Debt repayments and liquidity risk

「前連結会計年度末に比べ、総資産は、現金及び現金同等物の増加1,605百万円、」

「Compared with the previous consolidated fiscal year-end, total assets increased by ¥2,786 million to ¥79,111 million, mainly due to increases of ¥1,605 million in cash and cash equivalents, ¥1,142 million in property, plant and equipment, ¥966 million in trade receivables and ¥851 million in inventories, partly offset by a ¥2,069 million decrease in other current assets, including other receivables and consumption tax receivables. Liabilities increased by ¥1,261 million to ¥45,669 million, mainly due to an increase of ¥2,402 million in trade payables and other accrued expenses and a decrease of ¥1,315 million in borrowings.」

「Free cash flow was negative at ¥3,178 million, as cash flow from operating activities was positive at ¥4,201 million and cash flow from investing activities was negative at ¥7,379 million. This was a deterioration of ¥4,834 million year on year.」

「Free cash flow was negative at ¥3,178 million, as cash flow from operating activities was positive at ¥4,201 million and cash flow from investing activities was negative at ¥7,379 million. This was a deterioration of ¥4,834 million year on year.」

「Liabilities increased by ¥179 million to ¥42,531 million, mainly due to increases of ¥675 million in trade payables and other accrued expenses, ¥118 million in derivative liabilities and ¥93 million in long-term deferred revenue included in other non-current liabilities, partly offset by a decrease of ¥744 million in borrowings.」

「The company entered into a term loan agreement under a syndicated loan structure dated 26 March 2025. The proceeds will be used to refinance existing borrowings and provide long-term working capital. The facility amount is ¥25,000 million, and the borrowing period is from 31 March 2025 to 31 March 2031.」

「Liabilities decreased by ¥2,433 million to ¥36,364 million, mainly due to increases of ¥366 million in trade payables and other accrued expenses, and decreases of ¥240 million in derivative liabilities, ¥281 million in lease liabilities and ¥2,279 million in borrowings.」

「Free cash flow was positive at ¥4,721 million, as cash flow from operating activities was positive at ¥8,528 million and cash flow from investing activities was negative at ¥3,807 million. This was an improvement of ¥1,391 million year on year.」

「At the end of the third quarter, cash and cash equivalents (hereinafter, “funds”) increased by ¥1,170 million from the previous consolidated fiscal year-end to ¥11,458 million, up ¥3,553 million year on year.」

「At the end of the second quarter, cash and cash equivalents (hereinafter, “funds”) increased by ¥2,710 million from the previous consolidated fiscal year-end to ¥12,999 million, up ¥3,645 million year on year.」

「At the end of the first quarter, cash and cash equivalents (hereinafter, “funds”) increased by ¥2,262 million from the previous consolidated fiscal year-end to ¥12,550 million, up ¥3,941 million year on year.」

「Free cash flow was positive at ¥3,329 million, as cash flow from operating activities was positive at ¥6,564 million and cash flow from investing activities was negative at ¥3,234 million. This was an improvement of ¥1,095 million year on year.」

「Compared with the previous consolidated fiscal year-end, total assets increased by ¥974 million to ¥62,194 million, mainly due to increases of ¥1,432 million in trade receivables, ¥1,289 million in inventories and ¥856 million in property, plant and equipment, and decreases of ¥320 million in consumption tax receivables and other items included in other current assets and ¥2,457 million in cash and cash equivalents. Liabilities decreased by ¥1,837 million to ¥39,344 million, mainly due to an increase of ¥480 million in lease liabilities, decreases of ¥466 million in derivative liabilities, ¥665 million in income taxes payable and other items, and ¥1,051 million in trade payables and other accrued expenses.」

「Liabilities increased by ¥1,482 million to ¥42,665 million, mainly due to increases of ¥686 million in trade payables and other accrued expenses, ¥638 million in lease liabilities and ¥272 million in borrowings.」

「Liabilities decreased by ¥8,319 million to ¥41,182 million, mainly due to a decrease of ¥8,447 million in borrowings, an increase of ¥1,315 million in trade payables and other accrued expenses, and a decrease of ¥1,205 million in advances received included in other current liabilities.」

「Compared with the previous consolidated fiscal year-end, total assets decreased by ¥2,612 million to ¥60,441 million, mainly due to a decrease of ¥3,435 million in cash and cash equivalents, an increase of ¥1,122 million in trade receivables, a decrease of ¥747 million in corporate income tax receivables and other items, and an increase of ¥486 million in inventories. Liabilities decreased by ¥6,121 million to ¥43,380 million, mainly due to a decrease of ¥4,668 million in borrowings and a decrease of ¥1,225 million in advances received included in other current liabilities.」

