Net sales of the Group were ¥107,535 million (up 8.8% year on year), operating profit stood at ¥6,557 million (up 18.5% year on year), ordinary profit was ¥6,714 million (up 11.2% year on year), and profit attributable to owners of parent was ¥5,406 million (up 18.3% year on year).
The operating results for each business segment are described below.
(i) Fine Chemicals
In rubber-related products, both sales and profits increased, reflecting the strong demand for raw materials for the domestic market and the successful revision of sales prices, although some overseas Group companies have been affected by a decrease in demand.
In chemical-related products, both sales and profits increased, reflecting the launch of new businesses and the effects of sales price revisions, as well as the efforts to tap into anticipated demand against the backdrop of supply uncertainty, even though demand for mainstay products for the domestic market, including raw materials for inks, paints and adhesives, continued to be sluggish.
As a result, the Fine Chemicals segment recorded net sales of ¥35,008 million (up 8.5% year on year) and operating profit of ¥2,539 million (up 28.8% year on year).
(ii) Industrial Products
In mobility-related products, both sales and profits increased due to the fluctuation of foreign exchange rates and the consolidation of EMAS Supplies & Services Pte. Ltd. (“EMAS”) through the acquisition of all of the shares of the company, as well as favorable automobile production in the United States, despite the negative impact of the economic slowdown in China.
Overseas, Sun Phoenix Mexico, S.A. de C.V. recorded sluggish earnings due to additional customs duties in Mexico. In China, profits improved, contributed by the cost reduction initiatives at Sanyo Trading (Shanghai) Co., Ltd., despite continued production reduction by Japanese-affiliated auto manufacturers due to intensified competition. In ASEAN countries, both sales and profit at Sanyo Trading Asia Co., Ltd. (Thailand) increased due to the strength of exports to some regions and the impact of the weak yen.
As a result, the Industrial Products segment recorded net sales of ¥30,414 million (up 8.7% year on year) and operating profit of ¥2,779 million (up 21.5%).
(iii) Sustainability
In green technology merchandise, both sales and profits increased, reflecting brisk sales of wearing parts related to feed processing machines, as well as the recording of sales of major projects using the percentage of completion method in the wood biomass business.
Both sales and profit declined at Cosmos Shoji Co., Ltd. This is attributable to a decrease in sales of merchandise related to ocean research equipment, which was a reflection of the impact of the transitional period in the ocean development-related business, and also to the limited growth of sales of geothermal heat-related equipment. These factors offset the progress in the efforts of acquiring orders for the next fiscal year, which was achieved by closing deals for projects for merchandise related to marine wind farms.
As a result, the Sustainability segment recorded net sales of ¥9,407 million (up 10.6% year on year) and operating profit of ¥953 million (down 27.3%).
(iv) Life Science
Both sales and profits in merchandise related to material solutions increased due to growth in the export business, including electrical materials, and growth in the import business, which includes functional ingredients. In merchandise related to scientific equipment, both sales and profits increased. This is attributable to progress in delivery related to multiple projects achieved on the back of a recovery in demand.
Sales of functional feed raw materials handled by YPTECH Co., Ltd. increased due to a higher sales quantity. In contrast, the performance of research support equipment in the biotech field handled by Scrum Inc. was weak due to the termination of distributor agreements for equipment related to genetic analysis.
As a result, the Life Science segment recorded net sales of ¥31,563 million (up 8.6% year on year) and operating profit of ¥1,627 million (up 25.3% year on year).
Net sales of the Group were ¥70,258 million (up 3.1% year on year). operating profit stood at ¥4,466 million (up 8.8% year on year), ordinary profit was ¥4,506 million (up 2.2% year on year), and profit attributable to owners of parent was ¥3,657 million (up 5.9% year on year). For the first six months of the fiscal year under review, the Company revaluated the possibility of recouping the value of certain investments and the recorded loss on valuation of investment securities of ¥397 million. On the other hand, it posted a gain on sale of investment securities (cross-held stocks) of ¥1,241 million.
The operating results for each business segment are described below.
