Continuing Business Structure Reform and Shifting Revenue Sources

「To improve this situation, we additionally implemented measures to lower the break-even point, including in-house production of raw materials and the consolidation of certain functions of 阿爾賽（蘇州）無機材料有限公司 into 阿爾美（蘇州）科技有限公司. However, the effect in the first year was limited.」

「To improve this situation, we are consolidating certain functions of 阿爾賽（蘇州）無機材料有限公司 into 阿爾美（蘇州）科技有限公司 and pursuing measures to reduce fixed costs. At the same time, we are focusing on sales of new products, including alumina particles for semiconductors, SiO, and ceramic racks for MLCC firing, while working to secure profits through the development and manufacture of additional high-value-added products and the expansion of sales channels for new products.」

「With growth in the insulation materials and nanomaterials businesses as the foundation, we are marketing CMC (ceramic matrix composites) as a third business and seeking to establish the Company as a functional materials manufacturer.」

「The archive business, which contributed to our earnings as a core business for many years, was likely to place increasing pressure on earnings from the fiscal year ending March 2025 onward due to declining demand in the optical drive market and other factors. Accordingly, we ended production and related services at the end of June 2024. Going forward, we will accelerate growth in the insulation materials and nanomaterials businesses and focus on these businesses.」

「Sales of special-shaped molded products by 阿爾賽（蘇州）無機材料有限公司 increased. In particular, heater modules for diffusion furnaces used in the manufacture of photovoltaic panels grew substantially. In response to this growing demand, we invested in equipment and increased staffing, resulting in sales substantially exceeding those in the same quarter of the previous year. As a result, sales in the insulation materials business were ¥3,439 million, up 60.9% year on year.」

「We invested in equipment and increased staffing to meet this growing demand. The plant was operating at full capacity as of July, and we continue to expand the production system.」

「The Fukushima Futaba Plant, our full-scale production site, has enabled us to begin full-scale production.」

「All equipment at the Fukushima Futaba Plant is now in place, including equipment delayed by the semiconductor shortage. Installation of the final equipment delivered and test operations have also been completed, and the plant has begun operations with 11 employees, including 4 experienced employees who transferred to the plant. The semiconductor shortage delayed the start of operations by approximately 2 months from the original schedule, but it had no material impact on the establishment of the production system, and production and shipments will be ramped up in stages.」

「The Fukushima Futaba Plant was completed in August 2022, and equipment is being delivered and installed in stages as preparations for full-scale operations continue.」

「Construction of the Fukushima Futaba Plant is progressing as scheduled toward completion in mid-August 2022, along with preparations for operations beginning in September 2022.」

「In the nanomaterials business, as sample evaluations progressed, we opened the Higashimurayama facility in August 2021 to consolidate the sales and technical divisions and enhance our facilities. This has enabled us to conduct targeted trial and error, perform internal evaluations and screening, shorten lead times, and accelerate basic and development research. In addition, to secure production capacity for full-scale adoption and respond accurately to customer requirements, we decided to build the Fukushima Futaba Plant, began construction in January 2022, and are developing the production system.」

「The Group is pursuing initiatives to achieve the Medium-Term Management Plan 2021, whose final fiscal year is the fiscal year ending March 2024, accelerating business structure reform and seeking to transform itself into a functional materials manufacturer.」

「In reviewing the plan, we will respond to recent changes in economic conditions and the business environment, evaluate and revise the progress of each business plan, accelerate business structure reform using the growth of the nanomaterials business and further growth of the insulation materials business, and pursue a transition to a functional materials manufacturer.」

「As a result, the company will gradually shift its business structure while optimizing its business portfolio and transform itself into a company that generates stable earnings on an ongoing basis.」

「The archive business will maximize profits by improving operating efficiency and reallocating resources.」

「The archive business will maximize profits by improving operating efficiency and reallocating resources.」

「To respond to recent changes in economic conditions and the business environment, the company rolled forward the Medium-Term Management Plan 2018 (Fly for the bright future) and, by implementing the following measures under the Medium-Term Management Plan 2019 (Fly for the bright future), will continue working to secure profits and stabilize its management base.」

「As a result, the company will gradually shift its business structure while optimizing its business portfolio and transform itself into a company that generates stable earnings on an ongoing basis.」

「In the web business, the business environment changed due to various factors, including higher advertising costs, and business performance remained weak, continuing to fall substantially short of the initial budget. As the Group worked to strengthen its management structure for business structure reform, it transferred the web business effective 30 September 2018.」

「As it worked to strengthen its management structure for business structure reform, the company transferred the web business effective 30 September 2018.」

「The company will seek to establish new growth drivers by shifting its business structure toward growth markets and markets where it can leverage its technological capabilities, thereby transforming itself into a company that generates stable earnings on an ongoing basis.」

「In this environment, as announced in the 12 May 2017 notice titled "Implementation of the ReGrowth2017 Plan," the Group continued to reform its business structure with the aim of promptly developing new revenue-generating businesses and continued efforts to strengthen its management structure and establish new growth drivers to restore growth in corporate value.」

「Based on the ReGrowth plan, the company proceeded with its review and entered the web business sector through the acquisition of a business, as announced in the 29 May 2017 notice titled "Notice Regarding the Execution of an Agreement for the Acquisition of the Business of Iekare, a Comprehensive Real Estate Comparison Website Operated by Global Search Co., Ltd.," with the aim of commercializing a new business in a market expected to grow.」

「In this environment, as announced in the 12 May 2017 notice titled "Implementation of the ReGrowth2017 Plan," the Group continued to reform its business structure with the aim of promptly developing new revenue-generating businesses and continued efforts to strengthen its management structure and establish new growth drivers to restore growth in corporate value.」

「As part of business structure reform, the company renamed the product inspection business the industrial solutions business, pursued efficient operations suited to the market size for test media, and sought to expand its business scope into industrial and peripheral equipment, starting with inspection equipment and inspection services, as new sources of revenue.」

「As part of business structure reform, the company renamed the product inspection business the industrial solutions business, pursued efficient operations suited to the market size for test media, and sought to expand its business scope into industrial and peripheral equipment, starting with inspection equipment and inspection services, as new sources of revenue.」

「As part of business structure reform, the company renamed the product inspection business the industrial solutions business, pursued efficient operations suited to the market size for test media, and sought to expand its business scope into industrial and peripheral equipment, starting with inspection equipment and inspection services, as new sources of revenue.」

「As part of business structure reform, the company renamed the product inspection business the industrial solutions business, pursued efficient operations suited to the market size for test media, and sought to expand its business scope into industrial and peripheral equipment, starting with inspection equipment and inspection services, as new sources of revenue.」

「As demand for test media in the product inspection business has declined and its earnings power has weakened, it is necessary to further advance business structure reform and promptly secure profits to replace those from the business.」