Central Glass Co.,Ltd.

Business Details

From FY2026 (ending March 2026), the former Chemical Products Business was split and reorganized into three segments: Electronic Materials Business, Energy Materials Business, and Life & Healthcare Business. Electronic Materials handles specialty gases for semiconductors, Energy Materials handles electrolyte for lithium-ion batteries, and Life & Healthcare handles medical chemicals, material chemicals, and fertilizer. Combined sales of the 3 segments totaled ¥79,296 million, accounting for approximately 54.9% of consolidated net sales.

Recent Overview

Former Chemical Products Business reorganized into 3 segments; Electronic Materials strong while Energy Materials losses widen

From FY2026 (ending March 2026), the segments were reorganized into 4 categories to enhance information disclosure. The Electronic Materials Business performed well, with sales up 8.1% year on year to ¥26,202 million, driven by rising demand for AI-related semiconductors. On the other hand, the Energy Materials Business saw sales decline 19.5% year on year to ¥12,070 million due to a decrease in sales of electrolyte for lithium-ion batteries amid intensifying competition, with operating loss widening to ¥3,264 million. The Life & Healthcare Business saw sales decrease 2.9% year on year to ¥41,024 million, but operating profit improved by ¥220 million year on year to ¥6,170 million due to the effects of fixed cost reductions and withdrawal from unprofitable businesses.

Key Products

Growth Drivers

• Continued increase in sales of specialty gases for semiconductors (Electronic Materials) driven by expanding demand for AI and advanced semiconductors
• Recovery in sales of electrolyte for lithium-ion batteries driven by expansion of mass production scale for new customers (outlook for FY2027 (ending March 2027))
• Maintaining sales through price pass-through for fertilizer (coated fertilizer) reflecting rising raw material costs
• Improvement in the profit structure of the Life & Healthcare Business through fixed cost reductions and withdrawal from unprofitable businesses (such as the PAC business)
• Strengthened R&D investment toward expansion of specialty products based on the Medium-Term Management Plan (FY2025-2030) (R&D expenses of ¥7,659 million, up 3.6% year on year)

Risks

• Risk of price declines and market share loss in electrolyte for lithium-ion batteries due to intensifying competition (continued losses in the Energy Materials Business)
• Risk of profit margin pressure across all segments due to soaring raw material and fuel prices stemming from the situation in the Middle East
• Risk of declining selling prices for overseas medical chemicals (anesthesia APIs) due to sluggish exports and foreign exchange effects
• Risk of profit margin pressure in the Electronic Materials Business due to rising raw material costs and other cost increases
• Risk of deteriorating export environment due to geopolitical risks (Middle East, Ukraine conflict) and US tariff policy
• Risk of continued sluggish demand for functional material products within Material Chemicals