Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 10 , 2026 Tokyo Stock Exchange ( Securities code : 4971 ) https://www.mec-co.com/en/ Company name : Listing : MEC COMPANY LTD . URL : Representative : Inquiries : Telephone : Kazuo MAEDA , CEO & President Aya MATSUSHITA , Corporate Communication Office + 81- ( 0 ) 6-6401-8160 Scheduled date to file semi - annual securities report : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : August 12 , 2026 September 1 , 2026 Yes Yes ( for institutional investors , securities analysts ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Operating results Net sales Operating income Ordinary income ( Percentages indicate year - on - year changes . ) Net income attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 12,594 9,387 34.2 Basic earnings per share Six months ended Yen June 30 , 2026 June 30 , 2025 ( 2 ) Financial position 166.43 101.47 June 30 , 2025 Note : Comprehensive income For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : Diluted earnings per share 5.7 4,135 2,440 69.4 4,305 3.3 2,493 72.6 -5.6 3,039 60.5 1,893 0.2 ¥ 6,966 million ¥ 1,771 million [ 293.3 % ] [ -32.6 % ] Yen Total assets Net assets Equity - to - asset ratio As of June 30 , 2026 December 31 , 2025 Millions of yen 44,206 36,424 Millions of yen 36,132 30,472 % 81.7 83.7 Reference : Equity As of June 30 , 2026 : As of December 31 , 2026 : ¥ 36,132 million ¥ 30,472 million 2.Cash dividends Annual dividends per share FY2025 FY2026 1Q - end 2Q - end 3Q - end Fiscal year - end Total Yen Yen 25.00 55.00 Yen Yen 71.00 Yen 96.00 FY2026 ( Forecast ) 55.00 110.00 ( Note ) Revision of recently announced dividends forecast : None 3. Consolidated earnings forecasts for the fiscal year ending December 31 , 2026 ( from January 1 , 2026 to December 31 , 2026 ) Full year Net sales Operating income ( Percentages indicate changes from previous fiscal year for full - year figures ) Ordinary income Net income attributable to parent company's shareholders Net income per share Millions of Millions of yen 25,800 % 23.2 Millions of yen 8,300 % 44.4 Millions of yen 8.500 40.5 yen 6,000 % 19.3 Millions of yen 328.58 ( Note 1 ) Revision of recently announced earnings forecast : Yes
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* Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Adoption of accounting treatment specific to th e preparation of semi-annual consolidated financial statements: Yes Note: For details, please see “Application of accounting procedures specified to create consolidated financial statements for the six months period” on page 11 of the attached materials. (3) Changes in accounting policies, changes in acco unting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other re asons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 202 6 19 ,571,093 shares As of December 31, 202 5 19 ,571,093 shares (ii) Number of treasury shares at the end of the pe riod As of June 30, 202 6 1, 310 ,45 8 shares As of December 31, 202 5 1, 310 ,4 36 shares (iii) Average number of shares outstanding during t he period Six months ended June 30, 202 6 18,260 ,641 shares Six months ended June 30, 202 5 18,66 2,639 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other speci al matters -The business forecasts and such like stated in this material are based on the information currently available to the Company and certain assumptions that are judged to be rational. Actual results may vary significantly from the forecasts due to various factors. In addition, for matters concerning the above forecasts, please refer to “1. Qualitative information regarding semi-annual consolidated financial results (3) Analysis of forward-looking information, such as the consolidated earnings forecast” on page 4 of the attachment. - We are planning to hold financial results briefing for institutional investors and analysts on Monday, August 10, 2026. Materials of financial results briefings are posted on our website.
