Cere Corporation ＜5078＞ announced consolidated financial results for the 1st quarter (24/3/05) of the fiscal year ending 2025/2 on the 12th. Sales decreased 30.6% from the same period last year to 4.775 billion yen, operating profit fell 47.6% to 0.342 billion yen, ordinary profit fell 47.4% to 0.344 billion yen, and quarterly net profit attributable to parent company shareholders fell 49.1% to 0.221 billion yen. The main reason for this is that while the handover of properties in the rental development business occurred from the beginning of the fiscal year in the previous fiscal year, it is planned to concentrate on the second half of the current fiscal year.

Sales in the rental housing business increased 29.7% from the same period last year to 2.643 billion yen, and segment profit increased 325.4% to 0.344 billion yen. As for sales activities, in asset management companies, we continued to strive to develop referrers (financial institutions, consultants, professionals, etc.) where rental management contracts are expected to lead to an expansion in the number of management contracts, promoted holding tours of excellent properties where more customers can be inquired, and focused on developing new information sources, such as strengthening relationships with partner organizations to acquire customers. As for production activities, as a countermeasure against rising costs due to the effects of high resources, in addition to shortening construction periods at construction companies, production companies worked on further quality improvements and efficiency improvements at the Chiba Plant (“ISO9001” certification acquired), which is responsible for in-house manufacturing of used parts, and strived to improve productivity. As for research and development activities, we continued to work on the development and research of apartments with high added value and uniqueness through new space designs, and conducted joint research with Kyoritsu Women's University on the theme of apartment living on the theme of young people's thoughts, livability, diversity, and convenience, and joint research on sound insulation performance improvement with Chiba Institute of Technology and Tokyo University of Science.

Sales in the rental development business decreased 96.2% from the same period to 0.098 billion yen, and segment loss was 0.039 billion yen (down 0.5 billion yen from the previous fiscal year). Aiming for stable growth of this business, we worked to stably purchase corner lots with high asset value and scarcity that are favored by the wealthy, and strengthen cooperation with business partners that enable early sales of properties. Furthermore, in order to improve added value, options to respond to owners' requests such as asset value improvement and guest (tenant) safety improvement have been increased by making it possible to realize seismic grade 3, which is the highest standard, for seismic resistance grade, which is one of the evaluation items in the “housing performance labeling system”.

Sales from the rental management business increased 4.2% to 2.47 billion yen, and segment profit increased 3.2% to 0.313 billion yen. Continuing from the previous fiscal year, we collaborated with the rental housing business and rental development business to strengthen accompanying visits before receiving orders from the planning and design stage of apartments, and focused on contract sales activities for managed properties. As a result, the number of units managed at the end of the consolidated cumulative period for the first quarter was 12,470 units (up 156 units from the end of the previous fiscal year). Furthermore, in addition to striving to build a relationship of trust through dialogue with owners, we aimed to increase the number of units managed by receiving repeat orders from existing customers by contributing to asset value improvement through proposals utilizing an external rent AI assessment system.

Regarding the full-year consolidated earnings forecast for the fiscal year ending 2025/2, the initial plan is unchanged, with sales rising 8.2% from the previous fiscal year to 24.993 billion yen, operating income up 7.6% to 1.762 billion yen, ordinary profit up 6.4% to 1.764 billion yen, and net income attributable to parent company shareholders increasing 7.1% to 1.187 billion yen.