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EDINET submission documents
Asahi Chemical Industry Co., Ltd. (E01031)
Securities report
【cover】
【Documents to be submitted】 Securities report
[Based article] Article 24, Paragraph 1 of the Financial Instruments and Exchange Act
[Submit to] Director of Tokai Finance Bureau
【Filing date】 November 29, 2023
[Business year] 57th term (from September 1, 2022 to August 31, 2023)
【Company Name】 Asahi Chemical Industry Co., Ltd.
[English translation name] ASAHI KAGAKU KOGYO CO.,LTD.
[Representative's title and name] Representative Director and President Takeshi Sugiura
[Location of main store] 2-8-14 Konancho, Hekinan City, Aichi Prefecture
(This location is the registered head office location, and actual business is conducted at the
"nearest contact location" below.)
【telephone number】 Not applicable.
[Administrative contact name] Not applicable.
[Nearest contact point] 133-3 Hiromi, Jogairi-cho, Anjo City, Aichi Prefecture
【telephone number】 (0566)92-4181 (Representative)
[Administrative contact name] General Affairs Department Manager Yosuke Matsuo
[Place for public inspection] Tokyo Stock Exchange, Inc.

(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo)
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Part 1 [Corporate information]
1st [Company overview]

1 [Trends in major management indicators, etc.]
(1) Consolidated management indicators, etc.
Next time 53rd term 54th term 55th term 56th term 57th period
Fiscal year month August 2019 August 2020 August 2021 August 2022 August 2023
amount of sales (1,000 yen) 8,509,929 7,665,678 10,409,489 10,720,941 8,663,297
Ordinary profit (1,000 yen) 191,823 145,115 772,157 662,154 279,907
Current period attributable to parent company shareholders
Net profit or attributable to parent company shareholders (1,000 yen) △ 273,492 47,774 552,558 389,477 23,000
Net loss (△)
comprehensive income (1,000 yen) △ 402,926 10,115 816,937 821,193 △ 25,723
Net assets amount (1,000 yen) 3,865,968 3,847,033 4,621,894 5,259,099 5,145,798
Total assets (1,000 yen) 5,211,073 5,187,125 6,435,733 6,846,605 6,437,123
Net assets per share (circle) 1,197.67 1,191.81 1,431.91 1,681.42 1,645.20
Net income per share

or net loss per share (circle) △ 84.73 14.80 171.18 121.24 7.35
Amount (△)
Per diluted share
(circle) - - - - -
Net income amount
Capital adequacy ratio (%) 74.19 74.17 71.82 76.81 79.94
return on equity (%) - 1.24 13.05 7.88 0.44
stock price earnings ratio (times) - 23.99 6.23 5.94 81.77
Cash from sales activities

(1,000 yen) 203,927 464,977 692,144 253,372 755,673
Shu flow
Cash from investment activities
(1,000 yen) △ 294,653 △ 168,500 △ 668,392 △ 323,569 △ 548,927
Shu flow
Cash from financial activities
(1,000 yen) △ 23,929 △ 32,678 △ 44,825 △ 184,448 △ 87,763
Shu flow
Cash and cash equivalents at end of period
(1,000 yen) 1,015,697 1,258,195 1,345,429 1,255,251 1,385,671
Balance
number of employees 599 567 549 549 514

(Man)
[Average number of temporary employees] [90] [41] [79] [73] [41]
(Note) 1. Diluted net income per share for the fiscal years ending August 2020, August 2021, August 2022, and August 2023.
Therefore, these are not listed because there are no latent shares. 2. The diluted net income per share for the
fiscal year ending August 2019 is the net loss per share.
Also, there are no latent shares, so they are not listed. 3.Return on equity and stock price return for the fiscal year ending August
2019 are net losses attributable to parent company shareholders.
Therefore, it is not listed.
4. “Accounting Standards for Revenue Recognition” (Corporate Accounting Standards No. 29, March 31, 2020) will be applied from the beginning of the fiscal year ending August 2022.
Therefore, the main management indicators, etc. for the fiscal year ending August 2022 and onwards are the indicators after applying the relevant
accounting standards, etc.
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(2) Management indicators, etc. of the submitting company
Next time 53rd term 54th term 55th term 56th term 57th period
Fiscal year month August 2019 August 2020 August 2021 August 2022 August 2023
amount of sales (1,000 yen) 4,418,089 3,857,349 4,480,068 3,687,683 3,519,082
Ordinary profit (1,000 yen) 210,864 59,445 160,520 570,888 469,380
Net income or loss

(1,000 yen) △ 372,339 53,118 179,122 488,342 280,770
(△)
capital (1,000 yen) 671,787 671,787 671,787 671,787 671,787
Total number of issued shares (KK) 3,896,000 3,896,000 3,896,000 3,896,000 3,896,000
Net assets amount (1,000 yen) 2,783,543 2,828,097 2,986,151 3,244,377 3,444,406
Total assets (1,000 yen) 3,381,015 3,326,961 3,513,036 3,645,217 3,919,737
Net assets per share (circle) 862.34 876.14 925.14 1,037.28 1,101.23
Dividend amount per share 9.00 6.00 35.00 28.00 13.00

(circle)
(Interim dividend amount per share) (3.00) (3.00) (10.00) (10.00) (10.00)
Net income per share
or net loss per share (circle) △ 115.35 16.46 55.49 152.02 89.77
Amount (△)
Per diluted share
(circle) - - - - -
Net income amount
Capital adequacy ratio (%) 82.33 85.01 85.00 89.00 87.87
return on equity (%) - 1.89 6.16 15.68 8.40
stock price earnings ratio (times) - 21.57 19.23 4.74 6.69
Dividend payout ratio (%) - 36.46 63.07 18.42 14.48
number of employees 165 170 159 163 154

(Man)
[Average number of temporary employees] [43] [18] [26] [twenty two] [16]
Total shareholder return (%) 91.1 79.9 241.3 172.4 149.5
(Comparison index: TOPIX) (%) (87.1) (93.2) (113.0) (113.1) (134.4)
highest stock price (circle) 549 631 1,347 1,104 724
lowest stock price (circle) 332 280 346 597 590

(Note) 1. The dividend per share for the 56th term includes a commemorative dividend of 3 yen to commemorate the 60th anniversary of our founding.
2. Diluted net income per share for the fiscal years ending August 2020, August 2021, August 2022, and August 2023
Therefore, these are not listed because there are no latent shares. 3. The diluted net income per share for the
fiscal year ending August 2019 is the net loss per share.
Also, there are no latent shares, so they are not listed.
4.Return on equity, stock price earnings ratio, and dividend payout ratio for the fiscal year ending August 2019 are not stated as this is a net loss.
not here.
5. The highest and lowest stock prices are those on the Tokyo Stock Exchange Standard Market after April 4, 2022.
Data before April 3, 2022 are listed on the Tokyo Stock Exchange JASDAQ (Standard). 6. “Accounting Standards for Revenue
Recognition” (Corporate Accounting Standards No. 29, March 31, 2020) will be applied from the beginning of the fiscal year ending August 2022.
Therefore, the main management indicators, etc. for the fiscal year ending August 2022 and onwards are the indicators after applying the relevant
accounting standards, etc.
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2 [History]
The business was established in September 1962 with the purpose of plastic injection molding. Initially, the company's main products were miscellaneous goods,
but as its technological capabilities improved, it gradually moved into industrial products. Below is the history of our company since its establishment.
year and month matters
September 1966 Asahi Chemical Industry Co., Ltd. was established at 36 Kawagishihama, Oaza Washizuka, Hekinan City, Aichi Prefecture (currently 7-11 Kamari-cho,
Hekinan City, Aichi Prefecture) with a capital of 2,000,000 yen for the purpose of molding and processing plastic products. . Manufacturing items will
April 1967 be completely switched from daily necessities to industrial parts (automobiles).
September 1969 Started business with Makita Co., Ltd. (formerly known as Makita Denki Seisakusho Co., Ltd.) and began producing molded products for power tools.
March 1974 In order to enhance the plastic processing department, an affiliated company, Asahi Sangyo Co., Ltd., was established with capital of 4,000,000 yen.
March 1978 In order to respond to increasing demand, we built a new Anjo factory in Jogairi-cho, Anjo City, Aichi Prefecture. In order to expand business
July 1979 and improve production efficiency, we introduced resin mold design and production equipment to our Anjo factory. Expanded Anjo factory
April 1980 to respond to increasing demand.
November 1981 In order to streamline production, production equipment was relocated from the main factory to the Anjo factory. The head office
January 1982 administrative department was relocated from the head office to the Anjo factory.
March 1982 In order to enhance the mold department, with capital of 5,000,000 yen, an affiliated Established Asahi Mold Co., Ltd.
April 1985 company developed and released resin anchor plugs as its own brand products.
February 1989 Expanded Anjo factory to respond to increasing demand.
March 1989 Absorbed Asahi Mold Co., Ltd.

