Financial Statement for the Nine Months Ended December 31, 2023
February 13, 2024
Name of listed company:
Mipox Corporation
Stock Exchange: Tokyo Stock Exchange Inc. Standard Market
Stock Code:5381
URL
http://www.mipox.co.jp/
Name and Title of Representative:
Jun Watanabe, President
Inquiry to:
Yosuke Nihira, Director(TEL) +81-289-99-9946
Quarterly Report Filing Date (as planned):
February 13, 2024
Expected start date of dividend payment:-Preparation of supplementary materials for quarterly financial results:
Yes
Holding of quarterly financial results briefing:
None(Figures are rounded down to the nearest million)

1.

Consolidated Financial Results for the Nine Months Ended December 31, 2023
(April 1, 2023 to December 31, 2023)(1) Consolidated Operating Result (year to date)(% implies the rate of increase/decrease year-on-year)
Profit attributable toOperating Income
Ordinary Income
owners of parent

Net Sales
Millions ofyen%Millions of yen%

Millions of yen%

Millions of yen

Nine months ended December 31, 2023
Nine months ended December 31, 2022

(Note) Comprehensive income:

6,644(14.3)(462)―(322)―7,753(1.4)
249(81.6)
488(64.2)
Nine months ended December 31, 2023
(380) million yen [(―%)]
Nine months ended December 31, 2022
241 million yen [(79.0%)]
Net Income Per Share
Diluted Net Income Per Share

Nine months ended December 31, 2022
Nine months ended December 31, 2021

YenYen(24.45)
13.06――(348)186%―(83.1)(2) Consolidated Financial Position
Total Assets

Net assets

Millions of yen

Nine months ended December 31, 2023
March 31, 2023

(Reference) Equity capital:

2.

16,14916,195
Nine months ended December 31, 2023
March 31, 2023

Shareholders’ Equity Ratio

Millions of yen%

7,474
7,997
7,474 million yen
7,997 million yen

46.3
49.4

Status of Distribution
First quarter end

Second quarter end

Dividends per share
Third quarter end

Yen

Yen

Yen

Year end

Full year
Yen

Yen

FY2023―0.00―10.0010.00
FY2024―0.00―
FY2024 (Expected)
0.00
0.00
(Note) Revision of forecast for dividends published most recently:
Yes
For details, please refer to the "Notice Regarding Revised Dividend Forecast (No Dividend)" announced today, February
13, 2024.

3.

Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)
Net Sales
Millions ofyen(% changes as compared with the previous fiscal year)
Profit attributable toNet Income
Ordinary Income
owners of parent
Per Share

Operating Income%

Millions of yen%

Full FY2024
9,000(10.3)(700)―(Note)Revision of financial forecast published most recently:

Millions of yen%

Millions of yen%

Yen

(500)
None―

(600)

―

(42.14)

*Others(1)

Change in important subsidiaries during the period(Changes in certain specified subsidiaries resulting in revised scope of consolidation)
Addition― company (Company name)
Excluded― company (Company name)
Adoptions of simplified accounting methods and accounting methods particular to thepresentation of quarterly financial statements
Changes in accounting principles, changes in accounting estimates and restatement(i) Changes in accounting principles associated with revisions to accounting standards
and other regulations(ii) Changes in accounting principles due to other reasons(iii) Changes in accounting estimates(iv) Restatement

(2)
(3)

(4)

Shares outstanding (common shares)(i) Number of shares outstanding(including treasury shares)(ii) Number of treasury shares

As of December 31,2023
As of December 31,2023
As of December 31,2023

:

None:

None

None:
:::

None
None
None

14,451,920

As of March 31, 2023

14,451,920

212,711

As of March 31, 2023

212,630(iii) Average number of shares outstanding
14,239,266 Nine months ended
14,239,302(cumulative, consolidated at the end ofDecember 31, 2022
the 3rd quarter)(Note) The number of treasury shares as of March 31, 2023 and December 31, 2023 includes the Company’s shares of 23,300
shares and 23,300 shares that are held by the trust account, respectively.
*

Quarterly financial results are not subject to quarterly review procedures by certified public accountants or audit firms.

