November 10, 2021
Consolidated Financial Results for the Six Months Ended September 30, 2021
(Under Japanese GAAP)
Name of the Listed Company: CHINO CORPORATION | Listed Stock Exchanges: Tokyo Stock Exchange | |
Securities Code: | 6850 | URL: https://www.chino.co.jp/ |
Representative: | Mikio Toyoda, President and CEO | |
Contact: | Kazumasa Ohmori, Executive Officer, Executive Manager, Business Management Headquarters | |
TEL: +81-3-3956-2115 |
Scheduled date to file quarterly securities report: | November 11, 2021 | ||||||||||||||
Scheduled date to commence dividend payments: | - | ||||||||||||||
Preparation of supplementary material on quarterly financial results: Yes | |||||||||||||||
Holding of quarterly financial results briefing: | Yes (for institutional investors and analysts) | ||||||||||||||
(Millions of yen with fractional amounts rounded down) | |||||||||||||||
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021) | |||||||||||||||
(1) Consolidated operating results | (Percentages indicate year-on-year changes.) | ||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||
owners of parent | |||||||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||
September 30, 2021 | 9,711 | 4.3 | 387 | 290.3 | 522 | 224.9 | 249 | -53.4 | |||||||
September 30, 2020 | 9,314 | 2.5 | 99 | -13.1 | 160 | -76.2 | 536 | -10.5 | |||||||
Note: Comprehensive income | For the six Months Ended September 30, 2021:545 million yen(-19.4%) | ||||||||||||||
For the six Months Ended September 30, 2020:676 million yen(69.8%) | |||||||||||||||
Basic earnings per share | Diluted earnings per share | ||||||||||||||
Six months ended | Yen | Yen | |||||||||||||
September 30, 2021 | 29.48 | - | |||||||||||||
September 30, 2020 | 63.31 | - | |||||||||||||
(2) Consolidated financial position | |||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||
As of | Millions of yen | Millions of yen | % | Yen | |||||||||||
September 30, 2021 | 30,106 | 19,617 | 55.4 | 1,968.68 | |||||||||||
March 31, 2021 | 30,398 | 19,502 | 54.7 | 1,964.43 |
Reference: Equity | As of September 30, 2021: | 16,673 million yen | |||||||
As of March 31, 2021: | 16,639 million yen | ||||||||
2. Cash dividends | |||||||||
Dividend per share | |||||||||
First quarter- | Second | Third quarter- Fiscal year- | Annual | ||||||
end | quarter-end | end | end | ||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | ||||
March 31, 2021 | - | 0.00 | - | 45.00 | 45.00 | ||||
Fiscal year ending | |||||||||
March 31, 2022 | - | 0.00 | |||||||
Fiscal year ending | |||||||||
March 31, 2022 | - | 45.00 | 45.00 | ||||||
(Forecast) |
Note: Revisions to the most recently announced forecast of the dividend: None
3. Consolidated financial forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||||||||||||||||
owners of parent | per share | |||||||||||||||||||||||
Millions of yen | % Millions of yen | % Millions of yen | % Millions of yen | % | Yen | |||||||||||||||||||
Fiscal year ending | 22,300 | 5.8 | 1,300 | 14.4 | 1,400 | 9.0 | 850 | -34.1 | 100.36 | |||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||
Note:Revisions to the forecast of cash dividends most recently announced:Yes | ||||||||||||||||||||||||
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- Notes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
Newly included: None
Excluded: None - Application of special accounting methods for preparing quarterly consolidated financial statements:Yes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
Please refer to "Application of special accounting methods for preparing quarterly consolidated financial Statements "on page 12.
-
Changes in accounting policies, changes in accounting estimates and retrospective restatement
(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
(ii) Changes in accounting policies other than (i): | None |
(iii) Changes in accounting estimates: | None |
(iv) Restatement: | None |
- Number of shares issued (common shares)
(i) Total number of shares issued at the end of the period (including treasury shares)
As of September 30, 2021 | 9,260,116 shares | As of March 31, 2021 | 9,260,116 shares |
(ii) Number of treasury shares at the end of the period | |||
As of September 30, 2021 | 790,488 shares | As of March 31, 2021 | 789,916 shares |
(iii) Average number of shares during the period | |||
As of September 30, 2021 | 8,469,923 shares | As of September 30, 2020 | 8,470,769 shares |
*Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
-
Proper use of earnings forecasts, and other special matters (Note regarding forward-looking statements)
The forward-looking statements such as the forecasts of financial results stated in this document are based on the information currently available to the Company and certain assumptions that the Company judges as rational. These statements are not guarantees of future performance. Actual results may differ substantially from the forecasts due to various factors. Please refer to "(4) Outlook" under "1. Overview of Operating Results and Financial Position" on page 4 of the attached materials for the assumptions used in the forecasts and notes regarding the use of the forecasts.