For the purpose of enriching the internal system and strengthening the corporate foundation, affiliated companies For the purpose of enriching the internal system and strengthening
August 1989 Merged

the corporate foundation, the affiliated company For the purpose of constructing a factory and head office in order with
to respond Asahiincreases
to future Sangyo Co., Ltd.
in demand. , acquired Kinuura
October 1990 waterfront industrial land.
April 1993 Stocks are registered over the counter with the Japan Securities Dealers Association.
February 1996 Sold the land for the head office factory (7-11 Kamaricho, Hekinan City, Aichi Prefecture). Head office registration moved from 7-11, Kamaricho,
March 1996 Hekinan City, Aichi Prefecture to 2-8-14 Konancho, Hekinan City, Aichi Prefecture (Kinuura Rinkai Industrial Site).
June 1997 Established a new head office factory on the Kinuura Rinkai industrial site.
December 2001 Established Asahi Plastic Products (Kunshan) Co., Ltd. in China (currently a consolidated subsidiary). Canceled over-the-
December 2004 counter registration with the Japan Securities Dealers Association and listed shares on the JASDAQ Stock Exchange. The main
December 2004 factory of Asahi Plastic Products (Kunshan) Co., Ltd. is completed. Moved and started operations. The second factory was
January 2006 completed at Asahi Plastic Products (Kunshan) Co., Ltd.
May 2006 Expanded the second factory on the Kinuura Rinkai industrial site.
April 2010 Listed on the Osaka Securities Exchange JASDAQ following the merger of the JASDAQ Securities Exchange and the Osaka Securities Exchange.
July 2011 Established Asahi Plus Co., Ltd. in the Kingdom of Thailand (currently a consolidated subsidiary)
July 2013 Listed on the Tokyo Stock Exchange JASDAQ (Standard) due to market integration between the Tokyo Stock Exchange and the Osaka
Stock Exchange.
April 2022 Due to a review of the Tokyo Stock Exchange's market classification, the market moved from the Tokyo Stock Exchange's JASDAQ
(Standard) to the Standard Market.
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3 [Business details]
Our group (our company and our affiliated companies) consists of our company (Asahi Chemical Industry Co., Ltd.) and two
subsidiaries (Asahi Plastic Products (Kunshan) Co., Ltd. and Asahi Plus Co., Ltd.). Our main business is molding products and
designing and manufacturing molds for resin molding. The position of our group's business and its relationship to segments are as
follows.
The following classifications are the same as the segment classifications listed in "5. Accounting Status, 1. Consolidated Financial Statements, etc. (1) Notes to
Consolidated Financial Statements."
(1) Japan
Our company handles molding of plastic products and designs and manufactures molds for resin molding. (2)
China
Asahi Plastic Products (Kunshan) Co., Ltd. handles the molding of plastic products and designs and manufactures molds for resin
molding.
(3) Thailand
Asahi Plus Co., Ltd. handles molding of plastic products and designs and manufactures molds for resin molding.
[Business system diagram]
The business structure diagram is as follows.
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4 [Status of affiliated companies]
Consolidated subsidiary
voting rights
name address capital Main business details Ownership percentage Related content
(%)
Molding and processing of plastic products
Asahi plastic products China
6,245 Design and manufacture of resin molding molds
(Kunshan) Co., Ltd. (People's Republic of China China 100
thousand US dollars consignment
(Note) 1.2 Kunshan City, Jiangsu Province)
Concurrent positions as officers, etc. Yes
Asahi Plus Thailand Molding and processing of plastic products

590,000
Co.,Ltd. (Kingdom of Thailand Thailand 100 Design and manufacture of resin molding molds
thousand Thai baht
(Note) 1 Rayong Province) consignment
(Note) 1. The "Main business details" column contains the names listed in the segment information.
2. It falls under the category of specified subsidiary.
3. As for Asahi Plastic Products (Kunshan) Co., Ltd., sales (excluding internal sales between consolidated companies) are included in consolidated sales.
However, the percentage of the consolidated subsidiary's sales (including internal sales or transfers between segments) in
the sales of "China" in the segment information is 100%. Since the number exceeds 90, major profit and loss information, etc.,
has been omitted.
5 [Employee status]
(1) Status of consolidated companies
As of August 31, 2023
Segment name Number of employees (people)
Japan 154(16)
China 280(10)
Thailand 80(15)
total 514(41)
(Note) The number of employees is the number of full-time employees (including permanent part-time workers), and the number of temporary employees (part-timers, temporary workers dispatched from temporary staffing companies).
Includes full-time employees, but excludes regular part-time workers. ) indicates the average number of employees for the current consolidated fiscal year in parentheses.
(2) Status of the submitting company
Number of employees (people) Average age (years) Average length of service (years) Average annual salary (thousand yen)
154 (16) 39.7 10.7 3,823
(Note) 1. The number of employees is the number of full-time employees (excluding those transferred from the company to outside the company, but includes permanent part-time employees), and the number of temporary employees (part-time employees).
Includes temporary workers and temporary workers from temporary staffing companies, but excludes permanent part-time workers. ) indicates the average number of employees for
the current fiscal year in parentheses.
2. Average annual salary includes bonuses and non-standard wages.

3. As our company operates in a single segment (Japan), we have omitted the information by segment.
(3) Labor union status

Although a labor union has not been formed, labor-management relations are extremely stable and there are no notable issues.
(4) Rate of childcare leave taken by male workers
The rate of childcare leave taken by male workers in the current fiscal year was 57.1%.
(Note) Calculated based on the provisions of the "Act on Promotion of Women's Participation and Advancement in the Workplace" (Act No. 64 of 2015).
I will.
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2nd [Business status]

1 [Management policy, business environment, issues to be addressed, etc.]
Matters regarding the future in this text are based on judgments made by our group as of the end of the current consolidated fiscal year.
(1) Management policy
Aiming to be a ``beloved plastics manufacturer,'' our group upholds our corporate motto of good ideas [pursuit of rationalization], good products
[emphasis on reliability], and good workplaces [respect for humanity]. Since our founding, we have conducted our corporate activities based on the basic
philosophy of ``Money has a limit for a company. Business is about making the best use of what is limited.''
Based on this basic philosophy, we will focus on research activities to create products that meet the needs of society, improve our technological capabilities, establish efficient production systems,
improve our reputation with customers and the market, and increase our profitability. We will strive to improve our business performance and strengthen our management foundation.
(2) Target management indicators
Although we aim to increase sales by 10% or more every year, our group's sales target was 8,663 million yen, a decrease of
19.2% from the previous fiscal year.
Furthermore, our specific numerical goal is to maintain a stable gross profit margin of 20%, and for the current fiscal
year, the gross profit margin was 10.4%.
(3) Business strategy and business environment, etc.
Our group relies on specific customers (power tool industry and automobile industry) for sales. In the fiscal year ending August 2023, sales
of power tool parts and auto parts will account for 87.5% of total sales. The trends of these specific customers have a significant impact on the
Group's business performance. Therefore, we will focus on product improvement of our own brand anchor plugs and research and
development of new products, and aim to increase sales outside of those specific customers.
(4) Business and financial issues that should be addressed on a priority basis
Although the coronavirus pandemic is beginning to calm down, economic activity is expected to return to normal, and personal consumption is expected to head
toward a gradual recovery, energy prices are expected to soar due to such factors as soaring crude oil prices due to geopolitical risks in Russia and Ukraine. The future
is expected to remain uncertain, with many concerns.
In order for our company to further develop in this environment, the essential factors are developing and discovering human resources, reducing production costs through new technology and
labor saving, making full-scale efforts to address environmental issues, and starting new businesses. We are thinking based on four pillars: development. ·The development of human resources
Currently, each department has decided on a theme and has goals such as participating in seminars to improve skills and acquiring qualifications. He must also
widen the door in terms of discovering human resources and fostering human resources who can thrive in what is called an internationalized society. In the future,
she will work to increase not only Japanese people but also foreign nationals in managerial positions, and gradually increase the number of female managers.
·New technology/labor saving
It has been about 80 years since plastic products first came to Japan, and it seems that anyone with an injection molding machine and mold can easily
make large quantities of products, but the production method seems simple. It is also true that there are many things that are difficult to create. We must
respond to increasingly complex product shapes, larger products, and a wide variety of materials. In the future, we will work closely with our customers
to incorporate various ideas at the design stage, aiming to create even better molds and products.
The evolution of equipment and machinery is also progressing and evolving at a remarkable pace. At our company, we will continue to proactively introduce and
utilize new equipment without falling behind the waves of the times.
In order to reduce production costs and switch from hydraulic to electric, we are currently gradually changing our equipment from hydraulic molding
machines to electric molding machines. Under such circumstances, only large machines and ultra-large molding machines still use hydraulic systems. In
the future, we will shift to electrification and strive to further reduce production costs and electricity costs. In order to cope with the labor shortage, we
will promote automation and consider developing a system that can automatically detect defective products using cameras, crush them, and recycle
them.
·Environment issues
Environmental issues are the hottest topic these days, and this is where we need to put the most effort. Molding work involves heating and
melting resin at high temperatures, which consumes a large amount of power. It is also true that carbon dioxide emissions are increasing
considerably. We have been installing solar panels at our Anjo factory since this year, and in the future we will also install them at our head
office factory in Hekinan City, and we will put effort into installing them to help reduce carbon dioxide emissions. .
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·New business development
We will work to develop new businesses with the aim of increasing sales and profits and accelerating business development.
(5) Other important matters regarding the management of the company
Not applicable.
2 [Thoughts and initiatives regarding sustainability]

Our group's philosophy and efforts regarding sustainability are as follows.
Please note that matters regarding the future in this text are based on judgments made by our group as of the end of the current consolidated fiscal year.
(1) Governance
The Company is strengthening its sustainability promotion system from the perspective of increasing corporate value over the medium to long term, and has established a
Sustainability Committee chaired by the President and Representative Director. This committee plans and promotes measures to address social issues within the Company,
reports the plans and progress status as appropriate to the Board of Directors, and receives guidance and supervision from the Board of Directors.
(2) Strategy
Our specific efforts to reduce GHG emissions include: (1) upgrading equipment that consumes a lot of energy, such as molding machines, to high-efficiency
equipment, (2) increasing energy efficiency by improving production efficiency through automation of manufacturing lines, and (3) increasing solar power
generation. introduction, etc. We would like to steadily achieve our goals as a medium- to long-term initiative.
In addition, our company's policies regarding human resource development, including ensuring the diversity of human resources, and policies regarding internal environment improvement are based on the belief
that employees are an asset, respecting the diverse values of employees, and creating a safe and comfortable work environment. I will secure it. We also encourage employees to have an environment where they can
work in a rewarding manner, and to participate in external training programs so that they can grow together with the company.
(3) Risk management
The Company collects information on risks and opportunities related to sustainability, discusses it at the Sustainability Committee, and reports
important risks to the Board of Directors. The Board of Directors audits the contents of the report and instructs on countermeasures.
(4) Indicators and targets
Our company has set a medium-term goal of ``reducing CO2 emissions by 46% compared to fiscal 2013 by fiscal 2030'' and is working on
decarbonization.
In addition, the following indicators are used for policies related to human resource development, including ensuring the diversity of human resources, and
policies related to improving the internal environment, as described in "(2) Strategy" above. The targets and results for this indicator are as follows.
Indicators (single) the goal Actual results (current consolidated fiscal year)
Percentage of female workers in managerial positions 5% by 2030 0%

