To our esteemed
shareholders,
I would like to express my deepest gratitude for your continued exceptional support.
In the 84th fiscal period, the electronics industry surrounding our group has experienced various shifts. Despite some production halts partially impacting the automotive market, it has generally remained steady. There was also significant investment in semiconductor facilities aiming for generative AI applications, while investment remained sluggish for consumer electronics. The industrial machinery market has yet to see a full recovery. Additionally, we continued to face rising raw material costs.
Amid these conditions, automotive cables softened due to reduced production numbers. Energy industry-related cables showed recovery, overcoming impacts such as delays in certain projects. Information and communication cables have seen an increase, driven by new orders for server/storage cables and rising demand for payment terminals. While semiconductor manufacturing equipment is showing signs of recovery, this upturn is primarily in generative AI applications, remaining otherwise subdued. Industrial machinery cables have continued to struggle with stagnant demand.
Consequently, our revenues reached ¥26.214 billion, up 5.6% from the previous year. This increase in revenue also led to a segment profit of ¥2.209 billion, up 33.1%.
In the electronic and medical components segment, network devices aimed at specialized uses performed well. Sales of medical specialty tubes in the healthcare sector saw an increase. As a result, the revenue for this segment was ¥4.555 billion, up 1.9% from the previous period, and segment profit was ¥0.9 billion, an increase of 6.6%.
In light of these results, our total revenue rose to ¥30.802 billion, a 5.0% increase from the previous year. This increase in revenue contributed to an operating profit of ¥2.267 billion, a 36.0% increase. Ordinary profit reached ¥2.557 billion, a 22.9% increase. We experienced an improvement in net income attributable to owners of the parent company, amounting to ¥2.026 billion, a 40.3% increase, largely due to the absence of a special loss of ¥0.435 billion related to litigation expenses incurred in the previous period.
Looking ahead, although there are factors that might boost the economy, such as policy rate cuts due to declining inflation rates in various countries, we still face increased uncertainty in the global economy due to U.S. trade policies, and escalating geopolitical risks not only from situations in Ukraine and the Middle East but also generally increasing geopolitical tensions. In the markets related to our company, the usage of AI, increases in data centers, and widespread adoption of various IoT devices are leading to a tremendous increase in data traffic. These factors are expanding the demand for high-speed, high-capacity, and highly reliable cables. In the automotive market, we expect a steady continuation in the demand for our automotive cables supported by ongoing enhancements in ADAS functionalities and further electrification of vehicles. Additionally, as initiatives towards decarbonization continue to push forward, demand remains solid for renewable energy, and we foresee sustained demand for our energy industry-related cables used in mega solar power plants.
Despite the growing uncertainties, the need for high-speed and high-capacity communications continues to expand. We are committed to striving for sustainable growth in both sales and profits. All our executives and employees will intensify their efforts, and we humbly ask for your continued support and constructive feedback.
June, 2025