Political, Regulatory, and Social Risks Specific to Overseas Expansion

「In addition, uncertainty about the outlook continues due to trends in the trade policies of various countries, geopolitical risks such as the situation in the Middle East, and fluctuations in foreign exchange rates and energy prices.」

「The company has subsidiaries in Singapore and Malaysia and is expanding its overseas business. As we continue operating overseas, there is a risk of unpredictable events, including changes in political and economic conditions, unexpected changes in laws and regulations, natural disasters, riots, social or economic disruption caused by terrorism or war, higher labor costs, disruption to supply chains and distribution networks, and events arising from local customs and other factors.」

「The scallop-related business reported lower revenue and profit due in part to a decline in sales of products, namely frozen adductor muscles. The decline in sales following the prior period was particularly significant because sales of inventory whose carrying value had been written down in response to China's ban on imports of Japanese seafood ceased.」

「Our consolidated subsidiaries Marukichi Co., Ltd. and Wyes Foods Co., Ltd. recorded ¥1,266.054 million as compensation received under extraordinary income, primarily from Tokyo Electric Power Company Holdings,Incorporated, based on the compensation standards established by that company, for damage caused by measures taken by foreign governments to suspend imports of Japanese seafood in connection with the discharge of ALPS-treated water and other related measures.」

「Although Marukichi Co., Ltd. was affected by China's suspension of imports of Japanese seafood, profit increased as selling prices gradually recovered.」

「Following China's blanket ban on imports of Japanese seafood in response to the discharge of ALPS-treated water from Tokyo Electric Power Company's Fukushima Daiichi Nuclear Power Station, market prices for seafood, mainly scallops, fell. As a result, the company recorded an inventory write-down of ¥1,012.658 million, and the balance became ¥589.098 million, down 7.7% year on year.」

「The suspension by China of imports of Japanese seafood may have a temporary impact on performance, including a decline in Wyes Foods Group's sales to China. However, we believe that demand for Japanese scallops, which are gaining recognition worldwide, is unlikely to decline, and that the medium- to long-term impact on performance will be limited.」

「As we continue operating overseas, there is a risk of unpredictable events, including changes in political and economic conditions, unexpected changes in laws and regulations, natural disasters, riots, social or economic disruption caused by terrorism or war, higher labor costs, disruption to supply chains and distribution networks, and events arising from local customs and other factors.」

「The company has subsidiaries in Singapore, Malaysia and Cambodia and is working to expand its overseas business. As we continue expanding our business overseas, we face risks specific to each country and region, including changes in political and economic conditions, unexpected changes in laws and regulations, natural disasters, social or economic disruption caused by terrorism or war, higher labor costs, and unpredictable events arising from local customs and other factors.」

「As we continue expanding our business overseas, we face risks specific to each country and region, including changes in political and economic conditions, unexpected changes in laws and regulations, natural disasters, social or economic disruption caused by terrorism or war, higher labor costs, and unpredictable events arising from local customs and other factors.」