Showa Denko Materials Co., Ltd. (Formerly Hitachi Chemical Co., Ltd.) Business Report FY ended Mar. 2020
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | Rate of Change (%) |
Factors | |
| Revenue | 631,433 | 681,025 | (7.3) | -Besides revenue being impacted by the sluggish semiconductor and automotive markets, revenue was further impacted by the coronavirus pandemic that caused a reduction in production activities by corporations, severely affecting the automotive industry. |
| Income | 23,126 | 36,353 | (36.4) | -While continuous cost-cutting activities helped to improve profitability, income fell because of a significant decrease in revenue. |
| Income before income taxes | 23,960 | 40,500 | (40.8) | - |
| Net income | 16,553 | 29,451 | (43.8) | - |
| Net income attributable to owners of the parent | 16,401 | 28,723 | (42.9) | - |
Restructuring
-Hitachi Chemical Co., Ltd. (Hitachi Chemical) announced that its three resin material businesses (expanded polyethylene, thermosetting resin for forming, and fiber reinforced plastics) will be spun off and transferred to its wholly owned subsidiary, Hitachi Chemical Techno Service Co., Ltd. (Hitachi City, Ibaraki Prefecture). Currently, Hitachi Chemical is in charge of the business planning and sales of these businesses, and the subsidiary is in charge of development and production. Hitachi Kasei decided to abolish the division of roles, which makes it difficult to share information swiftly and make decisions. The date of transfer will be April 1. (From an article in the Nikkan Jidosha Shimbun on January 31, 2020)
Business outside Japan
-Hitachi Chemical Company, Ltd. (Hitachi Chemical) announced that it will establish a new consolidated subsidiary in Thailand and to transfer the automotive lead-acid battery business of Hitachi Chemical Asia (Thailand) Co., Ltd. to the new subsidiary for the purpose of reorganizing and integrating lead-acid battery business in Southeast Asia. In addition, the new subsidiary is planning to merge with Hitachi Chemical Storage Battery (Thailand) PLC. to utilize its management assets and operate its businesses more efficiently. Provisionally, the subsidiary will be named Hitachi Chemical Gateway Battery (Thailand) Co., Ltd. with a capital of THB 584 million (approximately JPY 1,927 million) and number of employee will be about 180. It will be established in November 2019 and inception of business will be April 1, 2019. (From a press release on October 25, 2019)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | |
| Overall | 32,200 | 32,600 | 30,800 |
| -Functional Materials | 19,000 | 21,800 | 21,300 |
| -Advanced Components and Systems | 13,200 | 10,800 | 9,500 |
Technology Licensing-out Agreement |
(As of Mar. 31, 2020) |
| Company | Other company | Contract Details | Period |
| The Company | Hung-A Forming Co., Ltd. (Korea) | Approval to use technology that involves rear door modules (except for the inner panels) | Mar. 11, 2013 - Sep. 30, 2029 (The contract is scheduled to automatically renew every year after the initial period ends.) |
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | |
| Overall | 49,700 | 52,500 | 42,600 |
| -Functional Materials | 15,600 | 20,500 | 16,800 |
| -Advanced Components and Systems | 34,100 | 32,000 | 25,800 |