FY2027 Q2 (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Performance Overview

For this interim period, revenue totaled 15,534 million yen, showing a significant increase year-over-year, but operating income only turned to a small profit of 32 million yen, and net loss attributable to owners of the parent for the interim period was 248 million yen. The company disclosed three reportable segments: Apparel and related businesses, Grid-scale Battery Business, and GPU Server and related businesses, with the GPU Server and related businesses accounting for the majority of revenue. During the period, the company decided to sell Chichicaca, a subsidiary removed from consolidation, and raised capital of over approximately 1,056 million yen through the exercise of stock acquisition rights. The full-year forecast remains unchanged.

Outlook and Capital Policy

Although the full-year earnings forecast is unchanged, from Q3 onward the company plans to strengthen initiatives in the Grid-scale Battery Business and GPU Server and related businesses and improve cash flow through disposal of assets planned for sale. Exercise and issuance of stock acquisition rights are continuing to secure working capital, and a substantial number of unexercised stock acquisition rights remain outstanding. There has been exclusion of a subsidiary from consolidation affecting the scope of consolidation, and the company plans to improve its financial structure and proceed with business restructuring.