9385.T

• Overall Consolidated Performance: The company reported a 3.0% year-over-year slight decline in consolidated revenue to 9.322 billion yen, but all profit metrics saw significant improvement driven by cost reduction and profitability focus. Gross profit reached 2.313 billion yen (+6.6% YoY), operating profit hit 610 million yen (+35.5% YoY), ordinary profit was 610 million yen, and net profit attributable to parent company shareholders was 396 million yen, with 51.25 yen diluted net profit per share. The result reflects the company's focus on cost improvement, high value-added product offerings, and combined sales strategies.
• Budget Progress vs Plan: Second quarter performance against internal budget was in line: 93% for revenue, 97% for operating profit, 102% for ordinary profit, and 100% for net profit, all progressing smoothly as planned.
• Business Scope and Strategic Positioning: Founded as a specialized film packaging manufacturer, the company has expanded its business scope around packaging-related products and services. It currently operates five core business areas: packaging, direct mail and logistics processing, cosmetics manufacturing including filling and assembly, product development and manufacturing for retailers such as 100-yen shops, and combined sales promotion support services that integrate the above offerings to meet customer needs.
• Group Collaboration Strategy: To further strengthen competitiveness, the company will maintain agile collaboration with group affiliates including 株式会社ファインケメティックス, SHOEI PLASTIC (THAILAND) CO.,LTD., and 上海照栄商貿有限公司 based in China.
• Long Term Strategic Direction: The company aims to leverage group-wide capabilities to enhance product development strength, and become a comprehensive customer-centric enterprise that provides integrated, combined support to clients. It also adheres to its corporate mission of pursuing material and spiritual happiness for all employees while contributing to social progress and development.

The company maintained its full-year 2026 March fiscal year consolidated earnings guidance, with no upward or downward revision from prior estimates:

• Expected full-year revenue: 20.545 billion yen
• Expected full-year operating profit: 1.401 billion yen
• Expected full-year ordinary profit: 1.332 billion yen
• Expected full-year net profit attributable to parent company shareholders: 900 million yen

1. Sales Promotion Support Business: Revenue of 4.706 billion yen, +1.2% year-over-year, accounting for 50.5% of total consolidated revenue. Segment profit of 314 million yen, +81.5% year-over-year. Breakdown: (1) Sales promotion revenue: 2.328 billion yen, -8.6% YoY, due to large project declines that new projects could not offset, despite repeat orders for high value-added products; (2) OEM revenue: 1.783 billion yen, +30.6% YoY, driven by increased pillow packaging and assembly work for general goods and cosmetics at in-house factories, plus strengthened combined sales to end users for daily goods filling; (3) Delivery agency revenue: 594 million yen, -19.7% YoY, as increased Yu-mail volume was offset by larger offset amounts under revenue recognition standards that reduced revenue contribution. 2. Product Sales Business: Revenue of 4.664 billion yen, -7.5% year-over-year, accounting for 49.5% of total consolidated revenue. Segment profit of 296 million yen, +6.7% year-over-year. Breakdown: (1) Sales to 100-yen shops: 4.103 billion yen, -7.0% YoY. High value-added polyethylene products (deodorant bags, freshness-keeping bags, eco-friendly products) and functional general goods performed well, but specification changes to offset soaring raw material, labor and exchange costs reduced sales volume while improving cost structure; (2) Sales to mass retailers: 2.31 billion yen, -16.5% YoY. While polyethylene product sales remained stable, the company reduced low-margin product volume to improve overall profitability, leading to the revenue decline.

The company noted that all forward-looking statements and projections included in the earnings presentation are based on current management judgment, and actual future operating results may differ from projections due to various unstated external and internal factors. No additional specific operational risks or failures were discussed in the provided transcript.

No question and answer section was included in the provided earnings call transcript.