To shareholders and investors
We would like to express our gratitude to shareholders and investors for continued support.
The Japanese economy showed a trend of gradual recovery for the fiscal year ended March 2022, but the outlook still remains uncertain due to the impact of economic sanction by many governments on the situation in Ukraine, in addition to the impact of the COVID-19 pandemic.
In this environment, the Group continued to supply a diverse range of fluoride products in line with the needs of customers mainly in the information and communication industry in Japan and overseas, as well as developing the chemical product distribution business based on the unique know-how acquired in the transportation of special cargo.
In regard to the performance for the fiscal year ended March 2022, both domestic and overseas sales in the Semiconductors and LCDs increased, backed by the booming global demand for semiconductors. Increased sales of Enriched Boron (Boron-10) used in nuclear energy-related facilities also contributed to increasing sales revenue to 37,296 millions of yen (up 13.4% year-on-year).
In terms of profits, operating profit amounted to 4,583 millions of yen (up 12.3% year-on-year), thanks to the increased shipment volume in the Semiconductors and LCDs, although the price of anhydrous hydrofluoric acid, a key raw material, rose from the previous fiscal year, mainly due to the impact of supply and demand in the Chinese market.
Ordinary profit amounted to 5,707 millions of yen (up 42.0% year-on-year), as a result of recording share of profit of entities accounted for using equity method, due to a significant rise in the sales price against a backdrop of the increased demand in China for electrolytes for lithium-ion secondary batteries sold by the Quzhou BDX New Chemical Materials Co., Ltd., an equity method affiliate, and a marked turnaround in the affiliate's operating results. By also recording gain on sale of shares of subsidiaries and associates as extraordinary income through a share transfer of FECT CO., LTD., an equity method affiliate, and a partial sale of shares of Stella Pharma Corporation, profit attributable to owners of parent amounted to 5,364 millions of yen (up 81.3% year-on-year).
For the consolidated results forecast for the fiscal year ended March 2023, the Group forecasts sales revenue of 37,500 millions of yen (up 0.5% year-on-year) and operating profit of 4,600 millions of yen (up 0.4% year-on-year), given the outlook that sales in the Semiconductors which is the mainstay of the High-purity Chemical Business, remain strong, driven by the booming demand for semiconductors.
Moreover, the demand in China for electrolytes for lithium-ion secondary batteries sold by the Quzhou BDX New Chemical Materials Co., Ltd., an equity method affiliate, is expected to continue and recording of share of profit of entities accounted for using equity method is assumed. Accordingly, the Group forecasts ordinary profit of 5,800 millions of yen (up 1.6% year-on-year) and profit attributable to owners of parent of 4,200 millions of yen (down 21.7% year-on-year).
We appreciate your further understanding and support in the future.