Riken Corporation Business Report FY ended Mar. 2020
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 84,530 | 90,366 | (6.5) | -Sales fell due to lower new-vehicle production in Asia and the rest of the world. |
| Operating income | 5,234 | 6,924 | (24.4) | -Even though the Company worked to rationalize operations and cut labor and general expenses, profit was lower due to a decrease in sales and negative currency translation. |
| Ordinary income | 5,964 | 7,860 | (24.1) | |
| Profit for the year attributable to owners of the parent | 3,517 | 4,979 | (29.4) | |
R&D Activities
-R&D expenses in the fiscal year that ended in March 2020 were JPY 1,985 million yen which were spent on the following activities.
1) Automotive and Industrial Equipment Business
- Development of low-cost piston rings for long-life gasoline engines that are environmentally friendly.
- Development of low-cost piston rings for long-life, low-friction diesel engines in response to environmental concerns.
- Development of low-friction, automotive and industrial-equipment sealing parts that improve fuel efficiency.
- Development of light-weight, low-friction, highly durable automotive and industrial-equipment valves.
- Development of surface-treatment technology that offers excellent performance in terms of sliding and durability.
2) Others
- Development of light-weight parts for electric vehicles
- Development of radio-wave absorbent sheets for millimeter wave radar.
Technology licensing-out Agreement |
(As of Mar. 31, 2020) |
| Company | Contract date | Details of Agreement | Length of Agreement | |
| Country | Name | |||
| Taiwan | Taiwan Riken Ind. Co., Ltd. | 2018.1.1 | Production methods for manufacturing piston rings, cylinder liners, blocks, camshafts, knuckles, and various forged products. | 3 years |
| Thailand | Siam Riken Ind. Co., Ltd. | 2015.1.18 | Production methods for manufacturing piston rings | 10 years |
| Indonesia | P.T. Pakarti Riken Indonesia | 2016.1.1 | Production methods for manufacturing pipe fittings and forged automotive parts | 5 years |
| India | Shriram Pistons & Rings Ltd. | 2014.3.1 | Production methods for manufacturing piston rings | 7 years |
| USA | Grede Holdings LLC | 2019.1.7 | Production methods for manufacturing forged parts | 5 years |
| Korea | Korea Piston Ring Inc. | 2015.3.1 | Production methods for manufacturing piston rings | 6 years |
| China | Xiamen Riken Ind. Co., Ltd. | 2013.7.1 | Production methods for manufacturing piston rings | 10 years |
| China | Xiamen Riken Ind. Co., Ltd. | 2013.7.1 | Production methods for manufacturing cam shafts | 10 years |
| China | Riken Automobile Parts (Wuhan) Co., Ltd. | 2015.3.1 | Production methods for manufacturing piston rings, sealing rings, valves, and other forged parts | 6 years |
| China | Riken Sealing Parts (Wuhan) Co., Ltd. | 2015.7.1 | Production methods for manufacturing sealing rings | 6 years |
| China | Nanjing Feiyan Piston Ring Co., Ltd. | 2019.11.1 | Production methods for manufacturing piston rings | 10 years |
| Mexico | Riken Mexico, S.A. De C.V. | 2013.9.1 | Production methods for manufacturing valve lifters | Until August 31, 2023 |
| Mexico | Riken Mexico, S.A. De C.V. | 2014.7.1 | Production methods for manufacturing sealing rings | Until August 31, 2023 |
| Mexico | Riken Mexico, S.A. De C.V. | 2015.9.1 | Production methods for manufacturing piston rings | Until August 31, 2023 |
Joint Venture Agreement |
(As of Mar. 31, 2020) |
| Country | Name of Joint Venture | Percentage of shareholding | Date of Agreement | Details |
| Taiwan | Taiwan Riken Ind. Co., Ltd. | 50％ | 1966.12.15 | Sale and manufacture of automotive parts |
| Thailand | Siam Riken Ind. Co., Ltd. | 49％ | 2015.２.25 | Sale and manufacture of automotive parts |
| Indonesia | P.T. Pakarti Riken Indonesia | 40％ | 1975.８.22 | Sale and manufacture of automotive parts |
| China | Riken Automobile Parts (Wuhan) Co., Ltd. | 60％ | 2015.12.08 | Manufacture and sale of automotive parts |
Capital Expenditure
-The Company spent JPY 7,073 million for capital investments (including intangible fixed assets) in the fiscal year that ended in March 2020, in order to install equipment to ensure that the same level of high quality is consistent in the world, to increase and streamline production operations, and maintain and strengthen R&D functions. The Company spent JPY 6,988 million alone in the automotive and industrial-equipment business, for example, to install machining and surface treatment facilities and to install machining equipment at subsidiaries in China and Mexico. The Company is planning to spend the following on capital investments in the fiscal year ending in March 2021.
| Company Name | Business segment and location | Details of spending | Budgeted amount (in millions of JPY) |
| Riken | Kashiwazaki Plant (Niigata Pref.) | Facilities to manufacture piston rings, automotive parts | 1,416 |
| Kumagaya Plant (Saitama Pref.) | Facilities to manufacture automotive parts | 1,382 | |
| P.T. Pakarti Riken Indonesia | Main Plant (Sidoarjo, Indonesia) | Facilities to manufacture automotive parts | 684 |