Non-Consolidated Balance Sheet

March 31, 2024 and 2023

thousands of yen
March 312023
2024

ASSETS

Current assets
Cash and bank deposits
Accounts receivable (Note 3)
Allowance for doubtful accounts
Merchandise
Other current assets
Total current assets
Noncurrent assets
Investment securities
Investments in affiliated companies
Guarantee deposits
Lease deposits for office rentLong-term loans receivable
Furniture and fixtures (Note 2)
Insurance fund
Other noncurrent assets
Allowance for doubtful accounts
Total noncurrent assets
Total assets￥758,680￥

2,636,508

1,408,153

thousands of U.S.
dollars (Note 1)
2024$

2,851,294

9,300
18,831-25,000-25,000-166

1,602,064

1,474,671

9,739

166,716

91,018601

5,138,971

5,800,139

38,307911,129

385,9232,548

450,353

996,830

6,583

107,988

250,909

1,657

114,559

114,210754-

68,134449

125,498

173,577

1,146

26,96830,916

204

15,08715,08799---

1,751,585

2,035,589

13,444￥

6,890,556￥

7,835,728$

51,751￥

1,363,609￥

1,608,708$

10,624

LIABILITIES and SHAREHOLDERS’ EQUITYCurrent liabilities
Accounts payable (Note 3)
Accrued expenses
Short-term loans payable
Current portion of long-term loans payable
Advances received
Income taxes payable
Provision for employees' bonuses
Other current liabilities
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Guarantee deposits received
Provision for retirement benefits
Noncurrent liabilities
Total liabilities
Shareholders' equity
Capital stock
Retained earnings
Legal retained earnings
Voluntary earned reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Total liabilities and shareholders' equity

122,462

155,457

1,026

585,351

200,000

1,320

14,0003,500

2368,730130,464

861

64,174

280,528

1,852

165,430

166,4101,099

43,476

108,854718

2,427,237

2,653,926

17,528

3,500

-

-

13,86914,00892

58,69257,298378

76,062

71,307470

2,503,299

2,725,233

17,99970,00070,000462

17,50017,500115

3,020,000

3,020,000

19,945

1,281,718

2,010,804

13,280-1,961-7,809-52

4,387,257

5,110,495

33,752-￥6,890,556￥

7,835,728$

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥151.41 to $1, the approximate rate of exchange at March 31, 2024.
153,010
183,663$
2. Accumulated Depreciation￥￥
3. Receivables and payables from and to subsidiaries
accounts receivable
168,697
202,348
accounts payable
18,403
2,346

51,751

1,213
1,336
15

Non-consolidated Statement of Incomefor the years ended March 31, 2024 and 2023

thousands of yen
Years ended March 31
2023
2024
$
￥ 12,359,543 ￥ 13,834,023

Sales (Note 2)
Cost of sales (Note 2)
Gross profit
Operating expenses
Operating profit
Non-operating income
Non-operating expenses
Ordinary profit
Extraordinary income
Extraordinary losses
Income before income taxes
Corporate income taxes
Net profit

9,851,788
2,507,754
2,112,126
395,628
340,799
56,374680,053
680,053130,000
550,053 ￥￥11,131,280
2,702,742
2,200,616
502,125
497,132
116,355
882,902276,828
39,0001,120,730
358,002762,727

thousands of U.S.
dollars (Note 1)
2024
91,36773,517
17,85014,534
3,316
3,283
768
5,831
1,828
257
7,401
2,364
5,037

$

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥151.41 to $1, the approximate rate of exchange at March 31, 2024.
2. Transactions with subsidiaries
sales
741,417 ￥1,109,893$￥
cost of sales
127,812
112,496

Non-consolidated Statement of Changes in Equity
for the year ended March 31, 2024 and 2023

7,330742

thousands of yen

Capital stock

Retainedearnings

Voluntary
retainedearnings

Retainedearnings
brought
forward

Total retained
earnings

Balance at April 1, 2022
Profit for the year
Dividend of surplus
Provision of voluntary retained earnings
Disposition of treasury shares
Total changes of items during period
Balance at March 31, 2023

