(E32456) Stock Price

**RefineVerse Business Overview**

RefineVerse is an environmental company that recycles waste generated in manufacturing and builds a new material circulation system different from traditional manufacturing processes. The company's core business is recycling used carpet tiles, and through proprietary technology, it regenerates and sells waste as synthetic resin products. The company is currently expanding its recycling business into areas such as manufacturing scrap from fishing nets and airbags, as well as producing steelmaking by-products for steel mills.

The company's main customers are carpet tile manufacturers that purchase recycled resin (including Sumitomo Denko, Toray, Sangetsu, and Kawashima Selkon) and industrial waste disposal companies that outsource waste processing. The revenue structure is dual-layered, generating income both from processing fees when accepting used carpet tiles and from sales of recycled resin to manufacturers. This model allows the company to provide processing services at lower cost than landfill disposal while supplying quality-stable recycled resin at competitive prices.

The business is divided into two segments: recycled resin manufacturing and sales, and industrial waste processing. In the former, the parent company and RefineVerse Material Co., Ltd. manufacture "RefineVerse Powder," steelmaking by-products, and recycled nylon resin from used carpet tiles. In the latter, GMS Co., Ltd. handles collection, transportation, and intermediate processing of construction waste in the Tokyo metropolitan area. The company operates two processing facilities in Tokyo (in Katsushika and Ota wards) and has established a system to accept industrial waste across the entire central Tokyo area.

RefeinBirth is a material recycling company that transforms waste into resources. The company aims for growth through a circular business model centered on used carpet tiles. Backed by rising demand for environmentally friendly products, the company is expanding production capacity to meet increased inquiries from carpet tile manufacturers. It is improving profitability through higher sales volumes and price increases, while also pursuing cost reductions via improved yield rates and production efficiency to strengthen competitiveness.

Expansion into new business areas is a key growth strategy. Using proprietary high-purity separation technology, the company manufactures regenerated nylon resin from used automotive airbag fabrics and discarded fishing nets, creating high-value-added yarns and textiles. The company has also entered steelmaking by-product manufacturing using mixed compression molding technology, expanding its business scope from the construction industry to automotive, steel, and apparel sectors. It is also advancing a waste plastic chemical recycling business in partnership with Mitsubishi Chemical, with plans to enter the chemical industry.

On the technology front, the company has established new low-cost high-purity separation technology and mixed compression molding technology while building on conventional mechanical separation methods. These innovations have enabled entry into nylon recycling and steelmaking by-product manufacturing alongside carpet tile recycling. The company is also expanding solution services leveraging accumulated expertise, providing customer value through consulting, equipment sales, and licensing.

To strengthen its business foundation, the company is considering expanding collection bases nationwide in its industrial waste processing operations to improve processing capacity. Organizationally, it has introduced a divisional structure and implemented workplace reforms including telework and web conferencing. For financial strength, the company is building retained earnings and reducing interest costs through loan term reviews, steadily establishing systems for sustainable growth.