Declining profitability of Shenyang operations due to China’s economic slowdown

「In the overseas business, ASLOC sales in China remained challenging due to the impact of intermittent city lockdowns in China during the COVID-19 pandemic and other factors. The Company also resolved to dissolve its consolidated subsidiary 野澤貿易（上海）有限公司, which sells extruded cement products in China, in September 2022 in response to worsening business conditions caused by stagnation in the Chinese economy and construction market, and the company is currently being liquidated.」

「In the overseas business, ASLOC sales in China remained challenging, as in the previous fiscal year, due to the impact of tighter regulations on China's real estate industry and the stagnant economy.」

「This is a loss arising from the liquidation of the consolidated subsidiary 野澤積水好施新型建材（瀋陽）有限公司.」

「In the overseas business, ASLOC sales in China remained challenging due to the impact of stagnating economic activity in China caused by COVID-19 and other factors. In December 2020, the Company resolved to dissolve its consolidated subsidiary 野澤積水好施新型建材(瀋陽)有限公司, which manufactures and sells extruded cement products in China, because its supply of its main product, lightweight exterior wall panels for residential use, was no longer expected following the closure of its customer.」

「This is a loss arising from the liquidation of the consolidated subsidiary 野澤積水好施新型建材（瀋陽）有限公司. This includes ¥12 million in an addition to the provision for losses on the liquidation of an affiliated company.」

「The overseas business was affected by the stagnation of economic activity caused by COVID-19 in China and other factors, and the difficult conditions for ASLOC sales in China continued.」

「In the overseas business, ASLOC sales in China remained challenging, affected by construction plan postponements and cancellations resulting from the slowdown in China's domestic economy.」

「The overseas business was affected by the postponement and cancellation of construction projects and other factors accompanying the economic slowdown in China, and ASLOC sales in China remained in difficult circumstances.」

「Uncertainty exists in Japan and overseas, including the impact on the economy of the consumption tax increase in October this year and concerns over a sharp slowdown in the Chinese economy, and uncertain conditions are expected to continue.」

「In the overseas business, promotional activities for ASLOC were producing results in the Beijing and Qingdao areas of China, but 野澤貿易（上海）有限公司 and 野澤積水好施新型建材（瀋陽）有限公司 remained in difficult circumstances due to the stagnation of China's construction market.」

「Conditions remained uncertain amid concerns over an economic slowdown in China and emerging markets and uncertainty surrounding political developments in Europe and the United States.」

「Conditions remained uncertain amid concerns over an economic slowdown in China and emerging markets and uncertainty surrounding the European and US economies.」

「During the first nine months of the consolidated fiscal year under review, conditions remained uncertain, with the foreign exchange and stock markets fluctuating sharply amid concerns over slower economic growth in China and emerging markets, together with uncertainty surrounding the European and US economies.」

「During the first half of the consolidated fiscal year under review, corporate sentiment remained depressed and the business environment uncertain, due to concerns over a slowdown in the global economy, including China and emerging markets, and the appreciation of the yen.」

「During the first quarter of the consolidated fiscal year under review, Japan's economy remained in an uncertain environment, as concerns over an economic slowdown in China and emerging markets, together with unstable movements in the foreign exchange and stock markets, depressed corporate sentiment.」

「However, construction and residential property transactions stagnated as a result of the slowdown in the Chinese economy. Accordingly, the full amount of tangible fixed assets, including machinery, equipment and vehicles, held by 野澤積水好施新型建材（瀋陽）有限公司 was recognized as an impairment loss, resulting in an impact of ¥660 million on the Group. As a result, net income attributable to owners of the parent was ¥1,515 million, down 10.9% year on year.」