When Japan Pure Chemical sells
precious metal plating products, there are instances where we sell
both precious metals (precious metal alloys) and chemicals and instances
where we sell just the chemicals. Precious metals are expensive, as
the percentage of combined sales rises, sales revenues increase, but
there is little impact on income. Also, Japan Pure Chemical hedges
market price risks, so changes in market prices for precious metals
have no effect on income. Accordingly, viewing net income will provide
a more accurate understanding of our performance than sales revenues.
Also, exports to other countries are as a general rule limited to
chemicals only and do not include precious metals, and as a result,
the net income rate is higher than that for domestic sales. |