(How to access supplementary materials on financial results)
The Company plans to post the supplementary materials on financial results on the company website shortly.
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○Supplementary Materials - Contents | ||
1. Qualitative Information on the Financial Results for the First Half of the Fiscal Year under Review | ................4 | |
(1) | Details of operating results ...................................................................................................................................... | 4 |
(2) | Details of financial position..................................................................................................................................... | 6 |
(3) | Details of cash flows................................................................................................................................................. | 6 |
(4) | Details of outlook including consolidated financial forecasts in the future ..................................................... | 6 |
2. Consolidated Financial Statements and Significant Notes Thereto ...................................................................................... | 7 | |
(1) | Consolidated balance sheet........................................................................................................................................... | 7 |
(2) | Consolidated statement of income and comprehensive income.................................................................................... | 9 |
Consolidated statement of income ............................................................................................................................ | 9 | |
Consolidated statement of comprehensive income ................................................................................................. | 10 | |
(3) | Consolidated statement of cash flows......................................................................................................................... | 11 |
(4) | Notes to consolidated financial statements................................................................................................................. | 12 |
(Notes on going concern assumptions) ................................................................................................................... | 12 | |
(Notes regarding significant change in shareholders' equity) ............................................................................... | 12 | |
(Application of special accounting methods for preparing quarterly consolidated financial statements) | .............12 | |
(Changes in accounting policies) .......................................................................................................................... | 12 | |
(Segment information)............................................................................................................................................ | 12 |
‒ 3 ‒
1. Qualitative Information on the Financial Results for the First Half of the Fiscal Year under Review
Any forward-looking statements in the following information are based on judgments as of the end of the first half of
the consolidated fiscal year under review.
(1) Details of operating results
During the first half of the consolidated fiscal year under review, outlook of the global economy remained uncertain due to current concerns about a resurgence of COVID-19 that may be caused by new variants of the COVID-19 coronavirus, the semiconductor component supply shortage, soaring raw materials prices and other factors, although economic activity resumed as vaccination progressed. In Japan, corporate and economic activity gradually resumed, and some positive changes were observed. However, the state of emergency continued because of an increase in the number of people infected with COVID-19, so the overall economic recovery was weak.
In the manufacturing industry, which affects the Chino Group's business in general, despite the impact of the insufficient supply of semiconductor components the production activities of the automotive and electronic component sectors, which are the Group's main customers, recovered which enabled capital spending to continue its trend toward recovery.
In this environment, the Group sought to provide solutions to issues in industry sectors where the restoration of demand was observed and to provide sensors and products for temperature measurement and monitoring, which are essential at production sites.
In addition, investment in the energy field increased both in Japan and overseas amid the trend towards decarbonization and the Company also stepped up sales activities in the area of temperature control systems for hydrogen generation, transportation and storage and for energy use to capture the growing demand in hydrogen-related fields.
As a result, orders received in the first half of the consolidated fiscal year under review amounted to 11,712 million yen (up 13.0% year on year), and net sales were 9,711 million yen (up 4.3% year on year). On the profit front, operating profit soared to 387 million yen (up 290.3% year on year) and ordinary profit to 522 million yen (up 224.9% year on year) due to increased net sales driven by a recovery of demand for measurement & control instruments and sensors and due to the improved cost ratio of instrumentation systems. Profit attributable to owners of parent was 249 million yen (down 53.4% year on year) because of the impact of posting gain on bargain purchase of 557 million yen as extraordinary income as a result of making Meiyo Electric Co., Ltd. a consolidated subsidiary of the Company in the same period of the previous year.
As the Group's net sales and profits tend to concentrate at the end of the fiscal year, there are considerable disparities between the net sales and profits of individual quarters and those of the full-year results.
Results by segment are as follows.