Rate of childcare leave taken by male workers 60% by 2030 57.1%
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3 [Business risks]
Risks that may affect the Group's financial position, business results, and cash flow include the following.
Please note that matters regarding the future in this text have been determined as of the end of the current consolidated fiscal year.
(1) Dependence on specific customers
The Group molds and processes plastic products, but sales of these products are dependent on specific customers. Although we
have an ongoing and stable business relationship with this particular customer, depending on the customer's production and
sales status, the Group's business results may be affected.
(2) In activities in overseas markets

Our group conducts business activities in the People's Republic of China and the Kingdom of Thailand, and the overseas sales ratio is 59.4%.
Overseas, in addition to exchange rate risks, there may be various obstacles such as political instability, uncertainty in economic trends, cultural
differences, and changes in regulations and tax systems for overseas remittances, imports and exports, etc. Business results may be affected.
(3) Regarding exchange rate fluctuations
Exchange rate fluctuations may affect the Japanese yen equivalents of the Group's assets and liabilities arising from transactions
denominated in foreign currencies. It may also affect the prices of products traded in foreign currencies. These may have an impact on the
Group's business performance and financial condition.
(4) Employment and training of human resources
Our group considers human resources to be an important asset. In order to expand our scale and continue to exist, we are focusing on hiring talented people
and developing people who sympathize with our management philosophy. Therefore, if we are unable to secure talented personnel, the Group's business
performance may be affected.
(5) Natural disasters, etc.
In recent years, natural disasters such as earthquakes and typhoons, as well as infectious diseases, have occurred frequently in various places. In the event that operations are seriously
affected due to catastrophic damage caused by a natural disaster such as an earthquake, an accident such as a fire, or the spread of an infectious disease, securing raw materials, production, and
product supply may be disrupted. There is a possibility that our group's business performance will be affected.
(6) Information security

In the course of developing our business, our group holds confidential and personal information of our customers and business partners, as well as
confidential and personal information of our group. To ensure that this information is not leaked or tampered with externally, we have established a
group-wide management system and are implementing measures such as thorough management, IT security, strengthening facility security, and
employee training. However, there is a possibility that this information may be leaked or falsified due to external attacks, negligence, theft, etc. If such
a situation were to occur, our business performance could be significantly affected due to the loss of trust and the incurring large costs such as
compensation for damages to those affected.
(7) Regarding price increases
Due to the situation in Russia and Ukraine, prices of fuels such as crude oil and natural gas have increased significantly, causing
prices to rise. Prices for electricity used by the Group continue to rise, and if this situation continues, profitability may deteriorate.
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4 [Analysis of financial position, operating results, and cash flow status by management]
(1) Overview of business results, etc.
A summary of the financial position, operating results, and cash flows (hereinafter referred to as ``operating results, etc.'') of the Group (the Company
and its consolidated subsidiaries) for the current consolidated fiscal year is as follows.
① Financial condition and business performance status
During the fiscal year ended March 31, 2019, Japan's economy showed signs of recovery in personal consumption and capital investment due to the normalization of economic
activity, as the classification of the new coronavirus infection was moved to Category 5 under the Infectious Diseases Control Law. However, the economy continues to recover
moderately. However, the future remains uncertain due to factors such as the weak yen and the soaring prices of resources and raw materials due to the situation in Russia and
Ukraine.
Under these circumstances, orders from the power tool industry, our main customer, decreased due to inventory adjustments by our customers.
Orders from the automobile industry increased as parts supply shortages gradually improved.
As a result, sales for the current consolidated fiscal year were 8,663 million yen (down 19.2% from the previous fiscal year) due to a decrease in orders.
Operating income was 169 million yen (down 67.8%), ordinary income was 279 million yen (down 57.7%), and net income attributable to owners of parent was 23
million yen (down 94.1%) )have become.
Segment results are as follows.

stomach. Japan
In Japan, orders for auto parts increased due to an improvement in parts supply shortages, but orders for power tools decreased, resulting in sales of 3,519 million yen (down 4.6% from
the previous fiscal year) and an operating loss of 1. The operating loss was 15 million yen (compared to an operating loss of 44 million yen in the previous fiscal year).
B. China
In China, orders for power tool parts decreased, resulting in sales of 4,460 million yen (down 30.2% year on year) and operating income of 300 million yen (same year on year).
50.9% decrease).
C. Thailand
In Thailand, orders for power tool parts decreased, resulting in sales of 756 million yen (down 4.8% year on year) and an operating loss of 20 million yen (compared to an operating
loss of 25 million yen in the previous fiscal year).
② Cash flow status

Cash and cash equivalents (hereinafter referred to as "funds") at the end of the current consolidated fiscal year amounted to 1,385 million yen, an increase of 130
million yen from the previous fiscal year. In addition, the status of each cash flow and its factors for the current consolidated fiscal year are as follows.
stomach. Cash flow from operating activities

Funds obtained from operating activities amounted to 755 million yen. This was mainly due to a decrease in trade payables of 205 million yen and
income taxes paid of 192 million yen, but net income before taxes and other adjustments was 156 million yen. yen, depreciation expense of 262 million
yen, impairment loss of 128 million yen, decrease in trade receivables of 262 million yen, decrease of inventory assets of 267 million yen, and This was
due to the recording of a decrease of 138 million yen in other current assets.
B. Cash flow from investing activities

Funds used in investment activities amounted to 548 million yen. The main factors behind the expenditures were the recording of net expenditures
for time deposits of 262 million yen and expenditures for the acquisition of property, plant and equipment of 281 million yen.
C. Cash flow from financing activities

Funds used in financing activities amounted to 87 million yen. The main reason for the expenditure was dividends paid of 87 million yen.
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③ Production, orders and sales results
(1) Production results
The production results for each segment for the current consolidated fiscal year are as follows.
Current consolidated fiscal year
Segment name (self September 1, 2022 Year-over-year basis(%)

To (August 31, 2023)
Japan (thousand yen) 3,446,490 △ 7.7
China (thousand yen) 4,326,262 △ 30.8
Thailand (thousand yen) 742,485 △ 6.3
Total (thousand yen) 8,515,239 △ 21.0
(Note) The above amount is based on the selling price, and transactions between segments are eliminated.
(2) Order record

Orders received by segment for the current consolidated fiscal year are as follows.
Segment name Order amount (thousand yen) Year-over-year basis(%) Order backlog (thousand yen) Year-over-year basis(%)
Japan 25,489 △84.8 52,616 △ 61.7
China 226,110 △ 77.1 549,391 △ 42.8
Thailand 114,473 45.1 28,124 4.7
total 366,073 △ 70.3 630,131 △ 44.0
(Note) 1. The above amounts are based on sales prices, and inter-segment transactions are eliminated.
2. The above amount is the order amount and order backlog for resin molding molds. Regarding molding processing of plastic products,
We make production forecasts based on unofficial production plans from our business partners, but actual deliveries are finalized based on presentations
tailored to the customer's production schedule. Therefore, the unofficial and actual results may differ, and the period from confirmation of order to
delivery date is extremely short. For these reasons, it is difficult to calculate the amount of orders received and order backlog, so we have omitted the
information.
(3) Sales results

Sales results by segment for the current consolidated fiscal year are as follows.
Current consolidated fiscal year
Segment name (self September 1, 2022 Year-over-year basis(%)

To (August 31, 2023)
Japan (thousand yen) 3,519,082 △ 4.6
China (thousand yen) 4,388,053 △ 29.7
Thailand (thousand yen) 756,162 △ 4.8
Total (thousand yen) 8,663,297 △ 19.2
(Note) 1. Transactions between segments are eliminated.

