At Abalance Corporation, we have developed our business both domestically and internationally, focusing primarily on solar-related products as a comprehensive green energy company. In July 2024, our group subsidiary, TOYO Co., Ltd., successfully listed its shares on NASDAQ in the United States (Ticker: TOYO), and we are currently preparing to establish manufacturing bases and expand our business operations in the U.S.
Renewable energy has gained global importance as a key energy source for achieving a decarbonized society, especially following the United Nations’ adoption of the 2030 Agenda for Sustainable Development, which sets out the Sustainable Development Goals (SDGs). In Japan, too, there is an increasing demand for the widespread adoption of eco-friendly green energy in line with the national targets of a 46% reduction in greenhouse gas emissions by 2030 (compared to 2013 levels) and achieving carbon neutrality by 2050. Our group’s Solar Panel Manufacturing Business and Green Energy Business have been highly praised for their contributions to promoting decarbonization of the global environment. Moving forward, we will continue to position the global expansion of both of these businesses at the core of our business, while ensuring optimal collaboration with our IT Business and Photocatalyst Business, steadily progressing toward our goals.
To achieve sustainable development over the medium to long term, our group must incorporate the principles of ESG (Environmental, Social, and Governance) into our management practices and fulfill our responsibilities as a publicly listed company. Starting from fiscal year 2024, we will refresh our management structure and transition into a new stage of growth.
We sincerely ask for your continued support for the Abalance Group as we contribute to the realization of a sustainable, decarbonized society, which is a crucial challenge for all of humanity.
Ryusuke Okada
President
Abalance Corporation
September 2024
Abalance Corporation strongly recognizes the social responsibility that the Group should fulfill for all stakeholders, including clients, shareholders, employees, and other business partners, and fulfilling it is the highest management goal. We believe that this will lead to an improvement in our corporate value. We view corporate governance as a means to achieve this goal, comprehensively judge both management efficiency and compliance, and build a transparent and sound corporate governance system.
The Board of Directors consists of seven members, including four outside directors. We make decisions and supervises business execution from a broad perspective, and meets regularly once a month and as needed. In addition to grasping the status and performance progress of each group business, we are also working to strengthen corporate governance. Three corporate auditors also attend meetings of the Board of Directors and audit the execution of operations by the Board of Directors.
Abalance Corporation have adopted a board of auditors system, which consists of one full-time outside auditor and two part-time outside auditors. All of the members have abundant knowledge of finance and accounting, and working experience as directors and corporate auditors at other companies. The Audit & Supervisory Board meets monthly, and each Audit & Supervisory Board Member attends meetings of the Board of Directors and other important meetings in accordance with the annual audit plan formulated each fiscal year.
In addition, auditors exchange information and opinions with the head of the Internal Audit Office and accounting auditors to comprehensively confirm accounting audits and business audits, etc., and efficiently and rationally monitor the status of business execution by directors. We work to increase the effectiveness of our supervision.
On September 20, 2017, Abalance Corporation newly established the Internal Audit Office as an independent department under the direct control of the Representative Director. Based on internal audit regulations, the head of the Internal Audit Office is responsible for conducting internal audits of each department. The Internal Audit Office consists of 2-3 people, the head of the Internal Audit Office and 1-2 employees who do not belong to the audited department. In accordance with the annual audit plan formulated each fiscal year, we investigate whether the operations under the jurisdiction of each department are properly and effectively conducted in accordance with laws and regulations, the Articles of Incorporation, internal regulations, and various handling guidelines. They report the results to the representative director and we use the results to provide appropriate guidance, prevent fraud and errors in the company, provide accurate management information, protect assets, improve business activities, and contribute to the enhancement of management efficiency. In addition, by reporting the results of business audits to the Board of Corporate Auditors and the Accounting Auditor, we strive to cooperate with the Corporate Auditors and the Accounting Auditor in an effort to eliminate illegality and improve efficiency in the execution of business.
Abalance Corporation has concluded an audit contract with Asuka Audit Corporation for audits based on the Financial Instruments and Exchange Act, and Aska Audit Corporation expresses its opinion on financial statements from an independent standpoint as an auditor. The certified public accountants who executed operations during the fiscal year under review are as follows.
Name of certified public accountant who executed the business
Engagement partners: Shuji Imai, Kouji Sato
※The number of years of continuous audit is omitted because all of them have been working with us within 7 years.