*Explanation on proper use of financial forecasts and other special notes
・ The financial forecast and other forward-looking statements contained in this document are based on information currently
available to the Company and certain assumptions deemed to be reasonable. Actual results may differ significantly due tovarious factors.

○

Table of Contents for Attachments

1.

Qualitative Information on Quarterly Financial Results ............................................................................. 2(1)Explanation of Operating Results .............................................................................................................. 2(2)Explanation of Financial Position .............................................................................................................. 2(3)Explanation of Consolidated Financial Forecasts and Other Forward-Looking Information .................... 3

2.

Consolidated Financial Statements and Key Notes ..................................................................................... 4(1)Consolidated Balance Sheet ...................................................................................................................... 4(2)Consolidated Income Statements & Comprehensive Income .................................................................... 6(3)Notes to Quarterly Consolidated Financial Statements.............................................................................. 7(Notes on Going Concern Assumptions) ................................................................................................... 7(Notes on Significant Changes in the Amount of Shareholders’ Equity) ................................................... 7(Notes on Changes in the Scope of Consolidation or the Scope of Application of the Equity Method) .... 8(Segment Information, etc.) ....................................................................................................................... 8―1―

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
For the nine months ended December 31, 2023, the Japanese economy witnessed a movement toward increased economic andsocial activities, and has been recovering moderately followed by the easing of restrictions on activities as Japan downgraded
COVID-19 to a “common infectious disease.” On the other hand, economic trends remain uncertain due to downside risks tooverseas economies caused by monetary tightening in various countries, hikes in raw material prices, and price increases
caused by the yen’s depreciation.
Under these circumstances, at the Group we have pursued a variety of initiatives aimed at adding value for the success of ourcustomers by using our core technologies of coating, slitting, and polishing, which is our strengths and foundation, based on
our management policies of “Add value to the product business with an engineering approach,” “Change from the OEM
business to Engineering Services,” and “Improve the management base to respond to rapid changes and diversity.”
In addition, with Ookubo Ironwork Inc. becoming a consolidated subsidiary from the third quarter of the current fiscal year, theGroup started the polishing service business in new fields to further expand and strengthen the business.
As a result, for the nine months ended December 31, 2023, the Group posted net sales of 6,644 million yen (down 14.3%year-on-year), operating loss of 462 million yen (operating income of 249 million yen in the same period of the previous year),ordinary loss of 322 million yen (ordinary income of 488 million yen in the same period of the previous year), and loss
attributable to owners of parent of 348 million yen (profit attributable to owners of parent of 186 million yen in the same periodof the previous year).
Results by segment are as follows:· Product BusinessIn the Product Business, net sales were 5,210 million yen (down 14.3% year-on-year).
Net sales of general polishing products continue to be stable. Although high-tech products are on a gradual recovery trend, it isstill taking time for investment in data centers to recover, and net sales decreased in the semiconductor market and optical fiber
market, centering on the hard disk market. As a result, we posted a segment loss of 161 million yen (segment profit of 601
million yen in the same period of the previous year).
· OEM Business
The Processing Service Business posted net sales of 1,434 million yen (down 14.2% year-on-year).
Net sales of coating/slitting services for the nine months ended December 31, 2023, remained at the same level as the same
period of the previous year, but are on a declining trend due to the impact of demand trends for electronic products such as PCs,tablets, and smartphones. On the other hand, in the polishing service business, although orders for processing of advanced
materials have increased, net sales declined due to a decrease in the number of processing service projects that we had
anticipated at the beginning of the fiscal year. Furthermore, with Ookubo Ironwork Inc. joining our consolidated subsidiary,
new fields such as polishing of parts for automobiles, medical care and 3D printers have been added to our polishing services.
As a result, we posted a segment loss of 301 million yen (segment loss of 351 million yen in the same period of the previousyear).

