MESSAGE

Management Message

Focusing on Investment in Systems that Leverage Our Expanded Production System to Further Improve Profitability

Our group operates factories in five Asian countries; China, Vietnam, Bangladesh, Myanmar, and Indonesia, delivering garments primarily for domestic apparel makers in Japan, as well as film laminating business (film production and laminate processing) mainly for European and American customers.

In the fiscal year ending in March 2025, the garment business was supported by favorable market conditions, allowing us to meet the steady demand for orders for apparel products and expand production, mainly for casual wear. At our film laminating business, orders for higher added value products with excellent breathability and water-resistant functions, mainly from European and American apparel makers, increased, leading to a significant expansion in production volume. In particular, in anticipation of a recovery in demand and a new level of growth since the COVID-19 pandemic, we gradually expanded our production capacity with the completion of our newest factories in line with customer needs, and in the fiscal year ending in March 2025, the fourth year of our medium-term management plan “Vision 2025,” these factories now play a central role as production bases that complement the strong demand for orders.

Now that the goal of completing and operationalizing our new factories has been realized, and we have the quality and capacity for “manufacturing expertise” in place, we would like to further strengthen our investment in systems to speed up our production management and streamline our production processes. We are now in the process of introducing a system that will enable centralized management of production and business information at our head office and at each factory and implement a system that can grasp on-site situations in real time. This will increase the accuracy of production management, improve efficiency of our entire business, and focus our sights on speeding up management decisions and accounting processes.

It is of vital importance that we turn each of our “making places” into smart factories in order to increase productivity, strengthen collaboration between our head office and production bases more closely than ever before, and further refine our production management system so that we can continue to meet the diverse needs of our customers. With an eye on realizing our ambitious goal of achieving sales of 100 billion yen in the not-too-distant future, we look to ensure that this year will be a definitive step toward our next medium-term management plan, where we look to make strides in building up our production system and organization in line with realizing our goal.

This fiscal year marks the final year of our medium-term management plan “Vision 2025,” and while there are still many uncertainties and global risks that exist geopolitically and economically, our strengths in accurately grasping a rapidly changing business environment and responding flexibly and quickly without overreacting to short-term fluctuations, will allow us to move forward keeping in mind our medium- to long-term perspectives as we work together as a group to advance our initiatives aimed at achieving sustainable growth. Please look forward to our further growth and progress under the next medium-term management plan.

We would appreciate your continued understanding and further support.

Representative Director and President