Repayment of borrowings and securing funds for reinvestment through the sale-and-leaseback of solar power generation equipment

「Net income attributable to owners of the parent was ¥524 million, up 534.8% year on year. The main factors behind the increase in profit were higher revenue from the brownfield utilisation business and the renewable energy business, as well as the recognition of a ¥606 million gain on the sale of non-current assets following the transfer of the nine solar power generation facilities held by the group. In addition, the company recognised a one-time derivative contract cancellation loss of ¥298 million because borrowings were repaid early using the transfer proceeds.」

「With respect to the nine mega-solar power plants operated by the company and its consolidated subsidiaries Taiyoko Park 2 Godo Kaisha, Vega Solar Godo Kaisha and Altair Solar Godo Kaisha (collectively, the “three consolidated subsidiaries”), the company entered into a sale-and-leaseback agreement with Kogin Lease Co., Ltd. Under the agreement, the power plants are transferred to the leasing company and leased back. The company plans to use the resulting funds efficiently and flexibly to stabilise its finances through future repayments of long-term borrowings, as well as for new capital investment and long-term working capital to achieve its medium-term management plan.」