In our key focus area, the renewable energy-related equipment business, the order volume for solar power generation equipment construction, particularly for self-consumption type solar power systems, expanded, and we also saw growth in orders for grid-connected energy storage systems. Additionally, in the wireless communication infrastructure equipment business, the smooth progress of surveillance cameras, monitoring systems, and mobile communication construction led to an increase in both revenue and profit.

For the current fiscal year of the consolidated group, the order volume in this segment was 13,143 million yen (a 14.7% increase compared to the same period last year), with sales of 11,190 million yen (a 28.0% increase compared to the same period last year), and segment profit of 853 million yen (a 17.0% increase compared to the same period last year).

In the engineering division, the integration with the domestic design department through the use of DX has contributed to the strengthening of technical capabilities and the increase in technical staff, which in turn helped acquire new clients, and the situation progressed smoothly.

On the other hand, in the construction division, the ongoing regulatory tightening in Vietnam has continued to impact the construction industry, leading to delays in the resumption of suspended projects. Additionally, due to the provision for bad debts, there was a decrease in both revenue and profit.

For the current fiscal year, the order intake for this segment was 1,177 million yen (a 24.7% decrease compared to the same period last year), sales amounted to 1,294 million yen (a 37.6% decrease compared to the same period last year), and the segment loss was 354 million yen (compared to a segment loss of 59 million yen in the same period last year)."

As one of the pillars of our management ambidexterity approach, JESCO CRE Co., Ltd., established in January 2022, has been actively involved in a wide range of businesses, including real estate leasing operations and value enhancement through renewals. Due to the smooth progress of property sales and rental management income, we have seen an increase in both revenue and profit.

For the current consolidated fiscal year, the order intake for this segment was 2,319 million yen (a 715.4% increase compared to the previous year), with sales of 2,319 million yen (a 715.4% increase compared to the previous year), and segment profit of 763 million yen (a 467.1% increase compared to the previous year).

※EPC; engineering, procurement and construction