(2)

Explanation of Financial Position(Assets)
Total assets as of December 31, 2023, amounted to 16,149 million yen, a decrease of 45 million yen from March 31, 2023.
This was mainly due to increases of 216 million yen in cash and deposits, 358 million yen in accounts receivable - trade and272 million yen in merchandise and finished goods, and decreases of 260 million yen in work in process and 608 million yen
in other current assets.
(Liabilities)
Liabilities as of December 31, 2023, stood at 8,674 million yen, an increase of 477 million yen from March 31, 2023. Major
factors for the increase were 331 million yen in the current portion of long-term borrowings, 622 million yen in long-term―2―borrowings, and 111 million yen in deferred tax liabilities, and factors causing decreases included 707 million yen in
short-term borrowings.
(Net assets)
Net assets as of December 31, 2023, decreased 522 million yen from March 31, 2023, to 7,474 million yen. The main factors
included the recording of 348 million yen of loss attributable to owners of parent and a decrease of 142 million yen in retained
earnings due to the payment of dividends.
As a result, the equity ratio as of December 31, 2023, was 46.3%.

(3)

Explanation of Consolidated Financial Forecasts and Other Forward-Looking Information
There is no change to the consolidated financial forecasts for the fiscal year ending March 31, 2024, announced on November
13, 2023.

―3―2. Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheet
End of previous fiscal year
(March 31, 2023)(Thousands of yen)
End of third quarter ofcurrent fiscal year
(December 31, 2023)

AssetsCurrent assets
Cash and deposits

2,613,396
281,098

2,829,815
235,438

1,837,842
266,427

2,196,305
329,945786,882
1,708,985

1,059,577
1,447,998

631,730
908,918

575,292
300,272(2,895)(76)

9,032,387

8,974,570

6,983,940

7,070,071

3,770,079
435,865

4,124,699
493,6882,019,286
673,193

2,003,428
719,509

Accumulated depreciation

115,500(7,333,927)

120,253(7,922,325)

Total property, plant and equipment

6,663,939

6,609,325

92,483

105,268

Telephone subscription right

23,127377

32,852377

Total intangible assets

115,988

138,498

55,00038,10255,000Notes receivable - trade
Accounts receivable - trade
Electronically recorded monetary
operatingMerchandise and finished goods

claims-Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Leased assets
Construction in progress

Intangible assets
GoodwillSoftware

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Retirement benefit asset

213,148
1,801

Deferred tax assets
Other74,909
382,960

Total investments and other assets
Total non-current assets
Total assets―4―

38,102248,987
18,12367,1897,162,888

427,4027,175,226

16,195,275

16,149,797

End of previous fiscal year
(March 31, 2023)(Thousands of yen)
End of third quarter ofcurrent fiscal year
(December 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Advances received
Provision for bonuses
Provision for loss on liquidation of subsidiaries andassociates
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

793,570
1,869,000

713,384
1,161,720

27,5001,033,679

15,0001,365,642

69,008664,371

73,949755,917

33,23836,56440,341
133,954

155,315
6,727

60,885
2,491

376,628

513,804

5,065,604

4,837,092

15,0002,852,326―
3,475,086

148,387
106,509

116,919
218,179―
9,696

17,6309,925

3,131,920

3,837,741

8,197,524

8,674,833

3,379,569

3,379,569
2,925,782

Net assets
Shareholders’ equity
Share capital
Capital surplus

2,925,782
1,536,725

Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets(104,230)

1,045,946(104,271)

7,737,847

7,247,028

259,903

227,935

259,9037,997,750

227,935

16,195,275―5―7,474,963
16,149,797

(2)Consolidated Income Statements & Comprehensive Income
First nine-month period(Thousands of yen)First nine-month period ofprevious fiscal year
(April 1, 2022 toDecember 31, 2022)

First nine-month period ofcurrent year
(April 1, 2023 toDecember 31, 2023)
6,644,928