2. The sales results by main customer and the ratio of the sales results to the total sales results for the most recent two consolidated fiscal years are as follows.
there is.
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Securities report
Previous consolidated fiscal year Current consolidated fiscal year
(self September 1, 2021 (self September 1, 2022

Other party To (August 31, 2022) To (August 31, 2023)
Amount (thousand yen) ratio(%) Amount (thousand yen) ratio(%)
Makita (China) Co., Ltd. 3,730,445 34.8 2,991,177 34.5
INOAC Corporation 1,848,132 17.2 2,016,917 23.3
Makita (Kunshan) Co., Ltd. 2,483,095 23.2 1,384,614 16.0
Makita Co., Ltd. 1,132,183 10.6 775,503 9.0
total 9,193,857 85.8 7,168,212 82.7
(2) Contents of analysis and consideration regarding the status of business results, etc. from the perspective of management
The following is the understanding, analysis, and consideration of the Group's operating results and other conditions from the management's perspective.
Please note that matters regarding the future in this text have been determined as of the end of the current consolidated fiscal year.
① Significant accounting estimates and assumptions used in those estimates
The consolidated financial statements of our group are prepared based on accounting standards generally accepted in Japan. In preparing these
consolidated financial statements, management makes estimates within the scope of certain accounting standards, and the results are reflected in
the figures for assets, liabilities, income, and expenses; however, actual results are based on these estimates. It may be different.
Regarding accounting policies that are important when preparing consolidated financial statements, please refer to "Chapter 5 Accounting Status 1
Consolidated Financial Statements, etc. (1) Consolidated Financial Statements Notes (Important matters forming the basis for preparing consolidated financial
statements)" As stated in . In addition, among the accounting estimates and assumptions used in preparing the consolidated financial statements, important
ones are listed in "5. Accounting Status 1. Consolidated Financial Statements, etc. (1) Consolidated Financial Statements Notes (Significant Accounting
Estimates)" ”.
② Analysis of financial position for the current consolidated fiscal year
B Current assets
Notes and accounts receivable decreased by 266 million yen, inventories decreased by 269 million yen, and other current assets decreased by 133 million
yen, but cash and deposits increased by 684 million yen. As a result, operating income increased by 15 million yen (0.4%) from the end of the previous fiscal
year to 3,827 million yen.
B Fixed assets
Due to decreases in tangible fixed assets of 109 million yen and long-term deposits of 311 million yen, total sales decreased by 425 million yen (14.0%)
from the end of the previous fiscal year to 2,609 million yen. It became yen.
C. Current liabilities
As accounts payable decreased by 210 million yen and corporate taxes payable decreased by 42 million yen, totals decreased by 276 million yen (20.4%)
from the end of the previous fiscal year to 1,082 million yen. It became yen.
D. Fixed liabilities
Deferred tax liabilities decreased by 26 million yen, resulting in a decrease of 19 million yen (8.5%) from the end of the previous fiscal year to
208 million yen.
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Securities report
Ho net worth
Retained earnings decreased by 64 million yen and foreign currency translation adjustment account decreased by 55 million yen, resulting in a decrease
of 113 million yen (2.2%) from the end of the previous fiscal year to 5,145 million yen. I did. As a result, total assets decreased by 409 million yen (6.0%) from
the end of the previous fiscal year to 6,437 million yen.
③ Analysis of business results for the current consolidated fiscal year
B Sales
As stated in the financial position and results of operations, orders decreased due to inventory adjustments by business partners, resulting in a decrease of 19.2% from
the previous fiscal year to 8,663 million yen.
B Cost of sales
Due to the impact of decreased sales and improvements in operational efficiency, net sales decreased by 17.5% from the previous fiscal year to 7,764 million yen.
Ha Selling, general and administrative expenses
Sales decreased by 6.6% from the previous fiscal year to 728 million yen.
D Operating income
As a result of the above, operating income decreased by 67.8% from the previous fiscal year to 169 million yen.
Ho Net income attributable to owners of parent company
Due to the recording of corporate taxes, net income attributable to owners of the parent company decreased by 94.1% to 23 million yen.
④ Analysis of capital resources and liquidity of funds
B Cash flow
Details of cash and cash equivalents (hereinafter referred to as ``funds'') as of the end of the current consolidated fiscal
year are provided in ``(1) Overview of operating results, etc. ② Cash flow status.''
(b) Capital resources and liquidity of funds
Regarding the Group's capital resources and funding liquidity, our basic policy is to use our own funds for both working
capital and capital investment funds. All capital investments made during the fiscal year under review were made with our
own funds.
5 [Important management contracts, etc.]
Not applicable.
6 [Research and development activities]
In order to increase the overall sales ratio of our own construction materials (resin anchor plugs), our group conducts market research and quickly
gathers information from customers to develop new products and improve existing products. We are working on improving our products.
The total amount of research and development expenses for the current consolidated fiscal year was 3,720 thousand yen, and research and development activities are conducted in Japan.
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Securities report
3rd [Equipment status]

1 [Summary of capital investment, etc.]
Capital investments (including intangible fixed assets) for the current consolidated fiscal year totaled 296,780 thousand yen. The main items included purchases
of molding machines and solar panels in Japan of 147,584 thousand yen, and purchases of molding machines in China of 137,737 thousand yen.
2 [Status of major equipment]

(1) Submitting company
Our company operates two factories in Japan. The

main equipment is as follows.
Book value (unit: thousand yen)

Office name segment number of employees
Equipment contents
(location) name of buildings and machinery and land (Man)
others total
construct transportation equipment (Area ㎡)
Head office factory made of plastic 469,540 73

262,739 - - 732,279
(Hekinan City, Aichi Prefecture) product manufacturing equipment (16,588) (14)
Japan
made of plastic
Headquarters and Anjo factory 249,042 81
product manufacturing equipment and 125,695 76,982 62,405 514,125
(Anjo City, Aichi Prefecture) (6,308) (2)
Mold production equipment
(Note) 1. “Other” in the book value is tools, equipment and fixtures.

2. The number of employees in parentheses indicates the average number of temporary employees.
(2) Overseas subsidiaries
Book value (unit: thousand yen)

Office name segment number of employees
Equipment contents
land
Company Name
(location) name of buildings and (Man)
others
Mechanical equipment and
total
construct transportation equipment (Area ㎡)
ASAHI PLASTIC plastic

Asahi plastic products 40,904 280
(KUNSHAN) China Product manufacturing equipment 97,465 562,315 39,511 740,197
(Kunshan) Co., Ltd. (27,257) (Ten)
(Kunshan City, China) Mold production equipment
Asahi Plus plastic

Asahi Plus 149,063 80
(Kingdom of Thailand Thailand Product manufacturing equipment 7,564 - twenty three 156,651
Co.,Ltd. (25,998) (15)
Rayong Province) Mold production equipment
(Note) 1. The above amount is the book value as of June 30, 2023.
2. “Other” in the book value is tools, furniture and fixtures, and construction in progress. 3. The number of
employees in parentheses indicates the average number of temporary employees.
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Securities report
3 [Plans for new equipment installation, retirement, etc.]
The Group's capital investments are determined by comprehensively considering industry trends, investment efficiency, etc. The plans for new
equipment installation as of the end of the current consolidated fiscal year are as follows.
Please note that there are no plans to dispose of important equipment.
Establishment of new important equipment
Planned investment amount Estimated start and completion date
Office name segment funds after completion

Company Name Equipment contents
(location) name of total amount Amount already paid Procurement method increasing ability
Start completion
(1,000 yen) (1,000 yen)
Molding automation equipment

Headquarters and Anjo factory 20,000 - Own resources 2023.11 2023.11 -
Preparation
(Anjo City, Aichi Prefecture) Japan

Substation room renovation work
36,000 - Own resources 2024.5 2024.5 -
case
Asahi Chemical Industry
Injection molding machine and
Co., Ltd. 89,000 - Own resources 2023.11 2023.11 -
and auxiliary equipment
Head office factory production management system

Japan 16,000 - Own resources 2023.11 2023.11 -
(Hekinan City, Aichi Prefecture) tem
Molding automation equipment
19,000 - Own resources 2024.1 2024.1 -
Preparation

36,000 - Own resources 2024.4 2024.4 -
and auxiliary equipment

ASAHI PLASTIC 10,000 - Own resources 2024.6 2024.6 -
Asahi plastic products and auxiliary equipment
(KUNSHAN) China
(Kunshan) Co., Ltd. Molding automation equipment
(Kunshan, China) 31,000 - Own resources 2024.6 2024.6 -
Preparation
Processing facilities 17,000 - Own resources 2024.8 2024.8 -
(Note) The increase in capacity after completion is omitted because it is difficult to calculate.
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Securities report
4th [Status of the submitting company]
1 [Status of stocks, etc.]

(1) [Total number of shares, etc.]
① [Total number of shares]
kinds Total number of authorized shares (shares)
common stock 12,720,000
total 12,720,000
② [Issued shares]
Number of issues issued as of the end of the fiscal year Listed financial instruments exchange name
(KK)
Number of shares issued as of submission date (shares)
kinds or registered approved financial products Content
(November 29, 2023)
(August 31, 2023) Trade association name
Tokyo Stock Exchange Number of shares per unit

common stock 3,896,000 3,896,000
standard market 100 shares
total 3,896,000 3,896,000 - -
(2) [Status of stock acquisition rights, etc.]
① [Contents of stock option system]

Not applicable.
② [Contents of rights plan]
Not applicable.
③ [Status of other stock acquisition rights, etc.]
Not applicable.
(3) [Exercise status, etc. of corporate bonds with stock acquisition rights with exercise price revision provisions]
Not applicable.
(4) [Trends in total number of issued shares, capital, etc.]
Total issued shares

Total issued shares Capital balance Capital reserve balance
date
Increase/decrease in capital Increase in capital reserves
number increase/decrease number
number balance (shares) (1,000 yen) (1,000 yen) Reduction (thousand yen) High (thousand yen)
(KK)
From September 1, 2006
20,000 3,896,000 3,180 671,787 3,160 717,689
August 31, 2007 (Note)
(Note) The increase is due to the exercise of stock acquisition rights.
(5) [Status by owner]

Stock status (100 shares per unit)

Shares less than one unit
classification Foreign corporations, etc. ceremony situation

Other laws
(KK)
government and land Financial product trading
Man
financial institution Individual and others total
local public organization vendor
non-individual individual
Number of shareholders (people) - 2 18 26 16 Ten 2,963 3,035 -

Number of shares owned
- 1,232 829 3,373 276 20 33,192 38,922 3,800
(unit)
- 3.17 2.13 8.67 0.71 0.05 85.28 100 -
ratio(%)
(Note) The 768,228 shares of treasury stock is listed as 7,682 units in “Individuals and others” and 28 shares in “Status of shares less than one unit.”
vinegar.
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Securities report
(6) [Status of major shareholders]
Issued shares (treasury)

