Expansion into New Businesses through the Acquisition of a Machine Tool Manufacturer as a Subsidiary

「㈱ケイシステックニジューサン was dissolved on 30 June 2025, with liquidation completed in March 2026. Accordingly, this section primarily presents an overview of the consolidated accounting period for the first quarter, its final operating period.」

「工作機械製造事業セグメントである㈱ケイシステックニジューサンは、2025年４月23日に適時開示いたしましたとおり、2025年６月30日をもって解散致しましたので、主に最終事業期間の第１四半期連結会計期間の概要を記載しております。」

「㈱ケイシステックニジューサン was dissolved on 30 June 2025, making the first quarter its final operating period. In the second quarter, it moved to liquidation procedures.」

「In the machine tool manufacturing business, capital investment in the automobile industry remained sluggish in fiscal 2024, but the company received equipment investment orders from new customers in other industries and was able to recognize the resulting revenue. However, profitability was extremely difficult because these were new projects. Revenue was ¥230 million, up 121.4% year on year, and the business recorded an operating loss of ¥40 million, compared with an operating loss of ¥10 million in the same period of the previous year.」

「In the machine tool manufacturing business, capital investment in the automobile industry remained sluggish, but revenue from equipment investment transactions in other industries was recognized. However, profitability was extremely difficult because these were new projects. Revenue was ¥180 million, up 461.4% year on year, and the business recorded an operating loss of ¥48 million, compared with an operating loss of ¥8 million in the same period of the previous year.」

「In the machine tool manufacturing business, transactions with the automotive industry remained at a low level, although sales activities were also conducted to secure new customers through trading companies. As a result, revenue was ¥100 million, down ¥10 million, or 10.2%, year on year, and the business recorded an operating loss of ¥10 million, unchanged from the same period of the previous year.」

「In the machine tool manufacturing business, the automotive industry continued to be significantly affected by delays in procuring parts, and capital investment in the automobile industry remained sluggish. Revenue was ¥80 million, down ¥5 million, or 6.2%, year on year, and the business recorded an operating loss of ¥10 million, unchanged from the same period of the previous year.」

「In the machine tool manufacturing business, the automotive industry continued to be significantly affected by delays in procuring parts, and capital investment in the automobile industry remained sluggish. As a result, revenue was ¥30 million, down 55.2% year on year, and the business recorded an operating loss of ¥8 million, compared with an operating loss of ¥2 million in the same period of the previous year.」

「In the machine tool manufacturing business, the automotive industry continued to be significantly affected by delays in procuring parts, and capital investment in the automobile industry remained sluggish. In these circumstances, revenue was ¥8 million, down 56.3% year on year, and the business recorded an operating loss of ¥6 million, unchanged from the same period of the previous year.」

「In the machine tool manufacturing business, the effects of changes in the automobile manufacturing market resulting from the global shift toward decarbonization, supply chain disruptions, higher prices and other factors continued throughout the year, and orders related to the automotive industry remained at a low level.」

「Changes in the market for automobile manufacturing caused by the global shift toward decarbonization, supply chain disruptions and higher prices compounded one another, and the outlook, including trends among existing clients, remained uncertain. In addition, transactions outside the automotive industry were temporary. Consequently, revenue was ¥80 million, down ¥20 million, or 20.8%, year on year, and the business recorded an operating loss of ¥10 million, compared with an operating loss of ¥9 million in the same period of the previous year.」

「In the machine tool manufacturing business, the outlook for the automotive industry remained uncertain because of changes in the market resulting from the shift toward carbon neutrality, parts shortages and higher material costs caused by COVID-19, and other factors. In addition, transactions outside the automotive industry were temporary. Consequently, revenue was ¥70 million, down ¥20 million, or 22.5%, year on year, and the business recorded an operating loss of ¥2 million, compared with an operating loss of ¥1 million in the same period of the previous year.」

「In these circumstances, revenue was ¥10 million, down ¥0 million, or 3.0%, year on year, and the business recorded an operating loss of ¥6 million, compared with an operating loss of ¥7 million in the same period of the previous year.」

「Efforts in the design business for industries other than automotive produced some results. However, in the core automotive industry, production adjustments continued because of the impact of COVID-19, including semiconductor shortages, and conditions remained difficult. As a result, revenue was ¥130 million, down ¥20 million, or 14.0%, year on year, and the business recorded an operating loss of ¥10 million, unchanged from the same period of the previous year.」

「As in the previous fiscal year, equipment orders from existing customers in the automotive industry showed no improvement because of the impact of COVID-19, and the decline in order volumes continued. On the other hand, efforts initiated last year in the design business for industries other than automotive produced results. Consequently, revenue was ¥100 million, up ¥10 million, or 15.5%, year on year, and the business recorded an operating loss of ¥9 million, compared with an operating loss of ¥10 million in the same period of the previous year.」