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 1 Table of Contents for Attached Material 1. Qualitative information regarding semi-annual co nsolidated financial results ......................................................................... 2 (1) Overview of business results for the six months ended June 30, 2026 ............................................................................ 2 (2) Summary of financial situation for the six mont hs period under review ......................................................................... 4 (3) Analysis of forward-looking information, such a s the consolidated earnings forecast .................................................... 4 2. Semi-annual consolidated financial statements an d major notes ........................................................................................ ...... 5 (1) Semi-annual consolidated balance sheet ........ ................................................... ................................................... ............ 5 (2) Semi-annual consolidated statement of income an d comprehensive income ................................................................... 7 Semi-annual consolidated statement of income ..... ................................................... ................................................... .... 7 Semi-annual consolidated statement of comprehensiv e income ...................................................................................... 8 (3) Semi-annual consolidated statements of cash fl ows .................................................................................................. ...... 9 (4) Notes to semi-annual consolidated financial sta tements .............................................................................................. .. 11 (Notes on the premise of a going concern) ........ ................................................... ................................................... ...... 11 (Notes on marked changes in the amount of sharehol ders’ equity) ............................................................................... 11 (Application of accounting procedures specified to create consolidated financial statements for the six months period) ................................................. ................................................... ................................................... ................................ 11 (Notes on Segment Information) .................. ................................................... ................................................... ......... 12 (Important subsequent events) ................... ................................................... ................................................... ............ 12
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 2 1. Qualitative information regarding semi-annual co nsolidated financial results (1) Overview of business results for the six months ended June 30, 2026 During the first six months of the fiscal year under review (January 1 to June 30, 2026), Japan experienced a gradual recovery trend as the employment and income environment continued to improve. However, the outlook remains uncertain due to the rise in crude oil prices accompanying the heightened tensions in the Middle East and price trends and fluctuations in financial and capital markets. In the electronics industry, market growth was driven by generative AI-related demand in data centers. From a medium- to long-term perspective, the megatrend of digital technology development due to the telecommunications and information revolution remains unchanged, and investment in these areas is expected to continue. The electronic circuit board and components industries, related markets of the Group, made steady progress, influenced by the electronics industry in general. In this environment, the group has worked on business activities under the guiding principle of “create and transform” to achieve our “Phase 2 Medium-Term Management Plan (FY2025 to FY2027)” towards the realization of our 2030 Vision. In particular, we focused on the development and sales of products for high-density electronic substrates in the midst of social change and transformation towards digitalization and green technology. Consequently, the Group’s business results were as follows. Six months ended June 30, 2025 Six months ended June 30, 2026 YoY Net sales 9,387 million yen 12,594 million yen 34.2 % Selling, general and administrative expenses 3,363 million yen 3,868 million yen 15.0 % Operating income 2,440 million yen 4,135 million yen 69.4 % Operating profit margin 26.0 % 32.8 % 6.8 ppt Ordinary income 2,493 million yen 4,305 million yen 72.6 % Net income before income taxes 2,892 million yen 4,300 million yen 48.7 % Net income attributable to parent company’s shareholders 1,893 million yen 3,039 million yen 60.5 % The breakdown of net sales was as follows. Six months ended June 30, 2025 Six months ended June 30, 2026 YoY Chemicals 9,025 million yen 12,402 million yen 37.4 % Machinery 56 million yen 97 million yen 72.5 % Materials 289 million yen 77 million yen -73.3 % Other 15 million yen 17 million yen 11.3 % The overseas sales ratio was 66.0%, down 0.4 points from 66.4% in the same period last year. If sales to overseas customers carried out through distributors in Japan are included in the overseas sales ratio, it stands at 82.0%, up 1.2 percentage points from 80.8% in the same period last year.
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 3 Net sales reached a new record high for the quarter due to steady demand in chemicals for products used in advanced semiconductor package substrates mainly for generative AI-related applications. Selling, general and administrative expenses increased due mainly to higher personnel and shipping costs. Operating income increased significantly due to increased shipments of chemicals and strong demand for highly profitable products. Net income attributable to owners of the parent company increased significantly due to an increase in net sales as well as the absence of the one-time negative impact of the increase in income taxes due to an increase in dividends from overseas subsidiaries in the same period last year. As for the trends in sales of major products compared to the same period last year, the CZ Series of super-roughening adhesive enhancement products, which have a large share of the market for semiconductor-mounted package substrates, achieved strong results, due mainly to demand for semiconductor package substrates used in advanced applications such as those related to generative AI and semiconductor package substrates for memory. Sales of the V-Bond Series of adhesion improvers for multilayer substrates, and the EXE Series, which enables the formation of fine wiring, increased, while sales of the SF Series declined due to demand for related end products. The results by segment were as follows. Net sales Six months ended June 30, 2025 Six months ended June 30, 2026 YoY Japan 3,350 million yen 4,563 million yen 36.2 % Taiwan 1,815 million yen 2,328 million yen 28.3 % Zhuhai (China) 1,249 million yen 1,807 million yen 44.7 % Suzhou (China) 1,728 million yen 2,321 million yen 34.3 % Europe 783 million yen 768 million yen -1.8 % Thailand 460 million yen 804 million yen 74.9 % Segment profit Six months ended June 30, 2025 Six months ended June 30, 2026 YoY Japan 1,521 million yen 3,354 million yen 120.6 % Taiwan 211 million yen 275 million yen 30.4 % Zhuhai (China) 141 million yen 259 million yen 83.1 % Suzhou (China) 189 million yen 324 million yen 71.1 % Europe 85 million yen 158 million yen 86.3 % Thailand 67 million yen 112 million yen 66.0 % In Japan, demand for products for advanced semiconductor package substrates related to generative AI, etc., continued to expand, and net sales increased. In the South Korean market, where we sell products via a Japanese distributor, sales of related products were strong due to the production trend for semiconductor package substrates for memory. As a result, net sales increased compared to the same period last year. In Taiwan, net sales increased compared to the same period last year due to an increase in demand for products for advanced semiconductor package substrates. In Zhuhai (China), net sales increased compared to the same period last year due to strong demand for products related to smartphones and PCs.
