is responsible
for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
The audit and supervisory committee are responsible for overseeing the
Company's financial reporting process.
Auditors' Responsibilities for the Audit of the Consolidated Financial
Statements
Our objectives are to obtain reasonable assurance about whether the
consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors' report
that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs will
always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with ISAs, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
control.
· Obtain an understanding of internal control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control.
· Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
· Conclude on the appropriateness of management's use of the going
concern basis of accounting and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw
attention in our auditors' report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditors' report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
· Evaluate the overall presentation, structure and content of the
consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
· Plan and perform the group audit to obtain sufficient appropriate
audit evidence regarding the financial information of the entities or business
units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and
review of the audit work performed for purposes of the group audit. We
remain solely responsible for our audit opinion.
We communicate with the audit and supervisory committee regarding, among
other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the audit and supervisory committee with a statement that we
have complied with relevant ethical requirements regarding independence, and
communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the audit and supervisory committee, we
determine those matters that were of most significance in the audit of the
consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditors' report unless
law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such
communication.
Fee-related Information
Fees paid or payable to our firm and to other firms within the same network as
our firm for audit and non-audit services provided to the Company and its
subsidiaries are described in 2. Business Review (3) Amount of Remuneration to
Audit Firms .
Interest Required to be Disclosed by the Certified Public Accountants Act of
Japan
Our firm and its designated engagement partners do not have any interest in
the Group which is required to be disclosed pursuant to the provisions of the
Certified Public Accountants Act of Japan.
The engagement partner on the audit resulting in this independent auditors'
report is Yutaka Matsuki and Nobutaka Mabuchi.
Yutaka Matsuki
Designated Engagement Partner
Certified Public Accountant
Nobutaka Mabuchi
Designated Engagement Partner
Certified Public Accountant
KPMG AZSA LLC
Nagoya Office, Japan
July 30, 2025
2. Business Review
(1) Overview of Business Results
(i) Financial position and business results
In the fiscal year ended March 31, 2025, net sales increased 16.7% year on
year to 71,849 million yen, operating profit grew 35.9% year on year to 26,914
million yen, ordinary profit was up 28.0% year on year to 27,033 million yen,
and profit attributable to owners of parent increased 26.5% year on year to
19,242 million yen.
Business results by segment are as follows.
In the ceramic components business, net sales increased 17.4% year on year to
62,487 million yen, and segment profit grew 35.3% year on year to 27,086
million yen.
In the lighting equipment business, net sales increased 12.4% year on year to
9,362 million yen, and segment profit increased 27.1% year on year to 1,437
million yen.
Total assets at the end of the fiscal year ended March 31, 2025 amounted to
142,285 million yen, up 16.1% from the end of the previous fiscal year.
Total liabilities amounted to 14,431 million yen, up 8.4% from the end of the
previous fiscal year.
Total net assets were 127,854 million yen, up 17.1% from the end of the
previous fiscal year.
As a result, the equity ratio was 89.9%, up 0.8 points from the end of the
previous fiscal year.
(ii) Cash flows
Cash and cash equivalents at the end of the fiscal year under review increased
by 16,554 million yen from the end of the previous fiscal year, totaling
71,568 million yen, despite expenditures for the acquisition of property,
plant and equipment, among other factors.
The cash flow status for the fiscal year ended March 31, 2025 is as follows.
Net cash provided by operating activities amounted to 25,351 million yen, an
increase of 8,128 million yen compared to the end of the previous fiscal year.
Net cash used in investing activities was 7,682 million yen, a decrease of
3,131 million yen from the end of the previous fiscal year.
Net cash used in financing activities totaled 1,512 million yen, representing
an increase of 149 million yen from the end of the previous fiscal year.
(iii) Production and orders received
a. Production results
Production results by segment are as follows.
Name of segment Fiscal year ended March 31, 2025 Change from previous period (%)
Ceramic components business (millions of yen) 62,647 123.2
Lighting equipment business (millions of yen) 2,768 127.8
Total (millions of yen) 65,416 123.4
(Note) Amounts are based on sales prices, and inter-segment transactions are
offset and eliminated.
b. Orders received and order backlog
Orders received and order backlog by segment are as follows.
Name of segment Orders received Change from previous period (%) Order backlog Change from previous period (%)
Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2025
Ceramic components business (millions of yen) 59,426 118.5 21,003 87.3
Lighting equipment business (millions of yen) 9,580 111.7 1,816 113.7
Total (millions of yen) 69,007 117.5 22,819 88.9
(Note) Amounts are based on sales prices, and inter-segment transactions are
offset and eliminated.
c. Sales results
Sales results by segment are as follows.