Excludes stocks. )of
name or name address Ownership over total number
(1,000 shares)
Percentage of shares
(%)
Sugiura Takeshi Hekinan City, Aichi Prefecture 439 14.06
Sugiura request Hekinan City, Aichi Prefecture 310 9.93
Asahi Chemical Industry Business Partner Stock Holding Association 133-3 Hiromi, Jogairi-cho, Anjo City, Aichi Prefecture 202 6.48
Sanko Shokai Co., Ltd. 3-3-2 Uchiyama, Chikusa-ku, Nagoya City 151 4.85
Okazaki Shinkin Bank 41 Motosuga, Sugao-cho, Okazaki City, Aichi Prefecture 110 3.52
Makita Co., Ltd. 3-11-8 Sumiyoshicho, Anjo City, Aichi Prefecture 77 2.46
Hekinan Small Transport Co., Ltd. 3-100 Tajiri-cho, Hekinan City, Aichi Prefecture 50 1.60
Akira Kasahara Tsurumi Ward, Osaka City 36 1.17
Teijin Corporation 3-2-4 Nakanoshima, Kita-ku, Osaka 33 1.06
Rakuten Securities Co., Ltd. 2-6-21 Minami-Aoyama, Minato-ku, Tokyo twenty five 0.82
total - 1,437 45.94

(Note) In addition to the above, there are 768,000 treasury shares.
(7) [Status of voting rights]

① [Issued shares]
classification Number of shares (shares) Number of voting rights (pieces) Content
Non-voting shares - - -
Stocks with restricted voting rights (treasury stock, etc.) - - -
Stocks with restricted voting rights (other) - - -
Stocks with full voting rights (treasury stock, etc.) common stock 768,200 - -
Full voting shares (other) common stock 3,124,000 31,240 -
Shares less than one unit common stock 3,800 - -
Total number of issued shares 3,896,000 - -
Voting rights of all shareholders - 31,240 -
② [Treasury stock, etc.]
Total number of issued shares

Owner's name or name Owned in own name Owned by someone else Number of shares owned
owner address shareholding in
is the name Number of shares (shares) Number of shares (shares) Total (stocks)
Ratio of number of expressions (%)
Konan, Hekinan City, Aichi Prefecture

Asahi Chemical Industry Co., Ltd. 768,200 - 768,200 19.72
Town 2-chome 8-14
total - 768,200 - 768,200 19.72
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Securities report
2 [Status of acquisition of treasury stock, etc.]
[Type of stock, etc.] Common stock

(1) [Status of acquisition by resolution of general meeting of shareholders]
Not applicable.
(2) [Status of acquisition by resolution of the Board of Directors]
Not applicable.
(3) [Contents that are not based on a resolution of a general meeting of shareholders or a resolution of the board of directors]
Not applicable.
(4) [Processing status and holding status of acquired treasury stock]
Current fiscal year Current period
classification
Total disposal price Total disposal price
Number of shares (shares) Number of shares (shares)
(1,000 yen) (1,000 yen)
Acquired treasury stock for which a subscriber was solicited - - - -
Acquired treasury stock that has been canceled - - - -

Acquired treasury stock transferred in connection with a merger, stock
- - - -
exchange, stock delivery, or company split
others
- - - -
(-)
Number of treasury shares held 768,228 - 768,228 -
3 [Dividend policy]
In consideration of stable returns to shareholders over the long term, the expansion of internal reserves necessary to strengthen our corporate structure and business base, and future
business development, we have decided to maintain a consolidated structure until the 57th fiscal year. Our basic profit distribution policy was to maintain a dividend payout ratio of 20% or more,
but starting from the 58th term, we have decided to set a minimum annual dividend of 10 yen and a consolidated dividend payout ratio of 30% or more.
Our basic policy is to pay dividends from surplus twice a year: interim dividends and year-end dividends. The decision-making body for dividends
from these surpluses is the general meeting of shareholders for year-end dividends, and the board of directors for interim dividends. Regarding
dividends for the current fiscal year, normally there would be no year-end dividend, but in order to provide stable dividends, we will pay an annual
ordinary dividend of 13 yen per share (interim 10 yen, year-end 3 yen). We have decided.
Regarding retained earnings, we would like to effectively invest in strengthening our corporate structure and developing our business in the future in order to
respond to expected changes in the business environment.
The Company's Articles of Incorporation stipulate that ``By resolution of the Board of Directors, interim dividends may be paid with the last day of February each year as the
record date.''
The dividends from surplus for the current fiscal year are as follows.
Total amount of dividends Dividend amount per share

Resolution date
(1,000 yen) (circle)
April 12, 2023
31,277 10.00
Board of Directors resolution
November 28, 2023

9,383 3.00
Ordinary general meeting of shareholders resolution
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Securities report
4 [Status of corporate governance, etc.]
(1) [Overview of corporate governance]
① Basic philosophy regarding corporate governance
Aiming to be a ``beloved plastics manufacturer,'' our company has set forth the company motto of good ideas [pursuing rationalization], good
products [emphasizing reliability], and a good workplace [respecting humanity], and Based on our basic philosophy, ``Money has a limit for a
company. Business is about making the best use of what is limited,'' we aim to be a company that is highly valued by shareholders, investors, and
the market.
② Overview of the corporate governance system and reasons for adopting the system Our company has a
board of directors and an audit and supervisory committee as corporate bodies.
The Company's Board of Directors not only makes business decisions and executes business, but also supervises the execution of duties by directors and
fulfills the function of monitoring whether business is being executed legally and in accordance with the Articles of Incorporation and management policy. . In
principle, it is held once a month. In addition, extraordinary meetings are held as necessary to make important decisions.
The Board of Directors is made up of six members: Takeshi Sugiura, President and Representative Director, who serves as the chairman, Atsushi Okano and
Atsushi Teshima, directors, and Tetsuo Suzuki, Takenori Iso, and Masashi Kojima, who are members of the Audit and Supervisory Committee. As stated in (2)
Status of Officers, he has extensive experience and specialized knowledge, as well as knowledge and ability regarding corporate governance as a director.
Regarding business operations, the General Managers' Meeting, which is comprised of executives and senior managers, is held once a week in principle to decide on
important business execution policies.
The Company's Audit and Supervisory Committee is composed of three members: one full-time Audit and Supervisory Committee member and two part-time Audit and Supervisory
Committee members, all three of whom are outside directors. All Audit and Supervisory Committee members attend meetings of the Board of Directors and provide advice regarding decision-
making as necessary. Additionally, we have a system in place to monitor the performance of directors' duties by attending meetings of general managers, etc., and exchange opinions with
auditing firms as necessary to conduct efficient audits.
The reason we established the Audit and Supervisory Committee is to strengthen the monitoring and auditing functions of the Board of Directors by having directors who are members of
the Audit and Supervisory Committee hold voting rights on the Board of Directors, thereby further enhancing corporate governance. It's for this reason.
③ Other matters related to corporate governance
stomach. Establishment of internal control system
The Company cooperates with internal audits conducted by internal auditors, audit and supervisory committee audits conducted by the Audit and Supervisory
Committee, and audits under the Companies Act and Financial Instruments and Exchange Act conducted by accounting auditors to monitor and verify internal control
systems. We are doing this. In addition, we have established a whistle-blowing system for organizational or individual violations of laws and regulations and report them to
the person in charge of risk management, who then takes action, and the results are reported to the Board of Directors.
B. Status of development of risk management system
In order to respond to various risks arising from business activities, the Company's General Affairs Department manages risk information and
reports it to the Board of Directors. In addition, regarding external risks, he will seek advice from his legal advisor and respond accordingly.
C. Status of system development to ensure appropriateness of subsidiary operations
The subsidiary has established an internal control system to ensure that business operations are carried out legally, appropriately, and soundly. Regarding the
execution of duties by directors, etc., we have established a system to ensure compliance with laws and regulations by monitoring and supervising the status of execution
of duties by other directors through the Board of Directors.
D. Number of directors
The Company's Articles of Incorporation stipulate that the number of directors (excluding those who are members of the Audit and Supervisory Committee) shall be no more than 10, and the number of directors who are members of the Audit and Supervisory
Committee shall be no more than four.
Ho. Requirements for resolution for appointment of directors
Regarding resolutions for the election of directors, the Company distinguishes between directors who are Audit and Supervisory Committee members and other directors, and makes
sure that shareholders holding one-third or more of the voting rights of shareholders who can exercise their voting rights are present. The Articles of Incorporation stipulate that voting
shall be carried out by a majority of the voting rights and shall not be based on cumulative voting.
F. interim dividend
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Securities report
In order to return profits to shareholders in a flexible manner, the Company may, by resolution of the Board of Directors, pay interim dividends with the last day of February each
year as the record date, pursuant to the provisions of Article 454, Paragraph 5 of the Companies Act. It is stipulated in the articles of incorporation.
to. Acquisition of own shares
Regarding the acquisition of our own shares, we will acquire our own shares based on the provisions of Article 165, Paragraph 2 of the Companies Act, in order to be able to flexibly
implement financial policies and other management measures in response to changes in economic conditions. The Articles of Incorporation stipulate that the Company may acquire its
own shares through market transactions, etc. by resolution of the Board of Directors.
blood. Special resolution requirements for general meeting of shareholders
The Company may exercise voting rights with respect to the requirements for special resolutions at general meetings of
shareholders stipulated in Article 309, Paragraph 2 of the Companies Act. The articles of incorporation stipulate that a two-thirds or
more vote is required.
The purpose of this is to ensure the smooth operation of the General Meeting of Shareholders by relaxing the quorum required for special resolutions at the General
Meeting of Shareholders.
Li. Contents of resolutions of the Board of Directors regarding the construction of internal control systems
A summary of the decisions regarding the system to ensure that the execution of duties by directors (referring to executive directors; the same shall apply hereinafter) complies with laws
and regulations and the articles of incorporation and other systems to ensure the appropriateness of the company's operations is as follows. It is as follows.
a. System to ensure that the execution of duties by directors and employees complies with laws and regulations and the Articles of Incorporation
The Company has established an internal control system and a system to comply with laws and regulations and the Articles of Incorporation to ensure that business
operations are carried out lawfully, appropriately, and soundly.
In addition, directors execute their duties based on internal regulations and mutually monitor and supervise the status of other directors' business execution
through the Board of Directors, thereby strengthening the checking function regarding legal compliance.
Our company has a system in place for directors to immediately report to the Audit and Supervisory Committee as well as the Board
of Directors when they discover any violation of laws or other important compliance-related facts within the company.
In addition, if the Audit and Supervisory Committee determines that there is a problem with the internal legal compliance system, we have established a system in which it will express its
opinion at the Board of Directors meeting and encourage improvements.
b. System for storing and managing information related to the execution of duties by directors
The Company stores documents related to the execution of duties by directors in accordance with internal regulations and makes them available for inspection at all times.
c. Regulations and other systems for managing the risk of loss
The Company has established a system in which risks related to business execution are managed by the Board of Directors and the General Managers' Meeting.
d. System to ensure that directors' duties are executed efficiently

