TOKYO, May 12 (Pulse News Wire) – OHASHI TECHNICA INC. (7628.T) reported lower-than-estimated operating results for the fiscal year ending March 31, 2026, due to significant challenges faced by its Chinese operations.
The company recorded a consolidated impairment loss of ¥604 million, reflecting the impact of rapid market changes and intense competition in China, leading to substantial production cuts by major clients. In addition, the company revised its previous earnings forecast released on July 15, 2025. According to the latest figures, revenue exceeded initial expectations while operating profit, ordinary profit, and net income saw increases of 3.6%, 24.4%, 23.6%, and 2.7%, respectively. Despite the impairment losses, the firm's robust financial foundation allowed it to maintain its dividend payout plans for the fiscal year-end.
The company attributed the improved performance to strong domestic sales recovery and increased contributions from new orders, coupled with favorable exchange rates. Additionally, cost-cutting measures and productivity improvements across manufacturing units contributed positively to overall profitability. However, the impairment charge of 604 million yen from the Chinese subsidiaries significantly impacted the bottom line. Notably, the impairment charge did not affect cash flow, and the company’s medium-term business plan remains unchanged.
OHASHI TECHNICA continues to anticipate implementing the previously announced final dividend payment for the fiscal year ending March 31, 2026.
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