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Overall Consolidated Performance

• First half consolidated revenue: 16.584 billion yen, up 3.8% year-over-year, a 600 million yen increase. Operating profit reached 1.018 billion yen, up 193% year-over-year, a 671 million yen increase. Net profit was 1.81 billion yen, up 437% year-over-year, a 1.473 billion yen increase.
• The profit growth was driven by strong mobile fan sales that improved manufacturing costs, plus an 800 million yen increase in extraordinary profit from real estate sales gains and unprofitable site liquidation gains.
• Total assets increased 1.421 billion yen year-over-year to 46.514 billion yen, total liabilities increased 1.16 billion yen to 14.945 billion yen, and equity ratio reached 67.9%. Cash and cash equivalents at mid-period were 13.594 billion yen, flat year-over-year.

Strategic Business Initiatives

• Precision Components Business: Focuses on expanding orders for unitized (multipart combined) components to boost added value, reduce customer administrative/inspection work, and improve production efficiency. While EV-related component orders declined due to market changes, hybrid vehicle components performed steadily. Overseas sales saw a slight decline due to sluggish performance of Japanese manufacturers in China and Southeast Asia, but improved production efficiency helped secure profits.
• Consumer Lifestyle Products Business: Completed the fifth year of its business transformation to focus on comfort products. Mobile fan sales more than doubled year-over-year, driving revenue growth. Higher production volume reduced raw material costs and improved productivity, enabling the segment to turn profitable. The company is expanding its product lineup, including the newly launched MIST 250 humidifier, which has received positive market feedback for its design and usability.

Mid-Term Management Plan (2027) and Corporate Initiatives

• Strategic Targets: For 2026 and 2027, the precision components business will expand sales of individual and composite components, while the consumer lifestyle business targets reaching 10 billion yen in revenue through new comfort product expansion. ROE is projected to reach 6.3% based on full-year profit forecasts.
• Capital Expenditure: 700 million yen in capital expenditure was completed in the first half of 2025, representing an 11.6% progress rate for the 3-year mid-term plan. Annual growth investment of approximately 2 billion yen is planned going forward, focused on productivity improvements, labor-saving equipment, and new product development.
• Shareholder Returns: Updated shareholder return policy to require a payout ratio of at least 35% and DOE of at least 4% to maintain stable dividends, and introduced shareholder benefits for the first time.
• Sustainability and Human Resources: Completed framework setup for environmental and DEI initiatives, now moving to implementation. Targets a 30% reduction in CO2 emissions by 2027 compared to 2018, and has advanced initiatives including accelerating emission reduction targets, adopting renewable energy, and DEI programs (earned Platinum Kurumin certification for promoting male parental leave). Strengthening human resources strategy through expanded new graduate hiring, improved training, core talent development, and employee engagement initiatives.
• New Product Launches: In precision components, the company is leveraging its integrated manufacturing strength to expand composite component offerings to meet growing modularization demand. In consumer products, it has launched new products including the 2026 model of the hit Silky Wind Mobile portable fan, the Silky Wind Clean air purifier, and the energy-efficient MIST 250 humidifier. The company also issued a Battery Safety Declaration for portable fans, implementing 6 custom safety features beyond global standards to address consumer concerns over battery fire risks from low-quality competitors.

• Full-year consolidated guidance calls for 33.5 billion yen in total revenue (an 833 million yen increase year-over-year), 1.55 billion yen in operating profit (a 732 million yen increase year-over-year), 1.8 billion yen in ordinary profit, and 2 billion yen in net profit (a 1.241 billion yen large increase year-over-year). Management upwardly revised the full-year guidance from the original initial plan.
• Precision Components Business: Full-year revenue is projected at 24.1 billion yen, a 700 million yen decrease year-over-year. While EV market uncertainty and sluggish overseas mobility sales persist, demand for air conditioning components is strong, and orders for optical and machine tool components are recovering. Management targets maintaining full-year operating profit at around 2 billion yen (flat year-over-year) via productivity improvements and cost control.
• Consumer Lifestyle Products Business: Overseas sales are projected to decline year-over-year due to the prior-year closure of the US site, but the company has started expansion initiatives in China and Southeast Asia (described as a seeding phase that will contribute to future results). Management projects the segment will achieve full-year profitability, and is working to develop new product pillars alongside mobile fans to stabilize and grow the business.
• The 2025 full-year performance is expected to progress roughly in line with the mid-term 2027 plan, with some minor volatility.

1. Precision Components Business: 12.076 billion yen in revenue, 989 million yen in operating profit. This accounts for approximately 73.4% of total consolidated first half revenue. Revenue was flat year-over-year, and operating profit increased by approximately 80 million yen year-over-year.
2. Consumer Lifestyle Products Business: 4.26 billion yen in revenue, 269 million yen in operating profit. This accounts for approximately 25.8% of total consolidated first half revenue. Revenue increased by approximately 500 million yen year-over-year, and the business turned profitable for the first time in the first half of the period.

• US tariff policy caused order volatility in the precision components business, though no major negative impact materialized in the first half.
• Changing EV market conditions have led to reduced orders for EV-related precision components, and ongoing uncertainty in the European market creates downside risk for mobility sales.
• Weak performance of Japanese automakers in China and Southeast Asia has led to a slight decline in overseas precision component sales.
• The consumer clock product line continues to struggle, weighing on the consumer lifestyle segment's overall performance.
• Market-wide safety concerns over portable fan batteries, driven by fire incidents from low-quality, substandard competitor products, create reputational risk for the company's hit mobile fan line even with the company's own enhanced safety standards.

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