Name of segment Fiscal year ended March 31, 2025 Change from previous period (%)
Ceramic components business (millions of yen) 62,487 117.4
Lighting equipment business (millions of yen) 9,362 112.4
Total (millions of yen) 71,849 116.7
(Note) Amounts are based on sales prices, and inter-segment transactions are
offset and eliminated.
(2) Analysis and discussion of business results from management's perspective
The following is an analysis and discussion of the Group's business results
from the management's perspective.
Forward-looking statements in the text are based on the judgment of the Group
as of the end of the fiscal year under review.
(i) Business results
During the fiscal year ended March 31, 2025, the trends in various policies
under the new U.S. administration attracted attention, and geopolitical risks,
including the situations in Ukraine and the Middle East, continued to be a
global concern. In addition, fluctuations in foreign exchange rates persisted.
In the high-tech market, there was a noticeable increase in technological
innovations and investments related to generative AI.
Working within this business environment, in the semiconductor-related
business, demand for general-purpose memory weakened due to market conditions.
In contrast, in the telecommunication-related business, performance for
next-generation, high- speed communications expanded, and in the
automobile-related business, sales for new energy vehicles remained strong. As
a result, net sales for the fiscal year ended March 31, 2025, increased 16.7%
year on year to 71,849 million yen. Operating profit grew 35.9% year on year
to 26,914 million yen, ordinary profit was up 28.0% year on year to 27,033
million yen, and profit attributable to owners of parent increased 26.5% year
on year to 19,242 million yen, marking the highest performance of the Group.
Recognition, analysis and discussion of the financial position and business
results by segment are as follows.
In the ceramic components business, the semiconductor-related business saw
weaker demand for general-purpose memories due to market conditions. In
contrast, in the telecommunication-related business, performance for
next-generation, high-speed communications expanded, and in the
automobile-related business, sales for new energy vehicles remained strong.
As a result, net sales for the fiscal year ended March 31, 2025 increased
17.4% year on year to 62,487 million yen, and segment profit grew 35.3% year
on year to 27,086 million yen.
In the lighting equipment business, sales of lighting products for the
high-end new condominium market were brisk, and business for public LED
lighting installation projects remained steady.
As a result, net sales for the fiscal year ended March 31, 2025 increased
12.4% year on year to 9,362 million yen, and segment profit increased 27.1%
year on year to 1,437 million yen.
(ii) Financial position
Current assets at the end of the fiscal year ended March 31, 2025 totaled
100,290 million yen, an increase of 16,804 million yen from the end of the
previous fiscal year. This was mainly due to an increase in cash and deposits.
Non-current assets totaled 41,995 million yen, up 2,965 million yen from the
end of the previous fiscal year. This was mainly due to an increase in
construction in progress.
As a result, total assets amounted to 142,285 million yen, up 19,770 million
yen from the end of the previous fiscal year.
(iii) Analysis and discussion of the status of cash flows and information on
capital resources and liquidity of funds
In the fiscal year ended March 31, 2025, net cash provided by operating
activities amounted to 25,351 million yen, an increase of 8,128 million yen
compared to the end of the previous fiscal year. This was mainly due to an
increase in profit before income taxes. Net cash used in investing activities
was 7,682 million yen, a decrease of 3,131 million yen from the end of the
previous fiscal year. This was mainly due to an increase in subsidy income.
Net cash used in financing activities totaled 1,512 million yen, representing
an increase of 149 million yen from the end of the previous fiscal year. This
was mainly due to an increase in dividends paid.
As a result, cash and cash equivalents at the end of the fiscal year ended
March 31, 2025 increased by 16,554 million yen from the end of the previous
fiscal year, totaling 71,568 million yen.
The Group's main demand for funds is for capital investment in growth areas,
R&D investment, dividend payments, and working capital for business
operations. Amid the global shift toward a decarbonized society, markets for
new energy vehicles, 5G, and semiconductors are expanding, and technological
innovation is accelerating market changes. The Group will continue to make
capital expenditures and invest in R&D with an eye on the coming years.
Funding is primarily sourced from our own internal funds.
(iv) Significant accounting estimates and assumptions used in making such
estimates
The consolidated financial statements of the Group are prepared in accordance
with accounting principles generally accepted in Japan.
Significant accounting policies are described in "1. Consolidated Financial
Statements, Notes to Consolidated Financial Statements (Significant accounting
estimates)." However, the following items are considered to affect accounting
estimates in the preparation of the Group's consolidated financial statements.
(Inventory valuation in the ceramic components business)
The Group writes down the carrying amount of inventories according to their
declining profitability and measured them at the lower of the acquisition cost
or the net selling price at the end of the fiscal year.
For slow-moving inventories that are outside of the normal operating cycle,
the carrying amount is reduced to the estimated disposal value in order to
reflect their reduced profitability.
Slow-moving inventories that are outside of the normal operating cycle are
identified based on a comprehensive review of the actual results of
slow-moving inventories or disposal of inventories, the product lifecycle, and
other factors.
