MENU
←　Investor Relations

FAQ

Frequently Asked Questions
Updated on April 14, 2026

The Company profile and business overview

Q
Please tell me about your business.
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.
Q
Please tell me about Kohoku Kogyo's history.
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.
Q
Please tell me about your management policy.
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.
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?
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.
Q
When did Kohoku Kogyo first list its shares?
A
The Company was listed on the Second Section of the Tokyo Stock Exchange (currently Standard Market) in December 2021.
Q
Where can I find information on your sustainability initiatives?
A
For sustainability initiatives, please refer to the Non-financial Activities.
Q
Can I take a tour of your factory?
A
We are sorry, but factory tours are not available to the general public, as the Company uses self-developed production equipment.
Q
You seem to be aiming for a listing on the TSE Prime Market; when do you expect to be listed?
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.
Q
Where can I find information on business performance trends and factors influencing performance fluctuations?
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.

Financial statements and business performance

Q
Why is the lead terminal business less profitable than the optical components and devices business?
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.
Q
How do you manage the risk of fluctuations in raw material prices?
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.
Q
How are you responding to rising material and crude oil prices?
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.
Q
What is the market share for the lead terminal business and the optical components and devices business, respectively?
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%.
Q
What capital investments are planned for the future?
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.
Q
Where can I find details about recent financial results?
A
Please refer to the Latest Financial Statements.
Q
Is it possible to achieve your performance forecast under the current circumstances? Is there any possibility that it will be revised?
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.
Q
Please tell me the sales ratio of products by application.
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.
Q
What percentage of lead terminal business sales are attributable to generative AI servers?
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.
Q
When do we expect to see an increase in sales of high-purity silica glass?
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.
Q
What are the features of high-purity silica glass?
A
High-purity silica glass has low impurities, excellent heat resistance and shock resistance, and can transmit light across a wide range of wavelengths.
Q
What are the applications of high-purity silica glass?
A
It is used in various industrial fields, including semiconductor manufacturing equipment, medical devices, and optical fiber preforms (parent material).
Q
What is the current sales revenue for the PLZT devices under development, and what are the future projections?
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.
Q
How sensitive are your results to exchange rates, and how large is the impact of exchange rate fluctuations on performance?
A
Assuming that a 1-yen depreciation against the U.S. dollar continues for one year, we estimate a positive impact of approximately 80 million yen on net sales and approximately 30 million yen on operating profit.

Stocks and general meetings of shareholders

Q
What is your securities code?
A
The securities code is 6524. For more information, please refer to the Stock Information.
Q
Please tell me about shareholder registry management and other stock administration matters.
A
The shareholder registry administrator is Mitsubishi UFJ Trust and Banking. For inquiries about stock administration, please refer to the website of Mitsubishi UFJ Trust and Banking.
Q
I have lost the notice of General meeting of shareholders, can I still attend the general meeting of shareholders?
A
You may participate if it can be confirmed that you are a shareholder in person and have voting rights.
Q
I have changed my address, what procedures do I need to follow?
A
Please change your address at the securities firm where you have an account.

Questions about the lead terminal business

Q
What are Kohoku Kogyo’s lead terminals?
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.
Q
For example, how many aluminum electrolytic capacitors are used in one electric vehicle?
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.
Q
Is the low profit margin of our lead terminal business due to the high proportion of products for the automotive market?
A
Electronic components used in automobiles have high requirement specifications such as reliability, making this a market where the unique features of our products are easily recognized. We will continue to improve our profit margins by further pursuing cost reductions and improving production efficiency.
Q
How significant is the impact of rising crude oil prices?
A
Higher crude oil prices lead to higher electric power costs and higher prices for procured materials such as raw materials. The specific impact on business performance varies by period, so please refer to our financial results materials.
Q
Is there any impact from rising prices for materials such as copper and aluminum, or from processing costs?
A
We reflect fluctuations in raw material prices in selling prices after a period of two to three months, so there is no significant impact.
Q
What is the sales scale for generative AI servers and data centers?
A
Because aluminum electrolytic capacitors are used across a wide range of applications, we cannot identify the sales ratio for generative AI servers and data centers. As an estimate, sales to the data center market account for 10% to 20%, and sales to generative AI servers are thought to represent only a small portion of that amount.
Q
How much spare production capacity is available?
A
Regarding the lead terminal business, the utilization rate for the fiscal year ending December 2025 is expected to be around 60% to 70%, so there is sufficient spare capacity.

Questions about the optical components and devices business

Q
What are Kohoku Kogyo’s optical isolators?
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.
Q
What are the features of the high-purity silica glass that you are commercializing? Also, what is the target market?
A
We aim to have it adopted in new applications that were not possible with conventional manufacturing methods, including in the semiconductor manufacturing equipment market.
Q
How is high-purity silica glass different from conventional silica glass?
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. We believe it can be applied to new applications that were not possible with conventional manufacturing methods.
Q
How many optical isolators are used when laying submarine cables?
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.
Q
What percentage of the optical components and devices business is dedicated to submarine cables?
A
Over 90% of the sales from our optical components and devices business are estimated to be for submarine cables.
Q
It is said that submarine cable networks are becoming longer-distance and larger-capacity. Compared with before, how much have distance and capacity increased?
A
In terms of capacity, the average number of fiber pairs is estimated to have increased from around 8 FP in 2020 to around 16 FP in 2025. As for distance, there have been reports that cable-laying companies are increasing the number of cable-laying vessels, and we estimate that this is an upward trend.
Q
Submarine cable projects are recognized as large-scale projects spanning several years from manufacturing to installation. When is our sales revenue recognized?
A
We understand that submarine cable installation requires stages such as seabed surveys, cable design, cable manufacturing, and cable installation. Our devices are required at the cable manufacturing stage.
Q
It appears that you are increasing capacity to address tight supply and demand for Faraday rotators. How large are the sales?
A
Currently, more than 90% of sales in the optical components and devices business are for the submarine cable market. However, with the expansion of generative AI demand, the market for optical transceivers for data centers is growing rapidly, and sales of our Faraday rotators are on an upward trend.
Q
You describe high-purity silica glass products as your third business. What stage are customer evaluations currently at, and is it possible to indicate the expected business impact quantitatively?
A
We are currently receiving multiple inquiries from semiconductor-related and fiber-related manufacturers, and are submitting prototype samples for evaluation. We aim to grow the high-purity silica glass product business to a certain scale by the fiscal year ending December 2028.

Questions about next-generation technologies

Q
What is the sales status of the PLZT thin single-crystal wafers that were recently launched?
A
At present, sales are mainly limited to sample sales to research departments of major telecommunications companies and research institutions, and the sales amount is very small.
Q
In the fields of optical quantum computing and photonics-electronics convergence, where development is currently underway, what kind of business development and contribution to earnings can be expected?
A
There is a possibility that optical components will be used in communication areas around quantum computers, and we are continuously gathering information. In addition, PLZT-based devices such as high-speed optical switches and optical modulators, which we are currently developing, may be used as highly efficient device materials in next-generation fields such as quantum computing and photonics-electronics convergence. We are advancing R&D, including sample sales of PLZT thin single-crystal wafers.
Q
There seem to be many inquiries for single-crystal PLZT thin-film wafers. Is mass production possible, and if so, what would the scale and timeline be?
A
At present, supply is mainly limited to samples for research departments of major telecommunications companies, and the timing of mass production has not yet been determined.
Q
You appear to be focusing on optical devices for space applications. What kind of business performance do you expect?
A
Projected sales of optical devices for space applications under the medium-term management plan are very small. We are currently conducting environmental testing and marketing activities.
← Back to IR page