(i) Fine Chemicals
Sales of rubber-related products saw rises in both sales and profits, reflecting the robust demand for raw materials for domestic markets due to prospects for supply tightening on the back of the Middle East conflict and the progress in review of sales prices, despite a decrease in demand from some overseas Group companies.
Profits of chemical-related products increased, reflecting the launch of new businesses and the effects of sales price reviews, despite the continued weak demand for mainstay products for domestic markets, including raw materials for inks, paints and adhesives.
As a result, the Fine Chemicals segment recorded net sales of ¥22,060 million (up 1.5% year on year) and operating profit of ¥1,494 million (up 7.8% year on year).
(ii) Industrial Products
Sales of mobility-related products were on a par with the year-ago level and profits fell slightly. This reflected favorable automobile production in the United States, the consolidation of EMAS Supplies & Services Pte. Ltd. (“EMAS”) through the acquisition of all shares of the company and the effect of fluctuations in foreign exchange rates, despite sluggish sales of certain commercial products due the slowdown of the Chinese economy and the progress in EV transition.
Overseas, Sun Phoenix Mexico, S.A. de C.V. recorded a decrease in profit, due to additional customs duty in Mexico. In China, profits improved, contributed by its cost reduction initiatives at Sanyo Trading (Shanghai) Co., Ltd., despite the ongoing challenging market conditions due to intensified competition between Japanese-affiliated auto manufacturers and Chinese auto manufacturers. In ASEAN countries, both sales and profit at Sanyo Trading Asia Co., Ltd. (Thailand) were strong due to the strength of exports to some regions and the weakening yen.
As a result, the Industrial Products segment recorded net sales of ¥20,131 million (up 3.7% year on year) and operating profit of ¥1,806 million (down 1.1%).
(iii) Sustainability
In green technology merchandise, both sales and profit were strong, reflecting brisk sales of wearing parts related to feed processing machines and the steady progress of major projects in the wood biomass business.
Both sales and profit declined at Cosmos Shoji Co., Ltd., attributable to a decrease in sales of merchandise related to ocean research equipment that reflected the impact of a transitional period in the ocean development-related business, as well as lower sales of geothermal heat-related equipment. These factors offset the progress in orders received for merchandise related to marine wind farms for the next fiscal year and thereafter.
As a result, the Sustainability segment recorded net sales of ¥6,273 million (down 1.2% year on year) and operating profit of ¥794 million (down 9.1% year on year).
(iv) Life Science
Both sales and profit in merchandise related to material solutions increased owing to the growth in core merchandise in the export business, including electrical materials. Both sales and profit in merchandise related to scientific equipment rose, attributable to the progress in the delivery related to large projects on the back of a recovery in demand.
Sales of the functional feed raw materials handled by YPTECH Co., Ltd. were strong due to an increase in sales quantity. The performance of biotech products handled by Scrum Inc. was weak due to the termination of distributor agreements for equipment related to genetic analysis.
As a result, the Life Science segment recorded net sales of ¥21,008 million (up 4.9% year on year) and operating profit of ¥1,186 million (up 17.7% year on year).
Net sales of the Group were ¥33,842 million (down 0.4% year on year), operating profit stood at ¥1,887 million (down 2.3% year on year), ordinary profit was ¥2,216 million (down 13.0% year on year), and profit attributable to owners of parent was ¥2,040 million (up 37.9% year on year).
(i) Fine Chemicals
Sales of rubber-related products decreased due to the subpar performance of some overseas Group companies. However, profit increased on the back of the strong demand for raw materials for domestic markets.
Sales of chemical-related products fell, reflecting the continued weak demand for mainstay products for domestic markets. Despite this, profit rose due to the effect of sales price revisions.
As a result, the Fine Chemicals segment recorded net sales of ¥11,067 million (down 1.8% year on year) and operating profit of ¥733 million (up 2.6% year on year).
(ii) Industrial Products
Sales of mobility-related products decreased due the slowdown of the Chinese economy. Even so, profit increased, reflecting the impact of foreign exchange rate fluctuations and the inclusion of EMAS Supplies & Services Pte. Ltd. in the scope of consolidation due to the acquisition of all of the shares of the company.
