Expanding the Business Scope and Revenue in Southeast Asia

「In the overseas textile dyeing and processing business, we focused on strengthening relationships with existing customers and developing new markets and customers, while working to increase exports of textile sales products and expand orders.」

「Overseas, we will deepen cooperation with existing business partners, focus on developing new markets and customers, and seek to expand orders through new product development and proposals for new materials.」

「Overseas, we will pursue new customer development, mainly in North America and Southeast Asia, to further expand export orders, which have remained firm.」

「In the overseas textile dyeing and processing business, we focused on developing new markets, established processing technologies for materials such as rayon and polyester blends, and proceeded with capital investment to meet demand for piece-dyed products, preparing for an increase in piece-dyeing volumes.」

「At the Indonesian subsidiary, to meet strong demand for piece-dyed products, we will add 1 continuous dyeing machine and modify and upgrade existing equipment to further improve quality and product finish, with the aim of expanding earnings.」

「In the overseas textile dyeing and processing business, we focused on developing new markets and expanding orders, while establishing processing technologies for materials such as rayon and polyester blends and implementing productivity improvements and cost-reduction initiatives.」

「However, the government introduced import restrictions in October 2023, and the domestic market has gradually become more active, with orders also showing signs of recovery.」

「In the overseas textile dyeing and processing business, we actively pursued productivity improvements, efficiency gains, and various cost-reduction initiatives to address persistently high raw material and fuel prices. We also sought to secure orders by reviewing processing equipment and conditions and strengthening technical capabilities to respond to changing materials.」

「Overseas, at the core Indonesian subsidiary, weak retail sales and excess inventories of finished products continued. As the required materials changed due to higher raw cotton prices, we worked to expand orders by improving equipment and technology, but revenue declined substantially.」

「Overseas, at the core Indonesian subsidiary, weak retail sales caused by lower purchasing appetite among low-income consumers amid rising prices resulted in continued excess inventories of finished products. Revenue declined due to sluggish orders. The Thai subsidiary had withdrawn from the textile printing business at the end of the previous fiscal year and also posted a substantial decline in revenue.」

「At the Thai subsidiary, textile printing orders fell sharply due to rapid market changes, and we withdrew from the textile printing business at the end of December 2022 because no improvement in conditions was in sight.」

「In the overseas textile dyeing and processing business, the order environment at the core Indonesian subsidiary was close to pre-pandemic levels. To address soaring raw material and energy prices, we focused on initiatives including productivity improvements, optimization of processing conditions, more efficient chemical recovery, efficient use of thermal energy, and the restoration and improvement of processing equipment.」

「In the overseas textile dyeing and processing business, orders at the core Indonesian subsidiary were recovering and approaching pre-pandemic levels. To address higher production costs resulting from globally rising raw material and energy prices, we focused on initiatives including productivity improvements, optimization of processing conditions, more efficient chemical recovery, and efficient use of thermal energy.」

「Overseas revenue increased as order volumes rose with the market recovery and processing fees were raised, but earnings declined due to the impact of soaring raw material and energy prices.」

「At the Indonesian subsidiary, which is central to the Group's Southeast Asian strategy, we will focus on developing new markets and customers, expanding sales areas, improving quality control and production efficiency, and developing new products incorporating our processing technology in order to expand sales in domestic and overseas markets. In addition, to expand our business scope and product lineup going forward, we have added business classification codes (KBLI codes) covering the handling of textile products and non-textile products (goods), in addition to the existing textile dyeing and processing business.」

「In the overseas textile dyeing and processing business, amid continued challenging conditions including the spread of COVID-19 and soaring raw material costs, the Indonesian subsidiary focused on reducing input intensity through productivity improvements. The Thai subsidiary has been working to shift to a production structure aligned with the order environment.」

「Overseas, at the Indonesian subsidiary, sales volume increased 14.8% year on year and revenue grew, as activity restrictions imposed to prevent the spread of COVID-19 were eased to a certain extent. At the Thai subsidiary, the impact of COVID-19 remained significant, including sluggish exports and personal consumption, resulting in a substantial decline in revenue.」

「Overseas, despite continued challenging conditions, we focused on proposing functional products, improving production and quality control, and reducing costs.」

「The impact of COVID-19 was also significant overseas. Although orders for materials used in masks increased, domestic sales declined sharply. As difficult conditions continued, signs of a recovery in orders began to emerge, and the company focused on developing new markets, developing new products, and further improving quality control and production efficiency.」

「The impact of COVID-19 was also significant overseas. Although orders for materials used in masks increased, domestic sales declined sharply in both Thailand and Indonesia.」

「Overseas, the Indonesian subsidiary worked to acquire new customers in East Java, including Surabaya, to further expand the business. The Thai subsidiary worked on productivity gains, quality improvements and new material development, while also seeking to expand orders in neighboring countries.」

「Overseas, the Indonesian subsidiary captured demand against a backdrop of stable domestic consumption, while the Thai subsidiary pursued productivity gains and quality improvements as part of its turnaround.」

「Overseas, the company worked to capture strong domestic demand through its Indonesian subsidiary, while its Thai subsidiary reviewed its production structure and improved quality as part of its turnaround efforts.」

「Meanwhile, using its bases in Indonesia and Thailand, the company will prepare to develop new businesses across Southeast Asia, including fields outside textiles.」

「Overseas, in Indonesia the company worked to expand exports in addition to serving the strong domestic market, while in Thailand it worked to improve quality and review its production structure to improve orders.」

「Overseas, the company strengthened order-taking activities to expand exports from Indonesia, while in Thailand it worked to win orders through new product development and improve satisfaction among existing customers through quality improvements.」

「Overseas, the company is strengthening textile exports from Indonesia by acquiring new customers, while in Thailand it is strengthening relationships with existing customers and dispatching engineers to improve quality.」

「Meanwhile, in Southeast Asia, where the company operates, demand continues to expand, particularly in Indonesia, in apparel and lifestyle-related fields.」

「In Japan, the Group is strengthening orders in non-apparel fields within its dyeing and finishing business, where stable sales are expected. Overseas, in addition to strengthening relationships with existing customers in Indonesia and Thailand and expanding orders through the stable supply of high-priced, high-quality products, it is also researching the development of sales channels for Myanmar's domestic market.」

「Overseas, in addition to strengthening relationships with existing customers in Indonesia and Thailand, the company plans to expand its sales channels in Myanmar's domestic market and is promoting business development initiatives.」

「The company also plans to expand its sales channels targeting Myanmar's domestic market. To expand its business scope in Southeast Asia, where business opportunities continue to grow, it will actively enter non-apparel fields and work to increase earnings in the region.」

「Overseas, in addition to establishing a sales company in the Philippines to develop new markets, the company is working to further expand sales in Indonesia, where demand is strong.」

「In Japan, the Group is strengthening orders in non-apparel fields within its dyeing and finishing business, where stable orders are expected. Overseas, it is actively expanding its business, including by establishing a new sales company in the Philippines.」

「Overseas, the company is developing new businesses in the Philippines and Indonesia.」

「To expand its business scope in Southeast Asia, where business opportunities continue to grow, the company will also actively enter fields outside the dyeing and finishing business and work to increase earnings in the region.」