MANAC Chemical Partners Co.,Ltd

Business Details

Centered on bromination and iodination technology, this segment manufactures and sells pharmaceutical intermediates, semiconductor-related products, electronic materials intermediates, and other functional materials such as industrial chemicals, in a low-volume, high-mix production model. The covered entities include Manac Inc. (a 100%-consolidated subsidiary) and Kinkai Chemical Co., Ltd. (Setouchi City, Okayama Prefecture), newly made a consolidated subsidiary as of March 31, 2026. The segment provides high-value-added products to customers in the pharmaceutical, high-tech, semiconductor, and information-related fields, and drives earnings for the group as a whole.

Recent Overview

Large-scale pharmaceutical projects and spot orders drove significant increases in both revenue and profit

In the Fine Chemicals Business for FY2026 (ending March 2026), the steady ramp-up of large-scale pharmaceutical projects and sales from large spot orders, along with progress in new development items such as semiconductor-related products, drove substantial increases in both revenue and profit: revenue of ¥5,032 million (up ¥1,098 million, or 27.9%, year on year) and segment profit of ¥1,211 million (up ¥608 million, or 100.9%, year on year). In addition, Kinkai Chemical Co., Ltd. was made a consolidated subsidiary as of March 31, 2026, incorporating equipment and technical capabilities in the contract bromine compound manufacturing and resin additives fields. At Manac Inc.'s Fukuyama Plant, a new office building was completed, and installation of a trace metal analysis system is underway.

Key Products

Growth Drivers

• Continued steady ramp-up of large-scale projects in the pharmaceutical field and acquisition of large spot orders
• Progress in new development items for semiconductor-related products (centered on iodine compounds) and expansion of contract development
• Creation of group-wide collaboration and synergies through the consolidation of Kinkai Chemical Co., Ltd. as a subsidiary
• Acceleration of new product development for next-generation semiconductors through installation of a trace metal analysis system at Manac Inc.'s Fukuyama Plant
• Continued progress in new item development and strengthening of the framework for securing contract manufacturing products

Risks

• Risk of rising manufacturing costs due to soaring prices of raw materials, fuel/energy, and equipment/materials
• Uncertainty in demand due to fluctuations in the semiconductor and electronic materials market
• Impact on overseas sales from geopolitical risks such as the situation in the Middle East and foreign exchange fluctuations
• Volatility in results due to the temporary contribution of large spot orders
• Risk of impairment of goodwill or goodwill-equivalent assets and integration costs associated with the integration and collaboration with Kinkai Chemical Co., Ltd.