Overseas Protected Horticulture Business Centered in Shandong Province, China

「The company has also begun moving into global markets, centered on Asia.」

「Following the suspension of seedling production and sales in China, the company also withdrew its core fertilizer sales business from the distribution channels of its partner companies in the current fiscal year. As it is currently focusing on increasing seed imports for Japan and procuring new sales materials, it decided to include the overseas business in this segment.」

「The overseas business had suspended production and sales in China from the fiscal year ended October 2021 due to the impact of the COVID-19 pandemic and had mainly sold agricultural materials (fertilizer and seeds) in cooperation with local partner companies. As the company is focusing on increasing seed imports for Japan and procuring new sales materials, it decided to include the overseas business in this segment.」

「Under these circumstances, the company suspended its vegetable seedling and potted flower production and sales business and sold agricultural materials, primarily in China, in cooperation with local partner companies. Going forward, it will review its business development in China's agricultural market, which offers various possibilities, and establish a new structure looking beyond the post-COVID period. It will also conduct sales and marketing activities for fertilizer sales in South Korea and exports of seeds and seedlings to Japan. As a result, revenue for the consolidated fiscal year was ¥54.472 million, up 83.7% year on year, while segment loss (operating loss) was ¥21.384 million, compared with segment loss of ¥37.099 million in the previous fiscal year.」

「The company has suspended its vegetable seedling and potted flower production and sales business and is focusing on selling agricultural materials, primarily in China, in cooperation with local partner companies to expand the business. In South Korea, it is conducting sales and marketing activities for fertilizer sales and exports of seeds and seedlings to Japan. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥54.444 million, up 205.2% year on year, while segment loss (operating loss) was ¥17.113 million, compared with segment loss of ¥26.048 million in the same quarter of the previous year.」

「The company has suspended its vegetable seedling and potted flower production and sales business and is focusing on selling agricultural materials, primarily in China, in cooperation with local partner companies to expand the business. In South Korea, it is conducting sales and marketing activities for fertilizer sales and exports of seeds and seedlings to Japan. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥27.755 million, up 161.4% year on year, while segment loss (operating loss) was ¥20.208 million, compared with segment loss of ¥18.804 million in the same quarter of the previous year.」

「Although production and sales activities in China have remained restricted since the previous consolidated fiscal year due to the impact of the COVID-19 pandemic, the company has focused on selling agricultural materials (fertilizer and seeds), primarily in China, in cooperation with local partner companies to expand the business. Revenue was ¥17.689 million, up 177.1% year on year, while segment loss (operating loss) was ¥7.108 million, compared with segment loss of ¥8.879 million in the same quarter of the previous year.」

「Beijing 欣璟 Agricultural Technology Co., Ltd., established in Beijing, China, in December 2017, had been preparing to serve as a company planning and operating agricultural businesses in China. However, negotiations on terms with local companies were prolonged, and the spread of the COVID-19 pandemic forced the suspension of activities in China. The company determined that it would be difficult to conduct local activities and negotiations independently and therefore dissolved the company. It will continue to focus on fertilizer sales in China and, in South Korea, on fertilizer sales as well as exports of seeds and seedlings to Japan.」

「Since the previous consolidated fiscal year, production and sales activities in China have been restricted due to the impact of the COVID-19 pandemic. To address this difficult environment, the company suspended its potted flower production and sales business and restrained sales of seedlings and fresh produce in order to enforce the collection of receivables as competition with local producers intensified. Going forward, looking beyond the post-COVID period, it will develop contract growers for tomato seedlings and, together with partner companies, develop the agricultural materials market, primarily in China, while focusing in South Korea on expanding fertilizer sales and exporting seeds and seedlings to Japan. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥17.838 million, down 56.5% year on year, while segment loss (operating loss) was ¥26.048 million, compared with segment loss of ¥49.903 million in the same quarter of the previous year.」

「Looking beyond the post-COVID period, the company pursued the development of contract growers for tomato seedlings and, together with partner companies, developed the agricultural materials market, primarily in China. In South Korea, it focused on expanding fertilizer sales and exporting seeds and seedlings to Japan. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥10.619 million, down 64.8% year on year, while segment loss (operating loss) was ¥18.804 million, compared with segment loss of ¥26.650 million in the same quarter of the previous year.」

「Since the previous consolidated fiscal year, production and sales activities in China have been restricted due to the impact of the COVID-19 pandemic. To address this difficult environment, the company suspended its potted flower production and sales business and, as competition with local producers intensified, restrained sales of seedlings and fresh produce in order to enforce the collection of receivables. At the same time, it actively pursued the development of the agricultural materials market, primarily in China, in cooperation with local partner companies, including through exports from Japan. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥6.384 million, down 53.6% year on year, while segment loss (operating loss) was ¥8.879 million, compared with segment loss of ¥10.571 million in the same quarter of the previous year.」

「However, with respect to the production and sale of potted flowers (cyclamens), the company decided to scale back the business for the time being due to the recent downward trend in prices, the widening price gap with local producers, and sluggish sales volumes resulting from the impact of the COVID-19 pandemic.」

「The company began preparations to export HOB Co.,Ltd.'s strawberry seedlings to China following the start of a business alliance in December 2019.」

「The company began selling fertilizer and cultivation systems in China in the previous fiscal year, and increased fertilizer sales contributed to higher revenue. It continued to actively pursue technology development and agricultural market development, primarily in China, through its overseas business division. Revenue for the cumulative first quarter of the current consolidated fiscal year was ¥13.786 million, up 567.8% year on year, while segment loss (operating loss) was ¥10.571 million, compared with segment loss of ¥11.656 million in the same quarter of the previous year.」

