Shortening lead times for quotation, order intake, manufacturing and shipping

「As the second phase of digitization following the design system, we built a new production system aimed at shortening product lead times and improving quality, and began operating it for some products in April 2026.」

「Specifically, new changes are emerging in production planning, estimation, marketing, maintenance and the use of technical data through such initiatives as a production reservation system using AI technology that has begun operating; SINKO Direct, a service that allows customers to search the Company's proprietary product database themselves; SINKO Kaza-shite Maintenance, which provides access to maintenance information via QR codes on products; and an internal drawing search system using image-recognition technology.」

「Against this backdrop, the Company advanced the SIMA (SINKO Innovative Manufacturing of AHU) project to digitize operations and sales initiatives for products and services targeting 5 priority markets, including industrial and data center applications.」

「In addition to addressing rising costs, including through sales price revisions, the Company advanced initiatives based on its medium-term management plan, move.2025, including the SIMA (SINKO Innovative Manufacturing of AHU) project aimed at moving away from labor-intensive operations, sales initiatives for products targeting 5 priority markets, including industrial and data center applications, profitability improvements in the air-conditioning installation business, where demand is strong, and profitability improvements in the China business.」

「The Company has also begun implementing the developed 3D CAD system, AI-based production-hours forecasting and a search system that recognizes component images in drawings.」

「Advancing operational digitization through the SIMA (SINKO Innovative Manufacturing of AHU) project」

「The project aims to establish an innovative air-conditioning equipment production method by digitizing the know-how required for longstanding customer requirements, the resulting design and manufacturing instructions, and customization, and integrating design and production through end-to-end information flows from the upstream processes. Progress has already been made on developing a 3D CAD system, AI that automatically forecasts production hours, AI that recognizes and searches for component images on drawings, and introducing a line-production system into product assembly, which had primarily used cellular production.」

「Against this backdrop, the Company worked to improve the long-term growth potential and profitability of the business by advancing the SIMA (SINKO Innovative Manufacturing of AHU) project to rebuild the operational platform through digitization and expanding its product lineup of heat-pump air-conditioning units.」

「We advanced the SIMA (SINKO Innovative Manufacturing of AHU) project to convert design and production know-how into digital technology and rebuild the operational platform.」

「Against this backdrop, the Company worked to accelerate the organizational integration of sales and manufacturing following the merger with its consolidated subsidiaries, while advancing the SIMA (SINKO Innovative Manufacturing of AHU) project to convert design and production know-how into digital technology and rebuild the operational platform. This included developing a 3D CAD system that can automatically update linked equipment dimensions and other specifications and output the processing data required for production, as well as using artificial intelligence (AI) to predict production hours that had traditionally been planned by experienced employees.」

「We will advance the reconstruction of our core systems, including the integration of design, estimation and procurement, and quality assurance functions and the review of business processes, with the aim of further improving productivity.」

「To accelerate sales and manufacturing productivity improvements through reviews of business processes and various system investments that had been ongoing」

「Against this backdrop, while focusing on additional strategic orders, the Group worked to improve sales and manufacturing productivity through reviews of business processes and system investments to improve build-to-order production services and related areas.」

「While continuing to pursue strategic orders, we worked to improve productivity through integrated sales and manufacturing, including by reviewing business processes and making system investments to improve build-to-order production services.」

「We will improve productivity by streamlining information flows through integrated sales and manufacturing and making system investments, while optimizing the use of manufacturing and shipping capacity to maximize it, with the aim of further expanding orders.」

「We worked to expand manufacturing capacity, including through productivity improvements from sales and manufacturing coordination and system investments to improve build-to-order production services.」

「We worked to improve build-to-order production services and productivity through sales and manufacturing coordination, including through system investments.」

「We will refine our integrated sales and manufacturing capabilities and further enhance the competitiveness of our central air-conditioning units.」

「We worked on upfront investments, including system investments to improve build-to-order production services and initiatives to improve productivity through sales and manufacturing coordination.」

「We worked on upfront investments in anticipation of future demand growth, including system investments to improve build-to-order production services and initiatives to improve productivity through sales and manufacturing coordination.」

「System investments to improve build-to-order production services and related areas」

「Using our proprietary core system as the foundation, we will streamline the flow of information from sales through manufacturing, improve productivity and expand orders.」

「System investments to improve build-to-order production services and related areas」

「Centered on further strengthening responsiveness and speeding up build-to-order production through system investments」

「We will use and further improve the core systems developed to date to shorten lead times and improve business performance.」