To Our Shareholders,
Thank you for your continued and unstinting support of HIRAKAWA HEWTECH CORP.
The outlook of the automotive market remained uncertain due to the U.S. tariff policy. Aggressive equipment investments were made in relation to generative AI in the semiconductor market, while investments in consumer electronics were stagnant. Some segments of the industrial machinery market came out of a slump.
Under these circumstances, the sales of automotive cables remained robust in the cable and assembly segment thanks to new mass-produced products. The strong demand in the North American market, among other factors, kept the sales of energy industry-use cables growing steadily. Although the semiconductor manufacturing equipment business showed a trend toward recovery, the sales remained weak because demand recovered mainly for generative AI-related products. As for medical cables, the sales of new products did well. The sales of industrial machinery cables increased as Yoshinogawa Electric Wire & Cable Co., Ltd. became our consolidated subsidiary in July and demand picked up in parts of the FA segment. As for the electronic and medical equipment segment, we saw the sales grow in the electronic segment due to the brisk sales of professional-use network equipment and a large-scale OEM contract. In the medical equipment segment, the sales declined partly because customers made inventory adjustments.
As a result, our sales were 18.091 billion yen (up 12.9% from the previous consolidated fiscal year). The increase in the sales brought up our operating profit to 2.124 billion yen (a 69.9% increase over the same year). Our ordinary profit was 2.031 billion yen (a 55.3% increase over the same year). We posted a negative goodwill gain of 4.39 million yen as we acquired shares in Yoshinogawa Electric Wire & Cable Co., Ltd. and included the company in our consolidated subsidiaries. This drove up the interim net income attributable to the owners of the parent to 1.85 billion yen (a 79.5% increase over the same year).
Our interim dividend of this fiscal year will be 23 yen per share.
Despite the gradual recovery aided by improvements in employment and income levels, the future prospects of the domestic economy remain unclear due to the U.S. trade policy. As for the global economy, the pace of economic expansion is slowing down in the U.S., with its trade policy and high interest rates posing a risk of economic downturn. The European economy is now recovering at a slower pace, and the U.S. trade policy keeps the economic prospects of this region uncertain. The economy in China is at a standstill although its economic measures have been effective to some extent.
Regarding our business, the sales of energy industry-use cables are expected to remain robust as there is still strong demand for solar power under the current U.S. administration. The trend for equipping vehicles with electronic components is steadily growing, resulting in a continuously rising demand for data transmission cables. Also, demand for high-speed, high-capacity, and high-reliability cables is increasing in connection with not only AI but also all types of data transmission. In order to ensure sustained growth, we strive to provide products and services that have values that customers consider unique to us.
All members of the board and employees of HIRAKAWA HEWTECH are determined to work even harder to achieve greater success. Your continued support and assistance would be greatly appreciated.
December, 2025