Securing Profitability on Individual Projects and Controlling Selling, General and Administrative Expenses

「In addition, as the Company pursued selective acceptance of construction orders with an emphasis on profitability amid favourable ordering conditions, revenue was ¥5,895.455 million, up 15.6% year on year for the interim period, and operating profit was ¥574.840 million, up 154.1%.」

「Gross profit margin declined due in part to delays in removing scrap caused by delays in construction progress and delays in negotiations with customers for additional orders.」

「In its core plant dismantling business, the company worked to improve profitability, including by shortening construction periods through improvements in construction methods and scheduling management. As a result, revenue increased substantially, and operating income was ¥373.633 million, up 51.3% year on year.」

「In terms of earnings, efforts to improve profitability, including shortening construction periods through improvements in construction methods and scheduling management, resulted in operating income of ¥211.766 million (operating loss of ¥61.196 million in the same interim period of the previous year), ordinary income of ¥258.588 million (ordinary loss of ¥9.717 million in the same interim period of the previous year), and interim net income attributable to owners of the parent of ¥127.245 million (interim net loss attributable to owners of the parent of ¥28.599 million in the same interim period of the previous year).」

「In terms of earnings, some low-margin projects ordered in the previous consolidated fiscal year lowered the overall margin. Operating income was ¥17.018 million (operating loss of ¥35.638 million in the same quarter of the previous year), ordinary income was ¥15.410 million (ordinary loss of ¥37.505 million in the same quarter of the previous year), and the quarterly net loss attributable to owners of the parent was ¥29.629 million (quarterly net loss attributable to owners of the parent of ¥31.885 million in the same quarter of the previous year).」

「While the company had accepted low-margin projects to stabilize earnings by expanding its sales scale, and some projects saw margins deteriorate as order volumes increased, the increase in revenue absorbed the impact of the low-margin projects and the increase in selling, general and administrative expenses and other costs.」

「In terms of profit, although some projects were accepted at low profit margins and provisions for losses on construction contracts were recorded, large-scale projects that commenced after the second quarter accounting period began contributed to profit, resulting in operating profit of ¥100.990 million, up 1,262.9% year on year, ordinary profit of ¥212.247 million, up 173.1%, and quarterly net profit attributable to owners of the parent of ¥101.331 million, up 503.4%.」

「Meanwhile, in terms of profit, some low-margin projects received in the previous consolidated fiscal year lowered the profit margin, resulting in an operating loss of ¥61.196 million, compared with operating profit of ¥58.505 million in the same quarter of the previous year, an ordinary loss of ¥9.717 million, compared with ordinary profit of ¥128.123 million, and a quarterly net loss attributable to owners of the parent of ¥28.599 million, compared with quarterly net profit attributable to owners of the parent of ¥59.920 million.」

「In terms of profit, some low-margin projects received in the previous consolidated fiscal year lowered the profit margin, resulting in an operating loss of ¥35.638 million, compared with operating profit of ¥196.946 million in the same quarter of the previous year, an ordinary loss of ¥37.505 million, compared with ordinary profit of ¥197.547 million, and a quarterly net loss attributable to owners of the parent of ¥31.885 million, compared with quarterly net profit attributable to owners of the parent of ¥109.471 million.」

「The company actively pursued low-margin orders, prioritizing securing orders to offset the decline in revenue, but the substantial decline in margins caused by provisions for losses on construction contracts on some projects and the recognition of provisions for directors' retirement benefits accompanying a major change in the management structure resulted in an operating loss of ¥215.661 million, compared with operating profit of ¥488.751 million in the previous consolidated fiscal year.」

「In terms of profit, although the company worked actively to acquire new customers, operating profit fell 97.0% year on year to ¥7.409 million, ordinary profit fell 82.6% to ¥77.727 million, and net profit attributable to owners of the parent fell 98.6% to ¥16.792 million, owing to factors including some projects being accepted at low profit margins, the recognition of provisions for losses on construction contracts, and continued investment in personnel recruitment, research and development, advertising and other areas through selling, general and administrative expenses.」

「Operating profit was ¥75.320 million, down 53.4% year on year, owing to factors including some projects being accepted at low profit margins and continued investment in personnel recruitment, research and development, advertising and other areas through selling, general and administrative expenses.」

「In terms of profit, efforts to control selling, general and administrative expenses resulted in operating profit of ¥218.691 million, up 10.3% year on year.」

「In terms of profit, efforts to control selling, general and administrative expenses, together with a boost from higher scrap prices, resulted in operating profit of ¥607.908 million, up 388.3% year on year.」

「In terms of profit, efforts to control selling, general and administrative expenses, together with a boost from higher scrap prices, resulted in operating profit of ¥243.820 million, up 275.5% year on year.」

「In terms of profit, efforts to control selling, general and administrative expenses, together with a boost from higher scrap prices, resulted in operating profit of ¥161.591 million, up 1,312.2% year on year.」

「In terms of profit, efforts to control selling, general and administrative expenses, together with a boost from higher scrap prices, resulted in operating profit of ¥198.317 million, up 1,210.4% year on year, ordinary profit of ¥196.000 million, up 1,111.9%, and net profit attributable to owners of the parent of ¥132.825 million, up 2,131.7%.」

「As a result of efforts to control selling, general and administrative expenses amid the COVID-19 pandemic, operating profit was ¥124.501 million, up 33.6% year on year.」

「In terms of profit, although the company continued to maintain high profit margins, operating profit fell 81.3% year on year to ¥93.191 million as revenue declined because of schedule extensions and the company made aggressive investments in research and development and personnel recruitment.」

「In terms of profit, although the company continued efforts to secure profitability on each individual project and control selling, general and administrative expenses, operating profit fell 35.4% year on year to ¥142.756 million, ordinary profit fell 34.4% to ¥144.594 million, and net profit attributable to owners of the parent fell 78.2% to ¥91.275 million, owing to a decline in gross profit accompanying weak revenue performance.」

「In terms of profit, continued efforts to secure profitability on each individual project and control selling, general and administrative expenses resulted in operating profit of ¥153.749 million, up 9.9% year on year, ordinary profit of ¥153.264 million, up 10.0%, and net profit attributable to owners of the parent of ¥101.039 million, up 11.3%.」

「In terms of profit, continued efforts to secure profitability on each individual project and control selling, general and administrative expenses resulted in operating profit of ¥130.943 million, up 79.7% year on year, ordinary profit of ¥130.844 million, up 76.6%, and net profit attributable to owners of the parent of ¥86.276 million, up 86.0%.」

「This was achieved mainly because, although revenue fell short of the target owing to factors including extensions to the construction periods of projects originally scheduled for completion and postponements of construction starts due to customers reviewing their orders, the operating margin target was achieved as gross profit increased through cost reductions such as selectively accepting high-margin projects, while expenses were reduced through the efficient use of selling, general and administrative expenses.」

「As a result of continuing efforts to secure profitability on each individual project and control selling, general and administrative expenses, among other measures」

「As a result of continuing efforts to secure profitability on each individual project and control selling, general and administrative expenses, among other measures」

「Selling, general and administrative expenses increased due to upfront investment in personnel recruitment and other areas, while extraordinary expenses included the recognition of costs related to the public offering accompanying the listing on the Tokyo Stock Exchange First Section, causing profit to fall below the previous fiscal year.」

「Meanwhile, in terms of profit, the company continued efforts to secure profitability on each individual project and control selling, general and administrative expenses, among other measures.」