Slowing Chinese demand, inventory adjustments and price competition in the lamination film business

「In the lamination film business, supply of materials for hit products launched by customers, which contributed significantly to performance growth in the previous fiscal year, ran its course, and production and sales returned to levels comparable to the fiscal year before last. In addition, weak Chinese economic conditions and personal consumption continued to make replacement demand difficult to generate, while fluctuations in the volume and timing of orders due to inventory adjustments by some customers also had an impact. Sales volume fell 25.2% from the previous fiscal year to 13.64 million yards.」

「In the lamination film business, the downturn in the Chinese economy became more pronounced and demand continued to slow, causing orders to stagnate due to the impact of inventory adjustments. As the downturn in the Chinese economy further slowed demand, some customers made inventory adjustments, resulting in fluctuations in the timing and volume of orders. Sales volume declined 13.8% year on year to 8.75 million yards. In addition, price competition intensified further, creating a challenging market environment.」