AZEARTH Corporation

Delayed Pass-Through of Steel and Aluminum Price Increases to Selling Prices

Risk that fluctuations in and increases in steel and aluminum prices raise material costs, while delays or inadequacies in passing these increases through to selling prices lead to lower profitability and deteriorating business performance. Responses include reducing costs, monitoring price trends, and selecting and diversifying suppliers.

9companies9 threads

hurts 9

Increase in SG&A due to Retirement Benefit Expense

A theme concerning the impact of increases or decreases in retirement benefit expense on changes in selling, general and administrative expenses (SG&A).

8companies8 threads

hurts 8

FY2019-Q1 →

Ordinary retirement of the chairman of the board

Subject involving the retirement of the chairman of the board as part of a regular change in directors. This is treated separately from the retirement of a representative chairman of the board, an honorary chairman of the board, or an ordinary director.

7companies7 threads

flat 7

FY2023-Q3 → FY2023-Q3

Establishment of the Healthcare Products Business as an Independent Segment and Launch of Production of Masks Made in Japan

Initiatives to operate the healthcare products business as an independent reporting segment and to launch and expand production of masks made in Japan. This also includes start-up losses caused by delays in procuring materials and failure to improve yields, as well as product write-downs.

2companies3 threads

helps 1 · hurts 2

FY2023-Q1 →

Expansion of Disaster Prevention, Airport Security and Protective Apparel Products

An initiative to expand the market beyond regulated sectors, including events and theme parks, by offering specific products such as special-purpose disaster response vehicles, security products for airports and air cargo, and fire-resistant and protective clothing.

2companies2 threads

helps 2

FY2016-Q2 →

Tatami Demand Contraction Due to Declining Tatami Use and Falling Housing Starts

A theme addressing the structural decline in demand for conventional tatami mats as people move away from tatami, and the decline in demand in the tatami materials market accompanying the decrease in housing starts. It also includes measures to create demand through the launch of functional products and development of end-user demand.

2companies2 threads

hurts 2

Revenue and profit growth in the apparel-materials business

A theme driven by steady performance in apparel materials for workwear, including uniforms and work clothes, contributing to higher revenue and profit in the Apparel Materials and Life Materials businesses.

Establishing the Healthcare Business as a Second Pillar to Reduce Reliance on Protective Clothing

FY2019-Q1 →

A strategic initiative to develop the consumer healthcare products business as a new growth pillar in order to reduce reliance on the core protective clothing and environmental equipment businesses. This includes reversing the declining sales trend by expanding healthcare business revenue.

Integrating operations through the absorption merger of Maruko Co., Ltd.

A reorganization specific to the subject company, carried out in 2025 through the absorption merger of 丸幸株式会社, aimed at improving management efficiency by making effective use of management resources and integrating organizational operations.

Robust demand for cleanrooms and hazardous chemical mitigation in general industry

FY2025-H1 → FY2026-H1

A theme centered on steady demand in the general industrial sector for cleanroom-related equipment and materials and products addressing hazardous chemicals. It concerns recurring demand from general industry, rather than temporary large-scale demand from government agencies.

Building a business foundation less dependent on environmental and health-related special demand

FY2017-Q3 →

Shifting from a trading-company model to a business selling finished products to end users

FY2017 →

Strengthening protective-clothing product development and R&D capabilities

FY2021 →

An ongoing initiative to continue proprietary product development, product planning, and research and development for protective clothing, based at the AZEARTH Design Center Akita, the head office, and the AZEARTH Protective Clothing Labo. This includes collaboration with external research institutions, such as joint research with Shinshu University.

Three-business composition of protective clothing, tatami mats and apparel

A business structure centered on protective clothing, tatami mats and apparel, operated across a group that includes Chinese subsidiaries and other entities. The group continues to be structured around these three businesses, while its consolidation scope has changed as a result of the absorption-type merger of 丸幸株式会社.

flat 1

Business Transformation of the Apparel Materials Business into Functional Building Materials and Workwear

An initiative to shift the business focus to functional building materials centered on ReFace® and workwear in response to the slump in the apparel market, while improving operational efficiency. In addition to improving the efficiency of existing businesses, the initiative involves a specific shift in product areas and a renewed focus on them.

Becoming a Comprehensive Supplier of Protective Clothing and Environmental Equipment and Materials

FY2021-Q3 →

An initiative aimed at establishing the company as a comprehensive supplier offering total solutions, using protective clothing and environmental equipment and materials as growth drivers through deeper market penetration, expansion into adjacent fields, and stronger product development capabilities.

