Chori Co., Ltd.TSE: 8014

FY03/2026 Q2 Financial Results Materials (Highlights)[PDF: 655KB]

· Issued by Chori Co., Ltd.

Translation ― Original text in Japanese



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.

POINT

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.

POINT

Unit: billions of yen

FY03/2025

Apr.-Sep.

FY03/2026

Apr.-Sep.

Difference

Ratio

Net sales

154.5

145.0

-9.5

-6.1%

Gross profit

20.4

20.3

-0.0

-0.2%

Selling, general and administrative expenses

13.0

13.7

+0.7

+5.6%

Operating profit

7.4

6.6

-0.8

-10.5%

Ordinary profit

8.6

6.8

-1.7

-20.1%

Profit before income taxes

9.3

6.9

-2.5

-26.4%

Net profit attributable to owners of parent

7.0

5.1

-1.9

-27.3%



Reasons for Changes in Profit before Income Taxes


Unit: billions of yen

9.3

-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

74.8

FY03/2025

Apr.-Sep.

FY03/2026

Apr.-Sep.

Difference

Fibers, Textiles,

and Garments

74.8

69.2

-5.5

Chemicals

79.2

75.3

-3.9

Machinery

0.4

0.4

-0.1

Others

0.0

0.0

-0.0

Total

154.5

145.0

-9.5

  • 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

4.4

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

Recovery

Sluggish Performance chemicals

Rebound of the reversal of

Decreased allowance for doubtful

accounts

Automotive sales for the Central and South American market

Steady

CHORI CO., LTD. 4