### Overview The company, primarily involved in the renewable energy sector, has recently shifted its focus from developing electric vehicle (EV) charging demonstration stations to the sales of renewable energy charging equipment. This strategic pivot aims to capitalize on growing overseas market opportunities. The current report provides insights into the company’s Q1 2025 financial performance and outlines its recent operational adjustments.

### Key Financials In the latest earnings report, the company reported an overall loss that widened by 23% compared to the previous year, signaling ongoing challenges. However, the conventional operational loss has shown some improvement, narrowing by 43%. The non-operating losses for the period amounted to ¥15.99 million, primarily driven by impairment on external equity investments and losses from financial instruments, which reached ¥29.92 million.

### Management Commentary Management’s outlook appears cautious as the company navigates through its ongoing losses. The focus on expanding its product line with the newly certified megawatt flexible charging piles suggests a strategic drive towards enhancing its international market presence. However, the acknowledgment of competitive pressures and reliance on government policy support indicates a need for careful monitoring of future developments.

### Trends and Drivers The company's recent transformation highlights the increasing demand for EV charging infrastructure spurred by the digital transformation of electricity networks and the rise of renewable energy sources. The transition to international markets and the certification of products like the flexible charging pile reflect an adaptation to meet evolving market needs. However, aggressive competition in the renewable energy sector poses a significant challenge to maintaining market share and profitability.

### Risks and Outlook Several risks loom over the company’s future trajectory. As competition intensifies in the renewable energy industry, retaining market share may become increasingly difficult. The company also relies heavily on favorable government policies regarding energy infrastructure, and any shifts in these policies could adversely affect its operational viability. Furthermore, substantial upfront investments in charging stations have yet to yield returns, raising concerns about the company’s future cash flow and financing abilities.

### Conclusion In summary, while the company is well-positioned to benefit from the expanding renewable energy market and the rising demand for EV charging infrastructure, it faces numerous challenges including widening losses, competitive pressures, and a dependence on government policies. Stakeholders should carefully consider these dynamics as the company progresses through its operational transition and seeks to stabilize its financial performance.