The Company holds meetings of the Board of Directors at least once a month to determine important matters such as management strategies and business
plans, and to supervise business execution.
In addition, we have established a system in which decisions are immediately executed by the respective responsible departments based on the
rules of authority.
e. System for ensuring the appropriateness of operations within the corporate group consisting of the Company and its subsidiaries
i. System for reporting to the Company regarding matters related to the execution of duties by directors, etc. of subsidiaries
The Company has a system in place to regularly receive reports on business execution from its subsidiaries and to conduct
periodic audits.
ⅱ. Regulations and other systems for managing the risk of loss at subsidiaries
The subsidiary has a system in place to manage risks related to business execution through the Board of Directors, General Managers'
Meeting, and Staff Meeting, which are held at least once a month.
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Securities report
ⅲ. A system to ensure that the duties of directors, etc. of subsidiaries are executed efficiently
Subsidiaries hold board of directors meetings at least once a month to decide important matters such as management strategies and business
plans, as well as to supervise the execution of business.
In addition, we have established a system in which decisions are immediately executed by the respective responsible departments based on the
rules of authority.
ⅳ. System to ensure that the execution of duties by directors, etc. and employees of subsidiaries complies with laws and regulations and the articles of incorporation
The subsidiary has established an internal control system to ensure that business operations are carried out legally, appropriately and soundly. Regarding
the execution of duties by directors, etc., we have established a system to ensure legal compliance by monitoring and supervising the status of execution of
duties by other directors through the Board of Directors.
In addition, regarding the execution of duties by employees, if a director discovers a violation of laws or other important compliance-related
facts within the company, we have a system in place to immediately report to the board of directors and encourage improvements.
f. Matters regarding employees when the Audit and Supervisory Committee requests the appointment of employees to assist in its duties.
and matters related to the independence of such employees from directors.
The Company does not have employees to assist the Audit and Supervisory Committee members in their duties, but upon request from the Audit and Supervisory Committee,
employees will be appointed to assist the Audit and Supervisory Committee members in their duties. In addition, the appointed employees are not subject to any orders from
directors (excluding directors who are members of the Audit and Supervisory Committee) regarding the orders of the Audit and Supervisory Committee.
g. System for directors and employees to report to the Audit and Supervisory Committee and other systems for reporting to the Audit and Supervisory Committee
The Company has established a system in which directors (excluding directors who are members of the Audit and Supervisory Committee) and
employees can report to the Audit and Supervisory Committee at any time upon request.
h. System to ensure that those who have made the report referred to in the previous item are not treated unfavorably because of the report.
The Company and its subsidiaries have established a system in accordance with the Whistleblower System to ensure that no one is treated disadvantageously
for making a report.
i. Procedures for advance payment or reimbursement of expenses incurred in the execution of duties by Audit and Supervisory Committee members, and other information regarding the execution of such duties.
Matters related to policies regarding processing of expenses or debts
When an Audit and Supervisory Committee member requests advance payment of expenses related to the execution of their duties, the Company shall bear the
expenses and promptly process the request, unless such expenses are deemed unnecessary for the execution of duties. We are.
j. Other systems to ensure that audits by Audit and Supervisory Committee members are conducted effectively
At our company, the Audit and Supervisory Committee consists of a total of three members, one full-time Audit and Supervisory Committee member and two part-time Audit and Supervisory
Committee members (both are outside directors), and each Audit and Supervisory Committee member attends meetings of the Board of Directors and other important meetings. We have a system in
place to attend meetings, conduct strict audits of directors' execution of duties, request explanations from directors as necessary, and express opinions.
k.System to ensure reliability of financial reporting

In order to ensure trust in financial reporting and submit internal control reports more effectively and appropriately, the General Affairs Department has established a system to
develop and operate internal controls related to financial reporting under the direction of the President and Representative Director. Doing.
l.System against anti-social forces

i. Our company's policy is not to have any relationships with anti-social forces that threaten the order and safety of civil society.
ⅱ. The General Affairs Department acts as the point of contact for anti-social forces, and responds in cooperation with local police stations and legal advisors as necessary.
We are planning to do so.
Nu. Exemption of directors from liability
Based on the provisions of Article 427, Paragraph 1 of the Companies Act, each Outside Director shall, in accordance with the provisions of Article 427,
Paragraph 1 of the Companies Act, act in good faith and without gross negligence, in accordance with the law. We have entered into a liability limitation agreement
that limits our liability to the amount specified in .
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Securities report
④ Activities of the Board of Directors
During the current fiscal year, the Company held meetings of the Board of Directors once a month, and the attendance status of individual directors is
as follows.
full name Number of times held Number of attendance
Representative Director and President Takeshi Sugiura 17 times 17 times
Managing director Atsushi Okano 17 times 17 times
director Jun Teshima 17 times 17 times
Director (Audit and Supervisory Committee Member) Tetsuo Suzuki 17 times 17 times
Director (Audit and Supervisory Committee Member) Takenori Iso 17 times 12 times
Director (Audit and Supervisory Committee Member) Masashi Kojima 17 times 14 times
Specific matters considered by the Board of Directors include monthly finances, performance-related matters, business budgets, basic audit plans for the
development and operation of internal control systems, capital investment plans, and important contract matters.
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Securities report
(2) [Status of officers]
① List of officers
6 males, 1 female (Ratio of women among executives -%)

Job title full name date of birth Biography term of office
(1,000 shares)
April 1991 Join our company
June 1997 3rd manufacturing manager
November 1997 Appointed as director
May 1998 Manufacturing Manager 2
President June 1998 Production control manager
Takeshi Sugiura Born June 14, 1967 (Note)2 439

(CEO) December 2001 Asahi Plastic Products (Kunshan) Co., Ltd.
Appointed as Chairman (current position)
February 2002 In charge of overseas business
November 2002 Appointed as Managing Director
November 2010 Appointed representative director and president (current position)
March 1986 Join our company
April 2001 sales manager
November 2002 Appointed as director
Managing director November 2014 Appointed as Managing Director
Atsushi Okano Born April 26, 1963

January 2015 Asahi Plastic Products (Kunshan) Co., Ltd.
(Note)2 8
Sales Headquarters Manager
Appointed general manager
June 2016 Managing Director and General Manager of Sales Headquarters of the Company
(current position)
March 1987 Join our company
September 2011 Manufacturing manager
November 2015 Appointed as director (current position)
director Jun Teshima Born October 5, 1968 December 2015 Asahi Plastic Products (Kunshan) Co., Ltd. (Note)2 3
Deputy General Manager and Manufacturing Manager
April 2019 Asahi Plastic Products (Kunshan) Co., Ltd.
Appointed general manager (current position)
March 1971 Entered Okazaki Shinkin Bank
October 2011 Joined Okashin Credit Guarantee Co., Ltd.
Director (Full-time Audit and Supervisory Committee Member) Tetsuo Suzuki Born October 6, 1952 April 2014 Joined Wako Jisho Co., Ltd. (Note)3 -
November 2015 Appointed as Director (Full-time Audit and Supervisory Committee Member) of the Company
(current position)
April 1983 Opening of Iso Law Office

November 1994 Appointed as Audit & Supervisory Board Member of the Company
November 2015 Appointed as director (audit and supervisory committee member) of the company
Director (Audit and Supervisory Committee Member) Iso Takenori Born July 30, 1950
(current position)
(Note)3 -
September 2016 Director of Isou Murase Law Office
(current position)
April 1995 Joined Kojima Tax Accountant Office
July 2014 Director of Masashi Kojima Tax Accountant Office
Director (Audit and Supervisory Committee Member) Masashi Kojima Born February 7, 1967 (current position)
(Note)3 -
November 2015 Appointed as director (audit and supervisory committee member) of the company
(current position)
total 450
(Note) 1. Directors Tetsuo Suzuki, Takenori Iso, and Masashi Kojima are outside directors.
2. One year from the conclusion of the Ordinary General Meeting of Shareholders on November 28, 2023
3. Two years from the conclusion of the Ordinary General Meeting of Shareholders on November 28, 2023
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Securities report
② Status of outside officers
The Company's three outside directors are Mr. Tetsuo Suzuki, Mr. Takenori Iso, and Mr. Masashi Kojima, all of whom are members of the Audit and Supervisory Committee.They have
been registered with the Tokyo Stock Exchange as independent officers with no risk of conflicts of interest with general shareholders. The company satisfies the requirements for the above,
and provides appropriate advice regarding our decision-making from a third-party perspective.
As Mr. Tetsuo Suzuki has extensive experience working in financial institutions, we believe that he will be able to appropriately audit
the execution of business by directors. We believe that Mr. Takenori Iso will be able to appropriately audit the business execution of
directors from their respective positions as a lawyer and Mr. Masashi Kojima as a tax accountant.
Our company has an advisory contract for legal consultation with Iso Murase Law Office, represented by Takenori Iso, and an advisory contract for tax
return procedures with Masashi Kojima Tax Accountant Office, represented by Masashi Kojima. I'm here. There are no personal relationships, capital
relationships, business relationships, or other interests with outside directors other than those listed above.
Although we do not have standards or policies regarding independence for selecting outside directors, we refer to stock exchange standards
for determining the independence of independent officers when selecting outside directors.
③ Mutual cooperation between supervision or audit by outside directors and internal audit, audit and supervisory committee audit, and accounting audit, and relationship with internal control
department
Outside directors who are members of the Audit and Supervisory Committee regularly exchange opinions with internal auditors and the internal control department, and report any
problems to the Board of Directors and the Audit and Supervisory Committee. We also collaborate with the accounting auditor to report and exchange opinions.
(3) [Audit status]

