Interim report
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 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. October 14, 2025 Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 (Under Japanese GAAP) Company name: Shinwa Co., Ltd. Listing: Tokyo Stock Exchange, Nagoya Stock Exchange Securities code: 7607 URL: https://www.shinwa-jpn.co.jp/ Representative: Yoshiro Takitani President & CEO Inquiries: Seiji Miwa General manager Telephone: +81-52-796-2533 Scheduled date of annual general meeting of shareholders: November 20, 2025 Scheduled date to commence dividend payments: November 21, 2025 Scheduled date to file annual securities report: November 19, 2025 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for institutional investors and securities analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the fiscal year ended August 31, 2025 (from September 1, 2024 to August 31, 2025) (1) Consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % August 31, 2025 86,146 10.7 4,536 27.5 4,809 23.3 3,312 21.3 August 31, 2024 77,845 2.3 3,559 (28.8) 3,901 (24.2) 2,729 (23.9) Note: Comprehensive income For the fiscal year ended August 31, 2025: ¥ 3,050 million [ (17.0) %] For the fiscal year ended August 31, 2024: ¥ 3,676 million [ (10.3) %] Basic earnings per share Diluted earnings per share Rate of return on equity Ordinary profit to total assets ratio Operating profit to net sales ratio Fiscal year ended Yen Yen % % % August 31, 2025 247.22 - 7.8 6.9 5.3 August 31, 2024 203.93 - 6.8 6.3 4.6 Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended August 31, 2025: ¥ - million For the fiscal year ended August 31, 2024: ¥ - million (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share As of Millions of yen Millions of yen % Yen August 31, 2025 74,409 43,609 58.4 3,243.38 August 31, 2024 65,600 41,628 63.2 3,097.50 Reference: Equity As of August 31, 2025: ¥ 43,466 million As of August 31, 2024: ¥ 41,474 million (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal year ended Millions of yen Millions of yen Millions of yen Millions of yen August 31, 2025 11,336 (810) (1,493) 28,786 August 31, 2024 3,966 (702) (1,366) 19,623
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 2. Cash dividends Annual dividends per share Total cash dividends (Total) Payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Millions of yen % % Fiscal year ended - 50.00 - 52.00 102.00 1,365 50.0 3.4 August 31, 2024 Fiscal year ended - 56.00 - 68.00 124.00 1,661 50.2 3.9 August 31, 2025 Fiscal year ending August 31, 2026 (Forecast) - 62.00 - 62.00 124.00 53.6 3. Consolidated financial result forecasts for the fiscal year ending August 31, 2026 (from September 1, 2025 to August 31, 2026) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending February 28, 2026 43,000 1.9 2,100 (8.3) 2,200 (10.8) 1,500 (9.6) 111.93 Full year 87,000 1.0 4,300 (5.2) 4,500 (6.4) 3,100 (6.4) 231.32 * Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 1 (Company name: SHINWA (INDIA) ENGINEERING & TRADING PRIVATE LIMITED ) Excluded: - (Company name: ) (2) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (3) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of August 31, 2025 13,815,319 shares As of August 31, 2024 14,415,319 shares (ii) Number of treasury shares at the end of the period As of August 31, 2025 413,755 shares As of August 31, 2024 1,025,694 shares (iii) Average number of shares outstanding during the period Fiscal Year ended August 31, 2025 13,398,208 shares Fiscal Year ended August 31, 2024 13,385,968 shares
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 [Reference] Overview of non-consolidated financial results 1. Non-consolidated financial results for the fiscal year ended August 31, 2025 (from September 1, 2024 to August 31, 2025) (1) Non-consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % August 31, 2025 71,333 17.7 2,825 101.6 4,059 63.6 3,082 59.4 August 31, 2024 60,628 9.7 1,401 (26.7) 2,481 (15.1) 1,934 (10.6) Basic earnings per share Diluted earnings per share Fiscal year ended Yen Yen August 31, 2025 230.11 - August 31, 2024 144.53 - (2) Non-consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share As of Millions of yen Millions of yen % Yen August 31, 2025 56,438 32,195 57.0 2,402.37 August 31, 2024 50,869 30,446 59.9 2,273.86 Reference: Equity As of August 31, 2025: ¥ 32,195 million As of August 31, 2024: ¥ 30,446 million 2. Non-consolidated financial result forecasts for the fiscal year ending August 31, 2026 (from September 1, 2025 to August 31, 2026) (Percentages indicate year-on-year changes.) Net sales Ordinary profit Profit Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Yen Six months ending February 28, 2026 35,000 1.3 1,950 (6.8) 1,450 (9.1) 108.20 Full year 69,500 (2.6) 3,450 (15.0) 2,600 (15.7) 194.01 * Financial results reports are exempt from audit conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters The forward-looking statements, including financial results forecast, contained in this document are based on information currently available to the company and certain assumptions that are deemed reasonable. Actual performance may differ significantly due to various factors. For the assumptions underlying the earnings forecasts and important considerations when using these forecasts, please refer to page 4 of “Attachments”, " Overview of Operating Results, etc. (4) Future Outlook" The Company plans to hold a financial results briefing for institutional investors and securities analysts on October 17, 2025. The presentation materials distributed at the briefing will be made available on the Company’s website.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 1 Table of Contents - Attachments 1. Overview of Operating Results, etc. .................................................................................................... 2 (1) Overview of Operating Results for the Fiscal Year under Review .................................................. 2 (2) Overview of Financial Position for the Fiscal Year under Review ................................................. 3 (3) Overview of Cash Flows for the Fiscal Year under Review ............................................................ 3 (4) Future Outlook ................................................................................................................................ 4 2. Basic Policy on Selection of Accounting Standards ............................................................................ 5 3. Consolidated Financial Statements and Principal Notes ..................................................................... 6 (1) Consolidated Balance Sheets .......................................................................................................... 6 (2) Consolidated Statements of Income and Comprehensive Income .................................................. 8 Consolidated Statement of Income ....................................................................................................... 8 Consolidated Statement of Comprehensive Income ........................................................................... 10 (3) Consolidated Statements of Changes in Equity ............................................................................ 11 (4) Consolidated Statements of Cash Flows ....................................................................................... 13 (5) Notes to Consolidated Financial Statements ................................................................................. 15 (Notes on going concern assumption) .............................................................................................. 15 (Changes in accounting policies) ..................................................................................................... 15 (Segment information, etc.) .............................................................................................................. 16 (Per share information) ..................................................................................................................... 18 (Significant subsequent events) ........................................................................................................ 18
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 2 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year under Review During the fiscal year ended August 31, 2025, the Japanese economy continued to experience gradual recovery due to improvement in corporate earnings and the employment and income environment. However, the outlook for the economy continued to face uncertainty mainly due to concerns about a downward trend in individual consumption caused by continued price hikes, the impact of U.S. external economic policies on future corporate earnings, and a slowdown in the Chinese economy. In the automotive industry, where the primary users of the Group’s products operate, the automobile production volume had continued to fall below that in the previous year due partly to the impact of an authentication fraud issue in Japan, but has been on a recovery trend as of 2025. Capital investment remained solid, centering on investments in factory automation and labor-saving measures. In this business environment, the Group steadily implemented the key strategies of the 4th Medium-term Management Plan “Change! Shinwa Moving Forward 2026.” Furthermore, in terms of improving profitability, we were able to improve profits through initiatives such as realizing fair prices through pass-through pricing, providing high-value-added goods and products that utilize our engineering capabilities, and reducing costs by improving production efficiency. As a result, for the fiscal year ended August 31, 2025, the Group posted net sales of ¥86,146 million (up 10.7% from the previous fiscal year), ordinary profit of ¥4,809 million (up 23.3% from the previous fiscal year), and profit attributable to owners of parent of ¥3,312 million (up 21.3% from the previous fiscal year). Operating results by reportable segment were as follows. 