FY03/2026 Q2 Financial Results Materials (Highlights)[PDF: 640KB]

FY03/2026 Q2 (April 1, 2025 to September 30, 2025)

Financial Results Materials

(Highlights)

October 30, 2025





‌Key Points of the Summary

Promoting the Medium-Term Management Plan

"Chori Innovation Plan 2025 (CIP2025)"

• Gross profit margin improvement in progress for achieving the business results forecast for FY03/2026, the final year of CIP2025.

Business results summary Financial

• Net sales and profit decreased YoY.

• Equity ratio 65.6% Maintained at a high level.

  *1

  base

  • ROE

    11.0%

    *1: Net profit attributable to owners of parent (annual basis)

    • ROIC*2 10.3%

      *2: ROIC = Operating profit after income taxes (annual basis)

      / Invested capital (Equity + Interest-bearing debt) average during the period

      Topics

    • Launched the new medium-term management plan development project. Established dedicated working teams for business strategy, financial strategy, non-financial strategy, human capital, and digital transformation. Considering measures aimed at becoming the company of choice.

    • Selected as a component of the JPX-Nikkei Mid and Small Cap Index for the second consecutive year.

‌Business Results Breakdown (YoY Comparison)

• The Japanese economy continues to show a moderate recovery trend, with employment and income conditions

remaining firm. The outlook for the global economy is uncertain mainly due to a slowdown in domestic demand in

China and U.S. tariff policies.

• Net sales decreased mainly due to a market downturn and exchange rate impacts. Although the gross profit margin improved, operating profit declined due to the effect of decreased sales and the inability to absorb the increase in SG&A expenses. Moreover, profit before income taxes significantly decreased mainly due to the rebound of the reversal of allowance for doubtful accounts and the gain on sale of investment securities recorded in FY03/2025 H1.

‌Reasons for Changes in Profit before Income Taxes

Unit: billions of yen

-1.3

Effect of decreased sales

1.2

Improved gross profit margin

-0.7

Increased SG&A

expenses

-1.6

One-off profit recorded in FY03/2025 H1

-0.1

Decreased foreign exchange

Reversal of allowance for doubtful accounts: ¥0.8 billion Gain on sale of investment securities: ¥0.8 billion

gains, etc.

6.9

FY03/2025

Apr.-Sep.

FY03/2026

Apr.-Sep.

‌Segment Results

Net sales

Unit: billions of yen

FY03/2025

Apr.-Sep.

• Fibers, Textiles, and Garments

  0.4

  0.0

  75.3

  0.4

  0.0

  79.2

  69.2

• Chemicals ■ Machinery ■ Others

  FY03/2026

  Apr.-Sep.

  	FY03/2025 Apr.-Sep.	FY03/2026 Apr.-Sep.	Difference
  Fibers, Textiles, and Garments	4.4	3.3	-1.1
  Chemicals	4.5	4.0	-0.6
  Machinery	0.3	0.2	-0.1
  Others*	0.1	-0.6	-0.7
  Total	9.3	6.9	-2.5

  Profit (loss) before income taxes

  Unit: billions of yen

  • Fibers, Textiles, and Garments

  • Chemicals ■ Machinery ■ Others*

    4.5

    0.1

    0.3

    4.0

    0.2

    -0.6

    3.3

FY03/2025

Apr.-Sep.

FY03/2026

Apr.-Sep.

*"Others" includes adjustments.

Fibers, Textiles, and Garments Chemicals Machinery

Decreased sales and profit

Decreased sales and profit

Decreased sales and profit

Sluggish

Slowdown

Decreased

Automotive seat materials Textile product sectors

Textile sales to the Middle East and China

Rebound of the gain on sale of investment securities

Fine chemicals

Sluggish Performance chemicals

Rebound of the reversal of

Decreased allowance for doubtful

accounts

Automotive sales for the Central and South American market

CHORI CO., LTD. 4

‌Net Sales by Operation

• Domestic sales decreased in the Chemicals business. Import sales decreased in the

Fibers, Textiles, and Garments business. Shipments for the overseas market (export

and overseas) decreased in both the Fibers, Textiles, and Garments business and the Chemicals business.

• Trade ratio: 65.6% 2.0pt decrease YoY

Unit: billions of yen

Net sales 154.5 Net sales 145.0

Diff.

Net sales -9.5

Overseas transactions

104.5

Overseas transactions

95.1

Overseas transactions

-9.3

Trade ratio 67.6%

Trade ratio 65.6%

Trade ratio -2.0pt

Import

sales

Amount of net sales from

overseas to Japan

Export

sales

Amount of net sales from Japan

to overseas

Overseas

sales

Amount of net sales from

overseas business

Domestic

Amount of domestic sales

sales from domestic suppliers

Overseas transactions

-0.2

Domestic

Import

Export

Overseas

-0.3

-4.6

-4.4

FY03/2025 Apr.-Sep. FY03/2026 Apr.-Sep.

‌Financial Position

Unit: billions of yen

146.1 143.9

65.6%

63.0%

92.0

94.3

-22.4 -25.3

31-Mar-25 30-Sep-25

Financial soundness Profitability/Capital efficiency

*1: Net profit attributable to owners of parent basis

*2: ROIC = Operating profit after income taxes / Invested capital (Equity + Interest-bearing debt) average during the period

*3: Annual basis

‌Cash Flows

• Operating activities : Provided ¥5.9 billion due to profit before income taxes (+¥6.9 billion) and others

• Investing activities : Used ¥0.4 billion due to purchase of property, plant and equipment (-¥0.1 billion) and others

• Financing activities : Used ¥2.3 billion due to dividend payments (-¥2.0 billion) and others

(+: cash in, -: cash out)

‌FY03/2026 Business Results Forecast

• In the final year of CIP2025, we are establishing the foundation for our growth strategy. The new mission-critical system (SAP) went into operation. Although net sales are expected to fall short of the planned target of the final year of CIP2025, we will continue to improve profitability and secure stable profits.
• FY03/2026 H1 results progressed largely as anticipated.

*"Others" includes adjustments.

‌FY03/2026 Dividend

Basic dividend policy

FY03/2026

Annual dividend forecast

• The Company's policy is to provide performance-based dividends in accordance with the levels of net profit attributable to owners of parent with a view to continuously and stably returning profits to shareholders and ensuring stable management and finances.

• Dividend policy: Consolidated dividend payout ratio of 30% and dividend on equity ratio (DOE) of 3.5% or more

  Based on the business results forecast announced on April 28, 2025 and the policy above, an interim dividend of ¥72

  per share will be paid. The annual dividend forecast is ¥144 per share (year-end dividend of ¥72 per share).

  Trends in dividends per share (Annual)

  • Dividends in yen, % shows consolidated dividend payout ratio EPS: Net profit per share Unit: yen

DOE of 3.5% or more

Consolidated dividend payout ratio of 30% or more

473 446

391

277

330

Annual 142

30%

Annual 144

32%

51

105

32%

118

30%

81

Fiscal year-end

72

Fiscal year-end

(Forecast)

72

Interim

FY03/2021 FY03/2022 FY03/2023 FY03/2024 FY03/2025 FY03/2026

‌Making your dreams come true

Forecasts of operational performance, as well as future predictions described in this document, were prepared based on information available as of the day on which this document was released. This document in no way guarantees the condition and operational performance of the Company in the future.