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. January 13, 2026 Consolidated Financial Results for the Three Months Ended November 30, 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: Tsuyoshi Kawai General manager Telephone: +81-52-796-2533 Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: None Holding of financial results briefing: None (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the three months ended November 30, 2025 (from September 1, 2025 to November 30, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % November 30, 2025 19,720 2.3 1,082 27.5 1,175 19.0 811 27.4 November 30, 2024 19,269 13.4 848 58.9 988 33.7 636 30.6 Note: Comprehensive income For the three months ended November 30, 2025: ¥ 1,553 million [ 453.4%] For the three months ended November 30, 2024: ¥ 280 million [ (62.1) %] Basic earnings per share Diluted earnings per share Three months ended Yen Yen November 30, 2025 60.52 - November 30, 2024 47.56 - (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % November 30, 2025 73,467 44,251 60.0 August 31, 2025 74,409 43,609 58.4 Reference: Equity As of November 30, 2025: ¥ 44,102 million As of August 31, 2025: ¥ 43,466 million
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2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended - 56.00 - 68.00 124.00 August 31, 2025 Fiscal year ending - August 31, 2026 Fiscal year ending August 31, 2026 (Forecast) 62.00 - 62.00 124.00 Note: Revisions to the forecast of cash dividends most recently announced: None 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 Note: Revisions to the financial result forecast most recently announced: None * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting 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 reasons: 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 November 30, 2025 13,815,319 shares As of August 31, 2025 13,815,319 shares (ii) Number of treasury shares at the end of the period As of November 30, 2025 413,741 shares As of August 31, 2025 413,755 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended November 30, 2025 13,401,528 shares Three months ended November 30, 2024 13,389,491 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
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* 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 3 of “Attachments”, "Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information"
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 1 Table of Contents - Attachments 1. Qualitative Information on Quarterly Financial Results ........................................................................ 2 (1) Explanation of Operating Results....................................................................................................... 2 (2) Explanation of Financial Position ...................................................................................................... 3 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .. 3 2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................ 4 (1) Quarterly Consolidated Balance Sheets ............................................................................................. 4 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................... 6 Quarterly Consolidated Statement of Income ....................................................................................... 6 For the three months ended November 30, 2024 and 2025 ............................................................... 6 Quarterly Consolidated Statement of Comprehensive Income ............................................................. 7 For the three months ended November 30, 2024 and 2025 ............................................................... 7 (3) Notes to Quarterly Consolidated Financial Statements ...................................................................... 8 (Notes on segment information, etc.) .................................................................................................... 8 (Notes in case of significant changes in shareholders’ equity) .............................................................. 9 (Notes on going concern assumption) ................................................................................................... 9 (Notes on statements of cash flows) .................................................................................................... 10
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 2 1. Qualitative Information on Quarterly Financial Results (1) Explanation of Operating Results During the three months ended November 30, 2025, the Japanese economy showed a gradual recovery trend mainly due to improvements in personal income and the employment environment driven by a recovery in corporate earnings performance. However, the outlook remains uncertain due to concerns over developments in the U.S. trade policies, rising instability in the international situation led by the prolonged geopolitical risks, sluggish individual consumption due to price hikes. Under these circumstances, among the automotive-related companies, which are the primary users of the Group’s products, the automobile production volume has been on the recovery track worldwide; however, uncertainty persists mainly due to concerns over an economic slowdown caused by the impact of the U.S. trade policies. In this environment, the Group steadily has implemented the key strategies of the 4th Medium-term Management Plan “Change! Shinwa Moving Forward 2026,” without slowing the momentum of the vision of “Challenge Toward Reform and Sustainable Growth.” As a result, for the three months ended November 30, 2025, the Group posted net sales of ¥19,720 million (up 2.3% year on year), ordinary profit of ¥1,175 million (up 19.0% year on year), and profit attributable to owners of parent of ¥811 million (up 27.4% year on 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 strong. In addition, sales in the factory automation-related business, including autonomous mobile robots (AMR), remained solid. As a result of the foregoing and other factors, net sales amounted to ¥17,036 million (up 3.7% year on year), and segment profit amounted to ¥694 million (up 42.9% year on year). 