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Presentation materials for financial results7794EDP CorporationInformation and Communications, Services and Others

Financial Results Briefing Materials for the Fiscal Year Ending March 2026

In the fiscal year ending March 2026, revenue fell significantly due mainly to sluggish seed crystal sales, while the loss widened following the recognition of impairment losses. At the same time, the company is pursuing initiatives for renewed growth, including the launch of 1-inch wafers and large seed crystals, joint research with Honda Motor, and the start of gemstone sales.

Worth reading
47Recurring
Scored from 5 of 6 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-386
¥ million (year-on-year change in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥516 million-42.8%
Operating profit¥-1,360 million
Ordinary income¥-1,341 million
Net income¥-2,415 million
Results for the three months of the current quarter
Net Sales
¥263 million
Operating profit
¥-406 million
Ordinary income
¥-398 million
Net income for the current fiscal year
¥-403 million
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending March 2027
Net Sales
¥1,100 million
Operating profit
¥-283 million
Ordinary income
¥-189 million
Net income for the current fiscal year
¥-195 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impairment Losses¥1,300 million
  • Elimination of liabilities of a consolidated subsidiary
  • Sluggish seed crystal sales
  • Increase in outsourcing and other costs
New initiatives
  • Launch of 1-inch single-crystal wafers
  • Development of 2-inch mosaic wafers and establishment of a mass-production system
  • Execution of a joint research agreement and memorandum of understanding with Honda Motor
  • Launch of large seed crystals measuring 16×16 mm to 20×20 mm
  • Launch of colored diamond gemstones
  • Branding of Japan Made Diamond and establishment of an e-commerce sales platform
Key KPIsA metric the company considers important as a management benchmark.
  • 2025–2034 CAGR of the lab-grown diamond market13.4 %
  • LGD share of distribution volume in the diamond gemstone market34.5 % or higher
  • Number of consecutive years of growth in substrate and wafer revenue3 Year
    Year on year against the same period last yearIncreased
Segment results
Seed crystals
Net Sales
¥117 million
Gemstones and other products
Net Sales
¥22 million
Substrates and wafers
Net Sales
¥350 million
Optical components and other products
Net Sales
¥17 million
Tool Materials
Net Sales
¥10 million
Market Size / Share
  • 2025–2034 CAGR of the LGD market13.4 %
  • LGD share of distribution volume in the diamond gemstone market34.5 % or higher
  • LGD market size
Capital expenditures
¥360 millions ¥110 million for capacity expansion in substrates and other products; ¥250 million to establish the foundation for the gemstone business
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥516 million (YoY -42.8%)
Operating profit¥-1,360 million
Ordinary income¥-1,341 million
Net income¥-2,415 million
Results for the three months of the current quarterNet Sales ¥263 million / Operating profit ¥-406 million / Ordinary income ¥-398 million / Net income for the current fiscal year ¥-403 million
Full-year earnings forecastFiscal Period Covered Fiscal year ending March 2027 / Net Sales ¥1,100 million / Operating profit ¥-283 million / Ordinary income ¥-189 million / Net income for the current fiscal year ¥-195 million
Segment resultsSeed crystals Net Sales ¥117 million / Profit Not disclosed / Year on year against the same period last year Not disclosed / Gemstones and other products Net Sales ¥22 million / Profit Not disclosed / Year on year against the same period last year Not disclosed / Substrates and wafers Net Sales ¥350 million / Profit Not disclosed / Year on year against the same period last year Not disclosed / Optical components and other products Net Sales ¥17 million / Profit Not disclosed / Year on year against the same period last year Not disclosed / Tool Materials Net Sales ¥10 million / Profit Not disclosed / Year on year against the same period last year Not disclosed
Breakdown of Factors Affecting the ChangeFactors Impairment Losses / Amount ¥1,300 million, Factors Elimination of liabilities of a consolidated subsidiary / Amount Not disclosed, Factors Sluggish seed crystal sales / Amount Not disclosed, Factors Increase in outsourcing and other costs / Amount Not disclosed
Key KPIsIndicator name 2025–2034 CAGR of the lab-grown diamond market / Value 13.4 % / Year on year against the same period last year Not disclosed, Indicator name LGD share of distribution volume in the diamond gemstone market / Value 34.5 % or higher / Year on year against the same period last year Not disclosed, Indicator name Number of consecutive years of growth in substrate and wafer revenue / Value 3 Year / Year on year against the same period last year Increased
Capital expenditures¥360 millions (¥110 million for capacity expansion in substrates and other products; ¥250 million to establish the foundation for the gemstone business)
Market Size / Share13.4 %, 34.5 % or higher, 非開示
New initiativesLaunch of 1-inch single-crystal wafers, Development of 2-inch mosaic wafers and establishment of a mass-production system, Execution of a joint research agreement and memorandum of understanding with Honda Motor, Launch of large seed crystals measuring 16×16 mm to 20×20 mm, Launch of colored diamond gemstones, Branding of Japan Made Diamond and establishment of an e-commerce sales platform
Items this document does not state (17)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogKey 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.

SFD India was largely unable to execute seed crystal sales. Although substrate and wafer revenue increased, this was insufficient to offset the overall decline in revenue. The company partially suspended factory operations in line with order levels, but outsourcing and other costs increased. In addition, the ¥1,300 million impairment charge and the elimination of liabilities of a consolidated subsidiary caused the net loss to widen.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the Fiscal Year Ending March 2026 | EDP Corporation (7794) timely disclosure | Komori