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TOKYO, August 28, 2020 /PRNewswire/ -- In the six months ended June 30, 2020, operating income, ordinary income, and quarterly net profit all increased substantially. Moving forward, the Company will respond to COVID-19 and strive to improve income across the board. Summary of Results The business environment surrounding the Company deteriorated during the six months ended June 30, 2020 due to the rapid global spread of the novel coronavirus pandemic (COVID-19). Meanwhile, the industry was also impacted by the spread of COVID-19 as restrictions on sales activities resulted in order booking delays. Accordingly, the Company has not yet determined its consolidated results forecast for the fiscal year ending December 31, 2020. Net sales in the six months ended June 30, 2020 were JPY17,443 million (down 2.3% YoY), a slight year-on-year decline. However, the Company implemented broad-ranging efforts to improve income, resulting in gross profit of JPY3,792 million (up 13.8% YoY), operating income of JPY682 million (up 35.5% YoY), and ordinary income of JPY757 million (up 31.5% YoY). In terms of extraordinary gains and losses, the Company recorded a gain on sales of shares of subsidiaries, as well as impairment loss. The Company recorded an annual preferred dividend of 4.8% paid to holders of classified stock in consolidated subsidiary Sylphid Inc. during the three months ended March 31, 2020, which had an impact on profit attributable to non-controlling interests. Consequently, profit attributable to owners of parent amounted to JPY281 million (up 31.4% YoY) in in the six months ended June 30, 2020. Operating income, ordinary income, and profit attributable to owners of parent all increased by over 30% year on year. In the environmental equipment segment, sales of wastewater treatment systems were down year on year. The Company recorded a measurable amount of domestic sales from large-scale projects in the six months ended June 30, 2019 using the percentage-of-completion system for recognizing revenues. However, sales in the six months ended June 30, 2020 did not measure up to this amount, and overseas sales also suffered significant impact from a deteriorating business climate caused by the COVID-19 pandemic, which began proliferating in China before it spread to other regions. Sales in the recurring revenue energy service company (ESCO) business in the area of maintenance were strong but remained level year on year in the recurring-revenue ESCO business in the area of water due primarily to a decrease in customer water usage. Consequently, sales in the environmental equipment segment were JPY8,653 million (down 9.1% YoY) while operating income was JPY584 million (up 19.4% YoY). Sales and income increased in the household equipment-related business segment. Construction-related sales were impacted by product shipment delays that arose because many suppliers associated with these sales have component production sites in China, but the Company was able to deal with this impact by substituting alternative products. Sales were also strong when compared to the six months ended June 30, 2019 due to replacement demand for store equipment and other facilities. In terms of residential machinery construction, medium-sized or large projects were scarce, but corresponding sales were solid in comparison to the six months ended June 30, 2019 as the Company recorded sales from Fujiwara Reiki, which became a consolidated subsidiary in September 2019. Sales of retail products through DIY stores were impacted by lower sales to existing stores, and sales activities in the EC business, including field surveys targeting end users, were delayed due to the spread of the novel coronavirus pandemic. As a result, sales in the household equipment-related business segment were JPY7,379 million (up 4.5% YoY), and operating income was JPY266 million (up 31.0% YoY). In the renewable energy segment, the Company began selling power from solar power facilities and sales grew substantially year on year. As of June 30, 2020, the Company was generating power at 127 plants, with only three more waiting to be launched. Meanwhile, sales in the biodiesel fuel and compact wind generation businesses were down year on year. Consequently, sales in the renewable energy segment were JPY445 million (up 46.2% YoY), and operating income was JPY182 million (up 70.0% YoY). In other segments, sales in the engineering business fell year on year, despite the completion of large-scale projects during the six months ended June 30, 2020. This decline occurred because the Company recorded most of the sales associated with these large-scale projects during the fiscal year ended December 31, 2019 (due to its implementation of the percentage-of-completion method for revenue recognition) and progress on commensurately large projects during the six months ended June 30, 2020 was delayed. DAD Co., Ltd., which handles the Company's civil works operations, was transferred sold to another company with June 30, 2020 as the presumptive selling date. In the household drinking water business, sales were strong compared to the six months ended June 30, 2019. As a result, sales in other segments were JPY964 million (down 0.3% YoY) and operating income was JPY98 million (up 12.3% YoY). In terms of financial status, the Company's liquid assets, non-current assets, and current liabilities declined due to the transfer of all shares in subsidiary DAD Co., Meanwhile, non-current liabilities increased as the Company issued green bonds (unsecured bonds available only to qualified institutional investors) with the goal of conducting capital investment in the business of selling power from solar power facilities and the compact wind generation business. Daiki Axis Co., Ltd. (4245, First Section, TSE https://www.daiki-axis.com/english/) "Summary of Consolidated Financial Results for the Six Months Ended June 30, 2020" is available here: https://www.daiki-axis.com/ir/info/index.html Release DisclaimerThis release is for the purpose of providing information to serve as a reference for investment decisions and not for the purpose of soliciting investment. Please exercise your own judgment on final decisions such as investment policy, timing and selection. Please be advised that we do not assume any responsibility for damages caused by this service. Release InquiriesBorderless IR Co., Ltd. https://b-ir.co.jp/english/main.phpSixth Floor, Toyo Building 1-2-10 Nihonbashi, Chuo-ku, Tokyo 103-0027 JAPANTEL: +81-3-4588-6706 POC: Toru FukudaContact form: https://b-ir.co.jp/english/contact.php Borderless IR specializes in the global distribution of IR content, including the dissemination of newsletters and annual reports providing the latest information and main strengths of Japanese companies directly to overseas investors through leading global media, corporate information database services and mailing lists. Borderless is also engaged in supporting other global IR efforts. ©Borderless IR Co., Ltd. All rights ReservedThe content of this release may not be duplicated or reproduced. View original content:https://www.prnewswire.com/news-releases/daiki-axis-co-ltd-4245tokyo-overview-of-operating-performance-for-the-first-six-months-ended-june-30-2020-301120077.html Source: Daiki Axis Co., Ltd.