「From the current fiscal year, the company began selling cultivation systems in China that use fertilizer and a cultivation system with a bag-type liquid fertilizer delivery system, contributing to higher revenue. It also conducted trials for production technology development related to seedling production and is currently test-introducing closed seedling-raising facilities while establishing cultivation manuals and improving equipment with a view to selling them in China.」

「The company's subsidiary in Shandong Province, China, currently operates a controlled-environment horticulture business focused mainly on producing vegetable and flower seedlings, potted flowers (cyclamens), and fresh produce such as tomatoes. From the current fiscal year, it began selling fertilizer and a cultivation system using bag cultivation in China. It also conducts trials for production technology development and plans to establish cultivation manuals and improve equipment with a view to test-introducing closed seedling-raising facilities and selling them in China. The affiliated company in Beijing, China, proceeded with preparations to launch a full-scale seedling business in China in spring 2020. 株式会社ＢＪアグロ in South Korea, which became a subsidiary through a third-party allotment, selected products and conducted market research in preparation for launching fertilizer and other product sales in South Korea.」

「The affiliated company in Beijing, China, proceeded with preparations for full-scale business development in China. 株式会社ＢＪアグロ in South Korea, which became a subsidiary through a third-party allotment, selected products and conducted market research in preparation for launching fertilizer and other product sales in South Korea.」

「The affiliated company in Beijing, China, proceeded with preparations to launch a full-scale seedling business in China. 株式会社ＢＪアグロ in South Korea, which became a subsidiary through a third-party allotment, selected products and conducted market research in preparation for launching fertilizer and other product sales in South Korea. The company continued to actively pursue technology development and agricultural market development, primarily in China, through its overseas business division to expand its overseas business.」

「Revenue for the consolidated fiscal year was ¥18.450 million, down 1.4% year on year, while segment loss (operating loss) was ¥47.850 million, compared with segment loss of ¥55.241 million in the previous fiscal year.」

「Revenue for the cumulative third quarter of the current consolidated fiscal year was ¥17.467 million, up 7.9% year on year, while segment loss (operating loss) was ¥37.310 million, compared with segment loss of ¥47.282 million in the same quarter of the previous year.」

「The company also began trial sales of seeds, agricultural materials and other products to East Asia. The joint venture newly established in Beijing, China, in December 2017 proceeded with preparations for full-scale business development in China, while the company continued to actively pursue technology development, agricultural market research and market development, primarily in China, through its overseas business division.」

「In addition, the company newly established a joint venture in Beijing, China, in December 2017 and proceeded with preparations for full-scale business development in China. It also continued to actively pursue technology development, agricultural market research and market development, primarily in China, through its overseas business division. Revenue for the cumulative first quarter of the current consolidated fiscal year was ¥2.881 million, up 15.0% year on year, while segment loss (operating loss) was ¥13.869 million, compared with segment loss of ¥19.256 million in the same quarter of the previous year.」

「From the current consolidated fiscal year, the company increased staffing in its overseas business division to strengthen technology development, agricultural market research and market development, primarily in China, increase opportunities to collaborate with local companies, and actively pursue business expansion. Revenue for the consolidated fiscal year was ¥18.729 million, down 14.2% year on year, while segment loss (operating loss) was ¥55.241 million, compared with segment loss of ¥9.094 million in the previous fiscal year.」

「This business segment operates a controlled-environment horticulture business in Shandong Province, China, focused mainly on producing vegetable and flower seedlings, potted flowers (cyclamens), and fresh produce such as tomatoes, as well as conducting trials for production technology development. In addition, the company established an overseas business division in the current consolidated fiscal year and is actively pursuing technology development, agricultural market research and market development, primarily in China, to expand its overseas business. Revenue for the cumulative third quarter of the current consolidated fiscal year was ¥16.187 million, up 0.3% year on year, while segment loss (operating loss) was ¥47.282 million, compared with segment loss of ¥11.080 million in the same quarter of the previous year.」

「This business segment operates a controlled-environment horticulture business in Shandong Province, China, focused mainly on producing vegetable and flower seedlings, potted flowers (cyclamens), and fresh produce such as tomatoes, as well as conducting trials for production technology development. In addition, the company established an overseas business division in the current consolidated fiscal year and is actively pursuing technology development, agricultural market research and market development, primarily in China, to expand its overseas business. Revenue for the cumulative second quarter of the current consolidated fiscal year was ¥14.249 million, down 10.1% year on year. In terms of profit and loss, segment loss (operating loss) was ¥31.459 million, compared with segment loss of ¥10.482 million in the same quarter of the previous year, as personnel and other expenses increased following the establishment of the overseas business division.」

「This business segment operates a controlled-environment horticulture business in Shandong Province, China, focused mainly on producing vegetable and flower seedlings, potted flowers (cyclamens), and fresh produce such as tomatoes. In addition, the company established an overseas business division in the current consolidated fiscal year and is actively pursuing technology development, agricultural market research and market development, primarily in China, to expand its overseas business.」

「As a result of increased production of vegetable seedlings and cyclamens, revenue for the consolidated fiscal year was ¥21.820 million, up 17.2% year on year, and segment loss (operating loss) was ¥9.094 million, compared with segment loss of ¥13.498 million in the previous fiscal year. The company is aiming to achieve profitability at an early stage and will strengthen its sales capabilities and reform its earnings structure while improving quality and productivity by applying agricultural technologies developed in Japan.」

「This business segment operates a controlled-environment horticulture business in Shandong Province, China, focused mainly on producing vegetable and flower seedlings, potted flowers (cyclamens), and fresh produce such as tomatoes. Revenue for the cumulative third quarter of the current consolidated fiscal year was ¥16.146 million, up 2.0% year on year, while segment loss (operating loss) was ¥11.080 million, compared with segment loss of ¥11.908 million in the same quarter of the previous year.」