TOKYO , Dec. 19, 2022 /PRNewswire/ — Increase in sales, decrease in profits for the third quarter of the fiscal year which ends December thirty-one st , 2022. Plants for the flagship Johkasou were completed in Sri Lanka and India , strengthening production in overseas business. In renewable energy business, there was expansion from the solar power business and a focus on compact wind generation and biodiesel fuel.

Summary of Results

The overarching company climate that envelopes the particular company group during the current consolidated cumulative third quarter is one where measures to combat COVID-19 have been adopted, accompanied by the particular continuous transition to normal socioeconomic activities. On the other hand, factors such as the prolonged lockdown within Shanghai plus geo-political tensions in Ukraine led to sudden price jumps for various materials and delays in supply chains, the impact of which still currently persists from the previous quarter. In addition, with Sri Lanka falling into default the economic outlook remains ambiguous due to growing uncertainty of global affairs. Under these circumstances, the particular medium-term management plan set be implemented by the fiscal year ending in December 2025 , “PROTECT x CHANGE”, continues to drive forward. More specifically, in the environmental equipment segment the company will promote business development overseas while expanding maintenance and energy service company (ESCO) business as a recurring revenue model.   Meanwhile within the household equipment segment, a shift from a stable business in order to a growing business occurred by the launch associated with the EC business, the particular discovery of new commercial products, and other initiatives. Within the alternative energy segment, the organization will conduct initiatives aimed at achieving a recycling-oriented society, strengthening its capacity to secure stable profits, and devising high value-added businesses plus products with regard to conditions following the conclusion of the feed-in tariff (FIT) system’s application. In terms of overall initiatives, the organization will strengthen its internal organization to support the successful implementation of IT strategies and apply IT as a tool for improving productivity.

Net sales for the current combined cumulative 3 rd quarter that will ends on December 31 . 2022 totaled 29, 059 million yen (+5. 4% Year-on-Year).   Gross profit totaled 6, 077 million yen (+4. 4% Year-on-Year), operating profit totaled 590 mil yen (-35. 9% Year-on-Year), ordinary income totaled 865 million yen (-16. 5% Year-on-Year), plus net earnings attributable to the particular shareholders of the parent totaled 489 million yen (-1. 1% Year-on-Year).

In the environmental gear segment, domestic sales associated with Johkasou/wastewater treatment systems declined from the same period of the previous year, largely due in order to the progression status of large-scale construction projects. Overseas sales continue to be affected by the influence from the COVID-19 pandemic, but still see improvement because of projects like the delivery associated with Johkasou systems to the particular JICA support project along with Iraq . Sales generated by servicing (a recurring-revenue business) are performing steadily as the Company promotes contract expansion. In addition, an assembly plant in Ceylon (veraltet) was completed in October, and a manufacturing plant for medium and large-sized Johkasou techniques in Indian was finished in November, and preparations for full-scale operations are usually underway. Within the Company’s company of converting groundwater in to drinking water, sales produced through ESCO agreements ( a source of recurring-revenue) rose whilst sales stemming from upkeep operations also increased due to new contracts. Sales generated through non-ESCO groundwater treatment systems also increased due to growing customer needs.

As a result, sales created in the environmental equipment section for that 3rd quarter came to 15, 081 million yen (+4. 8% Year-on-Year), and portion profit (operating profit) amounted to 1, 090 mil yen (-10. 1% Year-on-Year)

In the household products segment, product sales for building related companies declined due to saturation in demand for non-contact type items which had been in high demand the earlier year because of the particular COVID-19 pandemic. Severe delays in product supply continue as a direct result of shipping restrictions placed on manufacturers in relation to the Shanghai lockdown that happened in March. Sales of home center retail products have furthermore seen downturn due to the effect of supply disruptions caused by delivery restrictions on manufacturers. Housing facilities projects recorded sales in the particular third quarter because of the completion of structure for DCM group, which operates hardware storefronts. Due to the impact of the COVID-19 outbreak, there was a reluctance to make capital investments within agricultural greenhouses during the last financial year, yet sales are in recovery and upon the upswing. A website regarding the EC business was created in January of 2022, and official Instagram and Youtube accounts were launched to improve PR operations. The EC business consists of online orders for home equipment design, the Company is building a nationwide EC business for home facility renovation under the own administration in addition to collaborative work with the equipment store company group DCM. Along with product sales being conducted towards the general consumer via the website, through some other corporate cooperation we are usually continuing forward with proposals for employee benefits plus welfare intended for their employees.

As the result, net sales for your household tools business totaled 11, 927 million yen (-0. 1% Year-on-Year), and segment profit (operating profit) totaled 235 million yen (-33. 6% Year-on-Year).

In the renewable power segment, due to the fact of the impact associated with acquiring Sanei Ecohome Inc., in October of last year, sales in the particular solar power era business increased significantly. Furthermore, before said acquisition, product sales in energy and solar energy generation were mainly carried out by renting store roof space form DCM Holdings Co., Ltd. and installing solar strength generation devices within this space and using this equipment in order to sell electricity under Japan’s feed-in contract price (FIT) system. In inclusion to using its own facilities for FIT activities, since the subsidiary will be capable of proposing, constructing, and maintaining solar power generation facilities, it not only sells electricity through its own property, but also engage s in sales of power era facilities. When profit margins for the sale of power generation conducted up until now are compared with groups that operated under FIT, a disparity is occurring between the rate of change for lower profit margins of the sale of facilities to high sales and the rate associated with change in segment profit margin. In compact wind generation for the current consolidated cumulative third quarter, via joint participation with three other companies for that Ministry from the Environment’s “Low Carbon Technology Research Development and Demonstration Program” there is an upturn in sales figures. We successfully linked with an additional 10 sites during the quarter with regard to power era facilities generating compact blowing wind power under FIT. Currently there are 22 sites operational with plans to operate a total of seventy websites by 2025.

In the particular biodiesel fuel-related business, contracts associated with B5 light diesel oil, which can be used in the same ways as standard gas oil because it is 5% biodiesel fuel by volume, engaged inside a strengthening of product sales and an increase within number associated with contracts. The hydrothermal treatment business is currently conducting R& D with the view to establish new technologies, plus strong gains and transitions can be seen.

As a result, net sales for the particular renewable energy business totaled 1, 564 million yen (+112. 1% Year-on-Year), and segment profit (operating profit) totaled 191 mil yen (+22. 7% Year-on-Year).

In other company, performance in the household drinking water business saw a decline in bottled water subscribers, but a rise in the number of clients for subscription-based water servers occurred. Consequently, figures regarding other section sales totaled to 485 million yen (-4. 5% Year-on-Year) and segment profit (operating profit) totaled 40 million yen (-60. 7% Year-on-Year).

Daiki Axis Co., Ltd. (4245, First Section, TSE)  https://www.daiki-axis.com/en/

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