Development of Greenhouses, Hydroponic Cultivation Plants and Plant Factories

「The company launched “Custom Farm®” in the previous fiscal year under the theme of “easy-to-start hydroponic cultivation.” During the current fiscal year, it aims to broaden the scope of protected horticulture and develop new demand by making the system more versatile in response to producers' needs.」

「During the fiscal year, the company launched the simple hydroponic cultivation system “Custom Farm®,” based on the theme of “easy-to-start hydroponic cultivation,” to develop future demand. It is also conducting trial cultivation as appropriate, with the aim of expanding the range of crops grown and demonstrating the system's versatility for a wide variety of horticultural crops.」

「During the fiscal year, the company provided cucumber Sprayponics®, Coco Berry Farm®, and other products to general producers and companies and organizations newly entering the agricultural business.」

「During the fiscal year, the company introduced EK-style Hydroponics®, cucumber Sprayponics®, Coco Berry Farm®, and other products to companies and organizations from other industries seeking to enter the agricultural business.」

「During the fiscal year, the cucumber cultivation system “Sprayponics®,” which enables labor-saving, environmentally friendly soilless cultivation, attracted attention and was introduced in various locations. The company expanded joint research and partnerships with public institutions, including those in Gunma Prefecture, and private research institutions,」

「In the facility materials business, sales remained weak following the decline in restoration demand related to typhoon damage in previous years. In addition, repeated price increases for agricultural film and other products due to higher resource costs, together with prolonged weakness in fresh-produce prices, reduced farmers' replacement demand for durable materials and their willingness to invest in equipment. Sales of general agricultural materials and revenue from completed greenhouse and hydroponic cultivation plant projects consequently declined. Revenue fell 6.5% year on year to ¥10,213 million, while segment profit declined 19.4% to ¥232 million.」

「As in the agricultural materials business, the facility materials business revised prices for products such as agricultural film in response to higher resource costs, resulting in stronger sales from rush demand ahead of the price increases. However, prolonged weakness in fresh-produce prices reduced farmers' replacement demand for durable materials and their willingness to invest in equipment, causing sales of general agricultural materials and revenue from completed greenhouse and hydroponic cultivation plant projects to decline. Revenue consequently fell 6.5% year on year to ¥6,841 million, while segment profit declined 20.1% to ¥162 million.」

「In the facility materials business, sales increased due to rush demand ahead of price increases for agricultural materials. However, farmers' willingness to invest in equipment weakened because of poor harvests caused by unfavorable weather and falling prices for some vegetables. Sales of greenhouse components and revenue from completed hydroponic cultivation plant projects consequently declined, resulting in a 2.0% year-on-year decrease in revenue to ¥3,371 million. Segment profit also fell 10.9% to ¥70 million.」

「In the facility materials business, sales in the Kanto region increased due to demand for restoration of agricultural facilities damaged by typhoons. In addition, demand for labor-saving products such as irrigation materials increased as farmers aged, and the company responded effectively to changes in domestic sales channels resulting from the decline in imported products during the COVID-19 pandemic. Revenue consequently rose 2.4% year on year to ¥15,009 million. Profitability declined, however, as the pandemic reduced willingness to invest in equipment and demand for hydroponic cultivation plants and greenhouse components remained weak. Segment profit fell 2.7% to ¥426 million.」

「In the facility materials business, sales remained weak as demand for restoration of agricultural facilities damaged by major typhoons had run its course. However, sales of summer shading and irrigation materials and winter insulation materials increased, as did revenue from completed greenhouse projects, resulting in a 2.6% year-on-year increase in revenue to ¥10,918 million. Profitability declined because of weaker demand for low-priced products and lower revenue from completed hydroponic cultivation plant projects, which generally generate relatively high margins. Segment profit consequently fell 9.3% to ¥288 million.」

「Orders for hydroponic cultivation plants declined as farmers' willingness to invest in equipment weakened amid falling prices for fresh produce.」

