Mitigating customer concentration by expanding new sales channels and business partners

「The start of mass-production sales to multiple overseas customers resulted in substantial increases in both orders and revenue.」

「Development of major domestic customers is almost complete. For the next fiscal year, we will increase our share of domestic customers' business with our products while developing overseas customers, particularly for semiconductor applications.」

「However, we have established good relationships with financial institutions, and during the current interim consolidated accounting period the results of initiatives to develop new customers and expand sales began to emerge. As near-term concerns regarding funding have therefore been resolved, we have determined that no material uncertainty exists regarding the going concern assumption.」

「Our diamond wire for power semiconductors and difficult-to-cut materials has been formally adopted by multiple companies, and progress in developing new customers has also supported steady sales growth.」

「The number of companies formally adopting our diamond wires for power semiconductor and hard-to-cut-material applications has been steadily increasing, and volume production adoption is progressing among major and midsize domestic companies.」

「During the cumulative third-quarter consolidated period, we made volume production sales to a total of 5 major customers with strong potential for sales expansion.」

「During the cumulative second quarter of the current consolidated fiscal year, we conducted mass-production sales to a total of 4 major customers with strong expectations for expanded sales.」

「For this reason, we had been actively pursuing sales activities targeting major monocrystalline wafer manufacturers. Sales of diamond wires to multiple major monocrystalline wafer manufacturers are now beginning, and as transaction volumes are expected to expand, we will continue our active sales activities.」

「For this reason, we had been actively pursuing sales activities targeting major monocrystalline wafer manufacturers. Sales of diamond wires to multiple major monocrystalline wafer manufacturers are now beginning, and as transaction volumes are expected to expand, we will continue our active sales activities.」

「Meanwhile, as new customers proceeded with evaluating our diamond wire products, by the end of the quarter we had begun large-volume transactions with multiple new sales destinations replacing that company.」

「Meanwhile, new customers are progressing with evaluations of our diamond wire products in preparation for large-volume transactions, but as of the end of the quarter we had not secured a large-volume sales destination to replace that company. Candidates for new large-volume sales destinations are mainly Chinese companies.」

「In the electronic materials slicing-related business, the number of customers has increased as a result of strengthened sales activities aimed at diversifying the customer base. However, as noted above, this was not sufficient to offset the decline in transaction volumes with major customers.」

「We remain highly dependent on transactions with specific business partners. We recognize that increasing the number of business partners is an important priority in addressing this situation. Accordingly, in addition to expanding transactions with existing business partners, we will implement various measures to increase the number of business partners, including developing new sales channels.」