Consolidated Financial Results for the Nine Months Ended December 31, 2025[PDF: 448KB]

January 30, 2026

Company name: CHORI CO., LTD. Listing: Tokyo Stock Exchange (Prime) Securities code: 8014 URL: https://www.chori.co.jp/english/ Representative: Tatsuyuki Sakoda, President, CEO & COO

Inquiries: Kazuyoshi Matsuura, Manager of Corporate Management Dept. Telephone: +81-3-5781-6201

Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2025 (from April 1, 2025 to December 31, 2025)

   1. Consolidated operating results (cumulative)

      (Percentages indicate year-on-year changes)

      	Net sales		Operating profit		Ordinary profit		Profit before income taxes		Net profit attributable to owners of parent
      Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Dec. 31, 2025	221,611	(3.8)	9,993	(5.0)	10,747	(10.4)	10,776	(15.5)	7,601	(16.7)
      Dec. 31, 2024	230,257	(1.3)	10,518	(11.8)	11,996	1.7	12,748	6.7	9,123	13.1

      Note: Comprehensive income

      For the nine months ended Dec. 31, 2025: 7,909 million yen [(17.5)%]

      For the nine months ended Dec. 31, 2024: 9,583 million yen [(12.5)%]

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	yen	yen
      Dec. 31, 2025	308.42	-
      Dec. 31, 2024	370.23	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity ratio
   As of Dec. 31, 2025 Mar. 31, 2025	Millions of yen 148,454 146,076	Millions of yen 96,188 92,101	% 64.7 63.0

   Reference: Equity

   As of Dec. 31, 2025: 96,088 million yen

   As of Mar. 31, 2025: 92,009 million yen

2. Dividends

   	Annual dividends per share
   	1stquarter-end	2ndquarter-end	3rdquarter-end	Fiscal year-end	Total
   Fiscal year ended Mar. 31, 2025 Fiscal year ending Mar. 31, 2026	yen - -	yen 61.00 72.00	yen - -	yen 81.00	yen 142.00
   Fiscal year ending Mar. 31, 2026 (Forecast)				72.00	144.00

   Note: Revisions to the most recently announced forecast of dividends: None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes)

Note: Revisions to the most recently announced forecasts of consolidated financial results: Yes

For further details, please refer to the "Notice Regarding Revisions to the Forecast of Consolidated Financial Results for the Year Ending March 31, 2026," which was released today (January 30, 2026).

1. Significant changes in the scope of consolidation during the period: None Newly included: -

   Excluded: -

2. Adoption of accounting treatment specific to the preparation of

   quarterly consolidated financial statements: None

3. Changes in accounting policies, changes in accounting estimates, and restatements

   1. Changes in accounting policies due to the revision of accounting standards, etc.: None

   2. Changes in accounting policies due to other reasons: Yes

   3. Changes in accounting estimates: None

   4. Restatements: None

      Note: Please refer to "2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)" on page 9 of the Appendix for details.

4. Number of issued shares (common shares)

Note: The Company has introduced the Board Benefit Trust - Restricted Stock (BBT-RS), and the number of shares of the Company held by the trust are included in that of treasury shares to be deducted in calculating the number of treasury shares at the end of the period and the average number of shares outstanding during the period.

• Review of the attached quarterly consolidated financial statements

  by certified public accountants or an audit firm: None

• Proper use of earnings forecasts, and other special matters

The forward-looking statements in this document are based on the information available at the time of publication and certain assumptions that the Company judges as rational. In addition, actual financial results may vary significantly due to various reasons. The Company, therefore, wishes to caution that readers should not place undue reliance on forward-looking statements.

Please refer to "1. Overview of Operating Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information" on page 4 of the Appendix for the prerequisites for the forward-looking statements and precautions on their use.

