Intensifying Price Competition in the Commercial Air-Conditioning Equipment Market

「Although measures were implemented to improve margins in both manufacturing and sales, severe price competition continued, and the segment posted a loss (operating loss) of ¥283 million, compared with segment profit of ¥135 million in the previous consolidated fiscal year.」

「Although measures were implemented to improve margins in both manufacturing and sales, severe price competition continued, and the segment posted a loss (operating loss) of ¥112 million, compared with segment profit of ¥24 million in the same quarter of the previous year.」

「Profit was affected not only by intense price competition but also by higher costs, resulting in segment profit (operating profit) of ¥13 million, down 22.9% year on year.」

「Several companies, including major players, compete in the AHU market, which is a key market. Overseas companies may also enter the market, and intense competition is expected to continue.」

「Although market conditions have moved past the period when nationwide air-conditioning equipment shipments were at their lowest levels, following the overlap of the seasonal demand trough and the impact of infectious disease, price competition is becoming increasingly severe.」

「Although the market has moved past the period when nationwide air-conditioning equipment shipments were at their lowest levels, following the overlap of the seasonal demand trough and the impact of infectious disease, price competition has intensified. While air-conditioning equipment sales remained sluggish, sales increased to ¥6,796 million, up 2.8% year on year, due to the recovery in the building management business and the application of accounting standards, including the revenue recognition standard. Meanwhile, profit was significantly affected by intensified price competition resulting from the downturn in the air-conditioning equipment market, and segment profit (operating profit) was ¥737 million, down 10.3% year on year.」

「Although margins improved, the impact of intensifying price competition and other factors remained, and the segment posted a loss (operating loss) of ¥59 million, compared with a segment loss of ¥894 million in the previous consolidated fiscal year.」

「Although these initiatives are under way, the decline in air-conditioning equipment sales accompanying intensified competition resulted in net sales of ¥591 million, down 47.7% year on year, and a segment loss (operating loss) of ¥308 million, compared with a segment loss of ¥139 million in the same quarter of the previous year.」

「As a result of lower margins due to worsening price competition and a higher fixed-cost ratio accompanying the decline in sales, the segment posted a loss (operating loss) of ¥894 million, compared with segment profit of ¥25 million in the previous consolidated fiscal year.」

「China's economy is slowing moderately. The business is currently undergoing structural reforms, including a shift to a sales strategy focused on profitability, but intensified market price competition resulted in net sales of ¥3,311 million, down 26.6% year on year, and a segment loss (operating loss) of ¥551 million, compared with a segment loss of ¥312 million in the same quarter of the previous year.」

「While signs of economic recovery were seen, mainly in China, intense price competition continued in the market. Despite efforts to improve profitability, these did not offset the decline in air-conditioning equipment sales. Net sales were ¥2,182 million, down 32.2% year on year, and the segment posted a loss (operating loss) of ¥349 million, compared with a segment loss of ¥31 million in the same quarter of the previous year.」

「Although signs of economic recovery were seen, mainly in China, and efforts were focused on improving profitability, the decline in earnings due to continued intensifying price competition remained substantial. Net sales were ¥1,130 million, down 27.1% year on year, and the segment posted a loss (operating loss) of ¥139 million, compared with a segment loss of ¥126 million in the same quarter of the previous year.」

「Although China's economy continued to show signs of recovery, net sales were ¥6,365 million, down 2.6% from the previous consolidated fiscal year, and segment profit (operating profit) was ¥25 million, down 93.4%, due in part to intensifying price competition.」

「Although China's economy continued to show signs of recovery, net sales were ¥4,509 million, up 6.0% year on year, and the segment posted a loss (operating loss) of ¥312 million, compared with segment profit of ¥214 million in the same quarter of the previous year, due in part to intensifying price competition.」

「Although China's economy showed signs of recovery, net sales were ¥3,218 million, up 5.5% year on year, and the segment posted a loss (operating loss) of ¥31 million, compared with segment profit of ¥173 million in the same quarter of the previous year, due in part to intensifying price competition.」

「Due mainly to the impact of intensifying price competition associated with the slowdown in China's economic growth, net sales were ¥6,534 million, down 14.6% from the previous consolidated fiscal year, and segment profit (operating profit) was ¥382 million, down 0.1%.」

「Price competition in the commercial air-conditioning market is extremely intense, and we expect to continue facing intensifying competition.」