Developing environmental-related business into a revenue pillar second only to the information and communications business

「In the overseas solutions business, the company focused on selling energy-saving solutions, including LED lighting, commercial air conditioners and Space Cool, which was launched in the second half of the previous fiscal year, to companies pursuing decarbonization. As a result, revenue increased 40.1% year on year to ¥4,263 million, and segment profit doubled year on year to ¥237 million.」

「In the overseas solutions business, the company focused on selling energy-saving solutions, including LED lighting and commercial air conditioners, to companies pursuing decarbonization. In September 2023, it made Malaysia's Sin Lian Wah Electric Sdn. Bhd. a subsidiary. As a result, revenue increased 40.4% year on year to ¥3,042 million, while segment profit declined 20.3% to ¥118 million.」

「We also established a new dedicated sales organization for RPA and environmental products and began initiatives to create a new revenue business. As a result, revenue from this channel increased 25.2% year on year to ¥563 million.」

「In the overseas solutions business, the company focused on proposing energy-saving solutions, including LED products and commercial air conditioners, to companies pursuing decarbonization. Sales in China and Malaysia progressed smoothly. As a result, revenue increased 17.6% year on year to ¥4,633 million, and segment profit increased 54.0% to ¥388 million.」

「The overseas solutions business focused on energy-saving solution sales, including LED lighting and commercial air conditioners, to companies pursuing decarbonization. Sales in China and Vietnam were strong, and LED wholesale sales by the Malaysian subsidiary also remained strong. As a result, revenue was ¥3,306 million, up 21.2% year on year, and segment profit was ¥205 million, up 23.3% year on year.」

「In the overseas solutions business, the company focused on selling energy-saving solutions, including LED lighting and commercial air conditioners, to companies pursuing decarbonization. Wholesale LED sales by its Malaysian subsidiary Sin Lian Wah Lighting Sdn. Bhd. (hereinafter, “SLW”) also progressed smoothly.」

「In the domestic solutions business, we will develop proprietary products and services centered on decarbonization products to differentiate ourselves from competitors, while providing one-stop services through our sales staff.」

「In the residential equipment sales business, including solar power generation systems, the company faced difficulty conducting proposal-based sales as intended due to the spread of COVID-19. ... The business had become unprofitable without achieving a recovery in earnings.」

「As a result, revenue declined 11.5% year on year to ¥1,579 million. Despite the decline in revenue, segment loss narrowed to ¥31 million, compared with a loss of ¥79 million in the same period of the previous year, due mainly to the consolidation of indirect functions and overall cost reductions.」

「In the energy solutions business, we worked to expand distributor sales of LED lighting, commercial air conditioners and other products, increased sales through each distributor and promoted sales to group companies. In the consumer business, we conducted proposal-based sales of storage batteries to homes equipped with solar power generation systems. As a result, revenue declined 5.6% year on year to ¥1,154 million. Despite the decline in revenue, segment loss narrowed to ¥7 million, compared with a loss of ¥82 million in the same period of the previous year, due mainly to improved efficiency in indirect functions and overall cost reductions.」

「In the energy solutions business, we strengthened distributor sales of LED lighting and promoted sales to group companies, while focusing on distributor sales of virus disinfection equipment. We also sold solar power generation systems and storage batteries for detached houses. As a result, revenue increased 8.5% year on year to ¥657 million. Segment results were profit of ¥2 million, compared with a loss of ¥98 million in the same period of the previous year, reflecting the effect of higher revenue and efforts to improve operating efficiency and reduce selling, general and administrative expenses.」

「As a result, revenue declined 19.7% year on year to ¥2,390 million. Despite efforts to reduce expenses, segment results were a loss of ¥93 million, compared with profit of ¥28 million in the same period of the previous year, because the rate of revenue decline was substantial.」

「In the energy solutions business, we promoted sales expansion of LED lighting, commercial air conditioners and other products through distributors, increased sales through each distributor and promoted sales to group companies. In sales of solar power generation systems and storage batteries for detached houses, we focused on developing new customers as well as upselling to existing customers. As a result, revenue declined 19.5% year on year to ¥1,784 million. Segment loss was ¥79 million, compared with segment profit of ¥66 million in the same period of the previous year, due mainly to sluggish solar power generation systems sales and the time required to launch storage battery sales.」

「In the energy solutions business, we promoted sales expansion of LED lighting, commercial air conditioners and other products through distributors, increased sales through each distributor and promoted sales to group companies. In sales of solar power generation systems and storage batteries for detached houses, we focused on developing new customers as well as upselling to existing customers. As a result, revenue declined 6.5% year on year to ¥1,222 million. Segment loss was ¥82 million, compared with segment profit of ¥61 million in the same period of the previous year, due mainly to sluggish solar power generation systems sales and the time required to launch storage battery sales.」

「In the energy solutions business, レカムＩＥパートナー株式会社 promoted sales expansion of LED lighting and other products, increased sales through its distributors and promoted sales to group companies. Revenue from solar power generation systems and storage batteries, which had not been recorded in the year-earlier period, was also recognized following the M&A. As a result, revenue increased 77.1% year on year to ¥605 million. Segment loss was ¥98 million, compared with a loss of ¥3 million in the same period of the previous year, as it took time to expand storage battery sales and sales of solar power generation systems and storage batteries remained weak.」

「As a result, revenue increased 131.0% year on year to ¥2,977 million. Segment profit fell 86.0% year on year to ¥28 million, due mainly to the inability to increase direct sales and higher sales promotion expenses for distributors.」

「In the environmental business, we worked to expand LED lighting sales through distributors and focused on developing new distributors. We also concentrated on direct sales of LED lighting and commercial air conditioners. In December 2018, 株式会社産電 became a consolidated subsidiary, adding the solar power generation systems business and expanding operations. As a result, revenue increased 201.3% year on year to ¥2,215 million.」

「As a result, revenue increased 199.6% year on year to ¥1,307 million. Segment profit fell 5.9% year on year to ¥61 million, mainly because direct sales remained sluggish.」

「We believe that adding to our group the sales business for solar power generation systems, storage batteries and other products operated by 株式会社産電 will enable us to further expand our environmental business. We also believe that incorporating the business expertise of the 産電 group into our group will enable us to significantly accelerate the solar power generation systems business in the ASEAN region and elsewhere.」

「As a result, revenue increased 125.5% year on year to ¥1,101 million. Segment profit increased 3.4-fold year on year to ¥279 million, reflecting the effect of higher revenue and efforts to improve operating efficiency.」

「In the overseas business involving LED lighting and commercial air conditioners, sales were launched through レカムビジネスソリューションズマレーシア株式会社, established in February 2018, and レカムビジネスソリューションズミャンマー株式会社 was established in August of the same year, as the company actively expanded its operations.」

「Group-company sales increased 259.7% year on year to ¥609 million, due mainly to the addition of sales from レカムIEパートナー（株） and growth in sales at ヴィーナステックジャパン（株）.」

「The company acquired 51% of the shares of the acquired company to strengthen its domestic environmental business, including sales of LED lighting and air conditioners to corporate customers.」

「Following this, we will develop our group's environmental business into a major earnings pillar, second only to the information and communications business.」