Securities Report - 57th Fiscal Period (2025/04/01 - 2026/03/31)

Shirai Electronic Industry Co., Ltd. Securities Report - 57th Fiscal Period (2025/04/01 - 2026/03/31)

Pursuant to the Financial Instruments and Exchange Act, Shirai Electronic Industry Co., Ltd. hereby submits its securities report for the 57th fiscal period (from April 1, 2025 to March 31, 2026). This report is intended to support investors' informed decision-making by disclosing information on the company's financial performance, financial position, management policies, risk factors, and future outlook.

The company's core business involves the design, manufacturing, and sales of electronic components and semiconductor-related equipment. It supplies high-reliability, high-precision components to electronics manufacturers worldwide, with applications in automotive, industrial machinery, medical devices, and telecommunications equipment. In recent years, growing demand for IoT, AI, and electric vehicles (EVs) has driven increased demand for sensors and power devices, prompting the company to accelerate product development in these areas.

For the 57th fiscal period, the company forecasts a 5.2% year-on-year increase in net sales to JPY 32.8 billion, operating profit up 7.8% to JPY 3.8 billion, and net profit up 6.5% to JPY 2.9 billion. These projections are supported by steady demand for core products, new customer acquisition, and improved production efficiency. Research and development expenses are expected to increase by 12.0% year-on-year to JPY 2.1 billion, reflecting focused investment in next-generation technologies.

Under its medium-term management plan "Vision 2027," the company aims to achieve JPY 40 billion in sales and an operating profit margin of over 12% by fiscal year 2027. To achieve this, the company is prioritizing overseas market expansion, production automation, and sustainability initiatives. In particular, it plans to strengthen its presence in Southeast Asia and North America through the establishment of local subsidiaries and enhancement of sales networks.

From an environmental, social, and governance (ESG) perspective, the company has set a target to reduce CO2 emissions by 40% by 2030 compared to 2019 levels. This includes introducing renewable energy at manufacturing sites and upgrading to energy-efficient equipment. The company is also committed to human rights and improved labor conditions across its supply chain, promoting sustainable procurement in collaboration with suppliers.

Moving forward, the company will continue to pursue technological innovation and quality excellence to enhance customer value and achieve sustainable growth.