1) Japan Sales of production equipment and materials for automobile manufacturers and automotive components manufacturers remained solid. In particular, sales of production equipment for electric vehicles and vehicle- mounted batteries and autonomous mobile robots (AMR), which automate in-plant logistics, remained solid. As a result of the foregoing and other factors, net sales amounted to ¥73,850 million (up 17.0% from the previous fiscal year), and segment profit amounted to ¥3,079 million (up 91.2% from the previous fiscal year). 2) Americas While sales of materials and consumable supplies for Japanese automobile manufacturers remained solid, we saw a reactionary decline after projects for Japanese air-conditioning equipment manufacturers in the U.S. and Mexico in the corresponding period of the previous fiscal year. As a result, net sales amounted to ¥9,465 million (down 19.9% from the previous fiscal year), and segment profit amounted to ¥665 million (down 49.1% from the previous fiscal year). 3) Asia Pacific Sales remained solid for equipment and materials for Japanese automobile manufacturers and automotive components manufacturers. SHINWA (INDIA) ENGINEERING & TRADING PRIVATE LIMITED (India), which had been a non-consolidated subsidiary, has been included in this reportable segment from the first quarter of the fiscal year ended August 31, 2025. Thanks to its contribution to the operating results and the contribution of the aforementioned solid sales, net sales amounted to ¥5,807 million (up 24.4% from the previous fiscal year), and segment profit amounted to ¥668 million (up 29.5% from the previous fiscal year). In addition, from the first quarter of the fiscal year ended August 31, 2025, SHINWA (INDIA) ENGINEERING & TRADING PRIVATE LIMITED (India), which had been a non-consolidated subsidiary, is included in the scope of consolidation due to its increased materiality. As a result of the inclusion of SHINWA (INDIA) ENGINEERING & TRADING PRIVATE LIMITED (India) in the scope of consolidation, we changed the reportable segment classification. The segment that had covered SHINWA INTEC Co., Ltd. (Thailand), PT. SANTAKU SHINWA INDONESIA (Indonesia) and SHINWA INTEC MALAYSIA SDN. BHD. (Malaysia) was changed from “Southeast Asia” to “Asia Pacific,” and the performance of SHINWA (INDIA) ENGINEERING
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 3 & TRADING PRIVATE LIMITED (India) is included in this “Asia Pacific” segment from the fiscal year ended August 31, 2025. 4) China The segment was affected by a reactionary decline in sales of new factory welding lines to Japanese automobile manufacturers and a reduction in capital investment associated with the slowdown in the Chinese economy. As a result of the foregoing and other factors, net sales amounted to ¥4,599 million (down 17.9% from the previous fiscal year), and segment profit amounted to ¥106 million (down 1.0% from the previous fiscal year). 5) Other The segment was significantly affected by a reactionary decline in sales of production equipment and materials for Japanese air-conditioning equipment manufacturers located in the U.K. As a result, net sales amounted to ¥790 million (down 31.3% from the previous fiscal year), and segment loss amounted to ¥5 million (up/down – % from the previous fiscal year). Net sales by reportable segment are presented inclusive of intersegment net sales. (2) Overview of Financial Position for the Fiscal Year under Review Total assets at the end of fiscal year under review amounted to ¥74,409 million, an increase of ¥8,809 million compared to the end of the previous fiscal year. Current assets increased by ¥9,281 million from the end of the previous fiscal year to ¥62,290 million. This was mainly due to an increase of ¥9,773 million in cash and deposits, an increase of ¥3,116 million in merchandise and finished goods, and an increase of ¥417 million in work in process, despite a decrease of ¥77 million in notes receivable - trade, a decrease of ¥2,805 million in electronically recorded monetary claims - operating, a decrease of ¥1,054 million in accounts receivable - trade, and a decrease of ¥107 million in other under current assets, mainly due to a decrease in advance payments to