Expansion of the Insulation Materials Business from Materials Sales to Design and Construction Solutions

「Having obtained ministerial approval for construction methods and other matters under the Building Standards Act in the noncombustible materials category for building-material ancillary products, we entered the building materials, specifically fire-resistant materials, industry and began sales in the building materials industry. We will expand our sales channels through sales activities aimed at entering other industries and establishing distribution channels with new products, as well as through sales of products for non-insulation applications and equipment.」

「In Japan, revenue exceeded the same period of the previous year due in part to increased new industrial furnace construction projects, furnace repair projects and sales of furnace materials. Revenue at the consolidated subsidiary fell below the same period of the previous year due in part to lower-than-expected orders for heater modules and decreased sales of industrial furnaces. Rising raw material costs and intensifying market competition reduced revenue and lowered the profit margin, resulting in a segment loss. As a result, insulation business revenue was ¥1,109 million, down 59.1% year on year.」

「The consolidated subsidiary experienced rapid growth driven by increased investment in the photovoltaic power generation market. In 2024, however, battery prices fell sharply due to insufficient market demand and excess inventories at manufacturers, intensifying price competition for heater modules. Even this subsidiary, which is confident in its quality, responded by lowering selling prices for repeat orders. At the newly operational 阿爾美（蘇州）科技有限公司, large-scale equipment could be installed, and efforts were made to expand revenue through the production and sale of new products including high-purity SiO and alumina particles. As a result, insulation business revenue was ¥5,173 million, down 51.1% year on year.」

「Sales at the consolidated subsidiary fell below the same period of the previous year due in part to lower sales of heater modules for manufacturing photovoltaic panels and industrial furnaces. However, the subsidiary is working to expand sales by developing distribution channels for heater modules for semiconductor manufacturing equipment. It has also begun producing high-purity SiO, which is attracting attention as an anode material for batteries, and alumina particles, and will continue research and development of advanced, high-value-added products. As a result, insulation business revenue was ¥2,715 million, down 21.1% year on year.」

「At 阿爾賽（蘇州）無機材料有限公司, sales of special-shaped molded products increased. In particular, sales of heater modules for diffusion furnaces used to manufacture photovoltaic panels increased by approximately 140% compared with sales in the cumulative second-quarter consolidated period, among other factors, resulting in sales substantially exceeding those of the same quarter of the previous year. Insulation business revenue was ¥7,781 million, up 144.8% year on year.」

「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.」

「At 阿爾賽（蘇州）無機材料有限公司, sales of special-shaped molded products increased. In particular, sales of heater modules for diffusion furnaces used to manufacture photovoltaic panels continued to grow. We made capital investments and increased staffing in response to this growing demand, but were already operating at full capacity as of July and are continuing to strengthen our production capacity. As a result, insulation business revenue was ¥1,102 million, up 36.0% year on year.」

「At 阿爾賽（蘇州）無機材料有限公司, sales of special-shaped molded products and industrial furnaces increased. Sales of heater modules for diffusion furnaces used to manufacture photovoltaic panels grew substantially and made a significant contribution to revenue, while yen-denominated sales also increased as the exchange rate moved in favor of a weaker yen. As a result, sales exceeded both the previous year's level and the plan for the current period. Insulation business revenue was ¥3,958 million, up 80.5% year on year.」

「In Japan, sales of furnace materials increased as a result of continuing to receive orders mainly for construction projects, and we also received inquiries from other locations of existing customers. We also expanded our cross-selling activities targeting industries and customers that had responded favorably, producing results. In addition, sales of products other than insulation materials increased through regular orders. At 阿爾賽（蘇州）無機材料有限公司, sales of special-shaped molded products and industrial furnaces increased. In particular, sales of heater modules for diffusion furnaces used to manufacture photovoltaic panels grew substantially, and sales are expected to continue expanding in the fiscal year ending March 2023.」

「In Japan, sales of furnace materials increased, mainly alongside orders for construction projects. We also received inquiries from other locations of existing customers and expanded our cross-selling activities. In addition, although they account for a small proportion of sales, sales of products other than insulation materials increased through regular orders. At 阿爾賽（蘇州）無機材料有限公司, sales of special-shaped molded products and industrial furnaces increased. In particular, heater modules for diffusion furnaces used to manufacture photovoltaic panels grew substantially and contributed to higher sales. The yen-denominated amount also increased as the exchange rate moved in favor of a weaker yen compared with the same quarter of the previous year. As a result, insulation business revenue was ¥2,137 million, up 118.3% year on year.」

