Events or conditions that raise significant doubt regarding the going-concern assumption
The Group (filing company: TSUDAKOMA Corp.)
Air-jet loom ZAX001neo Plus, the new ZAX001neo Terry for towels, water-jet looms, preparatory machinery, NC rotary tables in the TDB series, and the AWC (automatic work changer) system
The Group recorded an operating loss and an ordinary loss in the previous consolidated fiscal year and the cumulative first quarter of the current consolidated fiscal year, and has not yet achieved stable profitability. The feasibility of the response measures may be affected by external factors, including international conditions, higher purchase prices for raw materials and other items, higher expenses such as ocean freight, and unexpected extensions of parts lead times.
Operating loss of ¥134 million, ordinary loss of ¥119 million, and quarterly net loss attributable to owners of the parent of ¥186 million
Cumulative consolidated period for the first quarter of the fiscal year ending November 2026 (1 December 2025 to 28 February 2026)
The forecasts for the cumulative second quarter and the full year are both in line with the initial forecasts. The full-year forecasts are revenue of ¥36,000 million, operating profit of ¥700 million, ordinary profit of ¥500 million, and net income attributable to owners of the parent of ¥250 million.
Company response
① Expand orders and sales and improve profitability in the textile machinery business (a. promote sales of the air-jet loom ZAX001neo Plus, b. strengthen sales of water-jet looms and secure market share in the volume segment for domestic Chinese demand, c. improve the performance of preparatory machinery, d. pursue and promote sales in the industrial materials sector, and e. further improve profitability through better selling prices and cost reductions), ② expand orders and sales and improve profitability in the machine-tool-related business (a. promote sales of NC rotary tables in response to the diversification of drive components in the automotive industry, b. launch new products addressing new industrial sectors, processing technologies and labor-saving needs, and c. pursue initiatives in new fields and automation), and ③ implement measures to secure cash flow (execute the cost-reduction plan, thoroughly reduce expenses, renew borrowings from major financial institutions, and maintain close relationships with lending financial institutions)
The Company will implement the priority measures under the Medium-Term Management Plan 2026 to establish profitable operating structures and restore performance in the textile machinery and machine-tool-related businesses. It will also execute the cost-reduction plan, thoroughly reduce expenses, renew borrowings from major financial institutions, and maintain close relationships with financial institutions.
| Item | Details |
|---|---|
| Event name | Events or conditions that raise significant doubt regarding the going-concern assumption |
| Date of occurrence | 28 February 2026 (end of the first quarter of the current fiscal year consolidated accounting period) |
| Subject Entity | The Group (filing company: TSUDAKOMA Corp.) |
| Target Locations / Products | Air-jet loom ZAX001neo Plus, the new ZAX001neo Terry for towels, water-jet looms, preparatory machinery, NC rotary tables in the TDB series, and the AWC (automatic work changer) system |
| Cause | The Group recorded an operating loss and an ordinary loss in the previous consolidated fiscal year and the cumulative first quarter of the current consolidated fiscal year, and has not yet achieved stable profitability. The feasibility of the response measures may be affected by external factors, including international conditions, higher purchase prices for raw materials and other items, higher expenses such as ocean freight, and unexpected extensions of parts lead times. |
| Amount of Impact on Business Performance | Operating loss of ¥134 million, ordinary loss of ¥119 million, and quarterly net loss attributable to owners of the parent of ¥186 million |
| Accounting period in which recognized | Cumulative consolidated period for the first quarter of the fiscal year ending November 2026 (1 December 2025 to 28 February 2026) |
| Impact on Earnings Forecast | The forecasts for the cumulative second quarter and the full year are both in line with the initial forecasts. The full-year forecasts are revenue of ¥36,000 million, operating profit of ¥700 million, ordinary profit of ¥500 million, and net income attributable to owners of the parent of ¥250 million. |
| Measures to prevent recurrence | ① Expand orders and sales and improve profitability in the textile machinery business (a. promote sales of the air-jet loom ZAX001neo Plus, b. strengthen sales of water-jet looms and secure market share in the volume segment for domestic Chinese demand, c. improve the performance of preparatory machinery, d. pursue and promote sales in the industrial materials sector, and e. further improve profitability through better selling prices and cost reductions), ② expand orders and sales and improve profitability in the machine-tool-related business (a. promote sales of NC rotary tables in response to the diversification of drive components in the automotive industry, b. launch new products addressing new industrial sectors, processing technologies and labor-saving needs, and c. pursue initiatives in new fields and automation), and ③ implement measures to secure cash flow (execute the cost-reduction plan, thoroughly reduce expenses, renew borrowings from major financial institutions, and maintain close relationships with lending financial institutions) |
| Outlook | The Company will implement the priority measures under the Medium-Term Management Plan 2026 to establish profitable operating structures and restore performance in the textile machinery and machine-tool-related businesses. It will also execute the cost-reduction plan, thoroughly reduce expenses, renew borrowings from major financial institutions, and maintain close relationships with financial institutions. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Company cited a gradual recovery in the domestic economy, supported by increased personal consumption and corporate capital investment, as well as higher orders in each market. Regarding uncertainty over the going-concern assumption, it cited external factors including international conditions, higher raw-material prices and other expenses such as ocean freight, and longer lead times for parts.