Japan Asia Investment <8518> announced its consolidated results for the second quarter of the fiscal year ending March 2025 (April-September 2024) on the 14th. Operating revenue increased by 12.9% year-on-year to 1.432 billion yen, operating profit was 0.068 billion yen (compared to a loss of 0.239 billion yen in the same period last year), ordinary loss was 0.002 billion yen (down from a loss of 0.312 billion yen in the same period last year), and the interim net loss attributable to parent company shareholders was 0.075 billion yen (compared to a loss of 0.543 billion yen in the same period last year).

Compared to the same period last year, while gains from the sale of listed stocks decreased, revenues from the sale of the distribution center project and sales income from newly operational mega solar projects were recognized, and additionally, due to a reduction in evaluation losses and provisions for investment assets, the company's performance improved.

Investment income and losses amounted to a profit of 0.106 billion yen, a decrease of 43.6%. Due to a decrease in the sale of listed stocks with high profit margins, the sale of operating investment securities amounted to 0.277 billion yen (a decrease of 56.9%), and the realized capital gain after deducting the selling costs from the sales amount was 0.118 billion yen (a decrease of 70.9%). On the other hand, as the number of investment targets experiencing significant delays in business progress decreased, losses were reduced, with the total amount of operating investment securities valuation losses and provisions for investment losses amounting to 0.012 billion yen (down 94.4%).

The total amount of equity income and capital gains amounted to 1.072 billion yen (an increase of 96.9%). This was due to receiving the capital gains from the facility sold in March 2024 from the distribution center project as dividends and an increase in sales income from the newly operational mega solar projects.

Regarding performance forecasts, the impact of factors such as stock markets on private equity investments that the company group develops is extremely large due to the business characteristics, and furthermore, reasonable performance forecasts are difficult to make in the current highly volatile environment. Therefore, performance forecasts are not made. However, instead of performance forecasts, we are disclosing 'expected values based on the conventional consolidated standards' formulated based on certain assumptions, although their rationality is low, as reference information. For the conventional consolidated standard performance forecast for the 2025 fiscal year, operating revenue is planned to be 16.00-2.65 billion yen, 65.9-174.7% higher than the previous year, operating profit is planned to be 1.50-0.85 billion yen, ordinary profit is planned to be 3.00-1 billion yen, and net income for the period attributable to parent company shareholders is planned to be 2.50-0.95 billion yen, in line with the initial plan.

Notably, the actual results for the second quarter of the fiscal year ending March 2025 (April-September 2024) under conventional consolidated standards showed that operating revenue was 0.664 billion yen, an increase of 55.8% year-on-year, operating loss was 0.061 billion yen (compared to a loss of 0.535 billion yen in the same period last year), ordinary loss was 0.064 billion yen (down from a loss of 0.558 billion yen in the same period last year), and the interim net loss attributable to parent company shareholders was 0.067 billion yen (down from a loss of 0.56 billion yen in the same period last year).