Strengthening Technological and Sales Capabilities, Developing New Products, and Accelerating Overseas Business Expansion

「Market development and sales expansion leveraging the global network Establishing a European production base for mold fluxes and strengthening the business foundation in the Americas Early full-scale operation of the Chinese production base for functional refractories for continuous casting and expansion of the global sales network」

「From fiscal 2026, Dynamix Casting Fluxes, LLC (Dynamix), which operates a mold flux business in the United States, will join the Group, which is expected to accelerate the global expansion of that business. In addition, Liaoning Shinagawa Hefeng Metallurgical Material Co., Ltd., which operates the mold flux business in China, will launch a functional refractories business for continuous casting.」

「Reframax operates in 7 countries and at 21 locations in Brazil and elsewhere in South America, and is pursuing global expansion based on its strong presence in Brazil.」

「At a meeting of the Board of Directors held on 19 March 2025, the company resolved to establish Shinagawa Engineering Brazil Holding Ltda. as a new subsidiary and have it acquire a 60% equity interest in Reframax Engenharia Ltda. and make it a subsidiary. The acquisition was completed on 30 May 2025.」

「PT. Shinagawa Refratech Perkasa was newly established during the six months ended the current interim period and has therefore been included in the scope of consolidation. At a meeting of the Board of Directors held on 24 October 2024, the company resolved to acquire all shares of Gouda Refractories Group B.V. and make it a subsidiary, entered into a share transfer agreement on the same date, and acquired all shares.」

「Under the key initiative of strengthening and expanding our overseas business, the Brazilian refractories business and U.S. wear-resistant ceramics business began contributing to performance during the current fiscal year. As a result, the Group secured operating bases in major markets across the Indo-Pacific region, further energizing global exchanges between regions, including personnel and technology exchanges. In March 2024, we also decided to establish a new joint venture in Indonesia to strengthen our production and sales structure in the ASEAN region, including Indonesia.」

「In the refractories business, sales increased 21.4% year on year to ¥74,630 million and segment profit rose 58.9% to ¥6,454 million, due to expanded spreads from selling price revisions and an improved sales mix in response to persistently high raw material costs and surging fuel and electricity costs, contributions from the newly added Brazilian refractories business, and expanded sales in Japan and overseas.」

「Against this backdrop, for the six months ended the second quarter, the Group's sales increased 19.1% year on year to ¥72,704 million, operating profit rose 31.4% to ¥7,099 million, ordinary profit increased 23.1% to ¥7,753 million, and profit attributable to owners of the parent rose 105.7% to ¥9,436 million, due in part to the recognition of a gain on the sale of fixed assets from the sale of land. Sales and profit at every level reached record highs for a second quarter, following the first quarter.」

「In the refractories business, sales increased 33.2% year on year to ¥25,669 million and segment profit rose 71.3% to ¥2,297 million, due mainly to progress in revising selling prices in response to higher raw material, fuel and electricity costs, and the contribution from the performance of the newly added Brazilian refractories business.」

「Shinagawa Participações do Brasil Ltda and Shinagawa Specialty Ceramics Americas LLC were newly established during the third quarter of the current fiscal year and have therefore been included as consolidated subsidiaries. In addition, Shinagawa Participações do Brasil Ltda, which became a consolidated subsidiary, acquired all equity interests in SR do Brasil Ltda and made it a wholly owned subsidiary, so SR do Brasil Ltda has also been included as a consolidated subsidiary.」

「In the refractories and related products business, sales increased 21.9% year on year to ¥49,204 million and segment profit rose 9.0% to ¥5,277 million, due mainly to progress in passing higher refractory raw material costs through to selling prices, as described above.」

「Shinagawa Refractories Korea Corporation was newly established during the first quarter of the current fiscal year and has therefore been included in the scope of consolidation.」

「〇Strengthen competitiveness and expand sales by promoting local production in cooperation with partners 〇Meet customer needs through collaboration among Group products (monolithic refractories and ceramic fiber)」

「In the refractories and related products business, sales increased 11.7% year on year to ¥63,002 million and segment profit rose 68.9% to ¥7,501 million, due mainly to higher refractories sales volumes resulting from increased domestic crude steel production.」

「In the refractories and related products business, sales increased 10.7% year on year to ¥40,375 million and segment profit rose 94.8% to ¥4,843 million, due mainly to higher refractories sales volumes resulting from increased domestic crude steel production.」

「Chonggang Luonai Technology Co., Ltd. (People's Republic of China)　Exclusive sales in Japan of silica bricks, silica insulating bricks and prefabricated alumina products　Agreement signed in June 2021　Through June 2031」

