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Earnings presentation6769THine Electronics,Inc.Electrical Equipment and Precision Instruments

Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 2026

In the three months ended March 2026, revenue increased 35% year on year, while the operating loss widened from ¥205 million to ¥410 million due to a shift toward a lower-margin business mix and higher research and development expenses. The AIOT business grew on increased sales for smart meters and other applications, while the LSI business reported lower revenue.

Worth reading
43Recurring
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
35
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending December 20265 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥949 million+35.0%
Operating profit¥-410 million
Ordinary income¥-361 million
Net income¥-379 million
Selling, general and administrative expenses¥740 million
Gross Profit Margin
Rate34.7%
Year-on-year change (points)Down 24.2 percentage points (from 58.9% to 34.7%)
Operating profit margin
Rate-43.3%
Year-on-year change (points)Deteriorated by 14.0 percentage points (from -29.3% to -43.3%)
Results for the three months of the current quarter
Net Sales¥949 million
Gross profit¥329 million
Selling, general and administrative expenses¥740 million
Operating profit-¥410 million
Ordinary income-¥361 million
Profit attributable to owners of parent for the quarter–¥379 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decline in gross profit-¥84 million
  • Higher R&D investment-¥125 million
  • Reduction in other administrative expenses+¥5 million
New initiatives
  • Development of DSP-less optical semiconductor products for AI data centers
  • Development of V-by-One HS products for EV panels and cameras
  • Development of new power supply products
  • Development of modules for edge AI processing
  • Development of gateway products with voice calling functionality
  • Development of smart IoT routers
  • Development of solutions utilizing smart modules
  • Development of high-speed wireless communications technology targeting 1000Gbps
  • Change the business policy of the server business subsidiary to pursue independent development
Key KPIsA metric the company considers important as a management benchmark.
  • Number of employees133 People
  • Progress against R&D expense plan25 %
  • Cash and cash equivalents denominated in US dollars12 USD million
Segment results
  • LSI Business
    Year-on-year change in revenueDown 26%
  • AIOT Business
    Year-on-year change in revenueUp 171%
Number of employees
Number of Employees133 People
Record date31 March 2026
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥949 million (YoY +35.0%)
Operating profit¥-410 million
Ordinary income¥-361 million
Net income¥-379 million
Gross Profit MarginRate 34.7% / Year-on-year change (points) Down 24.2 percentage points (from 58.9% to 34.7%)
Operating profit marginRate -43.3% / Year-on-year change (points) Deteriorated by 14.0 percentage points (from -29.3% to -43.3%)
Selling, general and administrative expenses¥740 million
Results for the three months of the current quarterNet Sales ¥949 million / Gross profit ¥329 million / Selling, general and administrative expenses ¥740 million / Operating profit -¥410 million / Ordinary income -¥361 million / Profit attributable to owners of parent for the quarter –¥379 million
Segment resultsSegment LSI Business / Year-on-year change in revenue Down 26% / Profit Not disclosed, Segment AIOT Business / Year-on-year change in revenue Up 171% / Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Decline in gross profit / Amount -¥84 million, Factors Higher R&D investment / Amount -¥125 million, Factors Reduction in other administrative expenses / Amount +¥5 million
Key KPIsIndicator name Number of employees / Value 133 People / Year on year against the same period last year Not disclosed, Indicator name Progress against R&D expense plan / Value 25 % / Year on year against the same period last year Not disclosed, Indicator name Cash and cash equivalents denominated in US dollars / Value 12 USD million / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 133 People / Record date 31 March 2026 / Changes during the period and hiring plan Not disclosed
New initiativesDevelopment of DSP-less optical semiconductor products for AI data centers, Development of V-by-One HS products for EV panels and cameras, Development of new power supply products, Development of modules for edge AI processing, Development of gateway products with voice calling functionality, Development of smart IoT routers, Development of solutions utilizing smart modules, Development of high-speed wireless communications technology targeting 1000Gbps, Change the business policy of the server business subsidiary to pursue independent development
Items this document does not state (16)
Full-year earnings forecastProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

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.

The company explained that, despite higher revenue, gross profit declined as a result of a change in the business mix, while increased research and development investment for new product development caused the operating loss to widen. The LSI business was affected by lower shipments for office automation and other applications, while increased mass-production shipments of products for smart meters were cited as a revenue driver for the AIOT business.

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Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 2026 | THine Electronics,Inc. (6769) timely disclosure | Komori