〇 Contents of Appendix

1. Overview of Operating Results 2

   1. Overview of Operating Results for the Current Quarterly Consolidated Accounting Period 2

   2. Overview of Financial Position for the Current Quarterly Consolidated Accounting Period 3

   3. Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information 4

2. Quarterly Consolidated Financial Statements and Main Notes 5

   1. Quarterly Consolidated Balance Sheet 5

   2. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income 7

      Quarterly Consolidated Statements of Income 7

      Quarterly Consolidated Statements of Comprehensive Income 8

   3. Notes to Quarterly Consolidated Financial Statements 9

(Note regarding assumptions of a going concern) 9

(Notes in case of significant changes in shareholders' equity) 9

(Changes in accounting policies) 9

(Additional information) 9

(Notes on segment information, etc.) 10

(Notes on quarterly consolidated statements of cash flows) 11

1. Overview of Operating Results

   1. Overview of Operating Results for the Current Quarterly Consolidated Accounting Period

      During the nine months ended December 31, 2025, the Japanese economy, despite continuous price increases, maintained the stable employment and income environment, supported by robust corporate earnings, and continued to experience a moderate recovery trend. In the global economy, a slowdown in domestic demand in China weighed on the country's economy. Combined with the ongoing geopolitical risks and the impact of U.S. trade policies on other countries, this has kept the outlook uncertain.

      Under these circumstances, CHORI CO., LTD. (the "Company") and its subsidiaries (the "Chori Group" or the "Group") are steadily implementing the basic strategy of the medium-term management plan (Chori Innovation Plan 2025) announced on April 28, 2023, and are working to achieve sustainable growth on a global basis and transform the Group's business through digital transformation.

      As for the consolidated financial results for the consolidated period under review, net sales decreased by 3.8% year-on-year to 221,611 million yen, operating profit decreased by 5.0% year-on-year to 9,993 million yen, ordinary profit decreased by 10.4% year-on-year to 10,747 million yen, profit before income taxes decreased by 15.5% year-on-year to 10,776 million yen, and net profit attributable to owners of parent decreased by 16.7% year-on-year to 7,601 million yen.

      (Unit: Millions of yen)

      	Nine months ended Dec. 31, 2024	Nine months ended Dec. 31, 2025	Increase (decrease)	Year on year (%)
      Net sales	230,257	221,611	(8,646)	(3.8)
      Operating profit	10,518	9,993	(524)	(5.0)
      Ordinary profit	11,996	10,747	(1,248)	(10.4)
      Profit before income taxes	12,748	10,776	(1,971)	(15.5)
      Net profit attributable to owners of parent	9,123	7,601	(1,522)	(16.7)

      The results of each business segment are as follows.

      1. Fibers, Textiles, and Garments

         (Unit: Millions of yen)

         	Nine months ended Dec. 31, 2024	Nine months ended Dec. 31, 2025	Increase (decrease)	Year on year (%)
         Net sales	111,874	106,830	(5,043)	(4.5)
         Profit before income taxes	6,066	5,169	(896)	(14.8)

         In this segment, net sales decreased by 4.5% year-on-year to 106,830 million yen, primarily due to the fibers and textiles materials sectors performing sluggishly. Segment profit (profit before income taxes) decreased by 14.8% year-on-year to 5,169 million yen, mainly due to the absence of the gain on sale of investment securities recorded in the same period of the previous fiscal year.

      2. Chemicals

         (Unit: Millions of yen)

         	Nine months ended Dec. 31, 2024	Nine months ended Dec. 31, 2025	Increase (decrease)	Year on year (%)
         Net sales	117,698	114,128	(3,570)	(3.0)
         Profit before income taxes	6,702	6,122	(579)	(8.6)

         In this segment, net sales decreased by 3.0% year-on-year to 114,128 million yen, mainly due to sluggish market conditions in the performance chemicals field. Segment profit (profit before income taxes) decreased by 8.6% year-on-year to 6,122 million yen, mainly due to the absence of a reversal of allowance for doubtful accounts recorded in the same period of the previous fiscal year, when the Company collected a portion of receivables from a chemical manufacturing group in China.

      3. Machinery

         (Unit: Millions of yen)

         	Nine months ended Dec. 31, 2024	Nine months ended Dec. 31, 2025	Increase (decrease)	Year on year (%)
         Net sales	621	590	(31)	(5.1)
         Profit before income taxes	443	290	(152)	(34.5)

         In this segment, net sales decreased by 5.1% year-on-year to 590 million yen, mainly due to the sluggish automobile sales for Europe. Segment profit (profit before income taxes) decreased by 34.5% year-on-year to 290 million yen.