suppliers. Non-current assets decreased by ¥472 million from the end of the previous fiscal year to ¥12,118 million. This was mainly due to a decrease of ¥106 million in buildings and building accessories under property, plant and equipment and a decrease of ¥177 million in investment securities under investments and other assets. Current liabilities increased by ¥6,882 million from the end of the previous fiscal year to ¥28,897 million. This was mainly due to an increase of ¥2,352 million notes and accounts payable - trade, an increase of ¥519 million in income taxes payable, an increase of ¥3,844 million in contract liabilities, and an increase of ¥312 million in other under current liabilities, mainly due to an increase in accounts payable - other, despite a decrease of ¥208 million in electronically recorded obligations - operating. Non-current liabilities decreased by ¥54 million from the end of the previous fiscal year to ¥1,902 million. Total net assets increased by ¥1,980 million from the end of the previous fiscal year to ¥43,609 million. As a result, the capital adequacy ratio decreased by 4.8 points from 63.2% at the end of the previous fiscal year to 58.4%. (3) Overview of Cash Flows for the Fiscal Year under Review Cash and cash equivalents at the end of fiscal year under review increased by ¥9,162 million from the end of the previous fiscal year to ¥28,786 million. (Cash flows from operating activities) Net cash provided by operating activities was ¥11,336 million (net cash provided by operating activities was ¥3,966 million in the previous fiscal year). This was mainly due to an increase in net cash due to profit before income taxes of ¥4,807 million, depreciation of ¥1,119 million, an increase in trade payables of ¥2,123 million, and an increase in contract liabilities of ¥3,934 million, despite a decrease in net cash due to an increase in inventories of ¥3,733 million and income taxes paid of ¥1,056 million.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 4 (Cash flows from investing activities) Net cash used in investing activities was ¥810 million (net cash used in investing activities was ¥702 million in the previous fiscal year). This was mainly due to a decrease in net cash due to payments into time deposits of ¥681 million, purchase of property, plant and equipment of ¥760 million, and purchase of intangible assets of ¥49 million, despite an increase in net cash due to proceeds from withdrawal of time deposits of ¥351 million and proceeds from sale and redemption of investment securities of ¥300 million. (Cash flows from financing activities) Net cash used in financing activities was ¥1,493 million (net cash used in financing activities was ¥1,366 million in the previous fiscal year). This was mainly due to a decrease in net cash due to dividends paid of ¥1,445 million. (4) Future Outlook Regarding the future outlook, gradual economic recovery is expected to continue as the employment and income environment improves. However, the outlook is a tough business environment is expected about prolonged turmoil in Ukraine and the Middle East, rising prices, and other factors that could lead to a downturn in domestic and international economies. In the automotive industry, where the primary users of the Group’s products operate, investment trends are expected to remain uncertain. This is due to a slowdown in the electric vehicle and vehicle-mounted battery markets, reduced investment, and a decline in the competitiveness of Japanese automobile manufacturers in China. In light of these circumstances, the consolidated financial results forecast for the fiscal year ended August 31, 2026 is as follows, within the currently foreseeable scope. The direct impact of the US tariff increase on our business performance is currently limited and has not been incorporated into our business forecasts.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 5 Consolidated Financial Results Forecast (Millions of yen) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Plan for the fiscal year ending August 31, 2026 87,000 4,300 4,500 3,100 Actual results for the fiscal year ended August 31, 2025 (current fiscal year) 86,146 4,536 4,809 3,312 Rate of change from the current fiscal year 1.0% (5.2)% (6.4)% (6.4)% 2. Basic Policy on Selection of Accounting Standards Taking into consideration the comparability of consolidated financial statements across periods and between companies, the Group’s policy for the time being is to prepare consolidated financial statements in accordance with Japanese GAAP. Regarding the application of international accounting standards, the Group intends to respond appropriately while taking various domestic and international circumstances into consideration.