To shareholders and investors

Top Message

Aki Hashimoto

We would like to express our gratitude to shareholders and investors for continued support.

Despite the gradual easing of economic restrictions associated with the COVID-19 pandemic, the outlook for the Japanese economy for the fiscal year ended March 2023 under review still remains uncertain owing to a variety of factors, including the sharp rise in prices of raw materials resulting from the prolonged Russia-Ukraine conflict and the sudden fluctuations in exchange rates in response to global monetary tightening policies.

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 2023 under review, despite a decrease in the shipment volume in the Semiconductors, revenue increased owing to efforts to pass through the rise in prices of raw materials; however, there was also a decrease in the shipment volume in the Energy and the Industrial Hydrofluoric Acid. As a result, sales revenue decreased to 35,382 millions of yen (down 5.1% year on year).

In terms of profits, operating profit amounted to 3,514 millions of yen (down 23.3% year on year), in addition to a reduction in sales revenue, the impact of supply and demand in the Chinese market and the weakening yen led to a year-on-year increase in the price of anhydrous hydrofluoric acid, a key raw material.

Ordinary profit amounted to 4,347 millions of yen (down 23.8% year on year) due to a decline in operating profit despite recording share of profit of entities accounted for using equity method for Quzhou BDX New Chemical Materials Co., Ltd., an equity method affiliate. Moreover, while recording gain on sale of investment securities as extraordinary income due to sale of an unlisted security, impairment loss in property, plant and equipment (construction in progress), which is held for the purpose of raising the production, was recorded as extraordinary losses regarding additives for lithium-ion secondary batteries in the Energy under the High-purity Chemical Business. As a result, profit attributable to owners of parent amounted to 2,280 millions of yen (down 57.5% year on year).

For the consolidated results forecast for the next fiscal year ended March 2024, although an increase in sales of enriched boron (boron-10) used in nuclear energy-related facilities is expected in the Energy under the High-purity Chemical Business, sales in the Semiconductors, which is a mainstay of the business, are expected to be weak due to the slowdown in the semiconductor market. Accordingly, the Group forecasts sales revenue of 32,300 millions of yen (down 8.7% year on year), operating profit of 2,800 millions of yen (down 20.3% year on year), ordinary profit of 2,450 millions of yen (down 43.7% year on year), and profit attributable to owners of parent of 1,650 millions of yen (down 27.7% year on year).

We appreciate your further understanding and support in the future.

May 2023

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