   2. Overview of Financial Position for the Current Quarterly Consolidated Accounting Period

      (Assets)

      Total assets at the end of the consolidated period under review were 148,454 million yen, an increase of 2,377 million yen from the end of the previous consolidated fiscal year. This was mainly due to increases of 4,103 million yen in software, 3,261 million yen in notes and accounts receivable - trade, 1,287 million yen in investments and other assets, partially offset by decreases of 4,708 million yen in software in progress, 1,002 million yen in deposits paid to subsidiaries and associates, and 673 million yen in goods in transit. The decrease in software in progress reflects its reclassification to software.

      (Liabilities)

      Liabilities at the end of the consolidated period under review were 52,265 million yen, a decrease of 1,708 million yen from the end of the previous consolidated fiscal year. This was mainly due to decreases of 1,329 million yen in income taxes payable, 511 million yen in provision for bonuses, and 377 million yen in notes and accounts payable - trade, offsetting increases of 431 million yen in deferred tax liabilities.

      (Net assets)

      Net assets at the end of the consolidated period under review were 96,188 million yen, an increase of 4,086 million yen from the end of the previous consolidated fiscal year. This was mainly due to increases of 7,601 million yen resulting from the recording of net profit attributable to owners of parent and 1,077 million yen in valuation difference on available-for-sale securities, offsetting decreases of 3,791 million yen due to the payment of dividends and 885 million yen in foreign currency translation adjustment.

   3. Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information

   The consolidated financial results forecast announced on April 28, 2025, has been revised based on the latest performance trends.

   For further details, please refer to the "Notice Regarding Revisions to the Forecast of Consolidated Financial Results for the Year Ending March 31, 2026" released today (January 30, 2026).

   The financial results forecast is based on the information available at the time of publication and certain assumptions that the Company judges as rational. As such, actual financial results may vary significantly due to various reasons.

2. Quarterly Consolidated Financial Statements and Main Notes

1. Quarterly Consolidated Balance Sheet

   Assets

   (Unit: Millions of yen) As of Mar. 31, 2025 As of Dec. 31, 2025

   Current assets
   Cash and deposits	22,812	23,283
   Deposits paid to subsidiaries and associates	1,002	-
   Notes and accounts receivable - trade	72,161	75,423
   Merchandise and finished goods	17,350	17,495
   Work in process	1,133	1,154
   Raw materials and supplies	47	31
   Goods in transit	1,759	1,086
   Other	5,489	4,992
   Allowance for doubtful accounts	(191)	(200)
   Total current assets	121,566	123,266
   Non-current assets
   Property, plant and equipment	1,791	2,008
   Intangible assets
   Goodwill	243	98
   Customer-related assets	692	617
   Software	363	4,467
   Software in progress	4,878	170
   Other	18	16
   Total intangible assets	6,197	5,369
   Investments and other assets	16,521	17,808
   Total non-current assets	24,509	25,187
   Total assets	146,076	148,454
   Liabilities
   Current liabilities
   Notes and accounts payable - trade	40,597	40,220
   Short-term borrowings	1,384	1,048
   Current portion of long-term borrowings	19	-
   Income taxes payable	2,036	706
   Provision for bonuses	1,281	769
   Provision for loss on liquidation of subsidiaries and associates	42	42
   Other	5,195	5,491
   Total current liabilities	50,556	48,277
   Non-current liabilities
   Deferred tax liabilities	1,042	1,474
   Provision for share awards	109	161
   Retirement benefit liability	2,108	2,161
   Other	158	189
   Total non-current liabilities	3,418	3,987
   Total liabilities	53,974	52,265

   Net assets

   (Unit: Millions of yen) As of Mar. 31, 2025 As of Dec. 31, 2025

   Shareholders' equity

   Share capital	6,800	6,800
   Capital surplus	2,152	2,142
   Retained earnings	76,071	79,862
   Treasury shares	(921)	(922)
   Total shareholders' equity	84,101	87,882
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	2,112	3,190
   Deferred gains or losses on hedges	3	111
   Foreign currency translation adjustment	5,724	4,838
   Remeasurements of defined benefit plans	67	64
   Total accumulated other comprehensive income	7,907	8,205
   Non-controlling interests	92	100
   Total net assets	92,101	96,188
   Total liabilities and net assets	146,076	148,454

2. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

   Quarterly Consolidated Statements of Income

   (Unit: Millions of yen)

