Expansion into New Business Areas

「当社は、中長期的な成長戦略の一環として、AI 及び Web3 領域における事業展開を推進しております。」

「On 3 March 2026, the company acquired a 51% stake in V Limousine Co., Ltd. through a share delivery, making it a consolidated subsidiary. In connection with this, it added the mobility business as a new segment and is working to create synergies with its existing businesses and expand its earnings base.」

「On 3 March 2026, the company acquired a 51% stake in V Limousine Co., Ltd. through a share delivery, making it a consolidated subsidiary. In connection with this, it added the mobility business as a new segment and is working to create synergies with its existing businesses and expand its earnings base.」

「The group's future challenges are to strengthen its existing spinning and textile businesses, while stabilizing operations in the new recycling business, attracting domestic customers, and pursuing a recovery in performance.」

「During the cumulative second quarter of the current consolidated accounting period, the company established and began operating a new M&A division to provide brokerage and advisory services and support the completion of M&A transactions.」

「In the healthcare business during the cumulative first quarter of the current consolidated fiscal year, the company exceeded its operating income plan after beginning exports of Japanese-made cosmetics to Hong Kong and making smooth progress in improving the earnings structure of subsidiary 中部薬品工業. In the recycling business, both production and sales proceeded smoothly. In addition, earnings improved substantially after a deal for a large volume of resale products was concluded, and the business achieved operating profitability on a segment basis.」

「In the recycling business, a major pillar of the new businesses, production was substantially below plan because of equipment problems and sluggish procurement of raw materials. Profit also fell substantially short of plan because it was difficult to pass higher costs on through price increases.」

「As a result, the textile business recorded net sales of ¥252.179 million, up 118.8% year on year, and operating income of ¥13.409 million for the cumulative second quarter of the current consolidated fiscal year, compared with an operating loss of ¥46 million in the same period of the previous year.」

「At subsidiary 中部薬品工業, sales of a new product have been strong since it began being carried by drugstore chains in March 2022. In the recycling business, which began in the previous consolidated fiscal year, delays in securing the personnel needed for increased production and difficulties shipping because of lockdowns in other countries have prevented the start of full-scale production and sales.」

「At a meeting of the Board of Directors held on 4 October 2021, the company entered into a share transfer agreement with 金井産業株式会社 effective 4 November 2021 and made the company a subsidiary on the same date. Voting rights acquired: 100.0%.」

「At a meeting of the Board of Directors held on 31 August 2021, the company entered into a business transfer agreement with 東樺化成株式会社 effective 1 September 2021 and acquired the company's plastic pellet processing facility and technical know-how on 10 September 2021.」

「The company will use funds raised through a third-party allotment this fiscal year to pursue M&A and support the development of new businesses. In the recycling business, in addition to introducing new equipment internally, it aims to enter the market in full scale by rapidly incorporating other companies' business platforms through M&A.」

「The group will strengthen its existing spinning and textile businesses while pursuing recovery in its results by implementing measures centered on M&A for its new healthcare and recycling businesses and reflecting them in performance.」

「Fabric sales to the Middle East were affected by the COVID-19 pandemic, as was the spinning business, but in the third quarter shipments of products for next season’s Ramadan sale progressed smoothly and sales were broadly in line with plan. However, local inventories have increased, and the order environment is expected to remain challenging next fiscal year. Business in Southeast Asia was also affected by the pandemic, and local markets had not returned to normal, suggesting that recovery would take time. There were also positive developments, including orders for products with new specifications, and we are working to expand sales.」

「The Southeast Asian market has also been affected by COVID-19, and business there has not returned to normal, with market recovery expected to take time. In addition, sales formats in all markets are likely to change, including through internet sales, and the company needs to monitor developments so that it can respond to various changes.」

「Market conditions for fabric sales to the Middle East had remained weak for several years due to excess inventory, various issues with neighbouring countries and domestic political changes in Saudi Arabia, but inventory has declined to some extent and the market has been recovering, allowing sales to progress smoothly in the first quarter. Against this backdrop, the textile business reported first-quarter revenue of ¥119.361 million, up 632.5% year on year, and operating profit of ¥4.989 million, compared with an operating loss of ¥2.429 million in the same quarter of the previous year.」

「The company began full-scale efforts during the current fiscal year to sell ethnic garment fabrics to the Middle East. Because Saudi Arabia, its main sales destination, was politically unstable, it sought to strengthen sales efforts in the neighboring countries of the UAE, Qatar, and Kuwait.」

「Regarding our sales of fabrics to the Middle East, which we have pursued since the second half of the previous fiscal year, the time had come to make full-scale deliveries of products for the next Ramadan sale. As considerable processing volumes were received from various companies, production at processing plants was extremely tight and delivery deadlines remained challenging, but we achieved the planned sales. For sales of fabrics to Southeast Asia, we also began receiving greige fabric in October and are expected to begin processing contracted orders, contributing to the recognition of sales going forward.」

「Sales of fabrics to Southeast Asia, including new products, have also progressed smoothly, and are expected to contribute to future sales.」

「Market conditions for the Middle East fabric sales business, which the company had been pursuing since the second half of the previous fiscal year, remained weak because of various issues with neighboring countries and domestic political changes in Saudi Arabia. However, inventories had declined to some extent this year and purchasing appetite was gradually returning. Although this is the first year of full-scale sales for the company, it has begun securing contracts gradually and expects to generate results from the second half of the fiscal year.」

「Although sales costs for fabrics for ethnic clothing in the Middle East are currently being incurred ahead of sales, contracts have gradually been concluded since the third quarter, resulting in annual sales of ¥19.146 million. Conditions in the Middle East remain uncertain due to domestic policy issues in Saudi Arabia and relations with Iran, but we will supply products that capitalize on our strengths and work to secure profits in the next fiscal year.」

「Sales of fabrics for ethnic clothing in the Middle East, which we began pursuing as a new business, got underway amid political issues in Saudi Arabia and various problems in neighboring countries. Although volumes were small, we concluded contracts in several regions and recorded ¥4.775 million in sales in the cumulative third quarter. Going forward, we will establish a basic commercial platform and develop products suited to the market.」

「Orders for polyester-related products produced results that differed from expectations, but are expected to decline going forward, making it necessary to urgently develop new fields and products to replace them.」

「The company believes that creating new businesses is essential to continuously increasing corporate value. It will actively expand into new business areas by leveraging the experience, relationships, and knowledge cultivated through its existing businesses.」