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Q
Please tell me about your business.
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A
The Company develops, manufactures and sells lead terminals for aluminum electrolytic capacitors, and optical components and devices mainly for submarine cables.
For details, please refer to the
About Us or
Product Information.
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Q
Please tell me about Kohoku Kogyo's history.
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A
Kohoku Kogyo was founded in 1959 as a lead terminal manufacturer, and in 2000 the Company expanded into the optical components and devices business,
where the Company continues to operate today. For more information, please refer to the
Company Information & History.
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Q
Please tell me about your management policy.
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A
The management philosophy is "Practice all-participating-type management respecting rich originality to aim for an only-one company through creation of new values."
For details, please refer to the
Greeting & Philosophy.
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Q
What are Kohoku Kogyo’s lead terminals?
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A
Lead terminals act as an interface when mounting aluminum electrolytic capacitors on electronic circuits.
They are important mechanical components that efficiently supply the electrical energy stored in the capacitor.
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Q
What are Kohoku Kogyo’s optical isolators?
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A
Optical isolators control the direction of the light energy passing through optical fibers.
They are mainly used in submarine cables and are installed in optical repeaters installed every tens of km to 100 km.
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Q
What are the strengths that allow you to maintain such a high market share in both the lead terminal business and the optical components and devices business?
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A
For both of main businesses, the Company has adopted a vertically integrated business model in which all manufacturing processes are carried out within Kohoku Kogyo group.
This enables us to provide a stable supply of high-quality, highly functional products, which are highly evaluated by customers.
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Q
What are the features of the high-purity silica glass that you are commercializing? Also, what is the target market?
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A
Kohoku Kogyo aiming for it to be adopted for new applications that were not possible with the conventional manufacturing method in the semiconductor manufacturing equipment market, etc.
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Q
How is high-purity silica glass different from conventional silica glass?
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A
Since it can be molded in a mold at room temperature, it offers a greater degree of freedom in molding than conventional manufacturing methods, which involve sintering at high temperatures and then shaving. Kohoku Kogyo believes that it can be applied to new applications that were not possible with conventional manufacturing methods.
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Q
How many optical isolators are used when laying submarine cables?
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A
Optical repeaters, which amplify optical energy, are needed every tens of km to 100 km, and optical isolators are installed in these repeaters. This is a simple calculation; for example, if there are 200 repeaters and 48 fibers, the number of isolators would be 200 x 48 = 9,600. A 10,000 km submarine cable requires 100 to 200 repeaters. One or more optical isolators are used for each fiber in each repeater, so the quantity required is obtained by multiplying these quantities. In reality, it depends on the topography of the ocean floor and the number of fibers contained in one submarine cable.
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Q
For example, how many aluminum electrolytic capacitors are used in one electric vehicle?
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A
According to the information from research companies and other sources, the average number of aluminum electrolytic capacitors is 150 to 200 per vehicle. However, it is difficult to get an accurate figure as it varies greatly depending on the specifications of each car model.
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Q
When did Kohoku Kogyo first list its shares?
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A
The Company was listed on the Second Section of the Tokyo Stock Exchange (currently Standard Market) in December 2021.
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Q
Where can I find information on your sustainability initiatives?
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A
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Q
Can I take a tour of your factory?
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A
We are sorry, but factory tours are not available to the general public, as the Company uses self-developed production equipment.
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Q
What is the extent of our production capacity surplus?
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A
Regarding the lead terminal business, the operating rate for the fiscal year ending December 2025 is expected to be around 60% to 70%, indicating sufficient capacity.
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Q
When do we expect to see an increase in sales of high-purity silica glass?
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A
Although current sales are modest, we are receiving numerous inquiries from industries such as semiconductor-related and optical fiber-related sectors, and we aim for sales to gradually increase from 2027.
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Q
What are the features of high-purity silica glass, and when do we expect its sales to increase?