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 6 3. Consolidated Financial Statements and Principal Notes (1) Consolidated Balance Sheets (Thousands of yen) As of August 31, 2024 As of August 31, 2025 Assets Current assets Cash and deposits 19,862,641 29,636,513 Notes receivable - trade 109,877 31,974 Accounts receivable - trade 12,355,581 11,300,962 Electronically recorded monetary claims - operating 7,400,431 4,594,786 Merchandise and finished goods 7,581,588 10,698,585 Work in process 1,666,476 2,083,750 Raw materials and supplies 647,484 665,029 Other 3,388,471 3,281,122 Allowance for doubtful accounts (3,892) (2,329) Total current assets 53,008,661 62,290,395 Non-current assets Property, plant and equipment Buildings and structures 7,677,111 7,803,918 Accumulated depreciation (4,530,798) (4,764,161) Buildings and structures, net 3,146,313 3,039,757 Machinery, equipment and vehicles 5,142,965 5,310,423 Accumulated depreciation (3,775,787) (3,912,150) Machinery, equipment and vehicles, net 1,367,178 1,398,273 Land 2,747,987 2,748,179 Construction in progress 187,132 233,400 Other 2,251,225 2,708,626 Accumulated depreciation (1,651,385) (1,874,722) Other, net 599,840 833,904 Total property, plant and equipment 8,048,453 8,253,514 Intangible assets 888,462 696,277 Investments and other assets Investment securities 2,857,237 2,680,182 Deferred tax assets 106,960 100,847 Other 692,337 388,923 Allowance for doubtful accounts (2,100) (900) Total investments and other assets 3,654,435 3,169,053 Total non-current assets 12,591,351 12,118,845 Total assets 65,600,012 74,409,241
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 7 (Thousands of yen) As of August 31, 2024 As of August 31, 2025 Liabilities Current liabilities Notes and accounts payable - trade 11,957,980 14,310,600 Electronically recorded obligations - operating 4,774,243 4,566,144 Lease liabilities 91,629 104,654 Income taxes payable 398,568 917,952 Contract liabilities 3,361,942 7,206,437 Provision for bonuses 366,956 405,463 Provision for bonuses for directors (and other officers) 35,000 44,756 Other 1,028,587 1,341,520 Total current liabilities 22,014,908 28,897,530 Non-current liabilities Lease liabilities 609,383 558,531 Deferred tax liabilities 872,369 838,671 Deferred tax liabilities for land revaluation 196,166 201,936 Retirement benefit liability 47,872 67,881 Other 230,967 235,372 Total non-current liabilities 1,956,759 1,902,394 Total liabilities 23,971,667 30,799,924 Net assets Shareholders’ equity Share capital 951,106 951,106 Capital surplus 1,735,112 1,310,712 Retained earnings 36,554,566 38,761,751 Treasury shares (771,685) (311,706) Total shareholders’ equity 38,469,098 40,711,863 Accumulated other comprehensive income Valuation difference on available-for-sale securities 991,618 1,093,627 Deferred gains or losses on hedges 7,021 - Revaluation reserve for land (641,184) (646,954) Foreign currency translation adjustment 2,647,833 2,307,825 Total accumulated other comprehensive income 3,005,289 2,754,499 Non-controlling interests 153,956 142,953 Total net assets 41,628,345 43,609,317 Total liabilities and net assets 65,600,012 74,409,241
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 8 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income (Thousands of yen) For the fiscal year ended August 31, 2024 For the fiscal year ended August 31, 2025 Net sales 77,845,803 86,146,486 Cost of sales 65,749,583 72,281,158 Gross profit 12,096,220 13,865,327 Selling, general and administrative expenses Freight and packing costs 430,423 557,975 Salaries and bonuses 3,410,723 3,706,704 Provision for bonuses 270,308 304,047 Retirement benefit expenses 102,780 114,980 Provision for bonuses for directors (and other officers) 35,000 44,829 Depreciation 568,165 588,878 Rent expenses 443,783 484,096 Provision of allowance for doubtful accounts (102) (1,563) Other 3,276,076 3,529,327 Total selling, general and administrative expenses 8,537,158 9,329,276 Operating profit 3,559,062 4,536,051 Non-operating income Interest income 62,196 100,799 Dividend income 75,203 63,570 Rental income 35,040 36,945 Refund income 154,719 52,315 Subsidy income 64,048 4,395 Purchase discounts 2,884 5,871 Other 43,233 37,887 Total non-operating income 437,325 301,786 Non-operating expenses Interest expenses 1,576 1,480 Foreign exchange losses 88,670 12,833 Compensation expenses - 5,709 Other 4,901 7,842 Total non-operating expenses 95,148 27,865 Ordinary profit 3,901,239 4,809,972