-
Measurement & Control Instruments
Net sales reached 3,725 million yen (up 15.8% year on year), and segment profit (operating profit) totaled 411 million
yen (up 10.0% year on year).In the previous fiscal year, the Group was seriously impacted by the stagnation of customers' production activities and postponed capital investment due to the COVID-19 pandemic, while during the first half of the consolidated fiscal year under review, overseas demand primarily for recorders grew in Asia, particularly in China, and major customers' demand for controllers and thyristor regulators also recovered.Furthermore, the Group also developed sales activities by enhancing the product lineups of thermo-hygrometers and loggers to support food hygiene management in compliance with HACCP.
-
Instrumentation Systems
Net sales were 2,499 million yen (down 5.0% year on year). Segment profit (operating profit) of 149 million yen (up
481.3% year on year) was achieved through thorough process management and the cost management of individual projects. Sales of electronic component-related manufacturing systems, which picked up from the second half of the previous fiscal year, remained steady. Looking at decarbonization, demand increased for automotive fuel cell testing systems and water electrolysis testing systems for the research and development of technology for the utilization of hydrogen energy.
-
Sensor
Net sales were 3,107 million yen (up 1.3% year on year), and segment profit (operating profit) totaled 572 million yen
(up 45.6% year on year). There is strong overseas demand for both infrared radiation thermometers and temperature sensors to be used for semiconductor/electronic component-related manufacturing systems, and it is expected that domestic demand will recover in the future. In addition, demand for infrared radiation thermometers and temperature sensors was also firm for the renovation of steel-related equipment and biomass-related issues, respectively.
4) Other
Net sales were 377 million yen (down 5.0% year on year), and segment profit (operating profit) was 62 million yen (down 33.7% year on year).
‒ 4 ‒
(Reference) Orders received, net sales and operating profit by segment | |||||||
Orders received (by segment) | (Thousand yen) | ||||||
Name of segment | Six months ended | Six months ended | Change | % change | |||
September 30, 2020 | September 30, 2021 | ||||||
Measurement & Control Instruments | 3,078,762 | 3,814,407 | 735,644 | 23.9 | |||
Instrumentation Systems | 3,135,165 | 4,273,090 | 1,137,925 | 36.3 | |||
Sensor | 3,823,616 | 3,312,526 | -511,089 | -13.4 | |||
Other | 330,221 | 312,137 | -18,084 | -5.5 | |||
Total | |||||||
10,367,766 | 11,712,162 | 1,344,395 | 13.0 | ||||
Net sales (by segment) | (Thousand yen) | ||||||
Name of segment | Six months ended | Six months ended | Change | % change | |||
September 30, 2020 | September 30, 2021 | ||||||
Measurement & Control Instruments | 3,216,550 | 3,725,918 | 509,368 | 15.8 | |||
Instrumentation Systems | 2,631,802 | 2,499,356 | -132,446 | -5.0 | |||
Sensor | 3,067,713 | 3,107,817 | 40,103 | 1.3 | |||
Other | 397,982 | 377,911 | -20,070 | -5.0 | |||
Total | |||||||
9,314,048 | 9,711,004 | 396,956 | 4.3 | ||||
Net sales (by geographical segment) | (Thousand yen) | ||||||
Name of segment | Six months ended | Six months ended | Change | % change | |||
September 30, 2020 | September 30, 2021 | ||||||
Japan | 7,814,554 | 7,923,948 | 109,394 | 1.4 | |||
Asia | 1,342,328 | 1,595,968 | 253,640 | 18.9 | |||
North America | 111,637 | 97,552 | -14,085 | -12.6 | |||
Europe | 36,418 | 77,314 | 40,896 | 112.3 | |||
Other | 9,111 | 16,220 | 7,109 | 78.0 | |||
Total | |||||||
9,314,048 | 9,711,004 | 396,956 | 4.3 | ||||
Operating profit (by segment) | (Thousand yen) | ||||||
Name of segment | Six months ended | Six months ended | Change | % change | |||
September 30, 2020 | September 30, 2021 | ||||||
Measurement & Control Instruments | 374,058 | 411,377 | 37,318 | 10.0 | |||
Instrumentation Systems | 25,743 | 149,632 | 123,889 | 481.3 | |||
Sensor | 393,570 | 572,892 | 179,322 | 45.6 | |||
Other | 93,861 | 62,270 | -31,591 | -33.7 | |||
Corporate expenses (Note) | -787,858 | -808,288 | -20,430 | ‒ | |||
Total | |||||||
99,375 | 387,884 | 288,509 | 290.3 | ||||
Note: Corporate expenses are primarily general and administrative expenses that cannot be allocated to specific segments.
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Chino Corporation published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 01:46:01 UTC.