Narrowing Operating Losses and Continued Losses

「First quarter of the fiscal year ending March 2027 286 35.2 117 116.5 120 108.7 100 64.5」

「As a result, the group's consolidated revenue increased 3.7% year on year to ¥1,004.987 million, and operating income increased 34.4% year on year to ¥281.277 million. Ordinary income increased 43.2% year on year to ¥300.562 million, due to the recognition of insurance surrender value gains associated with employee departures, foreign exchange gains, subsidy income and other items. Net income attributable to owners of the parent increased 32.1% year on year to ¥329.015 million, due to the recognition of deferred income taxes and other items.」

「As a result, the group's consolidated revenue increased 9.3% year on year to ¥485.489 million. Operating income increased 109.0% year on year to ¥142.124 million, supported by higher revenue, cost reductions associated with the closure of the Akita Analysis Center in Akita Prefecture and consolidation into the IBL Analysis Center in Gunma Prefecture, improved productivity and further cost controls. Ordinary income increased 133.4% year on year to ¥149.842 million due to insurance surrender value gains and other income associated with employee departures. Interim net income attributable to owners of the parent increased 98.0% year on year to ¥141.624 million, due to the recognition of deferred income taxes and other items.」

「As a result, the group's consolidated revenue increased 18.7% year on year to ¥969.533 million. Operating income increased 100.7% year on year to ¥209.345 million. Ordinary income increased 67.3% year on year to ¥209.861 million, as electricity sales revenue and other items were recognized despite the recognition of foreign exchange losses and other items. Net income attributable to owners of the parent increased 33.4% year on year to ¥249.047 million, due to the recognition of deferred income taxes and other items.」

「As a result, the group's consolidated revenue increased 21.5% year on year to ¥444.127 million. Operating income increased 411.3% year on year to ¥68.002 million due to higher revenue and cost controls. Ordinary income increased 109.6% year on year to ¥64.211 million, despite the recognition of foreign exchange losses arising from sharp exchange-rate fluctuations. Interim net income attributable to owners of the parent increased 166.2% year on year to ¥71.512 million, due to the recognition of deferred income taxes and other items.」

「The group's consolidated revenue increased 2.8% year on year to ¥816.701 million, while operating income increased 82.5% year on year to ¥104.299 million. Ordinary results turned profitable, from an ordinary loss of ¥149.503 million in the same period of the previous year to ordinary income of ¥125.413 million. Net results attributable to owners of the parent also turned profitable, from a net loss attributable to owners of the parent of ¥289.731 million to net income of ¥186.694 million.」

「As a result, the group's consolidated revenue decreased 1.2% year on year to ¥548.405 million. Operating income decreased 43.0% year on year to ¥10.759 million due to lower revenue and higher system-related costs. Ordinary results and quarterly net results attributable to owners of the parent turned profitable, at ordinary income of ¥25.790 million and quarterly net income attributable to owners of the parent of ¥20.588 million, respectively, compared with an ordinary loss of ¥67.637 million and a quarterly net loss attributable to owners of the parent of ¥76.430 million in the same period of the previous year. This was because foreign exchange gains and reversals of prior-period bad debt losses were recognized, while the impact of equity-method investment losses on affiliates and other items that had materially affected results in the previous period was limited.」

「As a result, the group's consolidated revenue increased 24.7% year on year to ¥365.516 million. Operating results turned profitable as revenue increased, from an operating loss of ¥54.561 million in the previous year to operating income of ¥14.627 million. Ordinary results and quarterly net results attributable to owners of the parent also turned profitable, at ordinary income of ¥30.639 million and quarterly net income attributable to owners of the parent of ¥26.861 million, respectively, compared with an ordinary loss of ¥129.668 million and a quarterly net loss attributable to owners of the parent of ¥136.168 million in the previous year. This was because foreign exchange gains and reversals of the allowance for doubtful accounts provided in the previous period were recognized, while the impact of equity-method investment losses on affiliates and other items that had materially affected results in the previous period was limited.」

「As a result, the group's consolidated revenue increased 13.3% year on year to ¥177.189 million. Operating results turned profitable as revenue increased, from an operating loss of ¥14.858 million in the previous year to operating income of ¥576 thousand. Ordinary results and quarterly net results attributable to owners of the parent also turned profitable, at ordinary income of ¥13.517 million and quarterly net income attributable to owners of the parent of ¥11.165 million, respectively, compared with an ordinary loss of ¥54.731 million and a quarterly net loss attributable to owners of the parent of ¥58.937 million in the previous year. This was due to the recognition of foreign exchange gains and reversals of allowance for doubtful accounts recorded in the previous period, as well as the limited impact of equity-method investment losses on affiliates and other items that had materially affected results in the previous period.」

