Continued Investment in Sales Capabilities, Production Capacity, and R&D Capabilities

「As a result, total capital investment by the Group during the fiscal year was ¥3,784.455 million, with the breakdown by segment as follows.」

「In the pharmaceutical manufacturing and sales business, the Group is proceeding with construction of the Zao Second Plant toward commencement of operations in July 2027. At the Coai Sei head office plant, also in Yamagata, it is also taking steps to ensure pharmaceutical quality and safety and strengthen its stable supply system ahead of the scheduled renewal of its pharmaceutical manufacturing license in December 2026.」

「As a result, total capital investment by the Group during the fiscal year was ¥3,077.004 million, with the breakdown by segment as follows.」

「In the pharmaceutical manufacturing and marketing business, construction of the Zao No. 2 Plant is proceeding as planned for operations to begin in July 2027, in order to fulfill our responsibility to ensure stable supply and accommodate further demand growth.」

「Coai Sei Co., Ltd. Yamagata City, Yamagata Prefecture Pharmaceutical manufacturing and sales business Construction of the Zao Second Plant 6,500,000 468,629 Internal funds, funds from capital increases, and borrowings September 2024 June 2026」

「In the active pharmaceutical ingredients business, the Group renovated the Osaka Pharmaceutical Analysis Center to accommodate further expansion of transactions. In the pharmaceutical manufacturing and sales business, as it aims to become a leading manufacturer of distinctive injectables under its medium- to long-term growth strategy, the pharmaceutical warehouse being constructed at the Zao Plant began operations in March 2024. The Group has also decided to construct a second plant on the Zao Plant premises to accommodate further demand growth and fulfill its responsibility to ensure stable supply. The second plant will be a high-potency sterile pharmaceutical manufacturing facility designed for mass production of 12 million 1–2 mL prefilled syringes per year.」

「The company decided to construct a second plant on the premises of the Zao Plant. The second plant will be a high-potency sterile pharmaceutical manufacturing facility designed for mass production of 12 million 1–2 mL prefilled syringes per year.」

「The Group's total R&D expenditure for the three months ended 30 June was ¥26.439 million. There were no material changes in the status of the Group's R&D activities during the three months ended 30 June.」

「The Group continues to make capital investments aimed at expanding sales capabilities, increasing production capacity, and enhancing R&D capabilities. The figures include investment in intangible assets as well as property, plant and equipment. As a result, total capital investment by the Group during the fiscal year was ¥412.163 million.」

「Among the injectables that are a strength of our pharmaceutical manufacturing and marketing business, the gap from prevailing market prices is small. We are focusing in particular on manufacturing highly potent injectables, for which substitution by generic drugs has been relatively limited, while working to further improve productivity. As part of these efforts, we decided to build a new pharmaceutical warehouse on the site of the Zao Plant in order to increase production of products for which further demand growth is expected and establish a stable supply system. The warehouse will strengthen production capacity by securing stable inventories of raw materials and increasing the number of products manufactured. By improving our stable supply system, we aim to further expand the pharmaceutical manufacturing and marketing business.」

「From January 2023, operation of the in-line visual inspection system for plastic syringes, which had been introduced progressively at the Zao Plant, is expected to support preparations for increased production and improve productivity.」

「The Group's total R&D expenditure for the three months ended 30 June was ¥24.232 million. There were no material changes in the status of the Group's R&D activities during the three months ended 30 June.」

「The Group's total R&D expenditure for the nine months ended 31 March was ¥69.349 million. There were no material changes in the status of the Group's R&D activities during the nine months ended 31 March.」

「The Group's total R&D expenditure for the six months ended 31 December was ¥45.671 million. There were no material changes in the status of the Group's R&D activities during the six months ended 31 December.」

「The Group's total R&D expenditure for the three months ended 30 June was ¥21.206 million. There were no material changes in the status of the Group's R&D activities during the three months ended 30 June.」

「Total capital investment by the Group during the fiscal year was ¥335.363 million, comprising ¥62.224 million in the active pharmaceutical ingredients business and ¥271.303 million in the pharmaceutical manufacturing and sales business.」

「The Group's total R&D expenditure for the nine months ended 31 March was ¥100.033 million. There were no material changes in the status of the Group's R&D activities during the nine months ended 31 March.」

「The Group's total R&D expenditure for the six months ended 31 December was ¥70.082 million. There were no material changes in the status of the Group's R&D activities during the six months ended 31 December.」

「The Group's total R&D expenditure for the three months ended 30 June was ¥34.244 million. There were no material changes in the status of the Group's R&D activities during the three months ended 30 June.」

「The Group continues to make capital investments aimed at expanding sales capabilities, increasing production capacity, and enhancing R&D capabilities.」

「The Group continues to make capital investments aimed at expanding sales capabilities, increasing production capacity, and enhancing R&D capabilities.」