Entry into the environmental business

「しかしながら、環境事業において、2025 年 5 月 26 日付「新たな事業の開始に関するお知らせ」にて開示した未利用バイオマス再資源化装置の販売について、当初計画していた製品販売案件の進捗に遅れが生じたことから、売上高は業績予想を下回る結果となりました。」

「Our businesses are classified into the Spinning Business, Textile Business, Healthcare Business and Recycling Business.」

「In January 2021, we formulated a new medium-term management plan covering the fiscal years ending March 2022 through March 2024. Alongside efforts to strengthen the Spinning Business and Textile Business, we are promoting initiatives to launch a plastic-waste recycling business, beginning with the healthcare business as a new business, and working to improve performance.」

「We are promoting initiatives in new businesses, beginning with the healthcare business, and working to improve performance.」

「We will promote initiatives in new businesses, beginning with the healthcare business, and work to improve performance.」

「From the first quarter of the current fiscal year, we changed the reportable segments from the previous 2 segments, “Textile Business” and “Environmental Business,” to 3 segments: “Spinning Business,” “Textile Business” and “Other.” The reason for the change is that sales of fabrics for ethnic clothing for the Middle East, which had been included in the “Textile Business” in the previous fiscal year, are expected to become more material going forward. To present the business more appropriately, these sales are now classified as the “Textile Business,” while the segment formerly called the “Textile Business” has been renamed the “Spinning Business.” In addition, the “Environmental Business” has been renamed “New Businesses.” Although we will continue joint research with the Japan Advanced Institute of Science and Technology, it has been classified as “Other” and excluded from the reportable segments because its quantitative materiality has declined.」

「Although we changed our policy from the current fiscal year to entrusting sales to distributors, no sales results emerged and we were unable to recognize meaningful sales. As a result, environmental business results for the fiscal year consisted of net sales of ¥281 thousand, down 84.7% year on year, and an operating loss of ¥2.913 million, including an inventory valuation loss of ¥2.079 million, compared with an operating loss of ¥1.756 million in the previous fiscal year.」

「Three years after the launch of the environmental business, the company had conducted sales activities for its core Column product (polyethylene containing a special powder), with Asahi Eito Co., Ltd. as its core distributor. However, this did not lead to meaningful sales, and as a result of terminating the core distributor agreement in June of the current fiscal year, sales were negligible.」

「Three years after the launch of the environmental business, the company had conducted sales activities for its core Column product (polyethylene containing a special powder), with Asahi Eito Co., Ltd. as its core distributor. However, this did not lead to meaningful sales, and as a result of terminating the core distributor agreement in June of the current fiscal year, sales were negligible.」

「Since the previous fiscal year, we had switched our sales strategy to distributor sales and continued sales activities with Asahi Eito Co., Ltd. as our core distributor, but this did not lead to meaningful sales, and we terminated the core distributor agreement in June 2018. Going forward, we are being forced to restructure the business as a whole, beginning with a review of how our core Column product is handled.」

「As a measure to address the situation, we changed our policy from the current fiscal year to entrusting sales to distributors and entered into a core distributor agreement with Asahi Eito Co., Ltd., but meaningful sales had still not been recognized.」

「In the environmental business, which focuses on “Column” (polyethylene containing a special powder), we changed our policy from the current fiscal year to entrusting sales to distributors and entered into a core distributor agreement with Asahi Eito Co., Ltd. However, no sales results emerged, and the company was unable to recognize any meaningful sales.」

「At the beginning of the current fiscal year, we changed our policy to entrusting sales to distributors and entered into a core distributor agreement with Asahi Eito Co., Ltd. in June, but no results were recorded during the cumulative second quarter. Going forward, we will also incorporate products for individual customers for use in household baths and washing machines into our sales strategy and work to expand sales.」

「From the current fiscal year, after reviewing our business development to date, we changed our policy to entrusting sales to distributors in order to resolve these issues and searched for a suitable distributor. As a result, we entered into a business agreement with Asahi Eito Co., Ltd. as our core distributor. Going forward, we will expand the business through sales by distributors familiar with this field.」

「As a result, we improved the cooling-water quality of a leading zipper manufacturer and completed renovation work on filtration equipment at 4 locations operated by one of Japan’s leading hotel groups.」

「As a result, we improved the cooling-water quality of a leading zipper manufacturer and completed renovation work on filtration equipment at 4 locations operated by one of Japan’s leading hotel groups. However, as these were initial installations, the work is proceeding while the effects are being verified. Results are favorable at this stage, and sales are expected to be recognized in the fourth quarter.」

「As a result, we received an order to renovate filtration equipment at 4 locations operated by one of Japan’s leading hotel groups, and an initiative to improve the cooling-water quality of a leading zipper manufacturer was launched. We are gradually establishing a structure capable of contributing to third-quarter results.」

「In addition, we began selling Calfa Chemical products in April 2016: Calfa Bath, a cooling-tower water treatment agent, and Calfa Sat, an agent for controlling algae, slime and Legionella in cooling water.」

「We launched the environmental business as a new business in December 2015.」