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 4 In Suzhou (China), sales of chemicals for smartphones and displays were strong, and net sales increased due partly to temporary demand for products for smartphones. In Europe, while demand for products for general-purpose substrates increased, net sales decreased compared to the same period last year due to the loss of the temporary demand for materials handled by the Company that occurred in that same period. In Thailand, although sales of automobile-mounted products were sluggish while capital investment by electronic circuit board manufacturers in Southeast Asia was active, net sales increased compared to the same period last year due to sales of satellite communications-related products remaining strong and demand for products for semiconductor package substrate applications among the Company’s customers. (2) Summary of financial situation for the six months period under review (i) Assets, liabilities, and net assets Assets increased by 7,781 million yen compared to the previous consolidated fiscal year to 44,206 million yen due to fluctuations in share prices of investment securities held and an increase in construction in progress for the operation of the Kitakyushu Plant. Liabilities increased by 2,120 million yen compared to the previous consolidated fiscal year to 8,073 million yen due an increase in long-term deferred tax liabilities. Net assets increased by 5,660 million yen compared to the previous consolidated fiscal year to 36,132 million yen due to an increase in the valuation difference for available-for-sale securities. As a result of the above, the equity ratio reached 81.7%. (ii) Cash flow Cash and cash equivalents (“cash”) at the end of the first six months of the fiscal year under review was 10,831 million yen, a increase of 2,081 million yen from the end of the previous consolidated fiscal year. The outlines of cash flow conditions and reasons for fluctuations during the first six months of the fiscal year under review are as follows. (Cash flow from operating activities) Cash from operating activities amounted to 4,178 million yen (up 3,057 million yen year-on-year). This was due mainly to net income before income taxes of 4,300 million yen, a decrease in trade receivable of 968 million yen, and income taxes paid of 1,428 million yen. (Cash flow from investment activities) Cash used as a result of investment activities was 912 million yen (down 1,321 million yen year-on-year). This was mainly due to purchase of property, plant and equipment of 1,303 million yen. (Cash flow from financial activities) Cash used as a result of financing activities amounted to 1,315 million yen (down 23 million yen year-on- year). This was mainly due to dividend payments of 1,304 million yen. (3) Analysis of forward-looking information, such as the consolidated earnings forecast We have revised the full-year consolidated earnings forecast, initially released on May 12, 2026, as announced today (August 10, 2026) in the “Notice Regarding Revision of Earnings Forecasts” The forecasts mentioned in this material are determined based on the information available at this time. Actual results may differ from the earnings forecast due to various factors.
