Komori
Earnings4189KH Neochem Co.,Ltd.Materials and Chemicals

Financial Results Summary for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated)

For the interim period of 2026, net sales declined 9.3% year on year, while operating income increased 24.9% and interim net income attributable to owners of the parent increased 34.3%. The full-year earnings forecast remains unchanged from the previous forecast due to uncertainty arising from the situation in the Middle East.

Worth reading
62In focus
Scored from 3 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
1495
Millions of yen (year-on-year increase in operating profit)
Wording
Conditional
How definitive the wording is.

Results for this period

Interim period (second quarter)1 January 2026–30 June 2026ConsolidatedJapanese GAAP
Net Sales53,299¥ millionYear on year -9.3%
Operating profit7,501¥ millionYear on year +24.9%
Ordinary income7,448¥ millionYear on year +29.3%
Net income attributable to owners of the parent5,282¥ millionYear on year +34.3%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit.

Net income per share¥150.85
Financial position at period-end
Total assets132,113¥ million
of which net assets 77,636 ¥ million

The shaded area represents net assets as a proportion of total assets. It is calculated from the two amounts reported by the company.

Cash inflows and outflows
Operating+7,809
Investment-2,952
Financials-3,787
Net change+1,070

Stacked from zero: upward is an increase in cash, downward a decrease (in ¥ million).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period¥7,795 million
Segment revenueFunctional Materials ¥24,850 million (YoY -15.1%), Electronic Materials ¥7,360 million (YoY +26.3%), Basic Chemicals ¥20,750 million (YoY -10.9%), Other ¥339 million (YoY -8.5%)
Segment profitFunctional Materials ¥5,246 million (YoY -10.4%), Electronic Materials ¥1,817 million (YoY +51.3%), Basic Chemicals ¥2,296 million (YoY +270.5%), Other ¥-24 million, Corporate expenses ¥-1,833 million (YoY +5.3%)
Outlook and shareholder returns
Full-year earnings forecast
Net SalesNot disclosed
Operating profitNot disclosed
Ordinary incomeNot disclosed
Net incomeNot disclosed
RemarksUnchanged from the forecast announced on 11 May 2026
Factors Behind Changes in Business Performance

Functional Materials: Sales volumes declined due to weaker-than-expected demand for refrigeration oil materials, heightened tensions in the Middle East, and extensive scheduled maintenance. Electronic Materials: Sales of high-purity solvents increased against a backdrop of demand related to generative AI and data centers, and the value of enhanced quality and stable supply capabilities was reflected in prices. Basic Chemicals: The company pursued prompt price revisions in response to surging raw material and fuel costs.

Disclosure regarding the going concern assumption

Not applicable.

Depreciation and amortization¥2,989 million
Results for this period
ItemDetails
Fiscal Period ClassificationInterim period (second quarter)
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 January 2026–30 June 2026
Net Sales¥53,299 million (YoY -9.3%)
Operating profit¥7,501 million (YoY +24.9%)
Ordinary income¥7,448 million (YoY +29.3%)
Profit attributable to owners of the parent¥5,282 million (YoY +34.3%)
Net income per share¥150.85
Total assets¥132,113 million
Net assets¥77,636 million
Cash flows from operating activities¥7,809 million
Cash flows from investing activities¥-2,952 million
Cash flows from financing activities¥-3,787 million
Cash and cash equivalents at end of period¥7,795 million
Full-year earnings forecastNet Sales Not disclosed / Operating profit Not disclosed / Ordinary income Not disclosed / Net income Not disclosed / Remarks Unchanged from the forecast announced on 11 May 2026
Segment revenueFunctional Materials ¥24,850 million (YoY -15.1%), Electronic Materials ¥7,360 million (YoY +26.3%), Basic Chemicals ¥20,750 million (YoY -10.9%), Other ¥339 million (YoY -8.5%)
Segment profitFunctional Materials ¥5,246 million (YoY -10.4%), Electronic Materials ¥1,817 million (YoY +51.3%), Basic Chemicals ¥2,296 million (YoY +270.5%), Other ¥-24 million, Corporate expenses ¥-1,833 million (YoY +5.3%)
Depreciation and amortization¥2,989 million
Disclosure regarding the going concern assumptionNot applicable.
Factors Behind Changes in Business PerformanceFunctional Materials: Sales volumes declined due to weaker-than-expected demand for refrigeration oil materials, heightened tensions in the Middle East, and extensive scheduled maintenance. Electronic Materials: Sales of high-purity solvents increased against a backdrop of demand related to generative AI and data centers, and the value of enhanced quality and stable supply capabilities was reflected in prices. Basic Chemicals: The company pursued prompt price revisions in response to surging raw material and fuel costs.
Items this document does not state (17)
Operating MarginEquity ratioRevision to Earnings ForecastAnnual Dividend ForecastPayout ratioShareholder Return PolicyRegional salesOrders received and order backlogImpairment lossBreakdown of extraordinary income (loss)Change in accounting policyChanges in the scope of consolidationMaterial subsequent eventsAvailability of Supplementary Financial Results MaterialsAvailability of Financial Results BriefingIssued Shares at Period-EndTreasury Shares at Period-End

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In Functional Materials, sales volumes declined due to weaker-than-expected demand for refrigeration oil materials, heightened tensions in the Middle East, and extensive scheduled maintenance. In Electronic Materials, sales of high-purity solvents increased against a backdrop of growing demand related to generative AI and data centers, and the value of enhanced quality and stable supply capabilities was reflected in prices. In Basic Chemicals, the company pursued prompt price revisions in response to surging raw material and fuel costs. The full-year forecast remains unchanged due to the uncertain outlook arising from the situation in the Middle East.

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Financial Results Summary for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated) | KH Neochem Co.,Ltd. (4189) timely disclosure | Komori