NIHON SEIKO CO.,LTD

This report presents the profile of NIHON SEIKO CO.,LTD (securities code 5729; filing date: 24 June 2026) and its business group, which comprises 2 consolidated subsidiaries and a major affiliate, 川嶋, with a business structure centered on its antimony and metal powder businesses. As of the filing date of the Securities Report, the group’s principal operations comprised the following 2 businesses, alongside related operations including real estate leasing and hydroponic cultivation of high-sugar tomatoes. Its consolidated subsidiaries are 日本アトマイズ加工㈱ (Noda, Chiba Prefecture; metal powder business) and 日テイ精礦 (Shanghai) 商貿有限公司 (Shanghai, China; antimony business). The group also conducts raw-material transactions with 株式会社川嶋 (Hamamatsu, Shizuoka Prefecture), one of its principal raw-material suppliers. Effective 1 April 2026, the company completed a 4-for-1 stock split of its common shares. Historically, the group has focused on the manufacture and sale of flame retardants and catalysts, principally antimony trioxide, through its antimony business, and the manufacture and sale of metal powders for electronic components and powder metallurgy materials through its metal powder business, as well as real estate leasing and hydroponic cultivation of high-sugar tomatoes. As sales, earnings and asset scale have expanded, the group has pursued group collaboration, strengthened the competitiveness of its existing businesses, expanded globally, enhanced its human capital and addressed ESG matters under its medium-term management strategy. With a view to its 100th anniversary in 2035, the group has established a 3-year medium-term management strategy for fiscal 2025 through fiscal 2028, targeting consolidated operating income of at least ¥3 billion and ROE of at least 10% in fiscal 2027. Financial indicators for the fiscal year ended March 2026 were net sales of ¥40,866,654 thousand, operating income of ¥6,080,784 thousand, ordinary income of ¥6,025,390 thousand, net income attributable to owners of the parent of ¥4,214,750 thousand, net assets of ¥15,446,990 thousand, total assets of ¥24,729,706 thousand, an equity ratio of 62.5%, net assets per share of ¥1,038.86, net income per share of ¥430.14, and a price/earnings ratio of 5.5 times as of the fiscal year-end. The group had 263 employees on a consolidated basis, including 88 in the antimony business and 175 in the metal powder business. Sojitz Corporation is one example of a major customer, while 川嶋 is a major related party with which the group has raw-material transaction relationships. Research and development expenses for the fiscal year totaled ¥88,636 thousand, comprising ¥25,375 thousand for the antimony business and ¥63,260 thousand for the metal powder business. Cash flows for subsequent periods comprise cash flow from operating activities of ¥7,619,449 thousand, cash flow from investing activities of negative ¥1,053,365 thousand, cash flow from financing activities of negative ¥2,016,887 thousand, and cash and cash equivalents at the end of the period of ¥6,682,480 thousand.