① Status of Audit and Supervisory Committee audits
The Company's Audit and Supervisory Committee is comprised of three directors, all of whom are outside directors (including one director who is a full-time Audit and Supervisory
Committee member). Audit and Supervisory Committee members audit the business execution of executive directors by attending meetings of the Board of Directors, General Managers'
Meetings, and other meetings, and conducting operational audits, in accordance with the audit policy and division of duties established by the Audit and Supervisory Committee. . In addition,
each Audit and Supervisory Committee member exchanges opinions and has a system in place to report any problems to the Board of Directors.We also have a system in place to exchange
opinions with the accounting auditor as necessary to improve the effectiveness of audits. I am. Mr. Masashi Kojima, Audit and Supervisory Committee Member, is qualified as a tax accountant
and has considerable knowledge of finance and accounting.
During the fiscal year under review, the Company held Audit and Supervisory Committee meetings eight times, each meeting lasting approximately one hour. The
attendance status of individual Audit and Supervisory Committee members is as follows.
full name Number of times held Number of attendance
Tetsuo Suzuki 8 8
Takenori Takenori 8 7
Masashi Kojima 8 8
The specific matters considered by the Audit and Supervisory Committee include the formulation of audit policies and plans, selection of accounting auditors and determination of remuneration, auditing of the
content of proposals submitted to the regular general meeting of shareholders, auditing of financial statements, and preparation of audit reports. We are doing the following.
In addition, the full-time Audit and Supervisory Committee members cooperate with the Internal Audit Office and the Accounting Auditor to monitor and
verify the status of the construction and operation of the internal control system. Furthermore, by attending management meetings and inspecting important
approval documents, etc., we audit the decision-making process by directors and the validity and rationality of decisions.
② Internal audit status

Internal audits at our company are conducted by an internal auditor appointed by the president and representative director, who coordinates with the Audit and
Supervisory Committee and the internal control department (in charge of two members of the general affairs department) to create an internal audit plan. We have
established a system in which internal audits are conducted based on these standards and the results are reported to management. We also exchange information with the
accounting auditor through internal audits.
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Securities report
③ Status of accounting audit
stomach. Audit corporation name
Taiyo LLC Audit Corporation
B. Continuous audit period
15 years
C. Certified public accountant who executed the business
Designated Limited Liability Partner and Executive Partner Kenji Furuta
Designated Limited Liability Partner and Executive Partner Kazuaki Honda
D. Composition of assistants involved in audit work
The Company's assistants in connection with the accounting audit work are six certified public accountants, six people who have passed the accountant examination, and four others.
Ho. Audit firm selection policy and reasons
As a result of an evaluation based on the "Audit and Supervisory Committee Auditing Standards" created by the Company's Audit and Supervisory Committee, and after
comprehensively considering the expertise, independence, quality control system, etc. required of an accounting auditor, the Company's We believe that he is qualified to serve as the
accounting auditor for the Company.
“Policy for determining the dismissal or non-reappointment of accounting auditors”
The Company's Audit and Supervisory Committee comprehensively evaluates the status of the accounting auditor's performance of duties, and if it determines that the appropriateness and reliability of the audit cannot be
ensured, the Company's Audit and Supervisory Committee will submit a resolution to the general meeting of shareholders to dismiss or dismiss the accounting auditor. The content of the proposal regarding non-reappointment will
be determined.
Additionally, if the accounting auditor is found to fall under any of the items stipulated in Article 340, Paragraph 1 of the Companies Act, the accounting auditor will be dismissed with
the consent of all Audit and Supervisory Committee members. In this case, the Audit and Supervisory Committee member selected by the Audit and Supervisory Committee will report
the dismissal of the accounting auditor and the reasons therefor at the first general meeting of shareholders convened after the dismissal.
F. Evaluation of the audit firm by the Audit and Supervisory Committee and the Audit and Supervisory Committee
Our Audit and Supervisory Committee conducts annual evaluations based on the "Audit and Supervisory Committee Auditing Standards."
We judge that the evaluation criteria are met.
④ Details of audit fees, etc.
stomach. Remuneration for audit certified public accountants, etc.
classification
Based on audit certification work Reports based on non-audit work Based on audit certification work Reports based on non-audit work
Remuneration (1,000 yen) Compensation (1,000 yen) Remuneration (1,000 yen) Compensation (1,000 yen)
Submitting company 13,000 - 13,500 -
Consolidated subsidiary - - - -
total 13,000 - 13,500 -
B. Remuneration for the same network as audit certified public accountants, etc. (excluding A.)
Due to its lack of importance, the description has been omitted.
C. Details of remuneration based on other important audit certification services
Not applicable.
D. Audit fee determination policy
The method for determining audit fees for auditing certified public accountants, etc. is based on the content of the audit plan presented by the auditing certified public accountant, etc., and is
determined after discussion and consideration of the validity of the number of audit days, number of personnel, audit content, etc. Doing.
Ho. Reasons why the Audit and Supervisory Committee agreed to the remuneration, etc. of the accounting auditor
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Securities report
The Company's Audit and Supervisory Committee, through obtaining materials and collecting reports from relevant internal departments and accounting auditors, confirms that the audit content,
including audit items, audit system, and audit time, is appropriate in response to the company's risks, and that audit fees are We have agreed to the estimate because we believe that the basis for
calculating it is appropriate.
(4) [Remuneration, etc. of officers]
① Matters related to policies related to determining the amount of remuneration, etc. for officers or the method of calculating it
The Company's Board of Directors resolves the policy for determining the content of individual directors' remuneration, etc. In addition, the Board of Directors shall ensure
that the policy for determining the content of remuneration, etc., and the content of determined remuneration, etc. are consistent with the determination policy resolved by
the Board of Directors regarding individual remuneration, etc. of directors for the current fiscal year. We have confirmed that the decision is in line with the decision policy.
The details of the policy for determining individual remuneration, etc. for directors are as follows. stomach.
Basic policy
The remuneration of directors of the Company shall be determined based on the principle of contributing to the sustainable improvement of the corporate performance and shareholder value of the
Company and the Company Group, and shall be set at a remuneration level and system that is fully commensurate with the duties of the directors.
Remuneration for directors (excluding directors who are members of the Audit and Supervisory Committee) consists of fixed remuneration, basic remuneration, and executive bonuses. Remuneration for directors who are
members of the Audit and Supervisory Committee consists only of basic remuneration, which is fixed remuneration. The amount of individual remuneration for directors who are members of the Audit and Supervisory
Committee will be determined through discussions among the Audit and Supervisory Committee members.
B. Concerning determining the amount of individual monetary remuneration (fixed remuneration) for directors (excluding directors who are audit and supervisory committee members)
policy
Compensation for the Company's directors (excluding directors who are members of the Audit and Supervisory Committee) is fixed monthly compensation (monetary compensation), and is determined
based on the position of each director, taking into account other companies' standards and the Company's business performance. do.
C. How to determine the ratio of fixed remuneration, performance-linked remuneration, etc., or non-monetary remuneration, etc. to the amount of individual director remuneration, etc.
needle
The remuneration of directors of the Company shall be fixed remuneration only.
D. Matters related to determining the amount of individual remuneration for directors (excluding directors who are audit and supervisory committee members)
Regarding the amount of individual remuneration for directors (excluding directors who are members of the Audit and Supervisory Committee), the amount of remuneration, etc. for each individual
director is determined based on the amount of remuneration, etc. Delegated to the president and director. The President and Representative Director determines the amount of basic remuneration for
each director and the amount of bonuses based on the performance of the business area that each director is individually responsible for. The activities of the submitting company's board of directors in
the process of determining director remuneration for the current fiscal year are as follows: At the board of directors meeting held on November 24, 2022, remuneration levels will be determined based on
the status of each director's business performance and the contribution of management supervision. We are providing opinions and deliberating whether it is appropriate.
② Total amount of remuneration, etc. by officer category, total amount of remuneration, etc. by type, and number of eligible officers
Total amount of compensation by type (thousand yen) subject to

Total amount of remuneration, etc.
Officer classification Number of officers
Of the items on the left,
(1,000 yen)
fixed remuneration Performance-based compensation Retirement benefits
Non-monetary compensation, etc.
(Man)
Directors (Audit and Supervisory Committee members and

52,820 49,870 - 2,950 - 3
(excluding outside directors)
Director (Audit and Supervisory Committee Member)

