Abalance posts strong Q1, establishes committee to probe past transactions

Abalance Corporation reported net sales of JPY 36,251 million and operating profit of JPY 3,642 million for the first quarter ended June 30, 2025. These figures significantly exceeded the previous year's performance, which saw JPY 21,655 million in net sales and JPY 1,333 million in operating profit for the three months ended September 30, 2024. This strong performance was primarily driven by the Solar Panel Manufacturing Business, which achieved JPY 33,943 million in net sales and JPY 3,749 million in segment profit. The company’s overall operating profit margin reached 10.0%, its first double-digit margin since Q4 FY2024.

Despite strong financial results, the company announced on August 12, 2025, the establishment of a third-party committee to investigate past transactions. This investigation will include a re-examination of an Audit and Supervisory Committee report, impairment losses related to the Taiwa Town Solar Power Plant, and transactions with related parties. While the committee's findings could impact future financial results, particularly regarding potential impairment losses, no immediate impact on current financial results is anticipated.

Abalance projects a positive outlook for the full fiscal year ending March 31, 2026, with consolidated net sales forecast at JPY 95,000 million and operating profit at JPY 6,000 million. The company is actively expanding its solar panel manufacturing capabilities in Ethiopia and the US, strengthening its global supply chain.