Expansion of China's manufacturing and sales network

「We began full-scale deliveries of our products, centered on soundproof doors jointly developed with H World Group, to the major hotel group, which operates globally with a focus on China and, as of the end of March 2026, had operations in 21 countries with 13,215 hotels and 1.3 million rooms. Capital investment in equipment to support mass production of these products has also been completed, establishing a production structure for expanding sales. The products are expected to contribute to performance from the second half onward.」

「As specific measures, the Group will expand its route-sales network centered on the 11 distributors newly developed in the previous fiscal year, while expanding its product lineup to include interior doors, interior fittings, storage units, sinks and metal doors.」

「前期に新規開拓した11社の代理店を軸としたルート販売網の拡充を進めるとともに、インテリアドア、造作材、収納ユニット、流し台、金属ドア等の商品ラインナップ拡充を推進してまいります。」

「Against this backdrop, the Group is focusing on expanding sales of products for commercial facilities, where orders are reliable and sales proceeds can be collected efficiently. Collaboration and sales expansion with Taiwan's Ruentai Group have progressed, the order backlog has steadily increased, and sales are expected to rise as on-site deployment gains momentum from the next fiscal year.」

「Accordingly, in addition to its traditional sales channel for real-estate developers, the Group successfully launched distributor sales and 日門（昆山）建材科技有限公司, a sales company for products for commercial stores.」

「The Group newly established 日門（昆山）建材科技有限公司, a sales company for products for commercial facilities, including counters, gas ranges, sinks and display shelves for stores such as chain convenience stores, and began operations.」

「In September, the Group began operating a specialist distributor for exterior fire doors, including entrance doors, in Shanghai, establishing a structure for expanding sales of the new product line.」

「The Group's Yichun factory in Jiangxi Province completed construction of the fire-door factory that had been under construction since last year. In March this year, it obtained manufacturing and factory certifications for metal fire doors (Class A and Class B) and wooden fire doors (Class A and Class B), securing approval to manufacture and sell them. This has enabled the Group to expand its product range to include exterior doors, interior doors, storage boxes, interior fittings, sinks and other products, and it will work actively to expand sales.」

「On the production side, the Group will actively pursue initiatives to develop factories with strong production engineering capabilities. To strengthen its sales structure, it will expand its sales-management system, establish the Group's brand, develop new customers with strong financial foundations and creditworthiness, and expand sales.」

「However, at the Group's Jiangxi factory, it is establishing a manufacturing and sales structure for metal doors, including entrance doors, at a newly built third factory. Capital investment in buildings, machinery and equipment, as well as prototypes for fire-safety certification and other requirements, has been completed, and the Group is currently establishing a route-sales structure. It is steadily preparing its supply structure for the full lifting of movement restrictions and the recovery of business conditions, covering not only the new metal-door products but also the manufacture and sale of its existing interior-system components.」

「The showroom opened inside the Kunshan plant in October last year was very well received and made a significant contribution to sales through distribution channels. Revenue increased by more than 10% year on year.」

「The large showroom opened at the Kunshan factory in October last year has been well received by developers and distributors and has come to play a major role in promoting sales.」

「The large showroom opened at the Kunshan factory in October last year has been well received by developers and distributors and is contributing to route sales and the acquisition of new high-quality developers.」

「On the sales side, the Group opened a 1,500㎡ showroom at the Kunshan factory at the end of October, displaying all products handled by the Group, to educate developers and route-sales distributors and promote new customer development.」

「On the production side, the capacity-expansion equipment plan pursued since the end of the previous fiscal year, comprising a flush-door and frame line at the Yosh屋 Qingdao factory and a flush-door, stile-and-rail door and frame line at the Yichun factory, was completed in September and entered full-scale operation. The Group is gradually recovering delayed production.」

「To meet strong orders, on the supply side the Group brought the new factory at the Yichun factory (日門（江西）建材有限公司) into operation on the adjacent site of 26,680㎡ acquired two years ago as a second factory, comprising 2 buildings with a total floor area of 16,400㎡, increasing production at the Yichun factory by 30%. In addition, the Group decided to acquire a further adjacent site of 53,360㎡ at the request of the Yichun municipal government.」

「The Group also focused on route sales targeting the traditional shell-apartment market, meaning sales to end users through distributors, with 88 distributors currently operating mainly in coastal areas.」

