〔delayed〕Consolidated Financial Results for the Fiscal Year Ended March 31, 2025

May 15, 2025

Company name: Abalance Corporation Listing: Tokyo Stock Exchange Securities code: 3856

URL: https://www.abalance.jp/en/

Representative: Ryusuke Okada, Representative Director and President Inquiries: Kazuyasu Shibata, General Manager of Accounting Department Telephone: +81-3-6810-3028

Scheduled date of ordinary general meeting of shareholders: June 28, 2025 Scheduled date to commence dividend payments: June 30, 2025 Scheduled date to file annual securities report: June 30, 2025 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (video streaming only)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2025 (from July 1, 2024 to March 31, 2025)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Millions of yen 72,417 208,972	%	Millions of yen 3,602 23,349	%	Millions of yen 3,737 24,894	%	Millions of yen 951 9,530	%
      March 31, 2025 (9 months)		-		-		-		-
      June 30, 2024 (12 months)		(2.9)		82.4		77.3		91.9

      Note: Comprehensive income	For the fiscal year ended March 31, 2025:	¥15 million	[－%]
      	For the fiscal year ended June 30, 2024:	¥21,645 million	[65.9%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2025	53.50	-	4.0	2.5	5.0
      June 30, 2024	547.83	543.99	52.4	16.9	11.2

      Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2025: ¥100 million For the fiscal year ended June 30, 2024: ¥94 million

      Note: Year-on-year changes are not shown because the fiscal year ended March 31, 2025 is a nine-month period due to the transitional period for the accounting term change.

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio	Net assets per share
      As of March 31, 2025 June 30, 2024	Millions of yen 145,802 150,173	Millions of yen 43,338 42,432	% 16.6 15.8	Yen 1,358.44 1,337.80

      Reference: Equity

      As of March 31, 2025: ¥24,180 million

      As of June 30, 2024: ¥23,800 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2025 June 30, 2024	Millions of yen (10,361) 44,757	Millions of yen (2,620) (21,191)	Millions of yen 4,128 (5,446)	Millions of yen 25,924 37,053

2. Dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen 141 53	%	%
   Fiscal year ended June 30, 2024	-	3.00	-	5.00	8.00		1.5	0.8
   Fiscal year ended March 31, 2025	-	0.00	-	3.00	3.00		5.6	0.2
   Fiscal year ending March 31, 2026 (Forecast)	-	-	-	-	-		-

   Note: The amount of dividend per share for the fiscal year ending March 31, 2026 has not yet been determined at this point.

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Year-on-year changes are not shown because the fiscal year ended March 31, 2025 is a nine-month period due to the transitional period for the accounting term change.

1. Significant changes in the scope of consolidation during the period: Yes

   Newly included: 2 companies- (Company name: TOYO SOLAR MANUFACTURING ONE MEMBER PLC and TOYO Solar Texas LLC)

   Excluded: 2 companies- (Company name: Digital Sign Co., Ltd. and FORTHINK Co., Ltd.)

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

      Note: For details, please refer to "3. Consolidated Financial Statements and Principal Notes (5) Notes to Consolidated Financial Statements (Notes on changes in accounting policies)" on page 17 of the Attachments to this report.

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2025	17,930,693 shares
      As of June 30, 2024	17,927,693 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2025	130,176 shares
      As of June 30, 2024	136,994 shares

   3. Average number of shares outstanding during the period

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

• Proper use of earnings forecasts and other special matters

The earnings forecasts and other forward-looking statements in the report are based on information currently available to the Company and certain assumptions that the Company determines reasonable, and the Company does not in any way guarantee the achievement of the forecasts. Actual results and other data may differ significantly from the forecasts depending on various factors. For the assumptions used as the basis for the forecasts and precautions on the use of the forecasts, please refer to "(4) Outlook for the Future" on page 4 of the Attachments to this report.