「Revenue was ¥794.621 million, up 22.7% year on year, and operating income was ¥58.373 million (operating loss of ¥122.219 million in the same period of the previous year), achieving the targeted return to operating profitability.」

「As a result, revenue was ¥554.909 million, up 23.8% year on year, and operating income improved significantly to ¥18.887 million (operating loss of ¥136.678 million in the same period of the previous year). The recognition of ¥96.557 million in equity-method investment losses on an affiliate and other items as non-operating expenses resulted in an ordinary loss of ¥67.637 million (ordinary loss of ¥232.900 million). The quarterly net loss attributable to owners of the parent was ¥76.430 million (quarterly net loss attributable to owners of the parent of ¥243.515 million).」

「As a result, revenue was ¥293.166 million, up 15.4% year on year, and the operating loss improved significantly to ¥54.561 million (operating loss of ¥136.520 million in the same period of the previous year).」

「As a result, revenue was ¥156.456 million, up 25.0% year on year, and the operating loss was ¥14.858 million (operating loss of ¥73.893 million in the same period of the previous year). The recognition of ¥49.199 million in equity-method investment losses on an affiliate and other items as non-operating expenses resulted in an ordinary loss of ¥54.731 million (ordinary loss of ¥101.640 million). The quarterly net loss attributable to owners of the parent was ¥58.937 million (quarterly net loss attributable to owners of the parent of ¥110.740 million).」

「As a result, revenue was ¥448.082 million, up 8.1% year on year, and the operating loss was ¥136.678 million (operating loss of ¥230.684 million in the same period of the previous year). The recognition of ¥103.868 million in equity-method investment losses on an affiliate and other items as non-operating expenses resulted in an ordinary loss of ¥232.900 million (ordinary loss of ¥299.846 million). The quarterly net loss attributable to owners of the parent was ¥243.515 million (quarterly net loss attributable to owners of the parent of ¥303.799 million).」

「As a result, revenue was ¥253.993 million, up 2.4% year on year, and the operating loss was ¥136.520 million (operating loss of ¥177.491 million in the same period of the previous year).」

「As a result, revenue was ¥125.150 million, up 7.3% year on year, and the operating loss was ¥73.893 million (operating loss of ¥101.611 million in the same period of the previous year). The recognition of ¥32.319 million in equity-method investment losses on an affiliate and other items as non-operating expenses resulted in an ordinary loss of ¥101.640 million (ordinary loss of ¥127.681 million). The quarterly net loss attributable to owners of the parent was ¥110.740 million (quarterly net loss attributable to owners of the parent of ¥129.074 million).」

「Selling, general and administrative expenses decreased as operating expenses fell due to restrictions on domestic and overseas business travel in response to measures to prevent the spread of COVID-19, and research and development expenses declined following a change in the antibody manufacturing method in the genetically modified silkworm business. As a result, the operating loss was ¥240.984 million (operating loss of ¥595.359 million in the same period of the previous year).」

「As a result, the operating loss was ¥230.684 million (operating loss of ¥298.801 million in the same period of the previous year). The recognition of ¥70.059 million in equity-method investment losses on an affiliate and other items as non-operating expenses resulted in an ordinary loss of ¥299.846 million (ordinary loss of ¥350.212 million). The quarterly net loss attributable to owners of the parent was ¥303.799 million (quarterly net loss attributable to owners of the parent of ¥337.364 million).」

「Revenue was ¥247.962 million, up 7.4% year on year. In terms of earnings, selling, general and administrative expenses decreased due to lower operating expenses under measures to prevent the spread of COVID-19 and lower capital investment following a change in the antibody manufacturing method in the genetically modified silkworm business. As a result, the operating loss was ¥177.491 million (operating loss of ¥209.844 million in the same period of the previous year). The recognition of ¥49.324 million in equity-method investment losses on an affiliate and other items as non-operating expenses resulted in an ordinary loss of ¥227.918 million (ordinary loss of ¥252.326 million). The quarterly net loss attributable to owners of the parent was ¥230.595 million (quarterly net loss attributable to owners of the parent of ¥254.584 million).」

