To Our Shareholders,
In the electronics industry in which the HIRAKAWA HEWTECH Group operates, the automotive market grew steadily as shortages of semiconductors and other components were resolved. Yet the continuing correction phase of semiconductor-related equipment investments and the intensifying moves for correction in the industrial machinery market keep the future prospects uncertain.
Under these circumstances, the sales of semiconductor inspection equipment cables declined in the cable and assembly segment as manufacturers remained hesitant to invest in semiconductor-related equipment. The sales of industrial machinery cables for semiconductor production facilities and other cables in general dropped as well. There was also a substantial decrease in the sales of energy industry-use cables in North America as we failed to win projects and some planned projects were postponed. Since automakers stopped cutting inventory, the sales of automotive cables recovered to the level of the same period a year earlier. The sales of medical cables rose thanks to the increased sales of cable products for medical equipment, while the sales of amusement cables were roughly the same year-on-year. In the electronic and medical equipment segment, the sales of special-purpose network equipment remained strong as in the same period last year, and the sales of normal chargers for EVs grew. In the medical equipment segment, we saw the sales of medical special tubes remain at the same level as the same period a year ago.
As a result, our sales were 14.26 billion yen (down 10.9% from the previous consolidated fiscal year). The decreased sales drove down our operating profit to 772 million yen (a 39.3% decrease over the same year). Due to the exchange losses resulting from the weakening yen, our ordinary profit was 1.106 billion yen (a 35.3% decrease over the same year). Since the gain of 564 million yen that we received on sale of fixed assets (extraordinary profit) and the loss of 144 million yen from our exchange conversion adjustment accounts (extraordinary loss) no longer apply, the net income for the year attributable to the owners of the parent was 677 million yen (a 52.9% decrease over the same year).
Our interim dividend of this fiscal year will be 18 yen per share.
Despite the continuing gradual economic recovery resulting from the improved job situation and income growth, our future prospects still remain unclear due to the continued austerity measures taken by governments around the world to curb accelerating inflation, the sluggish real estate market and depressed consumer spending in China, and the prolonged war in Ukraine. We have sought to enhance transmission characteristics for cables, assemblies, and electronic equipment over the years. The need for enhanced transmission characteristics will certainly rise in the fields where growth and increasing demand are expected on a mid- and long-term basis, including semiconductors, industrial machinery, communication, medical care, vehicles equipped with electronic components, energy, and infrastructure. Despite the growing uncertainty of the future, we stay committed to our key policy of pursuing enhanced transmission characteristics to ensure continued growth of sales and profits.
December, 2023