70,00016,9793,020,000

767,4593,804,439

3,858,334

3,858,334

550,053550,053550,053550,053-31,530-31,530-31,530-31,530

Balance at April 1, 2023
Dividend of surplus
Purchase of treasury sharesDisposition of treasury shares
Total changes of items during period
Balance at March 31, 2024

Total
shareholders’ Total net assets
equityTreasuryshares-16,105-520

520-3,744-3,74414,144

10,40010,400-520-

514,258

514,779

14,144

528,923

528,923

70,00017,5003,020,000

1,281,718

4,319,218-1,961

4,387,257

4,387,257

70,00017,5003,020,000

1,281,718

4,319,218-1,961

4,387,257

4,387,257

762,727

762,727

762,727

762,727-33,480-33,480-33,480-33,480-9,610-9,610-9,61070,000-17,5003,020,000

-162

-162

3,762

3,600

3,600

729,085

729,085-5,848723,237

723,237

2,010,804

5,048,304-7,8095,110,495

5,110,495

thousands of U.S. dollars (Note 1)
Capital stock

Retainedearnings

Voluntary
retainedearnings

Retainedearnings
brought
forward

Total retained
earnings

Balance at April 1, 2022
Profit for the year
Dividend of surplus
Provision of voluntary retained earnings
Disposition of treasury shares
Total changes of items during period
Balance at March 31, 2023

462

112

19,945

5,068

25,12625,482

25,482

3,632

3,632

3,632

3,632

-209

-209

-209

-209

Balance at April 1, 2023
Profit for the year
Dividend of surplus
Purchase of treasury shares
Disposition of treasury shares
Total changes of items during period
Balance at March 31, 2024

TreasurysharesTotal shareholders' equity Total net assets

-107

-3

3-24

-24

93

68

68

-

3-

3,396

3,399

93

3,493

3,493

462

115

19,9458,465

28,526-13

28,97628,976462

115

19,9458,465

28,526-13

28,97628,976

5,037

5,037

5,037

5,037

-222

-222

-222

-222

-63

-63-63--462

115

-2-2

24

23

23

-

4,815

4,815

-39

4,776

4,776

19,945

13,28033,341-52

33,75233,752

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥151.41 to $1, the approximate rate of exchange at March 31, 2024.

1.

Subsidiaries

Company name2.

Stock ownership ratio

Main business

AR BROWN (Shanghai)Co., Ltd.

100.0%

Imports, exports and sales of chemical materials,test & measurement equipment

AR BROWN (THAILAND)
Co., Ltd.

100.0%

Imports, exports and sales of chemical materials,
test & measurement equipment

ARBROWN INDIA TRADING Pvt.
Ltd.

100.0%

Imports, exports and sales of chemical materials

AR BROWN KOREA
Co., Ltd.

75.0%

Imports and sales of chemical materials

F. B. Automation Co., Ltd.

100.0%

Sales of measurement equipment

Shareholders

Number of stocks held
Employee stock ownership
67,850
Directors of the company (6 people)
23,000Treasury shares
4,150
A.R. Brown McFarlane & Co., Ltd.
5,000
Others (4 people)
12,500Total number of stocks issued *112,500（* The total number of authorized stocks is 400,000.）
3.

Voting rights ratio
33.9%
57.4%
2.5%
6.2%
100.0%

Company employees

Number of employees
69
20
117

Osaka branch
Nagoya branchInstitute ofScience and Technology
4.

Stock ownership ratio
60.3%
20.4%
3.7%
4.4%
11.1%
100.0%

Average age

Average length of service

44.5

14 yrs.

