Consolidated Financial Results for the Three Months Ended June 30, 2025 (Under Japanese GAAP)[PDF: 343KB]

July 30, 2025

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 materials on quarterly financial results: Yes Holding of quarterly financial results briefing: None

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2025 (from April 1, 2025 to June 30, 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
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Jun. 30, 2025	71,577	(7.0)	3,286	(9.1)	3,277	(32.5)	3,238	(42.5)	2,505	(39.7)
      Jun. 30, 2024	76,974	1.6	3,616	(8.2)	4,858	34.6	5,629	56.1	4,157	87.6

      Note: Comprehensive income

      For the three months ended Jun. 30, 2025: 1,458 million yen [(72.3%)]

      For the three months ended Jun. 30, 2024: 5,262 million yen [46.7%]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	yen	yen
      Jun. 30, 2025	101.66	-
      Jun. 30, 2024	168.71	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity ratio
   As of Jun. 30, 2025 Mar. 31, 2025	Millions of yen 139,954 146,076	Millions of yen 91,564 92,101	% 65.4 63.0

   Reference: Equity

   As of Jun. 30, 2025: 91,477 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	yen -	yen 81.00	yen 142.00
   Fiscal year ending Mar. 31, 2026 (Forecast)		72.00	-	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: None

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 three months ended June 30, 2025, the Japanese economy led to a moderate recovery trend, supported by improvements in the employment and income environment on the back of solid corporate earnings. In the global economy, while China showed signs of recovery supported by firm domestic demand stemming from the government-led consumption stimulus measures, geopolitical risks in Russia, Ukraine, the Middle East, and other regions, as well as U.S. tariff policy, have acted as a drag, and the outlook remains 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 quarterly consolidated period, net sales decreased by 7.0% year-on-year to 71,577 million yen, operating profit decreased by 9.1% year-on-year to 3,286 million yen, ordinary profit decreased by 32.5% year-on-year to 3,277 million yen, profit before income taxes decreased by 42.5% year-on-year to 3,238 million yen, and net profit attributable to owners of parent decreased by 39.7% year-on-year to 2,505 million yen.

   (Unit: Millions of yen)

   	Three months ended Jun. 30, 2024	Three months ended Jun. 30, 2025	Increase (decrease)	Year-on-year (%)
   Net sales	76,974	71,577	(5,396)	(7.0)
   Operating profit	3,616	3,286	(330)	(9.1)
   Ordinary profit	4,858	3,277	(1,581)	(32.5)
   Profit before income taxes	5,629	3,238	(2,390)	(42.5)
   Net profit attributable to owners of parent	4,157	2,505	(1,651)	(39.7)

   The results of each business segment are as follows.

   1. Fibers, Textiles, and Garments

      (Unit: Millions of yen)

      	Three months ended Jun. 30, 2024	Three months ended Jun. 30, 2025	Increase (decrease)	Year-on-year (%)
      Net sales	36,477	33,720	(2,756)	(7.6)
      Profit before income taxes	2,591	1,514	(1,076)	(41.6)

      In this segment, net sales decreased by 7.6% year-on-year to 33,720 million yen, primarily due to overall sluggish sales. Segment profit (profit before income taxes) decreased by 41.6% year-on-year to 1,514 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)

      	Three months ended Jun. 30, 2024	Three months ended Jun. 30, 2025	Increase (decrease)	Year-on-year (%)
      Net sales	40,314	37,681	(2,632)	(6.5)
      Profit before income taxes	2,776	2,021	(754)	(27.2)

      In this segment, net sales decreased by 6.5% year-on-year to 37,681 million yen, mainly due to sluggish market conditions in the performance chemicals field. Segment profit (profit before income taxes) decreased by 27.2% year-on-year to 2,021 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)

      	Three months ended Jun. 30, 2024	Three months ended Jun. 30, 2025	Increase (decrease)	Year-on-year (%)
      Net sales	156	149	(7)	(4.6)
      Profit before income taxes	136	129	(6)	(5.1)

      In this segment, net sales decreased by 4.6% year-on-year to 149 million yen, mainly due to the sluggish automobile sales to Europe. Segment profit (profit before income taxes) decreased by 5.1% year-on-year to 129 million yen.

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

(Assets)

Total assets at the end of the quarterly consolidated period under review were 139,954 million yen, a decrease of 6,122 million yen from the end of the previous consolidated fiscal year. This was mainly due to decreases of 4,877 million yen in software in progress, 2,626 million yen in notes and accounts receivable-trade, 2,036 million yen in cash and deposits, 440 million yen in goods in transit, and 324 million yen in merchandise and finished goods, partially offset by an increase of 4,607 million yen in software.

(Liabilities)

Liabilities at the end of the quarterly consolidated period under review were 48,390 million yen, a decrease of 5,584 million yen from the end of the previous consolidated fiscal year. This was mainly due to decreases of 3,769 million yen in notes and accounts payable-trade, 1,336 million yen in income taxes payable, and 699 million yen in provision for bonuses.

(Net assets)

Net assets at the end of the quarterly consolidated period under review were 91,564 million yen, a decrease of 537 million yen from the end of the previous consolidated fiscal year. This was mainly due to decreases of 2,007 million yen due to the payment of dividends and 1,172 million yen in foreign currency translation adjustment, partially offset by an increase of 2,505 million yen resulting from the recording of net profit attributable to owners of parent and an increase of 180 million yen in valuation difference on available-for-sale securities.