「The group's revenue for the three months ended the first quarter continued to be affected by the spread of COVID-19, although orders under ongoing transactions for certain products increased. As a result, revenue was ¥116.598 million, up 2.9% year on year. Although operating expenses decreased due to measures to prevent the spread of COVID-19, selling, general and administrative expenses increased as research and development expenses rose with progress in developing biopharmaceuticals based on anti-HIV antibodies in the genetically modified silkworm business. As a result, the operating loss was ¥101.611 million (operating loss of ¥104.480 million in the same period of the previous year). The quarterly net loss attributable to owners of the parent was ¥129.074 million (quarterly net loss attributable to owners of the parent of ¥124.603 million).」

「Revenue was ¥576.692 million, down 26.2% year on year. Selling, general and administrative expenses increased due to renovation work at the Mikasa Research Institute to expand production capacity for human-type collagen I and III in the genetically modified silkworm business, as well as higher research and development expenses accompanying progress in biopharmaceutical development research, including anti-HIV antibodies. As a result, the operating loss was ¥595.359 million (operating loss of ¥173.680 million in the same period of the previous year).」

「The group's performance for the nine months ended the third quarter was significantly affected by a decline in revenue in the diagnostics and reagents business, the testing business and the cosmetics-related business. Revenue was ¥389.854 million, down 32.6% year on year. Selling, general and administrative expenses increased due to higher research and development expenses in the genetically modified silkworm business, reflecting renovation work at the Mikasa Research Institute and progress in research into biopharmaceutical development, including anti-HIV antibodies. As a result, the operating loss was ¥298.801 million (operating loss of ¥65.718 million in the same period of the previous year). In non-operating income and expenses, the recognition of ¥64.170 million in equity-method investment losses and other items resulted in an ordinary loss of ¥350.212 million (ordinary loss of ¥62.866 million).」

「The group's performance for the six months ended the second quarter was significantly affected by a decline in revenue in the diagnostics and reagents business and the testing business. Revenue was ¥230.873 million, down 40.0% year on year. Research and development expenses increased in line with progress in research into biopharmaceutical development, including anti-HIV antibodies, in the genetically modified silkworm business. As a result, the operating loss was ¥209.844 million (operating loss of ¥37.512 million in the same period of the previous year). In non-operating income and expenses, the recognition of ¥40.103 million in equity-method investment losses and other items resulted in an ordinary loss of ¥252.326 million (ordinary loss of ¥32.924 million).」

「As a result, the operating loss was ¥104.480 million (operating loss of ¥35.971 million in the same period of the previous year).」

「Revenue was ¥781.215 million, up 3.0% year on year. Although the company worked to reduce expenses, selling, general and administrative expenses increased due to a focus on research and development in the genetically modified silkworm business and the immediate expensing of system development costs for a core system intended to improve operations. As a result, the operating loss widened to ¥173.680 million (operating loss of ¥48.791 million in the same period of the previous year).」

「Revenue was ¥578.781 million, up 14.6% year on year. In terms of earnings, although revenue increased, higher manufacturing costs and selling, general and administrative expenses due to the renewal of manufacturing equipment and other factors resulted in an operating loss of ¥65.718 million (operating loss of ¥66.260 million in the same period of the previous year). In non-operating income and expenses, foreign exchange gains on foreign-currency-denominated assets and other items resulted in an ordinary loss of ¥62.866 million (ordinary loss of ¥62.401 million). In extraordinary income and expenses, impairment losses due to a decline in the appraised value of land held by the group and other items resulted in a quarterly net loss attributable to owners of the parent of ¥76.060 million (quarterly net loss attributable to owners of the parent of ¥68.438 million).」

「In terms of earnings, although revenue increased and the company worked to reduce expenses in cost of sales and selling, general and administrative expenses, the operating loss was ¥37.512 million (operating loss of ¥39.603 million in the same period of the previous year) due to the renewal of manufacturing equipment and other factors. The group expenses such renewals immediately rather than capitalizing them. In non-operating income and expenses, foreign exchange gains on foreign-currency-denominated assets and other items, arising as the exchange rate remained weaker against the yen than at the end of the previous fiscal year, resulted in an ordinary loss of ¥32.924 million (ordinary loss of ¥37.636 million). In extraordinary income and expenses, impairment losses due to a decline in the appraised value of land held by the group and other items resulted in a quarterly net loss attributable to owners of the parent of ¥45.510 million (quarterly net loss attributable to owners of the parent of ¥40.624 million).」