2) Americas While sales of materials and consumable supplies for Japanese automobile manufacturers remained solid, due to a decline in and postponement of projects, as well as the impact of the U.S tariff policies, performance was affected. As a result, net sales amounted to ¥2,167 million (down 16.5% year on year), and segment profit amounted to ¥36 million (down 81.2% year on year). 3) Asia Pacific Sales of production equipment and materials for Japanese automobile manufacturers and automotive components manufacturers, and Japanese air-conditioning equipment manufacturers in Thailand and India remained solid. As a result, net sales amounted to ¥1,326 million (up 12.3% year on year), and segment profit amounted to ¥212 million (up 19.9% year on year). 4) China The segment was affected by the sluggish Chinese economy and a reduction in capital investment by Japanese automobile manufacturers amid intensifying competition with local competitors. As a result of the foregoing and other factors, net sales amounted to ¥602 million (down 18.8% year on year), and segment loss amounted to ¥12 million (segment loss of ¥34 million in the corresponding period of the previous fiscal year). 5) Other The segment recorded sales of production equipment and materials for Japanese air-conditioning equipment manufacturers. As a result, net sales amounted to ¥325 million (up 58.9% year on year), and segment profit amounted to ¥32 million (up 474.6% year on year). Net sales by reportable segment are presented inclusive of intersegment net sales.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 3 (2) Explanation of Financial Position Total assets at the end of the first quarter under review amounted to ¥73,467 million, a decrease of ¥941 million compared to the end of the previous fiscal year. Current assets decreased by ¥1,117 million from the end of the previous fiscal year to ¥61,172 million. This was mainly due to a decrease of ¥3,074 million in cash and deposits, a decrease of ¥190 million in accounts receivable - trade, and a decrease of ¥97 million in work in process, despite an increase of ¥865 million in electronically recorded monetary claims - operating, an increase of ¥1,218 million in merchandise and finished goods, and an increase of ¥157 million in other under current assets, mainly due to an increase in advance payments to suppliers. Non-current assets increased by ¥176 million from the end of the previous fiscal year to ¥12,294 million. This was mainly due to an increase of ¥168 million in investment securities under investments and other assets, despite a decrease of ¥33 million in buildings and structures under property, plant and equipment and a decrease of ¥35 million in other under intangible assets. Current liabilities decreased by ¥1,599 million from the end of the previous fiscal year to ¥27,297 million. This was mainly due to a decrease of ¥2,017 million in notes and accounts payable - trade, a decrease of ¥80 million in electronically recorded obligations - operating, and a decrease of ¥453 million in income taxes payable, despite an increase of ¥848 million in contract liabilities, and an increase of ¥353 million in other under current liabilities, mainly due to an increase in accrued expenses, etc. Non-current liabilities increased by ¥15 million from the end of the previous fiscal year to ¥1,918 million. Total net assets increased by ¥642 million from the end of the previous fiscal year to ¥44,251 million. As a result, the capital adequacy ratio increased by 1.6 points from 58.4% at the end of the previous fiscal year to 60.0%. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information The consolidated financial results forecast for the fiscal year ending August 31, 2026 remains unchanged from the financial results forecast announced on October 14, 2025.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 4 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly Consolidated Balance Sheets (Thousands of yen) As of August 31, 2025 As of November 30, 2025 Assets Current assets Cash and deposits 29,636,513 26,562,505 Notes receivable - trade 31,974 34,078 Accounts receivable - trade 11,300,962 11,110,075 Electronically recorded monetary claims - operating 4,594,786 5,459,920 Merchandise and finished goods 10,698,585 11,917,184 Work in process 2,083,750 1,985,983 Raw materials and supplies 665,029 667,282 Other 3,281,122 3,438,383 Allowance for doubtful accounts (2,329) (2,564) Total current assets 62,290,395 61,172,850 Non-current assets Property, plant and equipment Buildings and structures, net 3,039,757 3,006,082 Other, net 5,213,757 5,275,020 Total property, plant and equipment 8,253,514 8,281,103 Intangible assets Goodwill 14,700 13,650 Other 681,577 646,203 Total intangible assets 696,277 659,853 Investments and other assets Investment securities 2,680,182 2,848,215 Other 489,771 506,583 Allowance for doubtful accounts (900) (900) Total investments and other assets 3,169,053 3,353,898 Total non-current assets 12,118,845 12,294,855 Total assets 74,409,241 73,467,706 Liabilities Current liabilities Notes and accounts payable - trade 14,310,600 12,293,277 Electronically recorded obligations - operating 4,566,144 4,485,959 Income taxes payable 917,952 464,853 Contract liabilities 7,206,437 8,054,609 Provisions 450,219 199,837 Other 1,446,175 1,799,283 Total current liabilities 28,897,530 27,297,822 Non-current liabilities Retirement benefit liability 67,881 71,210 Other 1,834,512 1,847,019 Total non-current liabilities 1,902,394 1,918,230 Total liabilities 30,799,924 29,216,052