Table of Contents - Attachments

1. Overview of Operating Results, etc. 2

   1. Overview of Operating Results for the Fiscal Year under Review 2

   2. Overview of Financial Position for the Fiscal Year under Review 3

   3. Overview of Cash Flows for the Fiscal Year under Review 3

   4. Outlook for the Future 4

2. Basic Approach on Selection of Accounting Standards 5

3. Consolidated Financial Statements and Principal Notes 6

   1. Consolidated Balance Sheets 6

   2. Consolidated Statements of Income and Comprehensive Income 8

      Consolidated Statements of Income 8

      Consolidated Statements of Comprehensive Income 10

   3. Consolidated Statements of Changes in Equity 11

   4. Consolidated Statements of Cash Flows 15

   5. Notes to Consolidated Financial Statements 17

(Notes on going concern assumption) 17

(Notes in case of significant changes in shareholders' equity) 17

(Notes on changes in accounting policies) 17

(Additional information) 17

(Consolidated Balance Sheets) 18

(Notes on segment information, etc.) 18

(Notes on per share information) 20

(Notes on significant subsequent events) 21

1

1. Overview of Operating Results, etc.

(1) Overview of Operating Results for the Fiscal Year under Review

Operating results for the fiscal year ended March 31, 2025

During the fiscal year ended March 31, 2025, the Japanese economy showed a moderate recovery supported by the improvement in the employment and income situation, partly due to the effects of various policy initiatives. Meanwhile, the future global economic outlook remains uncertain due to such factors as persistently high interest rates in Europe and the United States, US policy trends, concerns about the Chinese economic outlook, situations in the Middle East, and fluctuations in financial and capital markets. In the renewable energy market in Japan, a target of reducing greenhouse gas emissions by 46% compared to 2013 levels by 2030 has been set based on the Japanese government's declaration of carbon neutrality in 2050. Internationally, there have been further efforts to realize a carbon-free society, including climate change responses in accordance with the UN Framework Convention on Climate Change (COP29) held in 2024 and the US Inflation Reduction Act (IRA), and the renewable energy market is expected to grow in the medium to long term.

In the Solar Panel Manufacturing Business, our core business, although demand is strong worldwide, the market environment has been weak due to an oversupply of solar products. In the US market, uncertainty remains over tax policies, as the US government has advanced the consideration of imposing anti-dumping and countervailing duties on four Southeast Asian countries. In response to this business environment, we have implemented new sales strategies in India and Taiwan. At the same time, to drive future earnings growth, we moved forward with the construction of a cell plant in Ethiopia and a panel plant in Texas, the United States. Despite the costs incurred from the prior investment in these new plants, we remained profitable for the fiscal year under review, even as the global solar panel market faced ongoing challenges.

During the fiscal year under review, we changed our fiscal year-end, resulting in an irregular nine-month period for the fiscal year ended March 31, 2025. As this accounting period differs from the previous consolidated fiscal year, year-on-year changes in amount or percentage are not included in the following explanation of operating results.

As a result of the above, for the fiscal year ended March 31, 2025, Abalance Corporation (the "Company," together with its subsidiaries, the "Group") recorded net sales of 72,417 million yen, operating profit of 3,602million yen, ordinary profit of 3,737 million yen, and profit attributable to owners of parent of 951 million yen.

In the Solar Panel Manufacturing Business, Vietnam Sunergy Joint Stock Company ("VSUN") and TOYO Co., Ltd. ("TOYO") in Vietnam, are collaborating to engage in strengthening the global supply chain. TOYO owns ("TOYO SOLAR"), which manufactures the cells that are the upstream processes of solar panels.

In the Green Energy Business, while continuing with the sale of solar power plants and related equipment (one-time revenue business model), we are working to strengthen our business foundations by promoting company ownership of solar power plants (recurring revenue business model).

The business results for each segment are as follows.

1. Solar Panel Manufacturing Business

Net sales were 64,348 million yen and segment profit was3,489 million yen.

Net sales were maintained at a certain level. Sales to the United States, our main sales destination, declined due to the termination of import duty exemptions for solar panel products (in June 2024), as well as uncertainty over the future of anti-dumping and countervailing duties, resulting in a decrease in orders received. However, sales strategies in India and Taiwan and for other new customers were successful. Meanwhile, operating profit decreased, primarily due to increased prior investment costs for the construction of new plants in Ethiopia and Texas, the United States, and inventory valuation losses at a cell plant in Vietnam. Due to a decline in the utilization rate of the Vietnam plant caused by sluggish sales to the United States, we are making efforts to improve earnings by lowering manufacturing costs, among other initiatives.

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