「Liabilities decreased by ¥5,482 million to ¥44,019 million, mainly due to decreases of ¥3,812 million in borrowings, ¥1,211 million in advances received included in other current liabilities, ¥265 million in corporate income taxes payable and other items, and ¥229 million in derivative liabilities.」

「Liabilities decreased by ¥1,378 million to ¥48,123 million, mainly due to decreases of ¥788 million in borrowings, ¥370 million in corporate income taxes payable and other items, and ¥244 million in derivative liabilities. In addition, under an agreement reached with all financial institutions in June 2020 to change the repayment terms and other conditions of existing unsecured financial institution borrowings, ¥3,062 million of borrowings was reclassified from non-current liabilities to current liabilities.」

「Concerns about liquidity for the foreseeable future were substantially reduced because the ¥5 billion issuance of preferred shares was paid in full on 5 August 2020, compliance with the agreement reached with all transaction banks in June 2020 to maintain borrowings outstanding through the end of September 2023 became certain, and ¥24.5 billion of borrowings was reclassified from current liabilities to non-current liabilities. In addition, the SAW filter business was spun off and the transfer of 51% of the shares to Sito Microelectronics Technology (Shanghai) Co., Ltd., a subsidiary of Jiaxing Jiawang Investment Partnership (Limited Partnership), an investment subsidiary of JIC Technology Investment Co., Ltd., was completed on 30 October 2020.」

「The group’s borrowings remain high relative to on-hand liquidity and committed financing facilities, and it continues to request support from its financial institutions, led by its main bank, on the premise of ongoing management improvement. In addition, because the group recorded an operating loss of ¥715 million and a quarterly loss of ¥849 million during the first quarter, events or circumstances exist that raise substantial doubt about the going-concern assumption.」

「At the end of the third quarter, cash and cash equivalents (hereinafter, “funds”) increased by ¥738 million from the previous consolidated fiscal year-end to ¥8,970 million. Negative factors included a pretax quarterly loss of ¥5,653 million, outflows of ¥1,480 million for the acquisition of property, plant and equipment and ¥8,094 million for the repayment of long-term borrowings. Positive factors included depreciation and amortisation of ¥2,786 million, impairment losses of ¥1,884 million, an increase in provisions of ¥1,669 million and a net increase in short-term borrowings of ¥8,847 million, among others.」

「At the end of the second quarter, cash and cash equivalents (hereinafter, “funds”) decreased by ¥1,226 million from the previous consolidated fiscal year-end to ¥7,005 million. Positive factors included depreciation and amortisation of ¥1,881 million, impairment losses of ¥1,884 million and a net increase in short-term borrowings of ¥5,448 million, while negative factors included outflows of ¥1,021 million for the acquisition of property, plant and equipment and ¥5,887 million for the repayment of long-term borrowings, among others.」

「At the end of the first quarter, cash and cash equivalents (hereinafter, “funds”) decreased by ¥545 million from the previous consolidated fiscal year-end to ¥7,685 million, down ¥722 million year on year. Although short-term borrowings increased net by ¥1,593 million and consumption tax receivables and other items decreased by ¥1,010 million, there were outflows of ¥2,844 million for the repayment of long-term borrowings, among other factors.」

「At the end of the consolidated fiscal year, cash and cash equivalents increased by ¥1,379 million from the previous consolidated fiscal year-end to ¥8,231 million. Although there were outflows of ¥10,603 million for the repayment of long-term borrowings and ¥3,404 million for the acquisition of property, plant and equipment, these were offset by inflows of ¥13,500 million from long-term borrowings and depreciation and amortisation of ¥3,469 million, among other factors.」

「Liabilities increased by ¥849 million to ¥46,558 million, mainly due to a ¥3,605 million increase in borrowings and other debt, partly offset by a ¥2,373 million decrease in operating liabilities and other accrued expenses.」

「At the end of the second quarter of the current consolidated fiscal year, cash and cash equivalents, hereinafter referred to as funds, increased by ¥703 million from the end of the previous consolidated fiscal year to ¥7,555 million, although the company incurred expenditures of ¥2,165 million for the acquisition of property, plant and equipment and ¥5,043 million for repayments of long-term borrowings, offset by proceeds of ¥7,500 million from long-term borrowings and other factors. This was a decrease of ¥2,469 million year on year.」

「Free cash flow was negative ¥8,246 million, as cash flow from operating activities was negative ¥915 million and cash flow from investing activities was negative ¥7,331 million.」

「The company manages this risk by preparing adequate funds for repayments and continuously monitoring planned and actual cash flows. It also maintains credit facilities with financial institutions that can be drawn at any time, and therefore considers this risk to be limited.」

「The company manages this risk by preparing adequate funds for repayments and continuously monitoring planned and actual cash flows. It also maintains credit facilities with financial institutions that can be drawn at any time, and therefore considers this risk to be limited.」