   	Nine months ended	Nine months ended
   	Dec. 31, 2024	Dec. 31, 2025
   Net sales	230,257	221,611
   Cost of sales	200,744	191,007
   Gross profit	29,513	30,603
   Selling, general and administrative expenses	18,995	20,610
   Operating profit	10,518	9,993
   Non-operating income
   Interest income	561	338
   Dividend income	278	343
   Share of profit of entities accounted for using equity method	285	199
   Foreign exchange gains	17	42
   Reversal of allowance for doubtful accounts	807	18
   Gain on adjustment of accounts payable	20	24
   Miscellaneous income	159	136
   Total non-operating income	2,131	1,105
   Non-operating expenses
   Interest expenses	97	71
   Loss on sale of notes receivable - trade	541	263
   Miscellaneous expenses	14	16
   Total non-operating expenses	653	350
   Ordinary profit	11,996	10,747
   Extraordinary income
   Gain on sale of shares of subsidiaries and associates	-	56
   Gain on sale of investment securities	770	31
   Gain on sale of non-current assets	6	5
   Gain on liquidation of subsidiaries and associates	-	4
   Total extraordinary income	777	96
   Extraordinary losses
   Loss on valuation of investment securities	-	43
   Loss on disposal of non-current assets	25	22
   Loss on sale of investment securities	-	2
   Total extraordinary losses	25	67
   Profit before income taxes	12,748	10,776
   Income taxes - current	3,465	2,995
   Income taxes - deferred	145	163
   Total income taxes	3,610	3,159
   Net profit	9,137	7,616
   Net profit attributable to non-controlling interests	13	15
   Net profit attributable to owners of parent	9,123	7,601

   Quarterly Consolidated Statements of Comprehensive Income

   		(Unit: Millions of yen)
   	Nine months ended Dec. 31, 2024	Nine months ended Dec. 31, 2025
   Net profit	9,137	7,616
   Other comprehensive income
   Valuation difference on available-for-sale securities	(651)	1,077
   Deferred gains or losses on hedges	279	108
   Foreign currency translation adjustment	653	(710)
   Remeasurements of defined benefit plans, net of tax	(1)	(2)
   Share of other comprehensive income of entities accounted 165 (180) for using equity method
   Total other comprehensive income	445 292
   Comprehensive income	9,583 7,909
   Comprehensive income attributable to:
   Owners of parent	9,569	7,899
   Non-controlling interests	14	10

3. Notes to Quarterly Consolidated Financial Statements

   (Note regarding assumptions of a going concern) Not applicable.

   (Notes in case of significant changes in shareholders' equity) Not applicable.

   (Changes in accounting policies)

   (Change in valuation method of inventories)

   The Group's valuation standard and method for inventories have traditionally been based primarily on the cost method using the monthly weighted average method. However, from the beginning of the first quarter of the current consolidated fiscal year, we have changed to the cost method primarily using the moving average method.

   This change was made in response to significant fluctuations in procurement costs, including recent sharp increases in raw material prices. It also reflects the implementation of a new core system promoted under the Company's medium-term management plan (Chori Innovation Plan 2025), aimed at business and management transformation through digital transformation (DX). The purpose of this change is to enable more timely and accurate profit and loss calculation for the period. The impact of this change is immaterial. Since the effect of this accounting policy change on prior periods is immaterial, retrospective application has not been adopted.

   (Additional information)

   (Performance-linked stock compensation plan for Directors, etc.)

   Based on the resolution of the 76th Annual General Meeting of Shareholders held on June 16, 2023, the Company has introduced a performance-linked stock compensation plan, i.e. the Board Benefit Trust - Restricted Stock (BBT-RS), with the aim of clarifying the linkage between the compensation for directors (excluding directors who are Audit & Supervisory Committee members and non-executive Directors) and executive officers (together with directors, collectively, the "Directors, etc.") and the Company's business performance and share value, and enhancing their motivation to contribute to the improvement of the Company's business performance in the medium to long term and the enhancement of its corporate value.

   The Company accounts for this plan in accordance with the Practical Solution on Transactions of Delivering the Company's Own Stock to Employees etc. through Trusts (PITF No. 30, March 26, 2015).

