KAWAGUCHI CHEMICAL INDUSTRY CO.,LTD.

The Group operates primarily in the chemicals business, centered on organic synthesis technology, and the real estate leasing business. Within its industrial chemicals business, sales are generated mainly by product groups categorized as rubber chemicals, resin chemicals, intermediates and other chemicals, and the Group is seeking to expand and recover its market share through growth in overseas markets. Against a backdrop of accelerated overseas expansion and the benefits of yen depreciation, net sales were broadly unchanged from the previous period, with a change of approximately 0.0%. By product category, domestic and overseas demand trends diverged mainly for rubber chemicals, while resin chemicals remained firm in both markets and other chemicals reflected a mix of spillover demand and sluggish conditions. Sales of intermediates increased overseas, although domestic demand was sluggish during part of the period. At the end of the interim period, cash and cash equivalents were ¥1,987 million, total assets were ¥9,014 million and net assets were ¥3,296 million. In particular, expanded overseas sales and the benefits of yen depreciation contributed to profits. Under its medium-term management plan, ACCEL2026—Driving Innovation Forcefully and Accelerating Growth—the Group is pursuing market expansion in growth areas, including expanded contract-manufactured products and products for electronic materials and pharmaceutical applications.