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 5 2. Semi-annual consolidated financial statements an d major notes (1) Semi-annual consolidated balance sheet (Thousands of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 10,345,999 11,983,526 Notes and accounts receivable - trade 7,172,904 6,571,008 Electronically recorded monetary claims - operating 438,384 266,842 Merchandise and finished goods 820,928 1,029,941 Work in process 237,885 265,199 Raw materials and supplies 804,007 1,000,080 Other 258,349 223,782 Allowance for doubtful accounts -9,113 -9,165 Total current assets 20,069,346 21,331,215 Non-current assets Property, plant and equipment Buildings and structures 8,451,453 8,541,886 Accumulated depreciation -4,179,428 -4,380,740 Buildings and structures, net 4,272,025 4,161,146 Machinery, equipment and vehicles 4,166,782 4,253,468 Accumulated depreciation -2,919,603 -3,051,228 Machinery, equipment and vehicles, net 1,247,179 1,202,240 Tools, furniture and fixtures 1,965,936 2,050,512 Accumulated depreciation -1,468,279 -1,538,746 Tools, furniture and fixtures, net 497,656 511,765 Land 3,728,236 3,741,220 Right-of-use assets 103,881 110,001 Accumulated depreciation -45,954 -52,880 Right-of-use assets, net 57,927 57,121 Construction in progress 2,050,330 3,421,512 Total property, plant and equipment 11,853,354 13,095,006 Intangible assets 142,029 127,635 Investments and other assets Investment securities 2,213,895 7,454,985 Retirement benefits asset 1,593,540 1,637,428 Deferred tax assets 10,466 11,421 Other 542,231 548,495 Total investments and other assets 4,360,134 9,652,330 Total non-current assets 16,355,518 22,874,972 Total assets 36,424,864 44,206,188
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 6 (Thousands of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 1,131,846 1,369,149 Electronically recorded obligations-operating 340,323 468,781 Accounts payable - other 570,264 617,340 Accrued expenses 194,406 209,864 Income taxes payable 1,417,949 1,334,342 Provision for bonuses 454,161 455,201 Provision for bonuses for directors 56,029 28,120 Accounts payable - facilities 110,080 451,316 Other 354,332 355,197 Total current liabilities 4,629,395 5,289,315 Non-current liabilities Deferred tax liabilities 1,016,392 2,501,668 Retirement benefit liability 14,656 17,312 Provision for share-based payments 137,803 166,728 Other 154,546 98,206 Total non-current liabilities 1,323,400 2,783,916 Total liabilities 5,952,795 8,073,232 Net assets Shareholders' equity Capital stock 594,142 594,142 Capital surplus 446,358 446,358 Retained earnings 27,428,552 29,162,020 Treasury shares -2,353,360 -2,353,487 Total shareholders' equity 26,115,693 27,849,034 Accumulated other comprehensive income Valuation difference on available-for-sale securities 884,356 4,436,256 Foreign currency translation adjustment 3,133,199 3,543,744 Remeasurements of defined benefit plans 338,818 303,920 Total accumulated other comprehensive income 4,356,374 8,283,921 Total net assets 30,472,068 36,132,956 Total liabilities and net assets 36,424,864 44,206,188
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 7 (2) Semi-annual consolidated statement of income and comprehensive income (Semi-annual consolidated statement of income) (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 9,387,045 12,594,740 Cost of sales 3,582,929 4,590,043 Gross profit 5,804,115 8,004,697 Selling, general and administrative expenses 3,363,304 3,868,854 Operating income 2,440,811 4,135,843 Non-operating income Interest income 15,147 16,530 Dividend income 12,738 4,524 Proceeds from sales of prototypes 3,842 4,059 Gain on investments in investment partnership 19,73 9 40,811 Foreign exchange gains － 91,232 Other 11,392 13,947 Total non-operating income 62,858 171,105 Non-operating expenses Interest expenses 375 906 Foreign exchange losses 9,144 － Other 203 455 Total non-operating expenses 9,722 1,361 Ordinary income 2,493,947 4,305,586 Extraordinary income Gain on sales of non-current assets 1,673 435 Subsidy income 546,447 － Total extraordinary income 548,120 435 Extraordinary losses Loss on sale of non-current assets 337 － Loss on retirement of non-current assets 148,876 5,658 Total extraordinary losses 149,214 5,658 Net income before income taxes 2,892,853 4,300,363 Income taxes 999,118 1,261,271 Net income 1,893,734 3,039,092 Net income attributable to owners of parent 1,893,734 3,039,092
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 8 (Semi-annual consolidated statement of comprehensive income) (Thousands of yen) Six months ended June 30, 202 5 Six months ended June 30, 202 6 Profit 1,893,734 3,039,092 Other comprehensive income Valuation difference on available-for-sale securities 229,954 3,551,899 Foreign currency translation adjustment -314,051 410,545 Remeasurements of defined benefit plans -38,135 -34,898 Total other comprehensive income -122,231 3,927,546 Comprehensive income 1,771,502 6,966,639 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,771,502 6,966,639 Comprehensive income attributable to non- controlling interests － －