In North America, Sanyo Corporation of America and Sun Phoenix Mexico, S.A. de C.V. recorded a decrease in profit. In China, sales and profit at Sanyo Trading (Shanghai) Co., Ltd. declined due to the impact of production cutbacks at Japanese-affiliated auto manufacturers, which were affected by the economic slowdown and intensified competition. In ASEAN countries, both sales and profit at Sanyo Trading Asia Co., Ltd. (Thailand) were strong due to the strength of exports to some regions.
As a result, the Industrial Products segment recorded net sales of ¥9,699 million (up 0.6% year on year) and operating profit of ¥866 million (up 3.3% year on year).
(iii) Sustainability
In green technology merchandise, both sales and profit were strong, reflecting brisk sales of wearing parts related to feed processing machines and the progress of major projects in the wood biomass business.
Both sales and profit were down at Cosmos Shoji Co., Ltd., reflecting a decrease in sales of merchandise related to ocean research equipment due to the impact of a transitional period in the ocean development-related business, as well as lower sales of geothermal heat-related equipment.
As a result, the Sustainability segment recorded net sales of ¥2,704 million (up 11.5% year on year) and operating profit of ¥258 million (down 12.8% year on year).
(iv) Life Science
Both sales and profit in merchandise related to material solutions were strong due to the growth in exports of electrical materials and core merchandise in the import business.
Both sales and profit in merchandise related to scientific equipment were steady due to demand trending toward a recovery.
Sales of the functional feed raw materials handled by YPTECH Co., Ltd. were strong due to an increase in sales quantity. The performance of biotech products handled by Scrum Inc. was weak due to the termination of distributor agreements for equipment related to genetic analysis.
As a result, the Life Science segment recorded net sales of ¥10,011 million (down 3.3% year on year) and operating profit of ¥484 million (down 22.9% year on year).
During the consolidated fiscal year under review (October 1, 2024 to September 30, 2025), the future of the global economy remained uncertain, affected by multiple uncertain factors such as trends in policies, including U.S. trade and tariff policies, fluctuations in the capital market reflecting the monetary policies of nations, and rising geopolitical risks, mainly including the growing tension in the Middle East.
Taking a brief look at the regions where the Group operates, we saw indicators that there would be changes in the U.S. economy going forward reflecting a slowdown in the growth of consumer spending and the uncertainty regarding tariff policies hampering economic activities, despite a moderate increase in capital expenditures. In China, the government’s economic policies had some effect, but the economy was at a standstill due to the persistent stagnation of the real estate market. In ASEAN countries, the economy continued to grow stably, supported by strong consumer spending and an expansion of exports. In Japan, corporate earnings were partially affected by the U.S. trade and tariff policies, but the economy trended moderately toward a recovery, reflecting a rebound in consumer spending on the back of improvements in the employment and income environment.
In this business environment, the Group has been striving to bolster its consolidated management structure by reinforcing its revenue base, improving its business structure, and pursuing and deepening higher value-added businesses along with SANYO VISION 2028, the long-term management plan it announced in November 2023. It has also been making ongoing efforts to strengthen the existing businesses, develop new businesses, strengthen the global expansion further, and promote new investments.
In its efforts to strengthen its existing businesses, the Group proceeded with the expansion of the sales of mainstay products related to rubber, chemicals, and material solutions and steadily implemented its wood biomass-related business, which includes Yokote Yuzawa Forest Cycle Co., Ltd. In addition, the Group transferred a part of its business importing and selling scientific equipment to Sanyo Technos Co., Ltd. to reinforce its earnings structure and improve business efficiency. To develop new businesses, the Group released an EV battery checker leveraging the knowledge it has cultivated through its automobile benchmarking business, making it possible to ensure that EV maintenance is safe and highly convenient and contributing to the energization of the distribution of used EVs and the establishment of a recycling-based society. Further, Cosmos Shoji Co., Ltd. provided many different kinds of equipment related to offshore wind power generation, which has been progressing across Japan. It has established a future revenue base in anticipation of the shift from bottom-mounted to floating wind turbines. In addition, a new functional feed raw material of YPTECH Co., Ltd. was specified and registered by the Ministry of Agriculture, Forestry and Fisheries of Japan, it is expected to contribute to earnings in and after the next fiscal year through its introduction into the domestic market.
