Acquisition and Expansion of the Ultra-Fine Bubble Technology Products Manufacturing and Sales Business

「In terms of products, in February 2025 the Group launched the “Pureラスファイン ルミナス,” a high-function showerhead with a mist function, as well as the “Pureラス フィニッシュミスト,” a showerhead dedicated to the mist function. In July, it launched the “Scalp Fine Starter Kit,” a showerhead specifically designed for hair washing. To overcome the challenging business environment, the Group focused on developing and selling products that expand its lineup and relatively low-priced new products with specialized functions differentiated from those of competitors.」

「As a result, net sales were ¥520 million, up 5.2% year on year, including intersegment internal sales, and the segment loss was ¥81 million, compared with a segment loss of ¥48 million in the same period of the previous year.」

「To provide optimal products suited to customers’ diverse needs and usage situations, the Group is pursuing a strategy to establish its rebranded showerhead offerings and expand its product lineup. As part of this effort, the Bollina series has been discontinued, and inventory is being replaced with new products, primarily at mass retailers. In July, the Group launched the “Scalp Fine Starter Kit,” a showerhead specifically designed for hair washing.」

「Despite these initiatives, the decline in revenue continued, resulting in revenue of ¥494 million, down 54.9% year on year and including intersegment transactions, and a segment loss of ¥48 million, compared with segment profit of ¥273 million in the same period of the previous year.」

「The Group developed new business partners and OEM products and introduced its products at facilities, primarily hotels. However, revenue declined significantly to ¥228 million, down 58.4% year on year and including intersegment transactions, as the business environment remained challenging due to the slowdown in consumption following demand normalization in the showerhead market, the entry of major manufacturers and intensifying price competition. Despite efforts to control fixed costs and other expenses, the effect of lower revenue was substantial, resulting in a segment loss of ¥29 million, compared with segment profit of ¥158 million in the same interim period of the previous year.」

「Despite these initiatives, revenue continued to decline as competition in the showerhead market intensified further with the entry of more new competitors. In particular, intensifying price competition in e-commerce sales resulted in revenue of ¥1,096 million, down 17.7% year on year and including intersegment transactions. Segment profit improved to ¥273 million, up 82.0% year on year, as margins improved following the transfer of the brass parts and metal cutting business of consolidated subsidiary 株式会社ＴＫＳ, where rising raw material costs had been a challenge in the previous consolidated fiscal year, to a newly established company through an incorporation-type company split effective 31 March 2023, together with the transfer of the shares of that newly established company.」

「Despite these initiatives, competition in the showerhead market continued to intensify as more new competitors entered the market. In particular, price competition in e-commerce sales became more severe, resulting in a significant decline in revenue to ¥704 million, down 29.6% year on year and including intersegment transactions.」

「In terms of sales initiatives, the Group continued exhibiting its water-saving showerheads expected to provide beauty benefits at various trade shows and developing new wholesale customers. It also actively worked to expand sales channels for OEM products and for business customers such as hotels and beauty salons. In terms of products, the Group developed new products using ultra-fine bubble technology to meet consumer preferences and conducted research and development into the potential application of the technology in other fields in cooperation with various parties. As a result, in August it obtained a patent for an “agent for preventing or improving soil disorders” using the technology. The Group will continue investigating and researching potential applications of the technology.」

「The business environment remained challenging, with consumption continuing to slow following demand normalization in the showerhead market and price competition intensifying as more new competitors entered the market. However, revenue was ¥358 million, down 0.1% year on year and including intersegment transactions, supported by new business partners developed through a strengthened sales structure and a temporary increase in demand after the Group’s products were featured in media coverage of “beauty and water-saving showerheads.” Segment profit improved to ¥137 million, up 296.3% year on year, due to improved margins resulting from lower advertising and sales promotion expenses and the withdrawal from the brass parts and metal cutting business, where rising raw material costs had been a challenge.」

「The Group continued active sales activities for water-saving showerheads expected to provide beauty benefits, including introducing them at hotels and beauty salons. However, sales declined significantly due to the slowdown following demand normalization, the entry of more new competitors and intensifying price competition.」

「The Group continued active sales efforts, including introducing its water-saving showerheads expected to provide beauty benefits at hotels and beauty salons. However, sales declined significantly due to the slowdown following demand normalization, the entry of more new competitors and intensifying price competition. As a result, revenue was ¥1,000 million, down 52.9% year on year and including intersegment transactions, and segment profit was ¥109 million, down 89.0%.」