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 9 (3) Semi-annual consolidated statements of cash flows (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Net income before income taxes 2,892,853 4,300,363 Depreciation 393,929 429,757 Increase (decrease) in provision for share-based payments -28,652 28,924 Increase (decrease) in provision for bonuses -13,341 -1,474 Increase (decrease) in provision for directors' bonuses -24,499 -27,909 Increase (decrease) in retirement benefit liability 1,511 2,946 Decrease (increase) in retirement benefit asset -28,364 -42,456 Loss (gain) on investments in investment partnerships -19,739 -40,811 Interest and dividend income -27,885 -21,054 Interest expenses 375 906 Subsidy income -546,447 － Decrease (increase) in trade receivable 115,503 968,358 Increase (decrease) in inventories -77,731 -338,969 Increase (decrease) in trade payables -585,548 320,675 Other -522,806 8,828 Subtotal 1,529,159 5,588,084 Interest and dividends received 27,875 19,866 Interest paid -198 -841 Income taxes paid -982,441 -1,428,381 Subsidies received 546,447 － Net cash provided by (used in) operating 1,120,842 4,178,727 Cash flows from investing activities Payments into time deposits -1,013,768 -1,046,031 Proceeds from withdrawal of time deposits 1,112,174 1,518,977 Purchase of property, plant and equipment -2,232,153 -1,303,875 Proceeds from sale of property, plant and equipment 1,798 480 Purchase of intangible assets -27,494 -1,317 Purchase of investment securities -2,999 -2,994 Other -71,854 -77,601 Net cash provided by (used in) investment activities -2,234,296 -912,362
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 10 Cash flows from financing activities Payments of lease liabilities -15,260 -10,497 Purchase of treasury shares -851,838 -126 Dividends paid -471,749 -1,304,458 Net cash provided by (used in) financing activities -1,338,848 -1,315,083 Effect of exchange rate changes on cash and cash equivalents -11,445 130,133 Increase (decrease) in cash and cash equivalents -2,463,748 2,081,414 Cash and cash equivalents at beginning of period 10,254,835 8,749,852 Cash and cash equivalents at end of period 7,791,087 10,831,267
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 11 (4) Notes to semi-annual consolidated financial statements (Notes on the premise of a going concern) N/A (Notes on marked changes in the amount of shareholders’ equity) N/A (Application of accounting procedures specified to create consolidated financial statements for the six months period) (Calculation of tax expenses) For tax expenses, the Company adopts the method of reasonably estimating the effective tax rate after the application of tax effect accounting to net income before income taxes for the consolidated accounting year and multiplying quarterly net income before income taxes by this estimated effective tax rate. However, in cases where the result of calculating using this effective tax rate lacks reasonableness in a significant manner, the Company bases calculations on the legal tax rate.
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MEC COMPANY LIMITED<4971> Consolidated Financial Results for the Six Months Ended June 30, 2026 12 (Notes on Segment Information) [Segment Information] 1 For the six months ended June 30, 2025 (From January 1, 2025 to June 30, 2025) (1) Information on net sales, profit or loss by reportable segment (Thousands of yen) Reportable segment Total Japan Taiwan Zhuhai (China) Suzhou (China) Thailand Europe Net sales Sales to external customers 3,350,839 1,815,230 1,249,323 1,728,594 460,041 783,015 9,387,045 Inter-segment sales and transfers 2,259,331 － 612 17,124 － 19,811 2,296,880 Total 5,610,171 1,815,230 1,249,936 1,745,719 460,041 802,827 11,683,925 Segment profit 1,521,077 211,535 141,571 189,466 67,634 85,246 2,216,531 (2) Differences between the total amount of profit(loss) at reportable segments and the amount stated for the six months ended June 30, 2025 consolidated financial statements, and main details of such differences (matters concerning reconciliation) (Thousands of yen) Net sales Amount Reportable segment total 2,216,531 Intersegment eliminations 224,279 Semi -annual c onsolidated financial statements 2,440,811 2 For the six months ended June 30, 2026 (From January 1, 2026 to June 30, 2026) (1) Information on net sales, profit or loss by reportable segment (Thousands of yen) Reportable segment Total Japan Taiwan Zhuhai (China) Suzhou (China) Thailand Europe Net sales Sales to external customers 4,563,839 2,328,245 1,807,835 2,321,591 804,597 768,631 12,594,740 Inter-segment sales and transfers 3,996,627 2,345 10,014 8,509 5,281 44,758 4,067,537 Total 8,560,466 2,330,591 1,817,849 2,330,101 809,878 813,389 16,662,277 Segment profit 3,354,838 275,771 259,263 324,217 112,275 158,856 4,485,223 (2) Differences between the total amount of profit (loss) at reportable segments and the amount stated for the six months ended June 30, 2026 consolidated financial statements, and main details of such differences (matters concerning reconciliation) (Thousands of yen) Net sales Amount Reportable segment total 4,485,223 Intersegment eliminations -349,380 Semi -annual c onsolidated financial statements 4,135,843 (Important subsequent events) N/A