Recovery of Upfront Investments in New Businesses and Failure to Meet Plans

「電池メーカーの工場から排出される工程廃材の一部について当社がリサイクル業務を受託する覚書（MOU）に基づき、関係企業等を交えた交渉を継続しております。」

「In building the business scheme, we are continuing negotiations with the relevant companies and other parties toward establishing a scheme based on an MOU under which we will undertake the recycling of part of the process waste generated at a battery manufacturer’s plant.」

「Regarding the establishment of the business scheme, progress toward implementing a business model based on a memorandum of understanding (MOU) under which we will undertake part of the recycling of process waste generated at battery manufacturers’ plants is proceeding smoothly.」

「Following joint development with a battery manufacturer, the Group entered into a memorandum of understanding (MOU) under which it is expected to undertake, in the future, part of the recycling of process waste generated at the manufacturer's plant. Based on transactions under the MOU, the Group expects to be able to fully recover the amounts invested in equipment and research and development in the future.」

「To address this situation, the Group has actively promoted information exchange among relevant departments, led by the Corporate Planning Department, from the planning and conceptualisation stage. It is working to improve the probability of success through detailed strategy formulation, efficient schedule management and continued specialised training.」

「For business assets whose investment is no longer expected to be recovered because of declining profitability, the carrying amount is reduced to the recoverable amount, and the reduction is recognised as an impairment loss under extraordinary losses. Business assets (Iwaki, Fukushima Prefecture): structures, machinery and equipment, and construction in progress, ¥40.874 million」

「New businesses involve many uncertain factors. If research and development targets are not achieved or business plans are not met as scheduled, the Group may be unable to recover its upfront investment, which could affect its financial position, operating results and other matters.」

「However, because demand for rare-metal products fell below initial expectations, their contribution to operating results was postponed until the following fiscal year or later.」

「Although customer approvals progressed and the number of sales destinations increased, demand for the relevant products fell below initial expectations.」

「In the newly promoted rare-metal business, in addition to materials for optical glass, sales of which have begun, we are developing materials for electronic components and conducting evaluation tests with customers. Although customer approvals have progressed and the number of sales destinations has increased, demand for the products concerned has fallen below initial expectations, making sales for the current fiscal year uncertain.」

「The Group is actively investing resources to steadily expand its businesses from a long-term perspective and to launch new businesses. It aims to strategically identify new needs and develop technologies, establishing new businesses that will become future pillars of the Group's earnings.」

「The Group is actively investing resources to steadily expand its businesses from a long-term perspective and to launch new businesses. However, new businesses involve many uncertain factors. If research and development targets are not achieved or business plans are not met as scheduled, the Group may be unable to recover its upfront investment, which could adversely affect its financial position, operating results and other matters.」