「In Japan, sales increased mainly for furnace materials used in drying furnaces. Although they account for a small proportion of sales, sales of products other than insulation materials increased through regular orders. At 阿爾賽（蘇州）無機材料有限公司, sales of special-shaped molded products and industrial furnaces increased. In particular, sales of diffusion furnaces for manufacturing photovoltaic panels grew.」

「As a result, insulation business revenue was ¥2,192 million, up 27.2% year on year.」

「In Japan, sales of furnace materials increased steadily alongside orders for construction projects. We also focused on selling high-value-added products, beginning sales of shelves, which are high-temperature kiln tools, to overseas customers newly developed through domestic distribution channels, and have been receiving orders regularly. 阿爾賽（蘇州）無機材料有限公司 exceeded both the sales recorded in the same quarter of the previous year and the plan for the current quarter. Sales of shelves, which are high-temperature kiln tools, increased by approximately 170% year on year, and although they account for a small proportion of sales, they are growing. Sales of industrial furnaces and special-shaped molded products also increased.」

「In Japan, capital investment remained cautious amid concerns about the outlook, but furnace-material sales increased after the company won orders for previously postponed construction projects. The company also focused on selling high-value-added products and began selling high-temperature kiln furniture, specifically kiln shelves, to overseas customers newly developed through distribution channels in Japan. At 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd., sales of kiln shelves, high-temperature kiln furniture, increased approximately 140% year on year, while sales of industrial furnaces and special-shaped molded products also increased, lifting revenue above that of the same quarter of the previous year.」

「In Japan, furnace-material sales declined slightly and fell below those in the same quarter of the previous year, but exceeded plan. At 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd., sales of industrial furnaces and special-shaped molded products increased, but revenue fell below that of the same quarter of the previous year because acceptance of some industrial-furnace sales was pushed into the second quarter of the consolidated fiscal period. As a result, insulation-materials segment revenue was ¥283 million, down 16.1% year on year.」

「In the insulation-materials business, sales exceeded those in the previous year at the consolidated subsidiary 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd., supported by large-project orders from a major Japanese steelmaker and other factors. As a result, insulation-materials segment revenue increased 10.6% year on year.」

「In Japan, results fell below plan because the cautious stance toward capital investment amid concerns about the outlook continued, while construction-project orders were delayed and some projects were scaled back as customers waited to assess future conditions. At 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd., sales exceeded those in the same quarter of the previous year, supported by large-project orders. As a result, insulation-materials segment revenue was ¥1,227 million, down 0.4% year on year.」

「In Japan, a cautious stance toward capital investment amid concerns about the outlook and shifts in the timing of construction-project orders caused results to fall below plan. At 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd., the company achieved its plan, but sales fell below those in the same quarter of the previous year because the spread of COVID-19 restricted the movement of people and goods. As a result, insulation-materials segment revenue was ¥737 million, down 11.6% year on year.」

「In Japan, a cautious stance toward capital investment amid concerns about the outlook and shifts in the timing of construction-project orders caused results to fall below plan. At 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd., the company achieved its plan, but sales fell below those in the same quarter of the previous year because the spread of COVID-19 restricted the movement of people and goods. As a result, insulation-materials segment revenue was ¥337 million, down 32.0% year on year.」

「In Japan, the number of new customers continued to increase, but sales fell below the previous year's level because the timing of orders for construction projects shifted. At 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd., orders for core products and industrial furnaces remained firm, and sales exceeded the previous year's level. As a result, insulation-materials segment revenue was ¥1,559 million, up 5.1% year on year.」

「In Japan, the number of new customers continued to increase, but sales fell below those in the same quarter of the previous year because orders for electric furnaces were postponed and periodic furnace repairs were delayed. Orders at 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd. for core products, special-shaped molded products, electric furnaces and other products remained firm. As a result, insulation-materials segment revenue was ¥1,232 million, up 17.5% year on year.」

「Orders at 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd. for core products, special-shaped molded products, electric furnaces and other products remained firm. As a result, insulation-materials segment revenue was ¥834 million, up 13.9% year on year.」

「Orders at 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd. for core products, special-shaped molded products, electric furnaces and other products remained firm. As a result, insulation-materials segment revenue was ¥496 million, up 35.9% year on year.」

「We will transition from being a materials manufacturer to a comprehensive insulation-materials company providing high-value-added products and services.」

「In Japan, revenue fell below that of the same quarter of the previous year because orders for refractory materials and related products were scaled back and periodic furnace repairs were postponed. The Kyushu plant sought to expand orders for the design and construction of industrial-furnace heating plants. Orders at 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd. for core products, special-shaped molded products, electric furnaces and other products remained firm.」

