KODAMA CHEMICAL INDUSTRY CO.,LTD.

Business Details

Manufactures and sells automotive parts (instrument panels, front grilles, seat parts, door trim, luggage trim, roof, pillar garnish, side mud guards, consoles, oil reservoir tanks, battery trays, etc.). Domestic operations are handled by the Company, while overseas operations are handled by the Thai subsidiary ECHO AUTOPARTS (THAILAND) CO.,LTD. This is the core segment accounting for approximately 70% of consolidated net sales, with the main customer being Hayashi Telempu Corporation (net sales of ¥2,328 million in the fiscal year under review, 14.7% of segment sales composition). Note that from FY2026 (ending March 2026), this segment has been integrated into the Resin Molding Business and the segment classification has been discontinued.

Recent Overview

Corrected misclassification of account items in the balance sheet and cash flow statement in the financial results report

On May 27, 2026, corrections were made to the consolidated balance sheet in the FY2026 (ending March 2026) financial results report (disclosed May 14, 2026) regarding misallocation between account items for tangible fixed assets (buildings and structures, machinery, equipment and vehicles, lease assets, tools, furniture and fixtures) and intangible fixed assets (other). Additionally, "advances received" (¥1,011,644 thousand) and "long-term advances received" (¥432,158 thousand), which had been included in "other" current liabilities and "other" fixed liabilities, were separated and presented as independent line items. There is no impact on the income statement or segment information, and there is no change in total assets, total liabilities, or total net assets. This correction does not affect the actual performance figures of the Mobility Business segment.

Key Products

Growth Drivers

• Increased sales due to growth in production volume of main domestic passenger vehicle models
• Contribution to increased revenue in the domestic automotive division from the start of mass production of new models
• Significant expansion of sales to the main customer, Hayashi Telempu Corporation (from ¥1,115 million in the prior period to ¥2,328 million in the current period)

Risks

• Decrease in overseas sales due to delayed market recovery at the Thai subsidiary ECHO AUTOPARTS (THAILAND) CO.,LTD.
• Risk of order fluctuations due to automaker certification issues and production changes
• Intensifying excessive competition and price competition in the plastic materials field for automotive parts
• Risk of supply chain disruption due to high tariff policies of the Trump administration in the United States
• Difficulty in independently tracking performance following the discontinuation of the segment classification (integrated into the Resin Molding Business) from FY2026 (ending March 2026)
• Issues in the accuracy management system for financial information, as evidenced by the correction of the financial results report (account item misstatement)