Impact on the Household Equipment-Related Products Business from Delays in China’s Environmental Policies and Intensifying Competition

「Sales volume declined due to the sluggish real estate market in China, resulting in revenue of ¥4,981 million, down 15.7% from the previous fiscal year. Operating loss was ¥340 million, but improved by ¥250 million year on year as cost reductions and more appropriate pricing progressed.」

「Sales volume declined due to the sluggish real estate market in China, resulting in revenue of ¥4,981 million, down 15.7% from the previous fiscal year. Operating loss was ¥340 million, but improved by ¥250 million year on year as cost reductions and more appropriate pricing progressed.」

「Although conditions in Japan remained firm, revenue was ¥2,508 million, down 14.7% year on year, reflecting weak domestic demand and a sluggish housing market in China. Operating loss was ¥205 million, a ¥120 million reduction from the same period of the previous year, due to cost reductions and more appropriate pricing.」

「In this business, which mainly manufactures and sells control equipment for gas appliances, water control equipment and related products, efforts were made to adjust prices appropriately, but sluggish sales volumes due to China's property market downturn and partial inventory write-downs had an impact. Sales amounted to ¥5,909 million, down 0.9% year on year, and operating loss amounted to ¥591 million, compared with an operating loss of ¥546 million in the previous fiscal year.」

「In this business, which mainly manufactures and sells control equipment for gas appliances, water control equipment and related products, sales volumes remained sluggish amid China's property market downturn. However, the impact of the weaker yen and appropriate adjustments to selling prices resulted in sales of ¥2,941 million, up 5.1% year on year. In addition to higher sales, progress in internal improvements resulted in the operating loss narrowing to ¥325 million, compared with an operating loss of ¥343 million in the same period of the previous year.」

「In addition to sluggish demand recovery, the business was affected particularly by the property market downturn in China. As a result, sales amounted to ¥4,408 million, down 14.4% year on year. Operating loss narrowed to ¥413 million, compared with an operating loss of ¥573 million in the same period of the previous year, partly due to progress in reducing costs in this business.」

「Demand recovery in Japan and overseas was delayed, and the property market in China in particular affected demand for gas appliances. As a result, sales in this business amounted to ¥2,799 million, down 10.8% year on year. Operating loss narrowed to ¥343 million, compared with an operating loss of ¥526 million in the same period of the previous year, partly due to progress in reducing costs in this business.」

「Due to delayed demand recovery in Japan and overseas, as well as the continued property market downturn in China, which affects demand for gas appliances, sales in this business amounted to ¥1,298 million, down 6.6% year on year.」

「Despite the continued property market downturn and intensifying competition in China, sales activities continued, and the appreciation of the Chinese yuan also contributed to sales of ¥5,150 million, up 5.1% year on year. At the same time, higher raw material prices and soaring energy prices, particularly in Europe, contributed to an operating loss of ¥573 million, compared with an operating loss of ¥276 million in the same period of the previous year.」

「In addition to intensifying competition in the market as energy prices surged, the business was affected by the downturn in China's housing market. Revenue from this business was ¥3,138 million, down 4.0% year on year. Partly due to higher raw material prices and other factors, the operating loss was ¥526 million, compared with an operating loss of ¥165 million in the same period of the previous year.」

「Price competition intensified overseas, and sales in this business amounted to ¥1,389 million, down 8.1% year on year. In addition to raw material costs, higher logistics costs also had an impact, and the operating loss amounted to ¥209 million, compared with an operating loss of ¥75 million in the same period of the previous year.」

「As a result of reviewing its product strategy and working to improve production efficiency, revenue from this business increased 38.6% year on year to ¥3,267 million, and the operating loss narrowed to ¥165 million from an operating loss of ¥264 million in the same period of the previous year.」

「Despite the impact of the spread of the novel coronavirus, sales in this business amounted to ¥5,818 million, down 0.0% from the previous fiscal year, as a result of reviewing the product strategy, while the operating loss narrowed to ¥221 million from ¥345 million in the previous fiscal year.」

「In response to changes in the competitive environment, the Group reviewed its product strategy. As a result, sales in this business amounted to ¥4,135 million, down 4.6% year on year, while the operating loss narrowed to ¥213 million from ¥308 million in the same period of the previous year.」

「In response to changes in the competitive environment, the Group reviewed its product strategy and restructured its organization. As a result, revenue from this business declined 15.1% year on year to ¥2,358 million, but the operating loss narrowed to ¥264 million from an operating loss of ¥285 million in the same period of the previous year.」

「Against a backdrop of intensifying competition in the Chinese market, the Group reviewed its product strategy and rebuilt its organizational structure. As a result, sales in this business amounted to ¥1,032 million, down 21.8% year on year, while the operating loss narrowed to ¥144 million from ¥166 million in the same period of the previous year.」

「As competition intensified in China, its main market, the Group reviewed its product strategy and restructured its development and production organization. As a result, revenue from this business was ¥5,819 million, down 12.2% from the previous fiscal year, and it reported an operating loss of ¥345 million, compared with an operating loss of ¥348 million in the previous fiscal year.」

「As competition intensified in China, its main market, the Group reviewed its products and restructured its development and production organization. As a result, revenue from this business was ¥4,335 million, down 16.1% year on year, and it reported an operating loss of ¥308 million, compared with an operating loss of ¥187 million in the same period of the previous year.」

「As government environmental policies have been slow to progress and competition has intensified in China, its main market, the Group restructured its organization and reviewed its product strategy. As a result, revenue from this business was ¥2,777 million, down 20.2% year on year, and it reported an operating loss of ¥285 million, compared with an operating loss of ¥123 million in the same period of the previous year.」

「In China, our main market, progress in the government's environmental policies has been delayed and competition has intensified. The Group is reviewing its product strategy and rebuilding its organizational structure. As a result, sales in this business amounted to ¥1,319 million, down 20.6% year on year, and operating loss amounted to ¥166 million, compared with an operating loss of ¥20 million in the same period of the previous year.」