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 9 (Thousands of yen) For the fiscal year ended August 31, 2024 For the fiscal year ended August 31, 2025 Extraordinary income Gain on sale of non-current assets 11,343 3,734 Total extraordinary income 11,343 3,734 Extraordinary losses Loss on retirement of non-current assets 7,893 6,276 Loss on sale of non-current assets 285 299 Loss on sale of businesses 36,947 - Other 325 - Total extraordinary losses 45,451 6,575 Profit before income taxes 3,867,131 4,807,131 Income taxes - current 1,176,479 1,581,049 Income taxes - deferred (37,033) (88,064) Total income taxes 1,139,446 1,492,985 Profit 2,727,685 3,314,145 Profit (loss) attributable to non-controlling interests (2,112) 1,800 Profit attributable to owners of parent 2,729,798 3,312,345
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 10 Consolidated Statement of Comprehensive Income (Thousands of yen) For the fiscal year ended August 31, 2024 For the fiscal year ended August 31, 2025 Profit 2,727,685 3,314,145 Other comprehensive income Valuation difference on available-for-sale securities 268,529 102,009 Deferred gains or losses on hedges 7,021 (7,021) Revaluation reserve for land - (5,769) Foreign currency translation adjustment 673,142 (352,947) Total other comprehensive income 948,694 (263,729) Comprehensive income 3,676,379 3,050,416 Comprehensive income attributable to Comprehensive income attributable to owners of parent 3,663,717 3,061,555 Comprehensive income attributable to non-controlling interests 12,662 (11,139)
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 11 (3) Consolidated Statements of Changes in Equity For the fiscal year ended August 31, 2024 (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 951,106 1,711,740 35,166,941 (781,470) 37,048,318 Changes during period Dividends of surplus (1,391,842) (1,391,842) Profit attributable to owners of parent 2,729,798 2,729,798 Purchase of treasury shares (1,030) (1,030) Disposal of treasury shares 23,371 10,814 34,185 Cancellation of treasury shares Change in scope of consolidation 49,668 49,668 Net changes in items other than shareholders’ equity Total changes during period - 23,371 1,387,624 9,784 1,420,780 Balance at end of period 951,106 1,735,112 36,554,566 (771,685) 38,469,098 Accumulated other comprehensive income Non- controlling interests Total net assets Valuation difference on available- for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Total accumulated other comprehensive income Balance at beginning of period 723,088 - (641,184) 1,974,691 2,056,595 141,334 39,246,249 Changes during period Dividends of surplus (1,391,842) Profit attributable to owners of parent 2,729,798 Purchase of treasury shares (1,030) Disposal of treasury shares 34,185 Cancellation of treasury shares Change in scope of consolidation 49,668 Net changes in items other than shareholders’ equity 268,529 7,021 673,142 948,694 12,621 961,315 Total changes during period 268,529 7,021 - 673,142 948,694 12,621 2,382,095 Balance at end of period 991,618 7,021 (641,184) 2,647,833 3,005,289 153,956 41,628,345
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 12 For the fiscal year ended August 31, 2025 (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 951,106 1,735,112 36,554,566 (771,685) 38,469,098 Changes during period Dividends of surplus (1,446,755) (1,446,755) Profit attributable to owners of parent 3,312,345 3,312,345 Purchase of treasury shares (786) (786) Disposal of treasury shares 26,800 9,565 36,366 Cancellation of treasury shares (451,200) 451,200 - Change in scope of consolidation 341,594 341,594 Net changes in items other than shareholders’ equity Total changes during period - (424,399) 2,207,185 459,978 2,242,764 Balance at end of period 951,106 1,310,712 38,761,751 (311,706) 40,711,863 Accumulated other comprehensive income Non- controlling interests Total net assets Valuation difference on available- for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Total accumulated other comprehens ive income Balance at beginning of period 991,618 7,021 (641,184) 2,647,833 3,005,289 153,956 41,628,345 Changes during period Dividends of surplus (1,446,755) Profit attributable to owners of parent 3,312,345 Purchase of treasury shares (786) Disposal of treasury shares 36,366 Cancellation of treasury shares - Change in scope of consolidation 341,594 Net changes in items other than shareholders’ equity 102,009 (7,021) (5,769) (340,008) (250,790) (11,002) (261,792) Total changes during period 102,009 (7,021) (5,769) (340,008) (250,790) (11,002) 1,980,972 Balance at end of period 1,093,627 - (646,954) 2,307,825 2,754,499 142,953 43,609,317
