We would like to express our sincere gratitude to our shareholders for your continued support. We would also like to thank your kind support and cooperation with the Kanto Denka Kogyo Group.
In FY2025, the Japanese economy showed signs of a gradual recovery due to an improving employment and income environment and the positive effects of various government policies. However, severe conditions continued to prevail due to factors such as rising consumer prices. Overseas, the outlook remained uncertain, with a need to closely monitor downside risks to the economy stemming from U.S. trade policies, as well as inflation and fluctuations in financial and capital markets.
In the chemical industry, although demand expanded in the semiconductor and electronic materials sectors amid rapid technological advances in generative AI, the business environment remained challenging due to instability in raw material procurement and fluctuations in procurement prices caused by geopolitical risks and other factors.
Against this backdrop, the Kanto Denka Group has focused on strengthening the profitability of its Fundamental Chemicals Division, Fine Chemicals Division, and Ferrochemicals Division, while also advancing the development of new products that leverage its strength in fluorine-related technologies.
Net sales amounted to ¥65,400 million, up ¥3,048 million, or 4.9%, year on year. As for profits, ordinary profit was ¥6,629 million, up ¥2,122 or 47.1% year on year, and profit attributable to owners of parent amounted to ¥3,785 million, up ¥537 million or 16.5% year on year.
Looking ahead, the economy is expected to continue rebounding moderately on the back of an improving employment and income environment and the effects of various governmental policies. Nonetheless, attention must be paid to factors such as the ongoing impact of price increases on personal consumption, as well as the effects of the situation in the Middle East and U.S. trade policies on the global economy. As such, the future remains highly uncertain, and the business environment is expected to remain a challenging one.
Against this backdrop, the Group launched its new medium-term management plan, “Dominate 1000,” in the fiscal year ended March 31, 2023, with the goal of achieving ¥100 billion in consolidated net sales in the fiscal year ending March 31, 2025. However, taking into account the evolving business landscape and performance trends, we have reevaluated the plan and extended it by two years. We will implement new strategies and measures in addition to the initially planned key strategies to enhance corporate value. Specifically, we will expand business, predominantly in the Fine Chemicals Division, reform our business portfolio, pursue management leveraging return on invested capital (ROIC), strengthen investor relations activities, and reduce cross-shareholdings. These and other efforts seek to revitalize profitability while also prioritizing management mindful of capital costs.
As we look ahead to the society we envision in 2030, we are committed to providing a safe work environment that fosters job satisfaction and supporting technologies that are cutting-edge on a global stage with our superior, original products. By building on a stable management foundation, we aim to grow into an innovative, development-driven company that contributes to a sustainable society.
Continued support from our shareholders is greatly appreciated.
June 2026
President
Jun’ichi Hasegawa