In addition to sales growth for the 19 consecutive years, sales and profit increased due to high value-added business.

While the Group’s business was entirely affected by the soaring price of energy and raw materials, the business performance generally progressed according to the plan due to the smooth progress of projects in Total Pack Produce business. For FY ended March 2023 resulted in net sales of 572 billion yen (up 11.3% YoY), operating profit of 211 billion yen (up 3.1% YoY). Net sales have increased for 19 consecutive years since our stock listing. The Company's operating income recovered to an upward trend as profit margins improved through steady progress in efforts to create high-value-added business by making full use of our “consulting” and “production” capabilities.

Financial results

Steady promotion of 4 core strategic measures

To achieve the medium-term management plan, we are making steady progress of 4 core strategic measures that formulated when it was planned. In Total Pack Produce business, in addition to steady progress in projects such as new construction and rebuilding of hospitals, the manufacturer in the Group launched new products and made other efforts to achieve continuous growth. Furthermore, in Osaka Heavy Ion Therapy Center business, we achieved a single-year operating income surplus for the first time opening the center, due to the increase in the number of new outpatients and treatments increased thanks to the expansion of areas covered by public insurance for heavy ion therapy treatment. In the Medical Supply business, new contracts for SPD (in-hospital logistics management system) provided by the Group are steadily expanding. The factors noted above are accelerating initiatives for the core strategic measures of "Further high growth of core business".

Steady progress in creating new “value” that contributes to people’s well-being

In terms of the second core strategic measure, “Further expand value,” we are working on creating value through new business, including strategic M&A.

During the FY ended March 2023, 12 companies from Kingrun Group engaged in the leasing and sales of curtains for medical and nursing care facilities newly joined the Group, and “new business” is added to the Group. We are providing higher value-added services than ever, such as mutual proposals to existing business partners of both companies and are steadily accumulating synergies through collaboration between existing businesses and Kingrun Group. In addition, to further expand the value of the Group, we are taking on the challenge of returning the profit to society with the various know-how we have cultivated so far and contributing to a society where people can live better lives (Well-being). Park produce business and comprehensive school management business (see page 5) are new “values” born from such a broad perspective.

The group will contribute to a better society by providing high quality and a wide range of value based on our “consulting” and “producing” capabilities that make use of the diverse know-how of the entire group.

Our long-term target of consolidated net sales of 1 trillion yen has become a reality, moving from a distant dream to a concrete target within range. First, as a milestone, we will continue to bring together the collective strengths of the Group to achieve our goal of consolidated sales of 630 billion yen for the final year of the plan (fiscal year ending March 31, 2025).

We appreciate all of you for your continued support and encouragement.