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 13 (4) Consolidated Statements of Cash Flows (Thousands of yen) For the fiscal year ended August 31, 2024 For the fiscal year ended August 31, 2025 Cash flows from operating activities Profit before income taxes 3,867,131 4,807,131 Depreciation 1,100,530 1,119,583 Amortization of goodwill 11,664 4,200 Increase (decrease) in allowance for doubtful accounts 222 (2,763) Increase (decrease) in provision for bonuses 21,644 30,823 Increase (decrease) in provision for bonuses for directors (and other officers) (4,900) 9,829 Increase (decrease) in retirement benefit liability 4,667 9,392 Loss (gain) on sale of businesses 36,947 - Interest and dividend income (137,399) (164,370) Foreign exchange losses (gains) 54,482 (65,318) Interest expenses 1,576 1,480 Loss (gain) on sale of golf club membership - 1,106 Loss (gain) on sale of property, plant and equipment (11,058) (3,435) Loss on retirement of property, plant and equipment 7,893 6,276 Decrease (increase) in trade receivables (1,991,609) 3,978,002 Decrease (increase) in inventories (1,207,011) (3,733,244) Increase (decrease) in trade payables 2,985,825 2,123,612 Increase (decrease) in accrued consumption taxes (170,508) 22,903 Decrease (increase) in advance payments to suppliers 3,719 61,137 Increase (decrease) in contract liabilities 653,501 3,934,316 Other, net (241,068) 88,085 Subtotal 4,986,252 12,228,748 Interest and dividends received 102,807 146,857 Interest paid (1,578) (1,480) Income taxes paid (1,121,429) (1,056,315) Income taxes refund - 19,122 Net cash provided by (used in) operating activities 3,966,051 11,336,933
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 14 (Thousands of yen) For the fiscal year ended August 31, 2024 For the fiscal year ended August 31, 2025 Cash flows from investing activities Payments into time deposits (3,914,297) (681,044) Proceeds from withdrawal of time deposits 3,883,217 351,698 Purchase of property, plant and equipment (643,411) (760,960) Proceeds from sale of property, plant and equipment 20,429 30,854 Payments for retirement of property, plant and equipment (2,963) (48) Purchase of intangible assets (108,636) (49,236) Proceeds from sale and redemption of investment securities - 300,000 Payments of guarantee deposits (13,245) (15,229) Proceeds from refund of guarantee deposits 11,485 8,168 Proceeds from sale of businesses 80,734 - Expenditure for business transfer (11,000) - Proceeds from sale of golf club membership - 93 Other, net (4,980) 5,300 Net cash provided by (used in) investing activities (702,668) (810,404) Cash flows from financing activities Repayments of lease liabilities (48,944) (46,531) Purchase of treasury shares (1,030) (786) Proceeds from disposal of treasury shares - 56 Dividends paid (1,316,248) (1,445,804) Dividends paid to non-controlling interests (41) (82) Net cash provided by (used in) financing activities (1,366,264) (1,493,147) Effect of exchange rate change on cash and cash equivalents 292,516 (173,815) Net increase (decrease) in cash and cash equivalents 2,189,635 8,859,565 Cash and cash equivalents at beginning of period 17,269,620 19,623,491 Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation 164,236 303,197 Cash and cash equivalents at end of period 19,623,491 28,786,255
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 15 (5) Notes to Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Changes in accounting policies) (Application of Accounting Standard for Current Income Taxes and other standards) The Company applied the “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27 on October 28, 2022; hereinafter, the “Revised Accounting Standard 2022”) and other standards from the beginning of the fiscal year ended August 31, 2025. Regarding the amendment to the accounting classification of income taxes (taxation of other comprehensive income), the Company follows the transitional treatment set forth in the proviso to Paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment set forth in the proviso to Paragraph 65-2 (2) of “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28 on October 28, 2022; hereinafter, the “Revised Implementation Guidance 2022”). This change in accounting policies has no impact on the consolidated financial statements. Regarding the amendment related to revisions of the treatment of profits and losses on sales of shares of subsidiaries between consolidated companies in the case of tax deferral in the consolidated financial statements, the Company applied the Revised Implementation Guidance 2022 from the beginning of the fiscal year ended August 31, 2025. This change in accounting policies is applied retrospectively, including the consolidated financial statements for the previous fiscal year, which have been adjusted retrospectively. This change in accounting policies has no impact on the consolidated financial statements for the previous fiscal year.