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 5 (Thousands of yen) As of August 31, 2025 As of November 30, 2025 Net assets Shareholders' equity Share capital 951,106 951,106 Capital surplus 1,310,712 1,310,926 Retained earnings 38,761,751 38,661,546 Treasury shares (311,706) (311,893) Total shareholders' equity 40,711,863 40,611,685 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,093,627 1,207,577 Revaluation reserve for land (646,954) (646,954) Foreign currency translation adjustment 2,307,825 2,930,121 Total accumulated other comprehensive income 2,754,499 3,490,744 Non-controlling interests 142,953 149,224 Total net assets 43,609,317 44,251,653 Total liabilities and net assets 74,409,241 73,467,706
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 6 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income For the three months ended November 30, 2024 and 2025 (Thousands of yen) For the three months ended November 30, 2024 For the three months ended November 30, 2025 Net sales 19,269,687 19,720,943 Cost of sales 16,175,496 16,335,074 Gross profit 3,094,190 3,385,869 Selling, general and administrative expenses 2,245,603 2,303,759 Operating profit 848,586 1,082,109 Non-operating income Interest income 18,162 27,224 Dividend income 6,476 7,286 Foreign exchange gains 50,354 24,112 Rental income 8,789 10,286 Other 58,749 25,610 Total non-operating income 142,531 94,520 Non-operating expenses Interest expenses 381 353 Other 2,451 466 Total non-operating expenses 2,833 819 Ordinary profit 988,284 1,175,810 Extraordinary income Gain on sale of non-current assets 1,593 - Total extraordinary income 1,593 - Extraordinary losses Loss on sale and retirement of non-current assets 3,877 2,350 Total extraordinary losses 3,877 2,350 Profit before income taxes 985,999 1,173,460 Income taxes - current 406,232 392,495 Income taxes - deferred (57,728) (31,480) Total income taxes 348,503 361,014 Profit 637,496 812,445 Profit attributable to non-controlling interests 667 1,344 Profit attributable to owners of parent 636,829 811,101
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 7 Quarterly Consolidated Statement of Comprehensive Income For the three months ended November 30, 2024 and 2025 (Thousands of yen) For the three months ended November 30, 2024 For the three months ended November 30, 2025 Profit 637,496 812,445 Other comprehensive income Valuation difference on available-for-sale securities (18,052) 113,949 Deferred gains or losses on hedges (11,394) - Foreign currency translation adjustment (327,316) 627,221 Total other comprehensive income (356,763) 741,171 Comprehensive income 280,732 1,553,616 Comprehensive income attributable to Comprehensive income attributable to owners of parent 291,098 1,547,346 Comprehensive income attributable to non-controlling interests (10,365) 6,270
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 8 (3) Notes to Quarterly Consolidated Financial Statements (Notes on segment information, etc.) [Segment information] I For the three months ended November 30, 2024 (from September 1, 2024 to November 30, 2024) 1. Information on net sales and income (loss) by reportable segment (Thousands of yen) Reportable segments Other (Note) Total Japan Americas Asia Pacific China Total Net sales Net sales to external customers 15,088,704 2,286,117 1,164,289 583,740 19,122,851 146,835 19,269,687 Intersegment net sales or transfers 1,344,884 309,697 16,596 158,807 1,829,985 58,157 1,888,143 Total 16,433,588 2,595,815 1,180,885 742,547 20,952,837 204,993 21,157,830 Segment profit (loss) 486,093 195,977 177,128 (34,188) 825,011 5,613 830,624 (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 of income (loss) in reportable segments and the amount recorded in Quarterly Consolidated Statement of Income, and main components of the difference (Matters related to difference adjustment) (Thousands of yen) Income Amount Reportable segments total 830,624 Elimination of intersegment transfers 143,940 Unrealized gain adjustment (125,978) Operating profit in Quarterly Consolidated Statement of Income 848,586
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 9 II For the three months ended November 30, 2025 (from September 1, 2025 to November 30, 2025) 1. Information on net sales and income (loss) by reportable segment (Thousands of yen) Reportable segments Other (Note) Total Japan Americas Asia Pacific China Total Net sales Net sales to external customers 15,961,129 1,893,374 1,273,937 456,198 19,584,640 136,303 19,720,943 Intersegment net sales or transfers 1,075,168 274,031 52,226 146,589 1,548,015 189,403 1,737,418 Total 17,036,298 2,167,405 1,326,163 602,787 21,132,655 325,706 21,458,361 Segment profit (loss) 694,666 36,850 212,369 (12,784) 931,101 32,255 963,357 (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 of income (loss) in reportable segments and the amount recorded in Quarterly Consolidated Statement of Income, and main components of the difference (Matters related to difference adjustment) (Thousands of yen) Income Amount Reportable segments total 963,357 Elimination of intersegment transfers 92,283 Unrealized gain adjustment 26,469 Operating profit in Quarterly Consolidated Statement of Income 1,082,109 (Notes in case of significant changes in shareholders’ equity) Not applicable. (Notes on going concern assumption) Not applicable.
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Shinwa Co., Ltd. (7607) Consolidated Financial Results for the Nine Months Ended May 31, 2025 10 (Notes on statements of cash flows) No quarterly consolidated statements of cash flows have been prepared for the three months ended November 30, 2024 and 2025. Depreciation (including amortization of intangible assets, excluding goodwill) and amortization of goodwill for the three months ended November 30, 2024 and 2025 are as follows: (Thousands of yen) For the three months ended November 30, 2024 For the three months ended November 30, 2025 Depreciation 259,417 286,154 Amortization of goodwill 1,050 1,050