   1. Summary of the transaction

      This is a performance-linked stock compensation plan under which the Company's shares are acquired through a trust using money contributed by the Company, and the Directors, etc. are provided with the Company's shares and an amount of money equivalent to the market value of the Company's shares through the trust, pursuant to the Share Benefit Regulations for Directors and Officers established by the Company.

      In principle, the time when the Directors, etc. receive the Company's shares shall be a certain time after the end of each applicable period.

   2. The Company's shares remaining in the trust

The Company's shares remaining in the trust are recorded as treasury shares under net assets at their book value in the trust (excluding ancillary costs). There were 135 thousand such treasury shares carried at 403 million yen at the end of the previous consolidated fiscal year and the end of the consolidated period under review.

(Notes on segment information, etc.) [Segment information]

For the nine months ended December 31, 2024 (from April 1, 2024 to December 31, 2024)

1. Information on net sales and profit (loss) by reportable segment

   (Unit: Millions of yen)

   	Reportable segment				Others (Note 1)	Total	Adjustment (Note 2)	Amount recorded in Quarterly Consolidated Statements of Income (Note 3)
   	Fibers, Textiles, and Garments	Chemicals	Machinery	Subtotal
   Net sales Net sales to outside customers Inter-segment net sales or transfers	111,874 -	117,698 -	621 -	230,194 -	63 354	230,257 354	- (354)	230,257 -
   Total	111,874	117,698	621	230,194	417	230,612	(354)	230,257
   Segment profit	6,066	6,702	443	13,212	46	13,258	(510)	12,748

   Notes: 1. The "Others" category is a business segment that is not attributable to reportable segments and includes the provision of various services such as commissioned back-office operations.

2. Adjustment to segment profit of negative 510 million yen represents company-wide profit (loss) that has not been allocated to reportable segments. Company-wide profit (loss) represents finance-related gains and losses that are not attributable to reportable segments.

3. The total of segment profit and adjustment for reportable segments and the Others business segments is consistent with profit before income taxes in the quarterly consolidated statements of income.

For the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025)

1. Information on net sales and profit (loss) by reportable segment

   (Unit: Millions of yen)

   	Reportable segment				Others (Note 1)	Total	Adjustment (Note 2)	Amount recorded in Quarterly Consolidated Statements of Income (Note 3)
   	Fibers, Textiles, and Garments	Chemicals	Machinery	Subtotal
   Net sales Net sales to outside customers Inter-segment net sales or transfers	106,830 -	114,128 -	590 -	221,549 -	62 377	221,611 377	- (377)	221,611 -
   Total	106,830	114,128	590	221,549	439	221,988	(377)	221,611
   Segment profit	5,169	6,122	290	11,583	27	11,610	(834)	10,776

   Notes: 1. The "Others" category is a business segment that is not attributable to reportable segments and includes the provision of various services such as commissioned back-office operations.

2. Adjustment to segment profit of negative 834 million yen represents company-wide profit (loss) that has not been allocated to reportable segments. Company-wide profit (loss) represents finance-related gains and losses that are not attributable to reportable segments.

3. The total of segment profit and adjustment for reportable segments and the Others business segments is consistent with profit before income taxes in the quarterly consolidated statements of income.

2. Changes in reportable segments

(Change in valuation method of inventories)

As stated in the notes regarding the changes in accounting policies, the Group's valuation standard and method for inventories have traditionally been based primarily on the cost method using the monthly weighted average method. However, from the beginning of the first quarter of the current consolidated fiscal year, we have changed to the cost method primarily using the moving average method.

This change was made in response to significant fluctuations in procurement costs, including recent sharp increases in raw material prices. It also reflects the implementation of a new core system promoted under the Company's medium-term management plan (Chori Innovation Plan 2025), aimed at business and management transformation through digital transformation (DX). The purpose of this change is to enable more timely and accurate profit and loss calculation for the period. The impact of this change is immaterial.

(Notes on quarterly consolidated statements of cash flows)

Quarterly consolidated statements of cash flows for the current quarterly consolidated accounting period have not been prepared.

Depreciation expenses (including amortization expenses pertaining to intangible assets excluding goodwill) and amortization expenses of goodwill pertaining to the consolidated period under review are as follows.

For the nine months ended December 31, 2024

For the nine months ended December 31, 2025

Depreciation 657 million yen 1,297 million yen

Amortization of goodwill 147 million yen 147 million yen