Management

I would like to express my sincere appreciation to all of our shareholders and investors for your ongoing invaluable support.

In the first half of fiscal year 2023, the business environment remained uncertain with the concern over the slower growth of the global economy due to soaring prices and the prolonged situation in Ukraine, while the impact of COVID-19 subsided. Under these environment, KH Neochem Group has been working on “Driving Sustainable Management” to achieve both a contribution to a sustainable society through its business and KH Neochem’s sustainable improvement in corporate value in the 4th Medium-Term Business Plan for three years began in 2022.

With regard to KH Neochem Group’s consolidated results for the first half of this fiscal year, sales volume recovered compared to the same period of the previous fiscal year with large-scale periodic maintenance and production troubles, etc., also price pass-through of costs was also steadily promoted. On the other hand, earnings declined due to a lack of strength in demand as a whole and a large impact from high-cost inventories in the previous fiscal year. By domain, performance materials, sales volume of refrigeration lubricant raw materials which is our main business increased, but the results were lower than initially expected due to the continued stagnation of the Chinese real estate market and inventory adjustments of refrigeration lubricant. In electronics materials, sales volume decreased, including group company Kurogane Kasei Co., Ltd., due to a weak trend in semiconductor-related demand.

Although the demand trends are severe in the short term, KH Neochem Group will realize sustainable growth by accurately ascertaining market trends based on “safe, secure, and trustworthy” and further promoting “Sustainable Management.”

To all of our shareholders and investors, thank you very much for your continued support.

September, 2023
President and CEO
Michio Takahashi