Directors and statutory auditor

NameMichihiro Tatsuoka

Title
Representative director
President

Hirotaka Shimada

Managing Director

Masaki Okada

Director

Atsushi Kawaguchi

Director

Hitoshi Shimizu

DirectorHiroshige Miyazaki

Statutory auditor

Principal position(s) and important concurrent
position(s)Director, AR BROWN KOREA Co., Ltd.
Director. ARBROWN INDIA TRADING Pvt. Ltd.
Fine Chemical Business and Overseas Business
Head of Overseas Operations and Sales
President, AR BROWN (Shanghai) Co., Ltd.
Director, AR BROWN KOREA Co., Ltd.
Director, ARBROWN INDIA TRADING Pvt. Ltd.
Director, AR BROWN (THAILAND) Co., Ltd.
Business and DX Project
General Manager, Life Science Dept., Hu-Vet Dept.
Officer in charge of Test & Measurement Business
General Manager, Test & Measurement Dept.
President, F. B. Automation Co., Ltd.
Officer in charge of Electronics Materials Business
General Manager, AR BROWN (Shanghai) Co., Ltd.

[Reference Materials]
Note:

Financial Statements in accordance with Japanese Companies Act were reviewed by Yamazaki Kohei CPA Firm.
These statements translated into English was made for reference.

Consolidated Balance Sheet
March 31, 2024 and 2023

ASSETS

Current assets
Cash and bank deposits
Accounts receivable
Merchandise
Other current assets
Total current assets
Noncurrent assets
Investment securities
Tangible and intangible fixed assets
Other noncurrent assets
Allowance for doubtful accounts
Total noncurrent assets
Total assets

thousands of U.S.
dollars (Note 1)

thousands of yen
March 31
2023
2024
￥

2024

1,896,674 ￥
3,027,324

2,498,762
3,407,480

22,504

2,187,723

2,190,799

14,469

246,895

170,406

1,125

7,358,619

8,267,449

54,603

958,264

951,4546,283

426,750

456,737

3,016

298,558

443,289

2,927

---

1,683,574

1,851,482

12,228￥9,042,193 ￥10,118,931$

66,831￥

1,648,394 ￥
585,351

1,951,490$

12,888$16,503

LIABILITIES and NET ASSETS

Current liabilities
Accounts payable
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for employees' bonuses
Other current liabilities
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Other noncurrent liabilities
Noncurrent liabilities
Total Liabilities
Net assets
Shareholders’ equity
Capital stock
Retained earnings
Treasury shares
Accumulated other comprehensive income(loss)
Foreign currency translation adjustment
Non-controlling interestsTotal net assets
Total liabilities and net assets￥200,000

1,320

14,0003,500

2387,781

306,667

2,025

165,430

166,4101,099

303,144486,292

3,211

2,804,102

3,114,360

20,569207,644

124,659823

58,69257,298378

121,269

93,268615

387,605

275,225

1,817

3,191,707

3,389,586

22,38670,00070,000462

5,559,292

6,313,170

41,695-1,961-7,809-52

199,733

309,984

2,047

23,421

43,999290

5,850,486

6,729,345

44,444

9,042,193￥

10,118,931$

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥151.41 to $1, the approximate rate of exchange at March 31, 2024.

66,831

[Reference Materials]
Consolidated Statement of Income
for the year ended March 31, 2024 and 2023

￥SalesCost of sales
Gross profit
Operating expenses
Operating profit
Non-operating income
Non-operating expenses
Ordinary profit
Extraordinary income
Extraordinary losses
Income before income taxes
Income taxes
Net profit
Profit attributable to non-controlling interests
Net profit attributable to owners of parent￥

thousands of yen
Years ended March 31
2023
2024
14,805,610 ￥
16,971,476
11,286,937
3,518,672
2,655,625
863,047
164,796
65,087
962,756
962,756
289,255
673,500
3,416
670,083￥

13,130,575
3,840,900
2,868,744
972,156
172,658
142,723
1,002,091
276,828
39,0001,239,920
441,777
798,143
18,007780,136

thousands of U.S.
dollars (Note 1)

$

$

2024
112,089
86,721
25,367
18,946
6,420
1,140
942
6,618
1,828
257
8,189
2,917
5,271
118
5,152

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥151.41 to $1, the approximate rate of exchange at March 31, 2024.