Net sales
Cost of sales

7,753,207
5,001,187

Gross profit

2,752,019

1,833,787

Selling, general and administrative expenses

2,502,099

2,296,601

249,920(462,814)

4,73010,908

360
124,118360
136,670

208,510―

48,56551,741

Operating Income

4,811,140

Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Subsidy income
Other

19,2985,053

357,017

253,297

Interest expenses
Commission expenses

53,84324,83952,041

Rental expenses
Guarantee commission

38,660427

Total non-operating income
Non-operating expenses

8,903
51,520

893

128
348

118,664

112,942488,273(322,458)

3,891

77,534―74,2503,891

151,785

Loss on sale of non-current assets
Loss on retirement of non-current assets

30,133

―

4,792

6,422

Total extraordinary losses

34,925

6,422

Profit before income taxes

457,238(177,095)

Income taxes - current

65,357

52,114
118,942

Other
Total non-operating expenses
Ordinary Income
Extraordinary income
Gain on sale of non-current assets
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses

Income taxes - deferred

205,846

Total income taxes

271,203

171,057

Profit186,034(348,152)

Profit attributable toProfit attributable to owners of parent

186,034(348,152)――Foreign currency translation adjustment

55,445(31,967)

Total other comprehensive income

55,445(31,967)

Comprehensive income

241,480(380,120)

Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

241,480(380,120)――

Profit attributable to non-controlling interests
Other comprehensive income

―6―

(3)

Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Notes on Changes in the Scope of Consolidation or the Scope of Application of the Equity Method)
MIPOX Precision Polishing Product (Shanghai) Co., Ltd., which was a consolidated subsidiary of the Company, wasliquidated in April 2023 and excluded from the scope of consolidation from the first quarter in FY2023.
Furthermore, as of the third quarter of the consolidated fiscal year, we have included the acquisition of shares of Okubo
Tekkojo Co., Ltd., within the scope of consolidation.

―7―

(Segment Information, etc.)[Segment Information]
I

First nine-month period of previous fiscal year (April 1, 2022 to December 31, 2022)
Information on the amount of net sales and income or loss by reportable segment and information on the breakdown of profit(Thousands of yen)Amount reported on
consolidated income
statements &comprehensive income

Reportable segment
Product Business OEM Business

Full year

Net SalesJapan2,579,127

1,645,687

4,224,815

4,224,815

Asia

2,613,376

10,4882,623,865

2,623,865

North America

711,371

11,725723,097

723,097

Europe170,289

4,185

174,475

174,475

Other regions
Revenue from contracts withcustomers
Sales to external customers

6,953―

6,953

6,953

6,081,118

1,672,088

7,753,207

7,753,207

6,081,118

1,672,088

7,753,207

7,753,207

Intersegment sales or transfers

―

―

―

―

6,081,118

1,672,088

7,753,207

7,753,207

601,091(351,171)249,920

249,920

TotalSegment profit(Note) The total amount of segment profit is consistent with operating income in consolidated income statements
and comprehensive income.
IIFirst nine-month period of current fiscal year (April 1, 2023 to December 31, 2023)
Information on the amount of net sales and income or loss by reportable segment and information on the breakdown of profit(Thousands of yen)Amount reported on
consolidated income
statements &comprehensive income

Reportable segment
Product Business OEM Business

Full year

Net SalesJapan

2,656,720

1,413,201

4,069,922

4,069,922

Asia

1,815,928

605

1,816,533

1,816,533

North America

657,834

19,764

677,598

677,598

Europe71,472

1,224

72,697

72,697

Other regions
Revenue from contracts withcustomers
Sales to external customers

8,176

―

8,176

8,176

5,210,131

1,434,796

6,644,928

6,644,928

5,210,131

1,434,796

6,644,9286,644,928

Intersegment sales or transfers

―

―

―

―

Total

5,210,131

1,434,796

6,644,928

6,644,928

Segment profit or loss

(161,534)(301,279)(462,814)(462,814)(Note) The total amount of segment profit or loss is consistent with operating income in consolidated income
statements and comprehensive income.

―8―