Closure of the Da Nang Site and Concentration of Management Resources at the Remaining 2 Sites

「The closure of the development office, which had been a factor behind the stagnation of results in previous fiscal years, and the additional costs incurred in handling remaining projects transferred from that office to other offices had been brought to an end by the end of the previous fiscal year. In addition, structural reforms described above and other measures are gradually progressing toward a return to a recovery trend in business performance.」

「In the fiscal year ended September 2024, declining development quality and personnel management issues became apparent at the Da Nang site operated by the company's Vietnamese subsidiary. To avoid further adverse effects, the company closed the site, concentrated management resources at its 2 existing sites in Ho Chi Minh City and Hanoi, and decisively changed its operating structure to improve management efficiency.」

「In the previous fiscal year, the company resolved to close the Da Nang office, one of the three offices operated by its Vietnamese subsidiary, where issues including the withdrawal or downsizing of some existing customers, increased additional work and a rise in unassigned personnel had become apparent due to management shortages and other problems. It sought to concentrate management resources at the remaining 2 offices. This is intended to ensure stable operation of the development offices, increase revenue over the medium to long term and improve profit margins, although some negative effects on revenue and profit at each stage are expected to remain in the current fiscal year.」