Global Economic Outlook: Groping for Recovery - Is It Possible?Financial markets are taking a breather, COVID-19 cases are showing mixed results in various economies. Central banks are lowering discount rates, and Geopolitical risk is taking a different path between China and India.Download the newsletter for more: [sdm_download id="19890" fancy="0"]Join us! IQI is a multi-award winning global real estate agency and advisory firm, bringing about the latest opportunities, innovations and technological breakthroughs in real estate. Sign up below and our team will get in touch with you as soon as possible.[custom_blog_form]

UNCERTAINTY GETS DEEPER IN THE MARKETThe global economy continues to stay in choppy waters. Many advanced economies are struggling in order to sur growth. Strutural hiccups, QE, sub-par growth, lack of confidence and dismal productivities are the main issues confronting the major economies globally.Download the newsletter to read more : [sdm_download id="19894" fancy="0"]Join us! IQI is a multi-award winning global real estate agency and advisory firm, bringing about the latest opportunities, innovations and technological breakthroughs in real estate. Sign up below and our team will get in touch with you as soon as possible.[custom_blog_form]

Rich Chinese home buyers are back.Across China and in some of their familiar hunting grounds in Asia, wealthy buyers are snapping up luxury homes, in many cases to guard their wealth against anticipated inflation and a weakening yuan. The rush to add real estate has led to a jump in upmarket housing prices in China, while offering some support for Asian property markets hit hard by the pandemic.“It’s been flat-out,” said Monika Tu, founder of Black Diamondz, an Australian company that caters to Chinese buyers of luxury real estate.Since March, Tu has sold A$85 million ($55 million) of prime property, with about half the sales to Chinese clients who were in Australia when the pandemic hit. That’s a 25% jump from earlier in the year. The homes, priced between A$7.25 million and A$19.5 million, are all in Sydney’s well-heeled, ocean-front suburbs such as Point Piper.A gradual easing of virus restrictions is making it easier for wealthy Chinese to view properties and complete purchases in nearby Asian hot spots like Shanghai, Seoul and Sydney. In another favorite Singapore, virtual tours and photos have been enough to seal multi-million dollar deals, pointing to how transactions are evolving. That’s in contrast to London and New York where real estate remains sluggish amid lockdowns.Chinese buyer inquiries for South Korean property increased 180% in the first quarter compared with the fourth quarter of 2019, while inquiries on New Zealand homes jumped 75%, according to data from Juwai Iqi, a real estate firm. Searches dropped 32% in the U.K. and 18% in the U.S.Foreigners can only buy new homes in Australia, though the very rich can get around these restrictions by applying for “significant investor” visas, which give them an easy path to residency, allowing them to buy existing real estate as well.The high-end demand is bolstering prices in China and tempering declines in other markets. Prices for top-end homes in the four biggest Chinese cities rose 1% in April, led by the biggest jump in two years in the tech hub of Shenzhen.Even in Singapore, where a partial lockdown remains in place, activity is picking up via online platforms. Three Chinese clients bought six apartments worth a combined S$20 million ($11 million) at Marina One Residences this month without any virtual tours, said Clarence Foo, a property agent with APAC Realty Ltd.’s unit ERA. One investor spent about S$12 million on three separate three-bedroom units in the same development, a five-minute walk to the iconic Marina Bay Sands hotel and casino.Click here to read more about it. Source: Bloomberg

