SHINDEN HIGHTEX CORPORATION

Investor Relations

Medium-term Management Plan

Management Policy

  1. SHINDEN HIGHTEX aims to be a company where employees can chase their dreams.
  2. SHINDEN HIGHTEX aims to be a company with brilliant execution engaged in exciting businesses.

Management Philosophy

  1. SHINDEN HIGHTEX's flexible management structure accelerates decision making based on information literacy enabling it to respond swiftly to changes in the business environment. It works to ensure that it has a solid financial position and management foundation capable of withstanding any economic change.
  2. Products accepted by the world: SHINDEN HIGHTEX globalizes the products it deals in, mainly in the field of electronics, and it has established a lineup of globally top-rated products.
  3. SHINDEN HIGHTEX will continue to enhance its sales capabilities and support structure to be a company that can act flexibly.
  4. SHINDEN HIGHTEX hires and promotes high-quality human resources to build a dynamic company composed of teams of sales, design and engineering professionals.

Medium-Term Management Policy(from April 2023 to March 2026)

SHINDEN HIGHTEX has set the three items below as the foundation of its medium-term management policy, and it will leverage its combined strengths to cultivate the digital transformation (DX) and green transformation (GX) markets and support sustainability transformation (SX) with a view toward serving society as it increases its corporate value.

  1. Increase profitability.
  2. Depart from the standalone product sales approach and enhance system solution sales.
  3. Solidify SHINDEN HIGHTEX's management foundation and increase capital efficiency to strengthen its financial position.

Medium-Term Management Strategies(from April 2023 to March 2026)

In a difficult business environment, for its stable and continued growth, the SHINDEN HIGHTEX Group will organically implement the sales and management foundation strategies below to achieve its medium-term management targets during the relevant period while basically maintaining the revenue structure reforms it has been implementing.

1. Sales Strategy
(1) Market and customer strategies

Focus on the DX- and GX-related markets, further develop relationships with existing customers and enhance efforts to gain new high-quality customers

(2) Product Strategy

Strengthen collaboration with suppliers and partner companies in the discovery and sales promotion of new and high value-added items and the expansion of trading rights in accordance with the strategies for the individual domains in the table below

Domain Strategies by Segment
Semiconductor products Maximize the use of the expertise the SHINDEN HIGHTEX Group has accumulated in its core domain since its foundation and its connections with manufacturers and customers to strengthen digitalization initiatives amid the progress in DX.
To achieve this purpose, strive to expand sales of high value-added items.
Additionally, continue to endeavor to expand the trading rights for general-purpose items.
Displays Operate the general-purpose item and high value-added item businesses in tandem to increase profit and profit margin.
Increase sales of general-purpose items to existing customers and expand the trading rights of these items. Increase sales of high value-added products and actively propose the customization of products.
System products Define this domain as the center of the initiatives seeking to increase the profit margin and to strengthen system solution sales after SHINDEN HIGHTEX's departure from the standalone sales approach. Enhance the EMS business (note 1) and the Board business (note 2) as well as sales of equipment for the DX-related market.
Combine this domain with the batteries and power equipment domain to achieve a relative increase in sales share in these two domains.
Batteries and Electric Power Equipment Define this domain as a priority domain for contribution to SX and GX in the medium-term management policy. Proactively deliver proposals of comprehensive solutions including battery cells as a key item and peripheral equipment and components for the purpose of discovering items related to energy management to electric vehicles (EVs) (note 3), the markets of which are expected to grow in the future, and expand sales of these items.
Combine this domain with the domain of system products to achieve relative increases in the sales shares of these two domains.

SHINDEN HIGHTEX will continue to prioritize activities to develop new businesses during the period of the medium-term management plan. By pursuing its sales strategies, these activities will drive SHINDEN HIGHTEX's achievement of the medium-term management targets below.)

  1. Development of relationships with existing customers: Capture demand in the core domain of semiconductor products and in the display, system product, battery and electric power equipment domains to produce synergy.
  2. Cultivation of new customers: Accelerate the cultivation of new high-quality customers in markets related to industrial equipment and social infrastructure.
2. Management Foundation Strategies

To smoothly implement the medium-term policy of solidifying SHINDEN HIGHTEX's management foundation and increasing capital efficiency to strengthen its financial and sales strategies, SHINDEN HIGHTEX has established the following medium-term strategies regarding its business foundation.

(1) Human resources strategies

SHINDEN HIGHTEX has formulated the strategies below in line with its belief that the SHINDEN HIGHTEX Group's greatest asset is its people and that the development of the Group is only possible with an environment in which its officers and employees are able to fully display their potential.

  • Assign the right people to the right positions and provide them with practical experience facilitating their development to increase sales of items that support SX as outlined in the medium-term management policy.
  • Enable employees to acquire skills and be motivated irrespective of their age or gender through practical opportunities and step-by-step activities to develop the next generation of officers and managers.
  • Recruit new employees focusing on mid-career recruitment activities to increase staff and optimize the employee age group composition.
  • Seek to establish a fair evaluation scheme, perform ongoing studies and implement a range of institutional systems and measures to increase motivation and create workplaces where people have greater job satisfaction.
(2) Enhancement of business management functions

Digitally transform business management functions to aid in compliance with revised laws and systems, establish efficient workstyles and assess the effectiveness of individual strategies

(3) Capital strategies
  • Optimize inventory operations to increase capital efficiency in anticipation of the expansion of business.
  • Maintain good relationships with financial institutions with whom SHINDEN HIGHTEX transacts to reduce the cost of procuring funds.
  • Enhance the disclosure of information about the company and optimize inventory operations to maintain and increase the value of the shares of SHINDEN HIGHTEX traded on the stock market and increase capital efficiency.

Medium-Term Management Targets(from April 2023 to March 2026)

The SHINDEN HIGHTEX Group values ordinary profit as a management indicator quantitatively measuring the effectiveness of its management policies and return on equity (ROE) as an indicator evaluating capital efficiency.
The management targets for the medium-term management period are as follows.

  1. Achieve a consolidated ordinary profit of 1.2 billion yen for the fiscal year ending March 31, 2026, the final fiscal year of the medium-term management period. *This reflects the revision made on May 12, 2025.
  2. Continuously maintain an ROE of 10% or higher.