FY2025 First-Half Healthcare Decline, Plastic Products Loss and Other-Business Decline

「① Wholesale business Housing starts have continued to trend downward, with both owner-occupied housing and total housing starts nationwide remaining below the prior year. From April to September, new owner-occupied housing starts in Hokkaido totaled 4,447 units, down 10.2% year on year, and the company expects difficult conditions to continue. Against this backdrop, the company worked to strengthen sales of ventilation-related products, including the ductless total heat-exchange ventilation system “Air save,” and to sell at appropriate prices. However, it was unable to offset the increase in expenses, including those related to core systems, resulting in net sales of ¥5,389 million, down 2.3% year on year, and operating income of ¥467 million, down 10.9%. ② Retail business In the home improvement retail industry, consumers’ preference for thrift remains strong, and competition with other companies in the industry and with businesses in other sectors continues to intensify. Against this backdrop, the company worked to improve customer satisfaction and differentiate itself from other stores by strengthening its customer service capabilities. However, it was unable to offset the increase in expenses, including higher personnel costs, resulting in net sales of ¥11,426 million, up 1.3% year on year, and operating income of ¥695 million, down 13.7%. ③ Real estate business The company focused on properly maintaining and efficiently operating its rental properties. Net sales were ¥252 million, up 19.1% year on year, and operating income was ¥121 million, down 6.7%. ④ Scaffolding rental business Initiatives involving next-generation scaffolding for mid- and high-rise buildings remained solid. However, due to higher expenses associated with orders received, net sales were ¥390 million, up 27.8% year on year, and operating income was ¥21 million, down 22.4%. ⑤ Sash and glass installation business The company worked to improve operational efficiency by thoroughly implementing the fundamentals of design, supervision and construction at work sites. As orders for large facilities and other projects remained solid, net sales were ¥635 million, up 11.5% year on year, and operating income was ¥61 million, up 61.9%.」