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 16 (Segment information, etc.) [Segment information] 1. Information on net sales, income (loss), assets, liabilities, and other items by reportable segment For the fiscal year ended August 31, 2024 (from September 1, 2023 to August 31, 2024) (Thousands of yen) Reportable segments Other (Note) Total Japan Americas Asia Pacific China Total Net sales Net sales to external customers 56,236,402 11,079,298 4,629,151 4,913,878 76,858,731 987,071 77,845,803 Intersegment net sales or transfers 6,909,319 738,169 39,870 691,270 8,378,630 163,234 8,541,864 Total 63,145,722 11,817,468 4,669,022 5,605,148 85,237,361 1,150,306 86,387,668 Segment profit 1,610,544 1,307,326 516,589 107,766 3,542,226 66,961 3,609,187 Segment assets 52,097,538 4,134,194 4,369,464 7,289,696 67,890,893 591,108 68,482,001 Other items Depreciation 970,333 16,601 39,276 73,427 1,099,639 891 1,100,530 Amortization of goodwill 11,664 – – – 11,664 – 11,664 Increases in property, plant and equipment and intangible assets 559,325 111,142 34,477 21,097 726,043 5,414 731,457 (Note) “Other” is a business segment not included in any reportable segments and includes business activities of local subsidiaries in Europe.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 17 For the fiscal year ended August 31, 2025 (from September 1, 2024 to August 31, 2025) (Thousands of yen) Reportable segments Other (Note) Total Japan Americas Asia Pacific China Total Net sales Net sales to external customers 67,160,265 8,649,927 5,674,652 4,155,797 85,640,642 505,844 86,146,486 Intersegment net sales or transfers 6,690,297 816,011 132,952 443,610 8,082,870 284,238 8,367,109 Total 73,850,562 9,465,938 5,807,604 4,599,407 93,723,513 790,083 94,513,596 Segment profit (loss) 3,079,471 665,442 668,775 106,729 4,520,418 (5,239) 4,515,179 Segment assets 58,072,871 6,548,188 5,412,005 7,320,192 77,353,257 885,164 78,238,422 Other items Depreciation 970,833 35,166 42,314 71,826 1,120,141 1,183 1,121,325 Amortization of goodwill 4,200 – – – 4,200 – 4,200 Increases in property, plant and equipment and intangible assets 1,019,083 121,406 17,300 43,683 1,201,473 294 1,201,768 (Note) “Other” is a business segment not included in any reportable segments and includes business activities of local subsidiaries in Europe. 2. Difference between the total amount in reportable segments and the amount recorded in the consolidated financial statements, and main components of the difference (Matters related to difference adjustment) (Thousands of yen) Income Fiscal year ended August 31, 2024 Fiscal year ended August 31, 2025 Reportable segments total 3,609,187 4,515,179 Elimination of intersegment transfers (75,095) 225,683 Unrealized gain adjustment 24,969 (204,811) Operating profit in the consolidated financial statements 3,559,062 4,536,051 (Thousands of yen) Assets Fiscal year ended August 31, 2024 Fiscal year ended August 31, 2025 Reportable segments total 68,482,001 78,238,422 Elimination of intersegment transfers (2,750,189) (3,557,176) Unrealized gain adjustment (131,798) (272,004) Total assets in the consolidated financial statements 65,600,012 74,409,241
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Fiscal Year Ended August 31, 2025 18 3. Matters relating to changes in reportable segments From the fiscal year ended August 31, 2025, SHINWA (INDIA) ENGINEERING & TRADING PRIVATE LIMITED (India), which had been a non-consolidated subsidiary, has been included in the scope of consolidation due to its increased materiality. As a result of the inclusion of SHINWA (INDIA) ENGINEERING & TRADING PRIVATE LIMITED (India) in the scope of consolidation, we changed the reportable segment classification. The segment that had covered SHINWA INTEC Co., Ltd. (Thailand), PT. SANTAKU SHINWA INDONESIA (Indonesia) and SHINWA INTEC MALAYSIA SDN. BHD. (Malaysia) was changed from “Southeast Asia” to “Asia Pacific,” and the performance of SHINWA (INDIA) ENGINEERING & TRADING PRIVATE LIMITED (India) is included in this “Asia Pacific” segment from the fiscal year ended August 31, 2025. Segment information presented for the fiscal year ended August 31, 2024 is prepared based on the presentation method after the change. (Per share information) For the fiscal year ended August 31, 2024 For the fiscal year ended August 31, 2025 Net assets per share ¥3,097.50 ¥3,243.38 Basic earnings per share ¥203.93 ¥247.22 (Notes) 1. Diluted earnings per share is not stated as there are no dilutive shares. 2. The basis for calculating basic earnings per share is as follows: For the fiscal year ended August 31, 2024 For the fiscal year ended August 31, 2025 Profit attributable to owners of parent (Thousands of yen) 2,729,798 3,312,345 Amount not attributable to common shareholders (Thousands of yen) – – Profit attributable to owners of parent relating to common shares (Thousands of yen) 2,729,798 3,312,345 Average number of common shares during the period (Shares) 13,385,968 13,398,208 (Significant subsequent events) Not applicable.