Revenue Recognition from Large-Scale Equipment Projects and Solid Sales of Chemical Products

「As the semiconductor market became more active and the company made steady progress entering the power industry market, sales of ion-exchange resin products remained strong throughout the fiscal year. In addition to deliveries of in-house manufactured equipment, higher sales of functional adhesives driven by demand related to AI data centers also contributed, resulting in higher overall business sales year on year.」

「Growth in the semiconductor-related market and expansion into the power industry market provided tailwinds, and sales of the company's processed ion-exchange resin products, its core products, remained strong. Revenue recognition from deliveries of the company's own-manufactured equipment also contributed, and total business sales exceeded those of the same period of the previous year.」

「Against a backdrop of a revitalized semiconductor market, sales of the core ion-exchange resin business increased substantially. Although the company had initially expected equipment sales to be low in the current period, the increase in ion-exchange resin sales more than offset this, and total business sales exceeded those of the same period of the previous year. In addition, development and selling expenses increased year on year because the company expanded its development and sales structures during the previous fiscal year, deepened its technology and strengthened its communication of that technology externally. As a result, chemicals business revenue was ¥1,089.319 million, an increase of ¥80.965 million, or 8.0%, from the previous interim accounting period, while the operating loss was ¥17.178 million, compared with an operating loss of ¥55.251 million in the previous interim accounting period.」

「Sales across the business as a whole remained firm and exceeded those of the same period of the previous year. In the core ion-exchange resin business, sales of the company's processed products fell below the previous year, but the decline was offset by growth in purchased products, including new sales to pharmaceutical and chemical plants, resulting in year-on-year growth in ion-exchange resin sales overall. Sales of the company's own equipment also increased on the recognition of revenue from large-scale projects.」

「Sales of the core ion-exchange resin business increased year on year overall. Although sales of the company's processed products fell below the previous year, sales of purchased products grew on deliveries to major customers, including new customers. Sales of the company's own equipment also increased, including amounts recognized under the applicable revenue recognition criteria for large-scale projects scheduled for delivery at the end of the period. As a result, total business sales exceeded those of the same period of the previous year. Profit margins declined mainly because of the overall increase in the cost ratio of the company's processed products, together with higher R&D and selling expenses resulting from active investment in development and stronger sales activities aimed at expanding sales.」

「Sales of the core ion-exchange resin business were roughly in line with the previous year. Although sales of the company's processed products to major customers declined, this was offset by higher sales resulting from an expanded customer base for purchased products. Overall business sales fell below the same period of the previous year, partly because sales from a large-scale project involving the company's own equipment were recorded in the same period of the previous year.」

「Sales of the company's processed ion-exchange resin products for semiconductor and pharmaceutical manufacturing progressed steadily. Although orders for large-scale equipment projects were scarce during the fiscal year, the company actively invested in sales activities aimed at increasing orders from the next fiscal year onward.」

「Sales remained firm across the business as a whole. Equipment sales declined because large-scale equipment projects generated sales in the same period of the previous year. However, increased orders for equipment maintenance, higher sales of functional materials, and the progress made in passing higher procurement costs through to selling prices resulted in sales that were roughly in line with the same period of the previous year.」

「Sales of ion-exchange resins and other products performed well. For the biodiesel fuel refining equipment on which field testing had been conducted since the previous fiscal year, sales began as scheduled in September 2022, and the company has been pursuing sales activities targeting businesses that handle biodiesel fuel.」

「Sales of purchased products performed well overall, as the company made progress in securing new projects. The business also received many orders for equipment projects during the fiscal year, contributing to the increase in sales.」

「Sales increased due to the acquisition of new major customers for ion-exchange resin sales and multiple orders for large equipment projects. Sales of products other than those described above remained broadly at the previous fiscal year's level.」

「Sales increased due to orders for large equipment projects and the acquisition of new major customers for ion-exchange resin sales. Meanwhile, demand for products for semiconductor and pharmaceutical manufacturing, which performed well in the previous fiscal year, has begun to stabilize.」

「Sales from a large equipment project for which delivery activities had been under way since the previous fiscal year were recognized. Sales of other products, including ion-exchange resins, remained solid.」