Unforeseen contingencies involving political, economic and legal or regulatory factors in overseas operations

「Overseas, profit is expected to decline and fall below the previous forecast because the prices of chemicals, including caustic soda, remained high due to the situation in the Middle East, while higher coal and gas prices increased unit costs.」

「Overseas, at the Indonesian subsidiary, inexpensive products from China have flowed into the market under the influence of U.S. trade policy, market conditions have stagnated, and a challenging order environment has continued.」

「Overseas, orders at the Indonesian subsidiary remained firm, but inexpensive products from China continued to flow into the market. The stagnating market has led to industry peers downsizing and going out of business, resulting in a challenging operating environment.」

「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.」

「Overseas, orders in Indonesia are trending toward recovery as domestic market conditions improve and the company responds flexibly to changes in markets and materials. In Thailand, domestic demand remains sluggish and the company continues to face a challenging operating environment.」

「In the overseas textile dyeing and processing business as well, we focused on improving productivity and promoting cost-reduction initiatives amid a challenging environment, including soaring raw material and energy prices.」

「Overseas, Indonesia is seeing orders trend toward recovery as restrictions are eased, while Thailand faces a challenging operating environment, with exports and domestic consumption remaining sluggish.」

「Overseas, revenue at the Indonesian subsidiary increased 37.5% year on year as orders recovered following the easing of large-scale social activity restrictions. In contrast, the Thai subsidiary posted a substantial decline in revenue as both exports and domestic consumption remained sluggish due to the renewed spread of COVID-19.」

「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.」

「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 direct impact of COVID-19 was limited, but sales declined due to sluggish market conditions and weak orders.」

「We expect the group to continue facing a challenging business environment due to lower orders resulting from stalled corporate activity, restrictions on going out and weak sales, as well as the closure or suspension of operations at overseas production bases and partner companies.」

「Overseas, the Indonesian subsidiary experienced disruption and market stagnation due to turmoil and protest demonstrations before and after the presidential election, but sales declined only slightly year on year. At the Thai subsidiary, sales declined as excess customer inventories and inflows of inexpensive Chinese products made it difficult to secure orders.」

「Overseas, market conditions cooled at the Indonesian subsidiary due to uncertainty over the outlook following the presidential election held in April, preventing an increase in sales volume and leaving revenue at the previous year's level. The Thai subsidiary posted lower revenue due to intensifying competition from inexpensive imports such as Chinese products.」

「Unexpected events, including changes in political systems, economic conditions, laws and regulations, conflicts and infectious disease outbreaks in various countries, could affect the operating results of the group.」

「Overseas, the Indonesian subsidiary actively captured strong domestic demand and increased volumes, resulting in higher sales in local-currency terms. However, the depreciation of the local currency resulted in lower sales when translated into yen, and difficult conditions continued at the Thai subsidiary.」

「Overseas, the order environment for the Thai subsidiary remains challenging, with no improvement. At the Indonesian subsidiary, local demand continues to perform well and sales volumes are increasing.」

「In Thailand, where we operate, the prolonged weakness in private consumption continues, while signs of weakening have begun to emerge in apparel consumption in Indonesia's domestic market.」

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

「In Southeast Asia, where we operate, apparel consumption in Thailand has remained stagnant for an extended period and has yet to achieve a full recovery. In Indonesia, however, private consumption has remained firm against a backdrop of population growth and rising wages, and demand in apparel and lifestyle-related fields is expected to increase.」

「Overseas, in Southeast Asia where we operate, private consumption in Thailand is showing signs of recovery but has yet to achieve a full recovery. In Indonesia, steady economic expansion continues, and demand in apparel and lifestyle-related fields is expected to increase as the population and middle-income class expand.」

「In Thailand, the mood of self-restraint following the King's death is gradually easing, but consumer appetite remains stagnant. In Indonesia, private consumption is maintaining solid growth and the economy is gradually recovering, with new business opportunities expected to expand.」

「In Southeast Asia, where we operate, private consumption in Thailand remains stagnant due to a mood of self-restraint following the King's death. In Indonesia, however, the economy is gradually recovering, supported by firm private consumption, and new business opportunities are expected to expand. Across Southeast Asia, demand in apparel and lifestyle-related fields is expected to increase as populations grow and the middle-income class expands.」

「In Southeast Asia, demand in apparel and lifestyle-related fields is expected to increase as populations grow and the middle-income class expands. However, private consumption in Thailand remains stagnant, while Indonesia has yet to achieve a full economic recovery.」

「In Thailand, the economic downturn has been prolonged, while in Indonesia, private consumption has yet to make a full recovery and economic growth has slowed.」

「Unexpected events, including changes in political systems, economic conditions, laws and regulations, conflicts and infectious disease outbreaks in various countries, could affect the operating results of the group.」