The global economy continues to stay slow amid concerns about growth. The US economy contracted 4.8% in the first quarter. Unemployment figures touched 36.5 million in 63 days and FED added $2.2 trillion in its balance sheet. The world’s biggest economy is tested with COVID-19. A slow growth moving into a deep recession and above all recovery looks like an uphill task. Facts are in the numbers. The central banks are lowering interest rates globally with negative interest rates coming into the market.[sdm_download id="19426" fancy="0"]Join us! IQI is a multi-award winning global real estate agency and advisory firm, bringing about the latest opportunities, innovations and technological breakthroughs in real estate. Sign up below and our team will get in touch with you as soon as possible.[hubspot type=form portal=5699703 id=c063034a-f66d-41ab-881b-6e6a3f275c33]

For the last few weeks, we have witnessed that equity markets have been under a lot of pressure and investors are looking for opportunities to park funds to preserve their wealth. Equity Markets are going through valuation adjustments and forward prices signalling for further correction. Governments around the world are using expansionary fiscal policy to maintain economic confidence as we navigate through turbulent timesRead more by downloading this month's IQI newsletter below.[sdm_download id="19433" fancy="0"]Join us! IQI is a multi-award winning global real estate agency and advisory firm, bringing about the latest opportunities, innovations and technological breakthroughs in real estate. Sign up below and our team will get in touch with you as soon as possible.[hubspot type=form portal=5699703 id=c063034a-f66d-41ab-881b-6e6a3f275c33]

Fragility becomes the norm: Global financial markets continue to stay volatile and uncertain due to slow down in advanced economies and fear of coronavirus which is overblown by mainstream media.Markets are sometimes overreacting to the news which has less relevance to the financial landscape. According to the latest report from UBS, Switzerland: Markets were unnerved this week by news that the number of coronavirus infections in Japan and Korea has been on rise, and by Apple warning that is was likely to miss sales guidance due to the outbreakRead more by downloading this month's IQI newsletter below.[sdm_download id="19435" fancy="0"]Join us! IQI is a multi-award winning global real estate agency and advisory firm, bringing about the latest opportunities, innovations and technological breakthroughs in real estate. Sign up below and our team will get in touch with you as soon as possible.[hubspot type=form portal=5699703 id=c063034a-f66d-41ab-881b-6e6a3f275c33]

Global markets are moving very cautiously at the moment.The year started with geopolitical risks between Iran and USA. Things are reticent at themoment as we head towards Chinese New Year on January 25, 2020, but something isbrewing in the air which creates storm for the markets. Trade deal part 1 is done and signed.Markets have not demonstrated exuberance or excitement for the one-off show.Read more by downloading this month's IQI newsletter below.[sdm_download id="19437" fancy="0"]Join us! IQI is a multi-award winning global real estate agency and advisory firm, bringing about the latest opportunities, innovations and technological breakthroughs in real estate. Sign up below and our team will get in touch with you as soon as possible.[hubspot type=form portal=5699703 id=c063034a-f66d-41ab-881b-6e6a3f275c33]