メディケア・ジャパンとの提携による健康安全製品展開

FY2017 →

メディケア・ジャパンへの出資、資金貸付、業務委託および商品流通を通じて、マスク等の健康安全製品事業を展開するテーマ。ヘルスケア製品事業を独立区分として継続する取り組みも含む。

Transition from the medium-term management plan "Next Stage Execution Plan 2020" to the 2023 plan

A medium-term management plan pursued by 3161 during its transformation period from May 2020 to April 2023, with the aim of reforming its business structure and achieving sustainable growth. The plan set targets for net sales, ordinary profit, ROA and ROE, and transitioned to the subsequent "Next Stage Execution Plan 2023."

たたみ・アパレル資材事業の営業体制見直しと利益確保

FY2021 → FY2024

たたみ・アパレル資材などの資材事業で営業体制を見直し、採算性を重視した販売、新市場開拓、製品・ビジネスモデルの変革を通じて利益確保を進める取り組み。

Strengthening the Business and Enhancing Corporate Value through the Medium-Term Management Plan “Next Stage Execution Plan 2026”

FY2017-Q1 →

The theme of the plan covering the period from May 2026 to April 2029, following the previous medium-term management plan, is to become a corporate group chosen by stakeholders by strengthening businesses that protect people and the environment, strengthening the アゼアス brand, and promoting DX.

Dissolution of Shanghai Trading Subsidiary and Consolidation of Operations into Dalian Subsidiaries

FY2026 → FY2026

A restructuring involving the dissolution and liquidation of the consolidated subsidiary 日里貿易（上海）有限公司 and the consolidation of its operations into 2 Dalian subsidiaries, with the aim of streamlining the China business and improving profitability.

Structural transformation from a trading company into a manufacturer under the medium-term management plan “Next Stage Execution Plan 2023”

FY2024 → FY2024

The medium-term management plan pursued by 3161 from May 2023 through April 2026. It called for strengthening the protective clothing market and safety and environmental equipment businesses, as well as transforming the business structure from a trading company into a manufacturer. However, the company ultimately failed to achieve growth in business performance, despite revising its targets downward.

Special Demand and Subsequent Decline Associated with Infectious Diseases, Disasters, and Other Events

FY2024 → FY2026

A theme in which external events, such as novel influenza, livestock infectious diseases, earthquake reconstruction, and asbestos countermeasures, generate a temporary increase in demand, followed by a sharp decline and a corresponding downturn in performance. It captures multiple special-demand drivers through the cycle from a surge in demand to the subsequent decline from the following fiscal year onward.

Business Portfolio Transition to the Safety, Protection, Health and Comfort Areas

FY2016 → FY2026

A policy to establish safety, protection, health and comfort as priority areas, and use specialist expertise and capital investment to transition the business portfolio toward businesses that contribute to safety and security in society.

Revenue and operating-profit growth in the protective-clothing and environmental-equipment business

FY2021 →

A theme involving sustained increases in revenue and segment profit in the protective clothing and environmental equipment and materials business. It covers expansion in the performance of this business alone, even when bottom-line profit declines company-wide.

Entry into the Disaster Response and Emergency Medical Care Fields and Collaboration

An initiative to strengthen sales of safety and protective equipment in the disaster response and emergency medical care fields, using the investment in ノルメカエイシア as a foothold and pursuing collaboration and synergies.

Divergence between consolidated revenue and profit growth and standalone declines

A theme covering cases where consolidated results show increases in revenue and profit, while the filing company’s standalone results show declines in both, resulting in divergent performance trends. It also includes cases where standalone results shift to revenue and profit growth following a merger by absorption.

Maintaining and Securing Profitability by Leveraging the Strengths of Mature Businesses

flat 1

FY2018 →

An initiative to maintain and improve sales and profit in mature fields such as tatami and apparel materials by leveraging the strengths and necessary functions of existing businesses to create new products and demand.

Antitrust Law On-Site Inspection Concerning Deliveries of Personal Protective Equipment and Other Items to Tokyo

An event involving an on-site inspection by the Japan Fair Trade Commission concerning the delivery of personal protective equipment and other items to Tokyo during a specified period. This covers the risk that the impact of the ongoing investigation on financial position, operating results and cash flows remains unknown.

Key supplier ceases production of insulation fiberboard

FY2017-Q2 → FY2019

Preparation for Adoption of the Accounting Standard for Fair Value Measurement

FY2024 → FY2025-H1

Contested

Companies in these themes point in more than one direction. The same force lifts one filer and costs another, and the split is the reading.

A theme involving the application of the Fair Value Measurement Accounting Standards, etc., and their continued use as new accounting policies. Although there is no impact on profit or loss, it addresses the application of standards governing fair value measurement and accounting disclosures.

Concentrated in Information and Communications・ Services and Others・ Retail・ Trading Companies and Wholesalelast written FY2023-Q4

2107companies2151 threads

helps 3 · hurts 6 · flat 2142

Recruiting and Developing Talented Personnel

Strengthening the human resources base through the recruitment and retention of highly specialized and self-motivated personnel, job-specific education and training, and the accumulation and transfer of knowledge. An ongoing human resources strategy that also includes flexible work arrangements and employee benefits.

