Notice of Expected Recognition of Special Gain from Sale of Investment Securities and Revision of Earnings Forecast

Special Gain and Revision of Earnings Forecast

The Board of Directors resolved to sell part of the investment securities held, and the earnings forecast for the fiscal year ending March 2027 has been revised downward. The sale gain is expected to be approximately 360 million yen and will be recorded as a special gain. Accordingly, interim net sales are expected to be 6,600 million yen, operating income -80 million yen, ordinary income 60 million yen, and net income attributable to owners of parent (interim) -6.33 yen. The full-year forecast is revised downward to net sales of 14,000 million yen, operating income of 150 million yen, ordinary income of 350 million yen, net income attributable to owners of parent of 100 million yen, and net income per share of 31.68 yen.

Background and Outlook

The causes include a decline in uniform orders in the domestic dyeing and finishing business from both private and public sectors, and rising raw material and energy costs overseas. The impact of yen depreciation, inflation, and higher raw material costs is expected to continue in the second half. The performance outlook, including the gain on sale of investment securities, is not a finalized figure at this stage and may be revised after further review.