Therefore, if there is an excess in inventories held due to market trends,
changes in demand forecasts by electronic component manufacturers, or other
factors, inventories that should be deemed as dead inventories may increase,
which may affect inventory valuation.
(3) Amount of Remuneration to Audit Firms
a. Remuneration to Certified Public Accountants, etc.
Millions of Yen
Services Previous consolidated fiscal year Current consolidated fiscal year
Audit certification Non-audit certification Audit certification Non-audit certification
The Company 34 － 38 －
Consolidated subsidiaries － － － －
Total 34 － 38 －
There were no fees related to non-audit services provided to the Company and
its consolidated subsidiaries in either the previous consolidated fiscal
year or the current consolidated fiscal year.
b. Remuneration to organizations belonging to the same network as the
certified public accountants (KPMG), excluding a. above
Not applicable.
c. Details of remuneration based on other significant assurance services
(Previous consolidated fiscal year)
Not applicable.
(Current consolidated fiscal year)
Not applicable.
3. Risk Factors
The following are the major risks that the management recognizes as having the
potential to materially affect the financial position, operating results, and
cash flows of the consolidated companies, among other matters related to the
business and accounting conditions described in the Annual Securities Report.
Forward-looking statements in the text are based on the judgment of the Group
as of the end of the fiscal year under review.
(1) Risks relating to international and economic conditions, etc.
The Group has manufacturing and sales bases in Japan and other countries
around the world, and conducts business globally. The Group's operating
results and financial position may be affected by economic conditions, market
environments, and changes in policies and regulations in countries around the
world.
(2) Risks related to individual businesses
(i) Ceramic components business
Expansion is expected in each of the markets for which the Group provides
products due to the rapid increase in new energy vehicles, the progress in the
multifunctionality and compactness of electronic components, the
popularization of AI, and developments in the IoT field, as well as the
transition towards a decarbonized society. However, a general slowdown in the
economy or sluggish consumption could affect the Group's business performance
and financial position.
(ii) Lighting equipment business
The main products are public lighting and high-intensity lighting used in
tunnels and on roads. The Group's business performance and financial position
may be affected by delays in construction schedules due to natural disasters
or infectious diseases.
(3) Risks posed by technological innovation
In each of the markets in which the Group participates, the transformation
toward decarbonization is accelerating, and the pace of technological
innovation is also increasing. If the speed of development lags behind that of
other companies, the Group's business performance and financial position may
be affected.
The Group will respond to the risks posed by technological innovation by
developing new products and making capital investments ahead of the times,
with an eye on the market several years into the future.
(4) Legal risks
The Group proactively develops new products. In product development,
preliminary investigations into intellectual property rights owned by other
companies are thoroughly conducted to prepare against the risks of
infringement of rights. However, in the event that the Group is held legally
liable due to some unforeseen event, its business performance and financial
position may be affected.
(5) Exchange rate risks
The Group manufactures in Japan and Malaysia and sells worldwide. As a result,
sales are recorded and settled in foreign currencies, including the U.S.
dollar, and fluctuations in foreign exchange rates may affect the Group's
business performance and financial position.
(6) Risks relating to natural disasters and infectious diseases
The Group has production bases in Japan and Malaysia, and sales offices
throughout the world. Fire prevention measures as well as certain measures
against natural disasters such as earthquakes, floods, and typhoons have been
implemented at these locations. However, in the event that a disaster occurs
or an infection spreads on a scale beyond expectations, the Group's business
performance and financial position may be affected by interruptions or delays
in business activities, disruption of transportation, damage to facilities,
and restoration costs incurred.
4. Responsibility Statement
The following responsibility statement is made solely to comply with the
requirements of the United Kingdom Financial Conduct Authority's Disclosure
Rules and Transparency Rules, in relation to MARUWA CO., LTD. as an issuer
whose financial instruments are admitted to trading on the London Stock
Exchange.
Toshiro Kambe, Representative Director and President, confirms that:
● to the best of his knowledge, the financial statements, prepared in
accordance with principles generally accepted in Japan, give a true and fair
view of the assets, liabilities, financial position and profit or loss of
MARUWA CO., LTD. and the undertakings included in the consolidation taken as a
whole; and
● to the best of his knowledge, this annual financial information
includes a fair review of the development and performance of the business and
the position of MARUWA CO., LTD. and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR DXGDRXUXDGUGRecent news on Maruwa Co
See all newsREG - Maruwa Co Ld - Annual Financial Report
AnnouncementREG - Maruwa Co Ld - 1st Quarter Results
AnnouncementREG - Maruwa Co Ld - Final Results
AnnouncementREG - Maruwa Co Ld - 3rd Quarter Results
AnnouncementREG - Maruwa Co Ld - Half-year Report
Announcement