Business Expansion in Overseas Markets

「In North America, we focused on region-specific distributor initiatives and local inventory strategies through TOLI North America.」

「東璃（上海）貿易有限公司, which handles domestic sales in China, focused on promotional activities such as developing the e-commerce market and holding new product briefings, but sales volume remained weak as Japanese-affiliated project orders declined. In North America, construction investment in housing, offices and other areas remained sluggish against a backdrop of inflation and deteriorating employment conditions. In this environment, TOLI North America Corporation, the U.S. subsidiary that began operations in July 2024, promoted region-specific dealer initiatives and a local inventory strategy, focusing on promotional activities centered on vinyl flooring products.」

「In the global business, we focused on promotional activities for globally strategic products and initiatives with local dealers in each country, working to further establish the TOLI brand. The results of overseas affiliates (2 consolidated subsidiaries and 1 equity-method affiliate) for January–June 2025 have been included in the results for the current interim consolidated accounting period.」

「At “TOLI North America Corporation,” the U.S. subsidiary that began operations in July to expand sales in the North American market, we promoted dealer development in the western region in addition to the eastern and central regions, focusing on establishing the TOLI brand in the North American market.」

「In addition, with the aim of expanding sales in the North American market, we began operating our wholly owned U.S. subsidiary, “TOLI North America Corporation,” in July. We are promoting channel development in the western region in addition to our previous sales focus on the eastern and central regions, with the aim of further establishing the TOLI brand in the North American market.」

「At 東璃（上海）貿易有限公司, uncertainty continued amid slower economic growth caused by disruption in China’s real estate industry and other factors, but sales in the third quarter (January–September 2023) exceeded the previous year’s level as the company gained adoption for large-scale projects.」

「At 東璃（上海）貿易有限公司, an improvement in the business environment was expected following the lifting of China’s zero-COVID policy, but the slowdown in China’s economic growth, including continued disruption in the real estate industry, had an impact, and the company’s second-quarter sales (January–June 2023) fell below the previous year’s level.」

「At 東璃（上海）貿易有限公司, an improvement in the business environment was expected following the lifting of the zero-COVID policy, but the Chinese market did not achieve a full recovery, and the company’s first-quarter sales (January–March 2023) fell below the previous year’s level.」

「At 東璃（上海）貿易有限公司, sales from October onward began to recover following the end of China’s domestic zero-COVID policy, and cumulative sales for the period (January–December 2022) exceeded the previous year’s level.」

「At 東璃（上海）貿易有限公司, sales remained sluggish due to the impact of movement restrictions under China’s domestic zero-COVID policy, but the company’s cumulative third-quarter results (January–September 2022) remained firm.」

「At 東璃（上海）貿易有限公司, China’s domestic economy also stagnated under the zero-COVID policy, but its impact on the company’s cumulative second-quarter results (January–June 2022) was limited, and the recovery trend has continued.」

「In addition, although a lockdown was implemented in the Shanghai area, its impact on 東璃（上海）貿易有限公司’s first-quarter results (January–March 2022) was limited, and the company recorded higher revenue and higher profit.」

「As a result, our equity interest changed from 33.4% to 45.0%.」

「In addition, 東璃（上海）貿易有限公司 recorded higher revenue and higher profit as economic activity recovered in China.」

「In addition, 東璃（上海）貿易有限公司 recorded higher revenue and higher profit as economic activity recovered in China.」

「In addition, 東璃（上海）貿易有限公司 recorded higher revenue as economic activity recovered in China.」

「The qualitative and quantitative expansion of the global business is a key factor in the growth of the Group. In addition to expanding the global sales network, we will enhance the presence of the JAPAN TOLI brand by expanding the business of 東璃（上海）貿易有限公司 and advancing the vinyl floor tile joint venture business at 江蘇長隆装飾材料科技有限公司 in China.」

「Property, plant and equipment increased by ¥1,249 million from the end of the previous consolidated fiscal year to ¥30,012 million. This was mainly because investments and other assets increased in connection with the investment in 江蘇長隆装飾材料科技有限公司, a joint venture for the manufacture and sale of vinyl floor tiles in Jiangsu Province, China, among other factors.」

「This was mainly because investments and other assets increased as a result of the investment in the joint venture 江蘇長隆装飾材料科技有限公司 for the manufacture and sale of vinyl floor tiles in Jiangsu Province, China, among other factors.」

「From the end of the first quarter of the current consolidated accounting period, the newly invested 江蘇長隆装飾材料科技有限公司 has been included within the scope of application of the equity method.」

「For the purpose of strengthening the global strategy for our core business, we reached a basic agreement with a Taiwanese corporate group in March 2020 concerning a joint venture to manufacture and sell vinyl floor tiles in China’s Jiangsu Province. On 15 June 2020, we paid our capital contribution to 江蘇長隆装飾材料科技有限公司, the joint venture company.」

「To further increase penetration of the JAPAN TOLI brand in the overseas business, we worked to strengthen the business foundation, including establishing a base in Singapore, the center of the ASEAN market.」

「東璃（上海）貿易有限公司, which handles sales in the Chinese market, is steadily increasing sales.」

「To expand the business overseas, particularly in Asia, the Middle East, Oceania and the United States, we will develop and build sales networks, while also working to develop products suited to overseas markets and establish supply systems.」

「To expand the business overseas, particularly in Asia, the Middle East, Oceania and the United States, we will develop and build sales networks and focus on developing products suited to overseas markets.」