经营方针

Management vision

Based on the Group’s corporate motto, "Trust", we will endeavor to continue to be a corporate group that is trusted by people all over the world as a global company. With this "Trust" as our slogan, we will work to become a company in which all employees work with hope while nurturing the spirit of valuing "connections between people".

Dividend policy

Daishinku Group strives to maximize corporate competitiveness and take into consideration the reinforcement of business structure and so forth. We recognize that it is important basic policy in paying stable dividends to shareholders. In addition, the Company intends to further strengthen the management structure by attaining sufficient retained earnings in order to prepare capital demand for future business expansion, such as capital investment and research and development. 

Management strategy, etc.

In the first half of the 2000s, Japanese quartz crystal manufacturers held nearly 70% of the global market share. However, quartz crystal manufacturers mainly in China and Taiwan have increased their market share with low-price products. As a result, the share of Japanese manufacturers has fallen below 50%.

During this period, Japanese quartz crystal manufacturers shifted to high-value-added markets, including products for the telecommunications field and automotive electronics market, to avoid competition in the low-price market with Chinese and Taiwanese quartz crystal manufacturers. However, the standardization of quartz devices progressed, led by major chipset manufacturers in the telecommunications field, which resulted in difficulties in differentiating our products based on purchasing by multiple companies. Under these circumstances, Japanese manufacturers continued to face difficulties in generating profits, reflecting the situation in which the recovery of investment became more difficult than ever, partly as a result of business expansion by Taiwanese quartz crystal manufacturers into the telecommunications field. In addition, the shift to miniaturization slowed down, accelerating the commoditization of quartz devices. We believe that one of the factors behind price fluctuation is the absence of industry leaders, in addition to too many manufacturers emerging in Asia.

We took the opportunity on the 60th anniversary of our foundation in November 2019, developing our first "10-year Long-term Business Plan". The Long-term Business Plan contains seven basic strategies titled "OCEAN+2 Strategy", aiming to become a leading company that continues to be needed by customers for high technological capabilities and strong corporate power.

<10-year Long-term Business Plan>
Seven basic strategies of "OCEAN+2 Strategies"

The Long-term Business Plan is divided into three phases, for each of which milestones are established. The three-year period from April 2021, which is the second year of the plan, is the 1st Midterm: "Developing a Foundation", in which we will complete various preparations for the next phase. As to the market environment, we expect that demand for quartz devices will increase in line with the expansion of the market as communication functions will be integrated into all applications. As to quartz devices, it is assumed that the requirement for low latency, high frequency, high precision, ultra-small size and low power consumption will increase. Therefore, we are focusing on "small-sized and high-frequency products with photolithography", "manufacturing to follow price competition" and an "environment-conscious and stable supply system". Specifically, we have been increasing production capacity, from materials to assembly of photolithographic products, full-scale mass production of Arkh.3G and expansion of the new Arkh series. Furthermore, we will develop manufacturing lines and processes that renew the concept of manufacturing for the existing products and the Arkh series, aiming to become the leader in the crystal industry with the highest profit margin.

＜Medium-term Business Plan＞
1st Midterm: Developing a Foundation Phase; Fiscal years ending March 2022 to 2024
2nd Midterm: Establishing a Foundation Phase; Fiscal years ending March 2025 to 2027
3rd Midterm: Growth and Development Phase; Fiscal years ending March 2028 to 2030

Basic Concept on Corporate Governance

The Daishinku Group strives to realize quick, transparent and fair management and internationally competitive management as a global company. Furthermore, we concentrate our efforts on "improvement of corporate value" to place value on the interest of all stakeholders who support our corporate activities and to maximize long-term and continuous shareholder value. Concurrently, we will strengthen our corporate governance to become a trustworthy company in society.

At the closing of the 59th Ordinary General Meeting of Shareholders held on June 29, 2022, the Company shifted from a company with a Board of Company Auditors to a company with an Audit and Supervisory Committee.

This change was intended to further enhance corporate governance through strengthening the supervisory function of the Board of Directors and reinforcing the monitoring system, to expedite management decision-making, and to further improve corporate value.

In addition, we have established a system in which our full-time Audit and Supervisory Committee members attend important meetings to constantly monitor the execution of duties.

In addition, we have an accounting auditor to whom we provide accurate management information relating to accounting practices, realizing an environment in which audits are conducted from a fair and unbiased standpoint.

We will consider improving the internal system to further enhance the internal audit function covering all aspects of corporate management.