「In the facility materials business, sales increased in the Kanto region due to demand for restoration of agricultural facilities damaged by typhoons. However, orders for hydroponic cultivation plants declined, restoration demand in the Tokai region decreased following the previous fiscal year, and sales of insulation materials fell due to the mild winter. Revenue consequently declined 1.7% year on year to ¥10,641 million, while segment profit fell 8.0% to ¥317 million.」

「In the facility materials business, sales increased in the Kanto region due to demand for restoration of agricultural facilities damaged by typhoons. However, sales declined due to the decrease following the restoration demand generated in the Tokai region in the previous fiscal year, lower sales of shading and irrigation materials resulting from low temperatures and insufficient sunlight in early summer, and fewer orders for hydroponic cultivation plants. Revenue therefore fell 3.8% year on year to ¥7,106 million, while segment profit declined 15.8% to ¥211 million.」

「In the facility materials business, sales of shading and irrigation materials declined due to low temperatures and insufficient sunlight in early summer, while orders for hydroponic cultivation plants also decreased. As a result, revenue fell 2.9% year on year to ¥3,163 million, and segment profit declined 18.8% to ¥51 million.」

「In the facilities materials business, sales of insulating materials to protect crops from cold weather declined due to the mild winter, but demand for restoration of agricultural facilities damaged by repeated typhoons, increased sales of shading and irrigation materials due to last summer’s extreme heat, exports of hydroponic cultivation plants, completion of large-scale projects for plants combined with solar power generation and closed plant factories, and higher revenue from completed greenhouse projects resulted in revenue of ¥10,826 million, up 3.2% year on year. Segment profit also increased 50.6% to ¥345 million.」

「In the facilities materials business, demand for restoration of agricultural facilities damaged by repeated typhoons, increased sales of shading and irrigation materials due to last summer’s extreme heat, and steady performance in the hydroponic cultivation plant business, including exports and the completion of large-scale projects for plants combined with solar power generation and closed plant factories, resulted in revenue of ¥7,384 million, up 7.1% year on year. Segment profit also increased 64.4% to ¥251 million.」

「In the facilities materials business, despite a decline following front-loaded demand in the previous fiscal year ahead of price increases, revenue increased 2.6% year on year to ¥3,259 million, driven by the development of new customers, higher demand for shading and irrigation materials due to extreme heat, and increased sales accompanying exports of hydroponic cultivation plants. Segment profit also increased 24.3% to ¥63 million.」

「We have currently developed 7 types of hydroponic cultivation plants and provide cultivation plants suited to each crop. The “EK Hydroponic” system for leafy vegetables such as multi-leaf® lettuce, slender green onions and Japanese parsley, the “Sprayponic®” system for tomatoes and cucumbers, and the “Coco Berry Farm®” system for strawberries have been introduced in various locations.」

「In the facilities materials business, proactive development of new customers, among other factors, resulted in revenue of ¥10,488 million, up 9.0% year on year. However, segment profit fell 9.9% to ¥278 million due to lower hydroponic cultivation plant construction volumes and deteriorating profitability amid weak market conditions for general agricultural materials, among other factors.」

「In the facilities materials business, proactive development of new customers, among other factors, resulted in revenue of ¥6,897 million, up 9.5% year on year. However, segment profit fell 11.1% to ¥184 million due to lower hydroponic cultivation plant and greenhouse construction volumes and deteriorating profitability amid weak market conditions for general agricultural materials, among other factors.」

「In the facilities materials business, revenue increased in hydroponic cultivation, but the end of snow damage restoration demand, which had boosted performance in the previous and preceding fiscal years, resulted in revenue of ¥2,964 million, down 19.0% year on year, and segment profit of ¥86 million, down 59.8%.」

「We supply greenhouses and hydroponic cultivation plants that combine safe, secure and highly efficient vegetable production with more efficient and less labor-intensive farm work, leveraging our strength as a seed company in cultivation know-how. We also provide coated fertilizers that reduce the labor required for fertilization and are easy to use even for growers with limited farming experience and know-how.」