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A
High-purity silica glass has low impurities, excellent heat resistance and shock resistance, and can transmit light across a wide range of wavelengths.
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Q
What are the applications of high-purity silica glass?
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A
It is used in various industrial fields, including semiconductor manufacturing equipment, medical devices, and optical fiber preforms (parent material).
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Q
How are you responding to rising material and crude oil prices?
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A
In addition to promoting cost reduction through improvements in manufacturing processes, in the lead terminal business, we are implementing measures such as entering into agreements with customers to link fluctuations in key material prices to selling prices.
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Q
What percentage of lead terminal business sales are attributable to generative AI servers?
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A
Aluminum electrolytic capacitors are versatile electronic components, and it is difficult to tally their applications, but we estimate that sales for AI servers in 2025 will be very small. We expect sales to increase from 2026 onwards.
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Q
What percentage of the optical components and devices business is dedicated to submarine cables?
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A
Over 90% of the sales from our optical components and devices business are estimated to be for submarine cables.
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Q
What is the market share for the lead terminal business and the optical components and devices business, respectively?
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A
The global market share for the lead terminal business is estimated to be approximately 60%, and for optical isolators for submarine cables, a flagship product of the optical components and devices business, it is estimated to be approximately 50%.
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Q
What capital investments are planned for the future?
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A
We plan to invest 7.9 billion yen in capital expenditures over three years from 2026 to 2028. This includes expanding production capacity in our two main businesses, renovating production facilities, and constructing a new base in Maibara City, Shiga Prefecture.
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Q
What is the current sales revenue for the PLZT devices under development, and what are the future projections?
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A
PLZT devices are currently in the sample shipment stage for research departments, etc., and sales are very small. Regarding future sales, as it is still in the research stage, there are no clear sales targets at this time. We are proceeding with development with the goal of sample shipments of PLZT devices in 2028.
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Q
Why is the lead terminal business less profitable than the optical components and devices business?
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A
Compared to the optical components and devices business, the lead terminal business has many competitors, especially in the consumer electronics market, and price competition is intense.
The Company is working to improve profit structure by increasing added value through the development of new products and improving the efficiency of production and transaction formats.
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Q
How do you manage the risk of fluctuations in raw material prices?
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A
In the lead terminal business, which is easily affected by raw material price fluctuations, Kohoku Kogyo has introduced a "Price sliding system" to reflect raw material prices in selling prices.
The Company asks customers to pass on fluctuations in the prices of key raw materials to selling prices.
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Q
What kind of capital investments do you plan to make in the future?
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A
Kohoku Kogyo plans to invest 6.6 billion yen over the next three years through 2026 in two main businesses, including expansion of production capacity, future expansion of production capacity, renewal of production facilities, and renewal of buildings such as production facilities, etc.
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Q
Where can I find details about recent financial results?
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A
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Q
Is it possible to achieve your performance forecast under the current circumstances? Is there any possibility that it will be revised?
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A
The forecast is based on interview surveys with customers, new product development status, facility operation status, and other information.
However, the results may differ from the forecasts due to changes in the market supply and demand situation, competitive environment, exchange rate trends, and other various conditions.
That possibility is unforeseeable. If it becomes necessary to revise the performance forecast, the Company will announce it promptly.
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Q
Please tell me the sales ratio of products by application.
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A
Aluminum electrolytic capacitors are basically general-purpose, and it is difficult to accurately classify sales by application, but about half are thought to be for the automotive market.
For specific ratios, please refer to the
latest financial results materials.
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Q
You seem to be aiming for a listing on the TSE Prime Market; when do you expect to be listed?
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A
Preparations are underway with the fiscal year ending December 2025 as the base period, but this is undecided as it depends on the progress of preparations and the examination schedule.
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Q
Where can I find information on business performance trends and factors influencing performance fluctuations?
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A
In addition to being described in the "Overview of Business Results" section of the financial statements, we strive to explain it as detailed as possible in the "Financial Results Materials" issued quarterly.