Consolidated statement of Changes in Equity
for the year ended March 31, 2024 and 2023

Capital stock

thousands of yen
Legalretainedearnings

Treasuryshares4,929,014
670,083-31,530-16,105

Accumulated
Total
Non-controllingothershareholders' comprehensive
Total net assetsinterests
equityincome(loss)

Balance at April 1, 2022
Profit for the yearDividend of surplus
Disposition of treasury stock
OthersNet changes of items other than shareholders' equity
Total changes of items during period
Balance at March 31, 2023

70,00070,000630,278
5,559,292

14,144-1,961

644,422
5,627,331

Balance at April 1, 2023
Profit for the year
Dividend of surplus
Purchase of treasury shares
Disposition of treasury shares
OthersNet changes of items other than shareholders' equity
Total changes of items during period
Balance at March 31, 2024

70,0005,559,292
780,136-33,480-1,961

5,627,331
780,136-33,480-9,6103,762
7,221

14,144-8,275-9,6103,762
7,221
70,000753,877
6,313,170-5,848-7,8094,982,909
670,083-31,530
14,144-8,275748,029
6,375,360

167,721

19,71532,01132,011
199,733

3,705
3,705
23,421

199,733

23,421

110,251
110,251
309,984

20,57820,57843,9995,170,346
670,083-31,530
14,144-8,27535,717680,1395,850,486
5,850,486
780,136-33,480-9,6103,762
7,221
130,829
878,858
6,729,345

thousands of U.S. dollars (Note 1)
Capital stock

Legalretainedearnings

TreasurysharesBalance at April 1, 2022
Profit for the year
Dividend of surplus
Disposition of treasury stock
OthersNet changes of items other than shareholders' equity
Total changes of items during period
Balance at March 31, 2023

462

462

4,162
36,716

93-13

Balance at April 1, 2023
Profit for the year
Dividend of surplus
Purchase of treasury shares
Disposition of treasury shares
OthersNet changes of items other than shareholders' equity
Total changes of items during period
Balance at March 31, 2024

462

36,716
5,152-222-13

32,554
4,425-209

-107

93
-55

-64
24
47
462

4,979
41,695-39-52

Accumulated
Total
other
Non-controlling Total net assets
shareholders' comprehensive
interests
equityincome(loss)

32,910
4,425
-209
93
-55
0
4,256
37,166

1,107

130

211
211
1,319

24
24
154

37,166
5,152
-222
-64
24
47

1,319

154

728
728
2,047

135
135
290

4,940
42,106

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥154.41 to $1, the approximate rate of exchange at March 31, 2024.

34,147
4,425
-209
93-55
235
4,492
38,64038,6405,152-222
-64
2447
864
5,804
44,444

[Reference Materials]
Consolidated Statement of cash flows
for the year ended March 31, 2024
Ⅰ.

Ⅱ.

Ⅲ.

Ⅳ.
Ⅴ.
Ⅵ.
Ⅶ.

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on investment securities
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable – trade
OthersSubtotalInterest and dividend income
Interest expensesIncome taxes paid
Cash flows from operating activities

thousands of U.S.
dollars (Note 1)

thousands of yen￥

1,239,920
83,819△ 276,828△ 331,078
23,631
278,169
155,452
1,173,087
45,138△ 21,546△ 215,819
980,859

$

8,189
553
-1,828-2,186
156
1,837
1,026
7,747
298
-142
-1,425
6,478

Cash flows from investing activities
Purchase of tangible and intangible assets
Purchase of long-term investment securities
Proceeds from long-term investment securities
Decrease (increase) in guarantee deposits
OthersCash flows from investing activities△ 129,525△ 282,467
563,149△ 142,921
10,753
18,988-855-1,865
3,719-943
71125

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from sales of treasury shares
Cash dividends paid
Cash flows from financing activities△ 388,589△ 93,485△ 9,6103,600△ 33,480△ 521,564-2,566-617-63
23-221-3,444

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

123,803
602,087
1,896,674
2,498,762

817
3,976
12,526
16,503

Notes: 1. The translations of Japanese yen amounts into U.S. dollar amounts are added solely for the convenience of readers outside Japan and have been made at the rate of￥151.41 to $1, the approximate rate of exchange at March 31, 2024.