Concentrated in Information and Communications・ Services and Others・ Retail・ Trading Companies and Wholesalegrowing faster than other themes

1068companies1161 threads

helps 1113 · hurts 48

Credit Risk Management for Customers and Business Partners

A risk theme focused on monitoring customers’ credit standing and managing the risk of bad debts and collection delays through measures such as monitoring the due dates and outstanding balances of trade receivables in accordance with the credit management rules.

Concentrated in Information & Communications and Services—Other・ Trading Companies & Wholesale・ Materials & Chemicalsmoving with the rest

1032companies1077 threads

helps 18 · hurts 1057 · flat 2

Risk of Business Activity and Store Operations Being Suspended or Restricted by Natural Disasters and the Resulting Financial Impact

Risk that natural disasters such as earthquakes and typhoons may cause business activities to be suspended or financial conditions to deteriorate, without being limited to specific manufacturing sites or owned real estate. This concerns the potential future impact of disasters on the company as a whole, rather than actual disaster losses.

Concentrated in Information & Communications・ Services and Others・ Trading Companies & Wholesale・ Retailshrinking against other themes

382companies386 threads

helps 6 · hurts 380

Reviewing the Rationale for Holding Cross-Shareholdings

Broad

Themes almost every covered company sits in, where the direction is unanimous. The company list is the value here, not the direction — these are the ones worth scanning for who is missing.

A governance policy of holding strategic shareholdings to strengthen relationships and collaboration and enhance corporate value, with their rationale continuously reviewed by the board of directors and other bodies.

Concentrated in Information & Communications・ Services and Other; Materials and Chemicals; Retailgrowing faster than other themes

1435companies1439 threads

helps 751 · hurts 1 · flat 687

Stable, Sustained Shareholder Returns and Dividend Increase Policy

The policy is to strengthen shareholder returns by maintaining stable and consistent dividends as the basic principle, while increasing dividends in line with earnings growth and improving the total payout ratio.

Concentrated in Information & communications/services and other・ Trading companies/wholesale・ Construction/materialsgrowing faster than other themes

1225companies1252 threads

helps 1250 · hurts 2

Governance Response Through Directors and Officers Liability Insurance

A governance measure involving the purchase of directors and officers liability insurance covering directors’ and officers’ liability for damages and litigation costs, with directors, audit & supervisory board members and others named as insured persons.

Concentrated in Information and Communications・ Services and Others・ Retail・ Trading Companies and Wholesaleshrinking against other themes

958companies958 threads

helps 794 · flat 164

Medium- to Long-Term Incentives Through Equity Compensation Plans for Directors and Employees

A compensation plan that grants equity compensation, such as stock options and restricted shares, to executives to promote improved performance and corporate value over the medium to long term.

Concentrated in Information & Communications・ Services and Others・ Retail・ Construction & Materialsgrowing faster than other themes

723companies746 threads

helps 746

Completion of liquidation of an unconsolidated subsidiary

Episodic

Themes tied to a dated event. The period is the point — it opens, it runs, and in most cases it closes, and a theme that stopped being written about is a finding in itself.

A disclosure theme covering the completion of liquidation procedures for an unconsolidated subsidiary, reported as the disappearance of a legal entity from the corporate structure. It concerns the liquidation of an unconsolidated subsidiary without any change in the scope of consolidation or transition to consolidated financial statements.

Concentrated in Information & Communications・ Services and Others・ Trading Companies & Wholesale・ Retaillast written FY2017

42companies45 threads

helps 6 · hurts 1 · flat 38

FY2017 → FY2017

Housekeeping

Standards adoption, auditor changes and the like. Genuinely common and occasionally the exact thing you want to query, but placed last so the feature does not open on bookkeeping.

Preparing for Adoption of the New Lease Accounting Standard

A topic focused on assessing the impact on consolidated financial statements and preparing accounting treatments in anticipation of the effective date of the newly issued lease accounting standard.

Concentrated in Information & Communications・ Services and Others・ Retail・ Construction & Materialsgrowing faster than other themes

1279companies1279 threads

hurts 15 · flat 1264

Adoption of the Accounting Standard for Corporate Income Taxes

Accounting and disclosure treatment related to the application of revised accounting standards, including the classification of income taxes recognized.

Concentrated in Information & Communications and Services & Others・ Raw Materials & Chemicals・ Trading Companies & Wholesaleshrinking against other themes

1074companies1083 threads

helps 1 · flat 1082

FY2018 → FY2026-H1

Change of Independent Auditor

A theme concerning a company changing its accounting auditor to another audit firm, taking into account audit response and the appropriateness of audit fees.

Concentrated in Information & communications・ services and other; Retail; Electrical equipment and precision instrumentsmoving with the rest

831companies831 threads

helps 38 · hurts 2 · flat 791