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Performance and Future Development Strategies
Business Structure Characteristics
Our company's performance is influenced significantly by the fluctuation in copper prices. Therefore, looking at revenue figures alone, there is a high correlation with the movement of the copper market, resulting in substantial volatility. However, quantity-based transactions tend to remain relatively stable.
On the other hand, revenue is derived from a certain spread between buying and selling. In our business, due to the short span of transactions, even in cases of a sudden decrease in revenue, securing this spread generally ensures profitability. However, if market conditions change more significantly than anticipated, losses may occur in inventory and flow transactions, impacting our company's profitability negatively.
Characterized by robust self-capitalization and listing on the Tokyo Stock Exchange
In recent years, we have focused on strengthening our own capital and increasing the equity ratio. This initiative aims to enhance the financial foundation and sustainability of the company, contributing to the future society. We will continue efforts to improve management efficiency and maintain a robust level of own capital.
In June 2011, we achieved listing on the Tokyo Stock Exchange (Market Second Section), the first in our industry to do so. In July 2018, we were designated as a first-section stock. We aim to further expand our business in the future.
Future Expansion: Increasing Demand for Copper
The trend of shifting the role of leading the economy from advanced countries to emerging economies, represented by the BRICs, has been strengthening. As these countries rapidly enhance their social and industrial infrastructure, the demand for copper is expected to increase rapidly, concurrently raising the need for copper recycling.
Considering the speed of growth and vast infrastructure development in these emerging countries, it wouldn't be surprising if a growth process similar to Japan's shift from "supply" to "safety" in the 40 years after World War II is replicated in the next 10 years. In this field, our company aims to leverage the expertise and network we have already cultivated to establish a leading position in the industry overseas and expand our business.
We are actively conducting research activities to expand our business into high-growth regions, including China and Southeast Asia. Having supported the post-war economic recovery in Japan through the supply of essential copper materials for life and industrial infrastructure, our company is committed to fulfilling a similar role in the world's new rapidly growing areas in the near future.