「In the machine tool manufacturing business, domestic manufacturing in the automotive industry remained stable at a low level, capital investment related to engines remained sluggish, and production volumes continued to trend sharply downward. However, revenue was ¥90 million, up ¥10 million, or 13.5%, year on year, because other ordered items were also recognized. The business recorded an operating loss of ¥1 million, compared with an operating loss of ¥10 million in the same period of the previous year.」

「The automotive industry is active against the backdrop of the recovery of the Chinese economy, but domestic manufacturing remains stable at a low level. In particular, capital investment related to engines has not progressed, and production volumes have continued to trend sharply downward. In these circumstances, revenue was ¥10 million, down ¥20 million, or 52.2%, year on year, and the business recorded an operating loss of ¥7 million, compared with an operating loss of ¥9 million in the same period of the previous year.」

「In the machine tool manufacturing business, order volumes fell sharply from the previous year as a result of production adjustments in the automotive industry caused by the impact of COVID-19. As a result, revenue was ¥90 million, down ¥300 million, or 76.2%, year on year. In addition, the gross profit margin declined, mainly because the lower order volume reduced gross profit and increased the burden of fixed labor costs included in manufacturing costs. The business therefore recorded an operating loss of ¥10 million, compared with operating income of ¥30 million in the same period of the previous year.」

「In the machine tool manufacturing business, order volumes fell sharply from the previous year as a result of production adjustments in the automotive industry caused by the impact of COVID-19. As a result, revenue was ¥80 million, down ¥270 million, or 77.0%, year on year, and the business recorded an operating loss of ¥10 million, compared with operating income of ¥30 million in the same period of the previous year.」

「In the machine tool manufacturing business, production volumes fell sharply and fixed manufacturing costs accounted for a higher proportion of manufacturing costs as a result of production adjustments in the automotive industry caused by the impact of COVID-19. As a result, revenue was ¥40 million, down ¥100 million, or 72.2%, year on year, and the business recorded an operating loss of ¥9 million, compared with operating income of ¥10 million in the same period of the previous year.」

「The machine-tool manufacturing business has been included in the consolidated statement of income since the third-quarter consolidated accounting period of the previous fiscal year. Revenue was ¥440 million (up ¥300 million, or 225.2%, year on year) and operating profit was ¥20 million (up ¥20 million, or 1715.2%, year on year).」

「The machine-tool manufacturing business has been included in the consolidated statement of income since the third-quarter consolidated accounting period of the previous fiscal year. Revenue was ¥390 million (up ¥290 million, or 297.6%, year on year) and operating profit was ¥30 million (compared with an operating loss of ¥0 million in the same period of the previous year).」

「The machine-tool manufacturing business reported revenue of ¥350 million and operating profit of ¥30 million.」

「The machine-tool manufacturing business reported revenue of ¥140 million and operating profit of ¥10 million.」

「Under the share transfer agreement entered into on 26 September 2018, the Company acquired all shares of 株式会社ケイシステックニジューサン and made it a subsidiary. By including the subsidiary as a consolidated subsidiary within the scope of consolidation, the Company added “Machine-Tool Manufacturing Business” to its reportable segments and included the subsidiary's results in the consolidated statement of income from the third-quarter consolidated accounting period.」

「Because the subsidiary was included in the scope of consolidation as a consolidated subsidiary, the machine tools manufacturing business was added as a reportable segment, and beginning with the third quarter of the current consolidated fiscal year, the subsidiary's results have been included in the consolidated income statement.」

「Under the share transfer agreement entered into on 26 September 2018, the Company acquired all shares of 株式会社ケイシステックニジューサン and made it a subsidiary, including that subsidiary and one of its subsidiaries within the scope of consolidation as consolidated subsidiaries. Because the deemed acquisition date was the end of the cumulative second-quarter accounting period, only the balance sheet of the subsidiary was consolidated for the cumulative second-quarter accounting period.」

「At a meeting of its Board of Directors on 28 June 2018, the Company resolved to acquire the shares of 株式会社ケイシステックニジューサン, a manufacturer and seller of machine tools and other products, and make it a subsidiary. On the same date, it entered into a basic agreement with the company and its shareholders.」

「By making 株式会社ケイシステックニジューサン a subsidiary, the Company aims to expand new businesses as part of its policy of building a corporate structure that does not rely solely on bidding. Going forward, it expects to generate synergies and further expand earnings across the Group by leveraging the technological capabilities of both companies.」