Expansion of sales channels in overseas markets

「The company’s business segments are as follows: <Cable business>…<Total Solutions business>…. 上海皆碼嗣電气有限公司, which operated the Overseas business through the previous fiscal year, completed its liquidation as of 3 June 2021. HONG KONG JMACS LIMITED. was resolved to be dissolved on 15 June 2020 and remains in liquidation as of the filing date.」

「The liquidation of 上海皆碼嗣電气有限公司, formerly a consolidated subsidiary, was completed as of 3 June 2021. HONG KONG JMACS LIMITED. remains in liquidation and has been excluded from the scope of consolidation because it is not sufficiently material to impede a reasonable assessment of the financial position or operating results of the group.」

「上海皆碼嗣電气有限公司 and HONG KONG JMACS LIMITED., which belonged to the Overseas business, are undergoing liquidation procedures, and only various expenses related to the liquidation have been incurred. The liquidation of 上海皆碼嗣電气有限公司 was completed on 3 June 2021.」

「As a group, we established the following management policies: 1. An offensive management approach. 2. Speed and technology. 3. Valuing the fundamentals. Through the Cable business and Total Solutions business, we worked to strengthen and expand our sales base. At an extraordinary Board of Directors meeting held on 15 June 2020, the company also resolved, from the perspective of optimizing group management, to dissolve 上海皆碼嗣電气有限公司 and HONG KONG JMACS LIMITED. and commence liquidation procedures.」

「In the Overseas business, the company had focused on developing new customers and further expanding sales channels in the Chinese market to establish a revenue base. However, activity in the regional economy stagnated due to the spread of COVID-19 from early 2020. Revenue was ¥35.479 million, down 2.5% from the same quarter of the previous year, and the segment recorded a loss of ¥32.083 million, compared with a segment loss of ¥26.088 million in the same quarter of the previous year.」

「The consolidated subsidiary launched the Overseas business to develop new customers and further expand sales channels in the Chinese market, and established 上海皆碼嗣電気有限公司 and HONG KONG JMACS LIMITED. Since then, it had focused on proactively developing sales channels to establish a revenue base. However, due to the spread of COVID-19 from early 2020 and the resulting uncertainty about the outlook for the regional economy, the company determined that it would be difficult for the subsidiaries to secure stable earnings independently. From the perspective of optimizing group management, it therefore decided to dissolve 上海皆碼嗣電気有限公司 and HONG KONG JMACS LIMITED.」

「In the Overseas business, revenue was ¥41.894 million, up 93.3% from the previous consolidated fiscal year, due to the acquisition of large-scale electric-wire projects.」

「In the Overseas business, revenue was ¥36.396 million, up 174.9% from the same quarter of the previous year, due to the acquisition of electric-wire projects. The company worked to reduce costs, including by cutting administrative costs, and the segment recorded a loss of ¥26.088 million, compared with a segment loss of ¥34.164 million in the same quarter of the previous year.」

「In the Overseas business, revenue was ¥27.188 million, up 160.0% from the same quarter of the previous year, due to the acquisition of electric-wire projects. However, higher selling and other costs associated with increased sales resulted in a segment loss of ¥17.700 million, compared with a segment loss of ¥21.238 million in the same quarter of the previous year.」

「In the Overseas business, revenue was ¥25.113 million, up 257.5% from the same quarter of the previous year, due to the acquisition of electric-wire projects.」

「In the Overseas business, revenue increased through proactive development of sales channels. However, the higher costs associated with developing sales channels reduced the profit margin. Revenue was ¥21.673 million, up 224.8% from the previous consolidated fiscal year.」

「In the Overseas business, revenue increased due to higher sales of FA cables, instrumentation cables and other products driven by proactive sales activities. However, the higher costs associated with developing sales channels reduced the profit margin. Revenue was ¥13.237 million, up 286.8% from the same quarter of the previous year.」

「In the Overseas business, revenue was ¥10.457 million, up 670.0% from the same quarter of the previous year, due to increased sales of FA cables, instrumentation cables and other products.」

「Regarding its sales strategy, the Cable business, Total Solutions business and Overseas business worked together and focused on developing sales channels in Japan and overseas. In the Overseas business, sales of electric wires and cables, smart-glass products and other items increased as a result of proactive sales activities to develop sales channels, bringing revenue to ¥7.024 million, up 1292.4% from the same quarter of the previous year.」

「The company researched overseas markets, focused on marketing, and pursued proactive business activities.」

「Developing sales channels in Japan and overseas, and developing high-value-added products that meet customer needs, among other initiatives」

「Following the establishment of the International Sales Department on 1 June 2017, the company focused on expanding its marketing functions, developing products that match society’s needs, and expanding sales channels with a view to globalization.」

「The International Sales Department was newly established on 1 June 2017, and the company expanded its marketing functions with a view to globalization.」

「The company has established the following basic policies: 1. Attack is the best defense. (An offensive management approach.) 2. Conduct businesses for the benefit of society and people. 3. Uphold the tradition of speed, technology and prompt responses. It will expand its marketing functions, develop products that match society’s needs, and focus on expanding sales channels in Japan and overseas.」

「Under these circumstances, we continued to strengthen our marketing capabilities with a view to further globalization and the expansion of sales channels, while focusing on establishing systems to promptly identify and respond to increasingly diverse customer needs. We also moved forward with developing products that can demonstrate our strengths in smart factories and the IoT field.」

「Global expansion accelerated further after the company established a new company in Shanghai, China.」

「Our management policy is to develop advanced-function cables, promote the solutions business, and expand sales channels in overseas markets.」