「As a result, the operating loss was ¥35.971 million (operating loss of ¥59.776 million in the same period of the previous year). In non-operating income and expenses, foreign exchange gains arose on foreign-currency-denominated assets and receivables, among other items, as the US dollar exchange rate remained slightly weaker against the yen than at the end of the previous fiscal year. As a result, the ordinary loss was ¥35.624 million (ordinary loss of ¥59.976 million).」

「As a result, the operating loss was ¥48.791 million (operating loss of ¥1,156.931 million in the same period of the previous year).」

「As a result, revenue for the nine months ended the third quarter was ¥504.844 million, down 1.3% year on year. In terms of earnings, although profit from the diagnostics and reagents business and the testing business increased, continued active investment in research and development and other activities for the genetically modified silkworm business resulted in an operating loss of ¥66.260 million (operating loss of ¥183.599 million in the same period of the previous year). The ordinary loss was ¥62.401 million (ordinary loss of ¥195.050 million), due to the recognition of insurance surrender value gains and other items, while the quarterly net loss attributable to owners of the parent was ¥68.438 million (quarterly net loss attributable to owners of the parent of ¥199.078 million), due to impairment losses on investment securities and other items.」

「As a result, revenue for the six months ended the second quarter was ¥333.360 million, down 4.8% year on year. In terms of earnings, the diagnostics and reagents business and the testing business became profitable from the six months ended the second quarter, but active investment in research and development and other activities for the genetically modified silkworm business resulted in an operating loss of ¥39.603 million (operating loss of ¥97.032 million in the same period of the previous year), an ordinary loss of ¥37.636 million (ordinary loss of ¥108.466 million), and a quarterly net loss attributable to owners of the parent of ¥40.624 million (quarterly net loss attributable to owners of the parent of ¥111.191 million).」

「In terms of earnings, although the company incurred no depreciation expense, active investment in research and development and other activities for the genetically modified silkworm business resulted in an operating loss of ¥59.776 million (operating loss of ¥50.849 million in the same period of the previous year), an ordinary loss of ¥59.976 million (ordinary loss of ¥60.809 million), and a quarterly net loss attributable to owners of the parent of ¥61.390 million (quarterly net loss attributable to owners of the parent of ¥62.109 million).」

「Revenue was ¥741.525 million, up 3.3% year on year, while the operating loss was ¥1,156.931 million (operating loss of ¥75.353 million in the same period of the previous year). The ordinary loss was ¥1,170.355 million (ordinary loss of ¥81.797 million), and the net loss attributable to owners of the parent was ¥2,094.467 million (net loss attributable to owners of the parent of ¥31.898 million).」

「In terms of earnings, the diagnostics and reagents business continued to generate operating income. However, active investment in research and development and other activities for the genetically modified silkworm business resulted in an operating loss of ¥183.599 million (operating loss of ¥101.568 million in the same period of the previous year). Although the company recognized ¥2.671 million in insurance surrender value gains due to employee departures, it recognized ¥7.333 million in share issuance costs and ¥7.124 million in bond issuance costs due to the issuance of stock acquisition rights and other instruments, resulting in an ordinary loss of ¥195.050 million (ordinary loss of ¥98.757 million). The quarterly net loss attributable to owners of the parent was ¥199.078 million (quarterly net loss attributable to owners of the parent of ¥35.629 million).」

「In terms of earnings, active investment in research and development and other activities for the genetically modified silkworm business resulted in an operating loss of ¥97.032 million (operating loss of ¥109.509 million in the same period of the previous year), an ordinary loss of ¥108.466 million (ordinary loss of ¥106.317 million), and a quarterly net loss attributable to owners of the parent of ¥111.191 million (quarterly net loss attributable to owners of the parent of ¥39.631 million).」

「The operating loss was ¥50.849 million (operating loss of ¥42.507 million in the same period of the previous year), the ordinary loss was ¥60.809 million (ordinary loss of ¥41.560 million), and the quarterly net loss attributable to owners of the parent was ¥62.109 million (quarterly net income attributable to owners of the parent of ¥20.852 million).」

「The operating loss was ¥75.353 million, compared with an operating loss of ¥181.517 million in the same period of the previous year.」