Southeast Asian Expansion Centered on THAI MARUKEN

「Domestic operations remained generally firm, and signs of recovery were observed at the overseas operating companies in Thailand and China.」

「In the overseas business, the Company recognized an allowance for doubtful accounts on certain receivables after comprehensively considering the prolonged downturn in the business environment and the collectibility of receivables.」

「Domestic operations remained generally firm, but the overseas operating companies in Thailand and China are taking time to recover their performance.」

「Against this backdrop, the overseas operating companies in Thailand and China experienced delays in recovering their performance, while domestic operations remained generally firm.」

「Under these conditions, the overseas operating companies in Thailand and China experienced delayed earnings recovery, while domestic operations remained generally firm.」

「Under these conditions, the Group's performance remained generally firm in Japan, while the overseas operating companies in Thailand and China showed delays in their recovery.」

「During the consolidated fiscal year, the operating companies タイ丸建(株) in Thailand and 瑞馬丸建(安徽)工程支護科技有限公司 in China were affected by delays in construction progress despite showing signs of recovery from the COVID-19 pandemic. They will address the increase in construction demand accompanying the normalization of economic activity and leverage the functions of both companies to capture development demand in surrounding Southeast Asian regions.」

「Under these conditions, the Group's core heavy temporary steel material business in Japan progressed smoothly, while the operating companies in Thailand and China were on a recovery trend from the COVID-19 pandemic but continued to be affected by delays in construction progress and postponed construction starts.」

「Although the overseas operating companies, タイ丸建㈱ in Thailand and 瑞馬丸建（安徽）工程支護科技有限公司 in China, were on a recovery trend from the COVID-19 pandemic, they continued to be affected by postponed construction starts and delays in construction progress, resulting in difficult profitability conditions.」

「In Thailand, タイ丸建㈱ experienced delays in starting and progressing construction during the consolidated fiscal year under severe restrictions due to the COVID-19 pandemic. However, it will maintain and strengthen its cooperative relationship with its partner Italian-Thai Development Public Co.,Ltd. and seek to improve earnings by addressing development demand accompanying the reopening of economic activity in Thailand.」

「Meanwhile, overseas, タイ丸建㈱, which was subject to lockdowns and other restrictions due to the COVID-19 pandemic, experienced delays in construction progress and was also affected by postponements in starting construction.」

「Overseas, 瑞馬丸建（安徽）工程支護科技有限公司 in China performed smoothly, while タイ丸建㈱ in Thailand continued to face difficult conditions due to the COVID-19 pandemic.」

「In August 2020, the Company invested in China's 瑞馬丸建(安徽)工程支護科技有限公司 and advanced its entry into the heavy temporary works business, further expanding in Asian markets.」

「On 7 August 2020, the Company established 丸建投資合同会社 through a joint investment with 伊藤忠丸紅鉄鋼株式会社, holding a 60% equity interest, and made it a consolidated subsidiary. On 14 August of the same year, through that company, it subscribed to a third-party allotment by 瑞馬丸建(安徽)工程支護科技有限公司 that resulted in a 40% equity interest, making it an equity-method affiliate.」

「On 7 August 2020, the Company established 丸建投資合同会社 jointly with 伊藤忠丸紅鉄鋼株式会社, with the Company holding a 60% stake, making it a consolidated subsidiary. On 14 August of the same year, through that company, it subscribed to a third-party allotment by 瑞馬丸建(安徽)工程支護科技有限公司, resulting in a 40% stake, and made the company an equity-method affiliate.」

「Overseas funding needs consist of additional purchases of heavy temporary works steel materials by タイ丸建㈱ and investment funds for the Chinese heavy temporary works joint venture, and the Company is preparing for these funding needs.」

「As its third project following タイ丸建㈱ in Thailand and 中鉄伊紅鋼矢板有限公司 in China, the Company agreed with 伊藤忠丸紅鉄鋼（株） and 馬鞍山瑞馬鋼構材料有限公司 to conduct a heavy temporary works joint venture in China using a steel retaining-wall construction method,」

「Regarding new strategic investments, タイ丸建㈱ has long-term plans for strong private-sector capital investment and large-scale public construction investment, and the Group is taking steps to capture this demand,」

「In Thailand, large-scale projects, including airport expansion work, have begun to move forward in earnest, and タイ丸建㈱ responded by making additional purchases of heavy temporary steel materials.」

「In Thailand, where large-scale projects, particularly public construction investment, have begun to move forward in earnest, タイ丸建㈱ responded by making additional purchases of heavy temporary steel materials.」

「In Thailand, where large-scale projects, particularly public construction investment, have begun to move forward in earnest, タイ丸建㈱ responded by making additional purchases of heavy temporary steel materials.」

「In Thailand, タイ丸建㈱ received more orders for large-scale projects, mainly in public construction. Overseas, タイ丸建㈱ has planned large-scale projects centered on public construction investment and is taking steps such as considering additional purchases of heavy temporary works steel materials.」

「To address this risk, the Group is working to further expand into Southeast Asian markets, both beyond the domestic market and overseas, centered on タイ丸建株式会社, which generates stable profits overseas.」