Based on our vision of being the next-generation engineering trading firm, we will strive to demonstrate our corporate purpose.
I would like to express my sincere appreciation to our stakeholders for their continued support.
With the closing of our accounts for the second quarter of our 101st fiscal year (from April 1, 2023 to September 30, 2023), I am pleased to report our business results and other matters to those who support us on a daily basis.
During the second quarter under review, the Japanese economy has experienced a trend of moderate recovery due to a variety of factors, including the easing of restrictions on the supply of semiconductors and other components, progress in the price pass-through of costs increases caused by the weaker yen and soaring raw materials costs, and the recovery of inbound demand as economic conditions returned to normal.
Nevertheless, caution was still necessary regarding the outlook for business conditions against a backdrop of various volatile circumstances. These included a slowdown in the global economy due to monetary tightening in Europe and the United States and the delay in the recovery of China’s economy, a decline in demand and an increase in costs due to further inflation, and concerns about the growing severity of labour shortages.
Under these circumstances, net sales and profit attributable to owners of parent recorded a year-on-year increase in the second quarter. Gross profit also reached a record high for the first half of the fiscal year.
Orders received have also remained strong and on a good trajectory toward our full-year target.
For the major segments, in the Plant & Energy Business, we made active approaches regarding plant projects, focusing mainly on petrochemical-related customers, while strengthening our engineering function in cooperation with Wave Engineering Corporation, which became a group company on July 31, 2023.
In the Energy Solutions Business, we are working on large investment projects in the Americas. Our business activities in this field have been very well received, including being selected as one of the Top 10 Battery Manufacturing Solutions Companies in the Asia and Pacific region by a U.S. business magazine.
In the Electronics Business, we established the Electronics Laboratory for the purpose of the research and development of cutting-edge and next-generation technologies and the broad dissemination of the Company’s comprehensive proposal capabilities.
In terms of overseas business by region, in the United States, we opened the Kentucky Office (Kentucky) and Austin Office (Texas) in July 2023, against the backdrop of strong performances in the electric vehicle- and LIBs-related businesses. In the Asian region, the motorcycle market, including EV motorcycles, has been particularly strong in India, and we expect this market to continue to grow.
Going forward, we will strive for greater sophistication of risk management and to increase profits, while expanding our business globally.
With our mission of “Connecting People, Connecting Technology and Enriching the World” and our vision of being the next-generation engineering trading firm under our corporate philosophy, we will continue in our efforts to demonstrate our corporate purpose as we strive to enhance the value we offer our customers and to realize a sustainable society.
I hope that our stakeholders will continue to hold expectations for and extend support to DJK.
November 2023
