Segment losses associated with strengthening the overseas business organization and developing sales channels

「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. passed a resolution to dissolve the company on 15 June 2020 and was in liquidation as of the filing date.」

「HONG KONG JMACS LIMITED. is also in liquidation and has been excluded from the scope of consolidation because it is not material enough to interfere with a reasonable assessment of the financial position and operating results of the corporate group.」

「上海皆碼嗣電气有限公司 and HONG KONG JMACS LIMITED., which are part of the overseas business, are in liquidation, and the only expenses incurred are various costs associated with the liquidation.」

「In the overseas business, net sales were ¥35.779 million, down 16.3% from the previous fiscal year, and the segment loss was ¥29.376 million, compared with a segment loss of ¥39.415 million in the previous fiscal year.」

「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.」

「In the overseas business, we focused on acquiring new customers in the Chinese market to establish a revenue base and further expand sales channels. However, the spread of the novel coronavirus from early 2020 caused economic activity in the region to stagnate, resulting in net sales of ¥15.427 million, down 43.3% year on year, and a segment loss of ¥32.905 million, compared with a segment loss of ¥17.700 million in the same quarter of the previous year.」

「In the overseas business, net sales were ¥6.036 million, down 76.0% year on year, due to the suspension of operations to prevent the spread of the novel coronavirus. The recording of inventory valuation losses caused by lower profitability resulted in a segment loss of ¥24.444 million, compared with a segment loss of ¥6.551 million in the same quarter of the previous year.」

「In the overseas business, the acquisition of large wire and cable projects resulted in net sales of ¥41.894 million, up 93.3% from the previous fiscal year, and a segment loss of ¥39.415 million, compared with a segment loss of ¥46.946 million in the previous fiscal year.」

「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, net sales were ¥25.113 million, up 257.5% year on year, following the acquisition of wire and cable projects. Despite efforts to reduce administrative and other costs, the segment loss was ¥6.551 million, compared with a segment loss of ¥9.099 million in the same quarter of the previous year, due mainly to higher selling expenses associated with increased sales.」

「In the overseas business, net sales increased through active development of sales channels, but the margin declined because of higher costs associated with this effort. Net sales were ¥21.673 million, up 224.8% from the previous fiscal year, and the segment loss was ¥46.946 million, compared with a segment loss of ¥46.749 million in the previous fiscal year.」

「In the overseas business, sales of FA cables, instrumentation cables and other products increased through active sales activities, driving higher net sales. However, the margin declined because of higher costs associated with developing sales channels, resulting in net sales of ¥13.237 million, up 286.8% year on year, and a segment loss of ¥34.164 million, compared with a segment loss of ¥32.518 million in the same quarter of the previous year.」

「In the overseas business, sales of FA cables, instrumentation cables and other products increased, resulting in net sales of ¥10.457 million, up 670.0% year on year. However, higher costs associated with developing sales channels resulted in a segment loss of ¥21.238 million, compared with a segment loss of ¥22.516 million in the same quarter of the previous year.」

「In the overseas business, sales of wire and cable products, smart glasses and other products increased as a result of developing sales channels through active sales activities. Net sales were ¥7.024 million, up 1,292.4% year on year, and the segment loss was ¥9.099 million, compared with a segment loss of ¥10.619 million in the same quarter of the previous year.」

「As a result, net sales were ¥6.673 million and the segment loss was ¥46.749 million.」

「In the overseas business, we continued securing personnel and strengthening the management structure, while conducting active business activities to develop sales channels. As a result, net sales were ¥3.422 million and the segment loss was ¥32.518 million.」

「In the overseas business, we increased personnel, including local staff, and established a management structure, focusing on strengthening the organization and developing sales channels. As a result, net sales were ¥1.358 million and the segment loss was ¥22.516 million.」