To further strengthen the overseas business, the Group introduced an officer in charge of overseeing overseas business and established a system for strategic planning, the promotion of business, and cross-sectoral management. Further, the Group established the Korea Branch of Sanyo Trading Co., Ltd. in Seoul, Korea, establishing an operating base in Korea’s electronic material market, which is expected to grow in the future. The company will proceed aggressively with the acquisition of merchandise, the expansion of sales channels, and the collection of information. As a new investment, the Group resolved to acquire all of the shares of EMAS Supplies & Services Pte. Ltd., a Singaporean company. By expanding the mobility business to the automotive aftermarket, the Group will expand its value chain. At the same time, the Group will use the sales network of EMAS Supplies & Services, to accelerate the global expansion of the mobility business and further reinforce its consolidated management system.
Consolidated results were net sales of ¥132,703 million (up 2.7% year on year), operating profit of ¥6,430 million (down 9.1% year on year), ordinary profit of ¥6,879 million (up 13.0% year on year), and profit attributable to owners of the parent of ¥4,615 million (down 11.4% year on year).
Results for each business segment are described below.
Effective from the fiscal year under review, the Company has changed the classification and names of its reportable segments. Details are described in “3. Consolidated Financial Statements and Major Notes, (5) Notes to Consolidated Financial Statements (Segment information, etc.).”
(i) Fine Chemicals
Sales of rubber-related products were strong on the back of demand for raw materials for domestic markets and improved performances at overseas Group companies. However, profit decreased due to sluggish exports of some products.
The performance of chemical-related merchandise was strong at some overseas Group companies, but both sales and profit decreased due to subpar demand for mainstay products for domestic markets.
As a result, the Fine Chemicals segment recorded net sales of ¥42,384 million (down 0.9% year on year) and operating profit of ¥2,413 million (down 11.1% year on year).
(ii) Industrial Products
Both sales and profit of mobility-related merchandise declined due to the slowdown of the Chinese economy and the impact of foreign exchange rate fluctuations.
In North America, Sanyo Corporation of America and Sun Phoenix Mexico, S.A. de C.V. performed well in terms of sales and profit. In China, sales and profit at Sanyo Trading (Shanghai) Co., Ltd. declined due to the impact of production cutbacks at Japanese-affiliated auto manufacturers, which were affected by the economic slowdown and intensified competition. In ASEAN countries, profit at Sanyo Trading Asia Co., Ltd. (Thailand) were strong due to sales price revisions.
As a result, the Industrial Products segment recorded net sales of ¥36,812 million (down 0.3% year on year) and operating profit of ¥2,682 million (down 20.6%).
(iii) Sustainability
In green technology merchandise, both sales and profit were strong due to brisk sales of wearing products related to feed processing machines and the recording of a major project in the wood biomass business.
Merchandise related to resource development handled by Cosmos Shoji Co., Ltd. was strong, with the performance driven by merchandise related to ocean research equipment and other commodities in the ocean development field. The performance of geothermal heat-related equipment was also strong.
As a result, the Sustainability segment recorded net sales of ¥13,518 million (up 38.4% year on year) and operating profit of ¥1,886 million (up 56.5% year on year).
(iv) Life Science
Both sales and profit in merchandise related to material solutions were strong due to the growth in exports of electrical materials and core merchandise in the import business. Both sales and profit in merchandise related to scientific equipment were steady due to demand trending toward a recovery.
Sales of the functional feed raw materials handled by YPTECH Co., Ltd. were strong due to an increase in sales quantity. The performance of biotech products handled by Scrum Inc. was weak due to the termination of distributor agreements for equipment related to genetic analysis.
As a result, the Life Science segment recorded net sales of ¥38,670 million (up 0.9% year on year) and operating profit of ¥1,362 million (down 21.4% year on year).