「Orders at 阿爾賽 (Suzhou) Inorganic Materials Co., Ltd. for core products, special-shaped molded products, electric furnaces and other products remained firm. As a result, insulation-materials segment revenue was ¥732 million, up 19.6% year on year.」

「In Japan, the number of orders increased as demand for refractory materials and related products rose, and revenue exceeded that of the same quarter of the previous year, partly because deliveries of electric furnaces were brought forward. The Kyushu plant sought to expand orders for the design and construction of industrial-furnace heating plants.」

「In Japan, the number of orders increased as demand for refractory materials and related products rose, and results exceeded plan. The Kyushu plant sought to expand orders for the design and construction of industrial-furnace heating plants. At 阿爾賽, orders for core products and special-shaped molded products remained firm, while sales exceeded those in the same quarter of the previous year as kiln furniture, which began selling in the previous fiscal year, grew. The raw-material supply issue affecting products for solar-power-generation furnace materials in the first quarter of the consolidated fiscal year is showing signs of improvement. As a result, insulation-materials segment revenue was ¥1,044 million, up 20.1% year on year.」

「In Japan, deferred projects were formally ordered and construction schedules were brought forward. Results also exceeded plan because the company secured a large project. The Kyushu plant sought to expand orders for the design and construction of industrial-furnace heating plants. At 阿爾賽, sales of kiln furniture, which began in the previous fiscal year, remained strong, but sales fell below those in the same quarter of the previous year because product shipments were insufficient as raw-material supplies for solar-power-generation furnace-material products could not keep pace. Domestic sales exceeded plan, but total insulation-materials revenue fell below that of the same quarter of the previous year because 阿爾賽 fell short of plan. As a result, insulation-materials segment revenue was ¥612 million, down 4.2% year on year.」

「In Japan, results exceeded plan because deferred projects were formally ordered and construction schedules were brought forward. The Kyushu plant sought to expand orders for the design and construction of industrial-furnace heating plants. At 阿爾賽, demand for furnace materials for solar power generation remained firm, but product shipments were insufficient because raw-material supplies could not keep pace, and sales fell below those in the same quarter of the previous year.」

「In Japan, the company sought to expand large orders, including industrial-furnace heating-plant design and construction projects, but the increasingly cautious stance toward capital investment amid uncertainty about the economic outlook led to existing projects being scaled back or frozen, causing results to fall below plan. At 阿爾賽, continuing demand for furnace materials for solar power generation, which had recovered from the fourth quarter of the previous fiscal year, supported sales. Sales also exceeded plan after the company worked to expand sales of new products, including lift-type high-temperature furnaces and kiln furniture. Although 阿爾賽's sales remained strong, total insulation-materials revenue fell below the previous year because domestic results were below plan.」

「In Japan, the company pursued orders mainly for overseas projects. The Kyushu plant sought to expand orders for the design and construction of industrial-furnace heating plants, but the cautious stance toward capital investment continued amid uncertainty about the economic outlook. Existing projects were scaled back or cancelled, causing results to fall below plan. At 阿爾賽, demand for furnace materials for solar power generation, which had recovered from the fourth quarter of the previous consolidated fiscal year, remained firm. After launching new lift-type high-temperature furnaces and kiln furniture and working to expand sales, revenue exceeded that of the same quarter of the previous year.」

「In Japan, the company pursued orders mainly for overseas projects, but many large projects were deferred because of uncertainty about the economic outlook and shifted to the period beginning with the third quarter. The Kyushu plant sought to expand orders for the design and construction of industrial-furnace heating plants. At 阿爾賽, demand for furnace materials for solar power generation, which had recovered from the fourth quarter of the previous consolidated fiscal year, remained firm. After launching new products, including lift-type high-temperature furnaces and kiln furniture, and working to expand sales, revenue exceeded that of the same quarter of the previous year.」

「In Japan, orders increased, mainly for overseas projects, but some orders were deferred because of uncertainty about the economic outlook. The Kyushu plant sought to expand orders for the design and construction of industrial-furnace heating plants. At 阿爾賽, demand for furnace materials for solar power generation, which had recovered from the fourth quarter of the previous consolidated fiscal year, remained firm, and sales significantly exceeded those in the same quarter of the previous year. As a result, insulation-materials segment revenue was ¥384 million, up 71.2% year on year.」

「The insulation-materials business aims to expand revenue through solutions covering the full range from materials sales to furnace design and construction.」