「Sales of water-saving showerheads expected to provide beauty benefits had grown substantially through greater media exposure and expanding stay-at-home demand, but the market environment changed significantly as sales slowed following demand normalization and price competition intensified with the entry of more new competitors. The Group worked to expand sales channels by stimulating demand for showerheads and developing new business partners. It also worked to expand sales channels for the portable “ボリーナ オースリーミスト,” an ozone-water generator that can disinfect and deodorize purified water, tap water and other sources, but this did not offset the decline in showerhead sales, resulting in difficult business conditions. As a result, revenue was ¥710 million, down 53.9% year on year and including intersegment transactions, and segment profit was ¥100 million, down 87.3%.」

「Sales of water-saving showerheads expected to provide beauty benefits grew substantially through the previous fiscal year, supported by greater media exposure and expanding stay-at-home demand. In the cumulative first quarter of the current consolidated fiscal year, however, the business environment suddenly became challenging as demand normalized and slowed, while the entry of more new competitors intensified price competition. The Group worked to expand sales channels for the portable “ボリーナ オースリーミスト,” an ozone-water generator that can disinfect and deodorize purified water, tap water and other sources, but awareness did not improve and sales remained weak. As a result, revenue was ¥359 million, down 36.6% year on year and including intersegment transactions, and segment profit was ¥34 million, down 87.0%.」

「As a result, revenue was ¥2,755 million, including intersegment transactions. Segment profit was ¥1,154 million (compared with revenue of ¥851 million and segment profit of ¥350 million for the six months of the previous year).」

「Demand for showerhead products, the core products expected to provide both beauty and water-saving benefits, increased as awareness of showerheads using fine-bubble technology improved in recent years. Promotional activities centered on media coverage also led to increased orders through e-commerce sites and higher wholesale sales to major business partners, resulting in strong sales. The Group also worked to expand sales channels for the “ボリーナ オースリーミスト,” an ultra-fine bubble ozone-water generator expected to provide disinfecting and deodorizing effects from purified water, tap water and other sources, including through sales activities targeting corporations. As a result, revenue was ¥2,122 million, including intersegment transactions, and segment profit was ¥991 million (compared with revenue of ¥368 million and segment profit of ¥121 million for the three months of the same quarter of the previous year).」

「Demand for showerhead products, the core products expected to provide both beauty and water-saving benefits, increased as awareness of showerheads using fine-bubble technology improved in recent years. In addition, promotional activities centered on media coverage led to increased orders from major business partners and expanded sales channels, resulting in strong sales. The Group also continued efforts to expand sales channels for the “ボリーナ オースリーミスト,” an ultra-fine bubble ozone-water generator expected to provide disinfecting and deodorizing effects from purified water, tap water and other sources, including through sales activities targeting corporations. As a result, revenue was ¥1,542 million, including intersegment transactions, and segment profit was ¥791 million.」

「The core “Bollina（ボリーナ）” showerhead, which is expected to provide both beauty and water-saving benefits, performed steadily, with awareness improving as media exposure increased and sales centered on e-commerce sites. The “ボリーナ オースリーミスト,” an ultra-fine bubble ozone-water generator expected to provide disinfecting and deodorizing effects from purified water, tap water and other sources, was marketed through efforts to expand sales channels, but awareness did not improve and sales remained weak. As a result, revenue was ¥560 million and segment profit was ¥267 million.」

「As a result, revenue from the ultra-fine bubble technology products manufacturing and sales business was ¥851 million, and segment profit was ¥350 million.」

「(Ultra-fine bubble technology products manufacturing and sales business) The core product showerhead “Bollina（ボリーナ）,” which is expected to provide both beauty and water-saving benefits, performed well, particularly through e-commerce sales, supported by greater awareness of ultra-fine bubbles accompanying increased media exposure in recent years. The Group also launched the “ボリーナ オースリーミスト,” an ultra-fine bubble ozone-water generator that can produce disinfecting and deodorizing agents from purified water, tap water and other sources. As a result, revenue from the ultra-fine bubble technology products manufacturing and sales business was ¥368 million, and segment profit was ¥121 million.」

「株式会社田中金属製作所 has technology for producing bubbles with a diameter of less than 0.0001 mm, known as “ultra-fine bubbles” (the “μ-JET” patent, PAT No. 4999996), and manufactures and sells showerheads using this technology as its main products. These ultra-fine bubbles are expected to provide strong cleansing, moisturizing and body-temperature-increasing effects by penetrating into pores and wrinkles. WATER CONNECT operates a sales business focused on mall-based e-commerce sites as the official retailer of showerheads manufactured by 株式会社田中金属製作所. The two companies are aligned with the Group’s management policy of pursuing “Japan’s No. 1 group for empowering women” and focusing on manufacturing products that contribute to “beauty and health” throughout women’s lives, which is expected to increase the value of the Group as a corporate group.」