「For existing steel customers, in addition to further increasing our market share, we will provide high-durability refractories and recycled refractories suited to carbon neutrality. For new customers, including nonferrous metal, industrial furnace and machinery manufacturers, we will promote expanded sales through integrated supply of materials and installation, as well as bundled sales of refractories and insulation materials.」

「In the refractories and related products business, sales declined 18.1% year on year to ¥56,387 million and segment profit fell 35.0% to ¥4,441 million, due mainly to lower refractories sales volumes resulting from lower crude steel production.」

「As a special initiative contributing to the achievement of our basic policy, the Group has identified expanded sales and the improvement of customer satisfaction that underpins it as its highest priorities in the refractories-related, engineering and other related businesses. Alongside efforts in sales and production, we will pursue further globalization and the expansion of the Group's business scale.」

「We will strengthen product competitiveness by building a stable supply chain that draws on our global sourcing capabilities for raw materials and products, developing new products that meet customer needs and bringing them to market promptly, actively promoting initiatives to improve safety, quality and productivity, and pursuing an even more optimal production structure.」

「In the refractories and related products business, sales declined 2.9% year on year to ¥68,825 million and segment profit fell 11.3% to ¥6,836 million, due mainly to the impact of lower refractories sales volumes resulting from lower domestic crude steel production.」

「In the refractories and related products business, refractories sales volumes declined due to lower domestic crude steel production, but sales increased 1.0% year on year to ¥45,667 million, reflecting the effects of price revisions in the second half of the previous fiscal year and other factors. Segment profit declined 10.3% to ¥4,420 million, due mainly to lower sales volumes and inventory valuation gains.」

「In the refractories and related products business, sales increased 3.2% year on year to ¥22,718 million, due mainly to higher sales at overseas subsidiaries and the effects of price revisions in the second half of the previous fiscal year.」

「In the refractories and related products business, sales increased 19.2% year on year to ¥70,845 million through higher sales volumes and the pass-through to selling prices of higher raw material costs, while segment profit rose 65.2% to ¥7,707 million as cost reductions progressed.」

「In the refractories and related products business, sales increased 17.2% year on year to ¥45.2 billion and segment profit rose 74.2% to ¥4,931 million, reflecting higher refractories sales volumes on steady crude steel production and expanded sales, as well as the pass-through to selling prices of higher refractory raw material costs.」

「In the refractories and related products business, sales increased 16.1% year on year to ¥2,202.0 million and segment profit increased 59.9% to ¥227.6 million, due to higher sales volumes of refractories and the pass-through to selling prices of increases in raw material prices.」

「We will build a stable supply chain by leveraging our global sourcing capabilities for raw materials and products, improve customer satisfaction, including confidence in quality and stable supply, and develop products tailored to customer needs while accelerating their market launch.」

「In the refractories and related products business, sales increased 6.6% year on year to ¥5,945.5 million due to growth in high-value-added products, including RCF-regulation-compliant and automotive-related products in ceramic fibers. Despite a negative impact from soaring prices for imported refractory raw materials and products, segment profit increased 10.3% to ¥466.4 million, mainly due to higher sales centered on high-value-added ceramic fibers.」

「In the refractories and related products business, sales increased 6.2% year on year to ¥3,856.5 million and segment profit increased 14.3% to ¥283.1 million, due to increases in high-value-added ceramic fiber products designed to address regulated work-environment exposure, including RCF-regulation-compliant products and automotive-related products, as well as strong sales to the steel and nonferrous metals markets in Oceania.」

「In the refractories and related products business, sales increased 3.2% year on year to ¥1,897.4 million and segment profit increased 17.2% to ¥142.3 million, mainly due to higher domestic sales of ceramic fibers by a subsidiary.」

「As a special initiative contributing to the realization of its basic policies, the Group has made expanding sales and improving customer satisfaction, which underpins sales growth, its highest-priority issues in order to prevail in competition in refractories and related businesses. Alongside pursuing sales and production activities, it is pursuing further globalization and expansion of the Group's business scale.」

「As a special initiative contributing to the realization of its basic policies, the Group has made expanding sales and improving customer satisfaction, which underpins sales growth, its highest-priority issues in order to prevail in competition in refractories and related businesses. Alongside pursuing sales and production activities, it is pursuing further globalization and expansion of the Group's business scale.」

「To prevail in competition in refractories and related businesses, we have made expanding sales and improving customer satisfaction, which underpins sales growth, our highest-priority issues. Alongside pursuing sales and production activities, we are pursuing further globalization and expansion of the Group's business scale.」

「By strengthening integrated production, sales and technology activities, we will develop attractive new and high-performance products and bring them to market at an early stage. In addition, we will accelerate overseas business expansion by leveraging the Group's combined capabilities.」