「Against this backdrop, on the sales side the Group established 30 sales offices nationwide and worked actively to develop new customers and win orders while securing market share among major leading developers advancing the development of homes with interior fit-outs. It also focused on route sales targeting the traditional shell-apartment market, meaning sales to end users through distributors, with 80 distributors currently operating mainly in coastal areas.」

「Against this backdrop, on the sales side the Group established 30 sales offices nationwide and worked actively to develop new customers and win orders while securing market share among major leading developers advancing the development of homes with interior fit-outs. It also focused on route sales targeting the traditional shell-apartment market, meaning sales to end users through distributors, with 80 distributors currently operating mainly in coastal areas.」

「In addition to its previous 25 sales offices in major cities, the Group opened 5 new offices in regional cities, bringing the nationwide total to 30. It worked actively to develop new customers and win orders while securing market share among major leading developers advancing the development of homes with interior fit-outs. The number of contracts with distributors operating showrooms has now reached 80, mainly in major cities.」

「In addition to its previous 25 sales offices in major cities, the Group opened 5 new offices in regional cities, bringing the nationwide total to 30. It worked actively to develop new customers and win orders while securing market share among major leading developers advancing the development of homes with interior fit-outs. The number of contracts with distributors operating showrooms increased from 60 to 78 during the current fiscal year, mainly in major cities. Against a backdrop of strong orders in China, in August 2018 the Group acquired the land-use rights to an adjacent site of 26,680㎡ next to the Yichun factory (日門（江西）建材有限公司) and began construction of 2 factories with a total floor area of 16,400㎡. This is expected to increase domestic production capacity in China by more than 30% from its current level.」

「In addition to its previous 25 sales offices in major cities, the Group opened 5 new offices in regional cities, bringing the nationwide total to 30. It worked actively to develop new customers and win orders while securing market share among major leading developers advancing the development of homes with interior fit-outs. The number of contracts with distributors operating showrooms increased from 60 to 78 during the current fiscal year, mainly in major cities.」

「The Group has now contracted with approximately 60 distributors, mainly in major cities, that operate showrooms. It has also installed small-batch production lines dedicated to distributors at each factory to handle individual customer orders and expanded warehouse capacity at each factory to meet increasing orders, steadily laying the groundwork for growth, expansion and stability.」

「In addition to the expanding infill market, the Group is also focusing on route sales targeting the traditional shell-apartment market, meaning sales to end users through distributors. It is currently working mainly in major cities to build a distributor network with showrooms, while installing dedicated production lines for distributors at each factory, and has steadily laid the groundwork for growth, expansion and stability.」

「The Group is working to build a 100-store distributor network with showrooms and has steadily laid the groundwork for growth, expansion and stability by installing dedicated production lines for distributors at each factory.」

「The Group is also focusing on route sales targeting this market, meaning sales to end users through distributors. It has now secured 48 distributors with showrooms in major cities. It is working toward building a 100-store distributor network while installing dedicated production lines at each factory, steadily laying the groundwork for growth, expansion and stability.」

「We are also actively expanding sales through distribution channels using agents to strengthen sales to customers purchasing skeleton units, consisting only of the structural frame without interior finishing, which account for most of China's condominium market. We have now secured 48 agents with showrooms in major cities. In addition to working to build a network of 100 agents, we are steadily laying the groundwork for growth, expansion and stability, including by establishing dedicated production lines at each plant.」

「The Group has now secured 48 distributors with showrooms in major cities. It is working to build a network of 100 distributors and steadily laying the groundwork for growth, expansion and stability.」

「Against this backdrop, since the previous fiscal year the Group has actively expanded route sales through distributors to strengthen sales to customers purchasing shell apartments, which account for most of the condominium market and consist only of the structural shell without interior finishes. It has now secured 48 distributors with showrooms in major cities and steadily laid the groundwork for growth, expansion and stability.」

「Against this backdrop, in addition to developers selling homes with interior fit-outs, which are currently the Group's main sales channel, the Group is actively developing route sales (sales through distributors) to users who purchased shell apartments, the mainstream format in China's residential market, without interior finishes, as well as to interior contractors. It has secured 48 distributors with showrooms in major Chinese cities and is steadily laying the groundwork for growth, expansion and stability.」

「Our group has sales offices in 25 major cities centered on provincial capitals and has actively pursued orders for interior products, including its core products such as interior doors, to secure market share among developers advancing the development of properties with interior finishing and acquire new customers.」

「China operations now comprise 4 subsidiaries, including 3 manufacturing plants and 1 trading company, sales offices in 25 major cities centered on provincial capitals, and 30 sales agents.」