- - - - - -
(Excluding outside directors)
Outside officer 5,586 5,586 - - - 3

(Note) 1. The maximum amount of remuneration for directors (excluding directors who are members of the Audit and Supervisory Committee) will be determined at the 49th Ordinary General Meeting of Shareholders held on November 26, 2015.
It has been resolved that the annual amount will be no more than 150 million yen (however, this does not include employee salaries). As of the conclusion of the
general meeting of shareholders, there are three directors (excluding outside directors).
2. The maximum amount of remuneration for directors (audit and supervisory committee members) was set at 20 million yen per year at the 49th Ordinary General Meeting of Shareholders held on November 26, 2015.
It has been decided that the amount will be within. As of the conclusion of the general meeting of shareholders, there are three members of the Audit and
Supervisory Committee. 3. The amount of remuneration mentioned above includes the following.
·Amount of provision for reserve for directors' bonuses for the current fiscal year
Directors (excluding directors who are audit and supervisory committee members) 3 people 7,240,000 yen
·Amount of provision for reserve for directors' retirement benefits in the current fiscal year
Directors (excluding directors who are audit and supervisory committee members) 3 people 2,950,000 yen
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Securities report
③ Total amount of consolidated remuneration, etc. for each officer
This information is not listed because there is no person whose total consolidated remuneration is 100 million yen or more.
(5) [Stock holding status]

① Criteria and concept for classification of investment stocks
Regarding investment stocks, the Company classifies stocks that are held solely for the purpose of receiving profits from fluctuations in stock value or dividends on stocks as investment
stocks that are held for pure investment purposes, and other stocks that are held for purposes other than pure investment. They are classified as investment stocks for the purpose of holding
them.
② Investment stocks held for purposes other than pure investment a. Holding policy and method of verifying the rationality of holding, and verification by the board of directors,
etc. regarding the appropriateness of holding individual stocks.
Content
The Company recognizes the significance of holding investment stocks for purposes other than pure investment in view of changes in the environment surrounding the
Corporate Governance Code and the risk of stock price fluctuations that can have a significant impact on the financial situation. Our holding policy is not to hold it except in
certain cases. In addition, the Board of Directors examined each individual stock in terms of both quantitative evaluations, such as whether the benefits associated with
holding them are commensurate with the cost of capital, and qualitative evaluations, such as the significance of holding them, and determined that the purpose of holding
them had been lost. We will promptly reduce the number of such items.
B. Number of issues and amount recorded on balance sheet
Number of brands of the amount recorded on the balance sheet
(Brand) Total amount (thousand yen)
unlisted stocks - -
Stocks other than unlisted stocks 1 83,263
(Issues whose number of shares increased in the current fiscal year)
Number of brands Acquisition related to increase in number of shares

Reason for increase in number of shares
(Brand) Total price (thousand yen)
unlisted stocks - - -
Stocks other than unlisted stocks 1 6,219 This is to strengthen relationships with business partners.
(Issues whose number of shares decreased in the current fiscal year)
Number of brands Sale due to decrease in number of shares
(Brand) Total price (thousand yen)
unlisted stocks - -
Stocks other than unlisted stocks 1 18,284
C. Information regarding the number of shares for each brand of specified investment stocks and deemed holding stocks, the amount recorded on the balance sheet, etc.
Specified investment stocks
Current fiscal year Previous business year
Purpose of holding, outline of business alliance, etc.

Number of shares (shares) Number of shares (shares) of our stock
Brand name Quantitative endowment effect
Possibility of possession
and the reason for the increase in the number of shares
Balance sheet amount Balance sheet amount
(1,000 yen) (1,000 yen)
The purpose of holding is to strengthen relationships with business partners.

20,826 22,996
vinegar. Quantitative endowment effect is from the perspective of confidentiality
Makita Co., Ltd. Yes
It will not be listed. To the business partner stockholding association
83,263 75,909
The increase was due to acquisitions.
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Securities report
Fifth [Accounting status]

1. Consolidated financial statements and how to prepare them
(1) The Company's consolidated financial statements are based on the "Regulations Concerning Terminology, Forms, and Preparation Methods of Consolidated Financial Statements" (Ministry of Finance Ordinance No. 28 of 1978).
issue. ).
(2) The Company's financial statements are based on the "Regulations Concerning Terminology, Forms, and Preparation Methods of Financial Statements" (Ministry of Finance Ordinance No. 59 of 1960.
"Regulations on Business Statements, etc." ).

In addition, our company falls under the category of a company that submits special financial statements and prepares financial statements in accordance with the provisions of Article 127 of the Financial Statement Regulations.
2. About audit certification

Based on the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, the Company has published consolidated financial statements for the
consolidated fiscal year (September 1, 2022 to August 31, 2023) and business year (September 1, 2022 to August 31, 2023). The financial statements for the period from September 1st
to August 31st, 2023 have been audited by Taiyo LLC.
3. Regarding special efforts to ensure the appropriateness of consolidated financial statements, etc.
The Company takes special efforts to ensure the appropriateness of consolidated financial statements, etc. Specifically, in order to properly understand the content of accounting
standards and respond appropriately to changes, etc., we have established a system to receive regular and irregular information from disclosure specialist companies, participate in
various seminars, and We have registered our e-mail address with the Financial Accounting Standards Institute, a public interest incorporated foundation, so that we can receive
information from time to time.
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Securities report
1 [Consolidated financial statements, etc.]
(1) [Consolidated financial statements]
① [Consolidated balance sheet]
(Unit: thousand yen)
(August 31, 2022) (August 31, 2023)

Assets section
current assets
cash and deposits 1,647,951 2,332,503

Notes and accounts receivable *1 1,080,600 *1 814,470
Goods and products 257,417 195,447
Work in process 210,941 125,144
Raw materials and supplies 268,763 147,509
others 346,609 212,875
Allowance for doubtful accounts △ 470 △ 540
Total current assets 3,811,813 3,827,411
Fixed asset
Tangible fixed assets
Buildings and structures (net) 532,435 493,465

Machinery, equipment and vehicles (net) 741,994 639,298
land 902,744 908,551
Others (net amount) 75,721 101,939
Total tangible fixed assets *2 2,252,896 *2 2,143,254
Intangible fixed assets 14,864 25,703
Investments and other assets
Investment securities 75,909 83,263

Deferred tax asset 13,665 254
long term deposit 610,548 299,436
others 69,966 60,858
Allowance for doubtful accounts △ 3,059 △ 3,059
Total investments and other assets 767,030 440,754
Total fixed assets 3,034,791 2,609,711
Total assets 6,846,605 6,437,123
debt section
Current Liabilities
Accounts payable 963,375 752,595

Accrued corporate taxes, etc. 71,477 29,405
Reserve for bonuses 40,028 43,687
Reserve for directors' bonuses 9,050 7,240
others *3 275,326 *3 249,470
Total current liabilities 1,359,258 1,082,398
Fixed debt
Deferred tax liability 175,711 149,283
Reserve for directors' retirement benefits 44,136 47,086
Liabilities related to retirement benefits 8,400 12,557
Total fixed liabilities 228,248 208,926
Total debt 1,587,506 1,291,325
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Securities report
(August 31, 2022) (August 31, 2023)

Of Net Assets
Shareholders' equity
capital 671,787 671,787

capital surplus 729,938 729,938
an earned surplus 3,106,822 3,042,244
Treasury stock △ 369,973 △ 369,973
Total shareholders' equity 4,138,574 4,073,997
Accumulated other comprehensive income
Valuation difference on other securities 19,728 26,565

Foreign currency translation adjustment account 1,100,796 1,045,235
Total accumulated other comprehensive income 1,120,524 1,071,800
Total net assets 5,259,099 5,145,798
Total debt and net assets 6,846,605 6,437,123
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Securities report
② [Consolidated statement of income and consolidated statement of comprehensive income]
[Consolidated income statement]

To (August 31, 2022) To (August 31, 2023)
amount of sales *1 10,720,941 *1 8,663,297
Cost of sales 9,413,839 7,764,965
gross profit 1,307,101 898,332
Selling, general and administrative expenses
Packing and transportation costs 154,862 156,121

Executive compensation 59,249 54,299
Salary/Bonus 199,315 178,150
Provision for bonuses 6,631 7,579
Provision for directors’ bonuses 9,050 7,240
Provision for director retirement benefits 3,009 2,950
Retirement benefit costs 2,524 2,602
Welfare expenses 106,758 82,758
Provision of allowance for doubtful accounts △ 50 70
others 238,655 236,763
Total selling, general and administrative expenses *2 780,006 *2 728,535
Operating income 527,095 169,796
Non-operating income
Interest income 45,178 47,080

Dividend income 1,595 506
Subsidy income 17,962 4,865
Exchange gain 59,989 52,877
others 10,913 5,395
Total non-operating income 135,639 110,725
Non-operating expenses
Interest expense 72 15
Treasury stock acquisition costs 201 -
others 305 598
Total non-operating expenses 579 614
Ordinary profit 662,154 279,907
special profit
Gain on sale of fixed assets *3 2,299 *3 1,095

Gain on sale of investment securities - 9,508
Total extraordinary profit 2,299 10,604
extraordinary loss
Loss on sale of fixed assets *4 2,996 *4 527

Loss on retirement of fixed assets *5 1,609 *5 4,254
Impairment loss *6 4,169 *6 128,832
Total extraordinary loss 8,775 133,615
Net income before income taxes 655,678 156,896
Corporate tax, resident tax and business tax 232,815 149,857
Corporate tax adjustment amount 33,384 △ 15,961
Total corporate taxes, etc. 266,200 133,896
net income 389,477 23,000
Net income attributable to owners of parent company 389,477 23,000
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Securities report
[Consolidated statement of comprehensive income]
(Unit: 1,000 yen)

net income 389,477 23,000
Other comprehensive income
Valuation difference on other securities △ 46,128 6,837

Foreign currency translation adjustment account 477,843 △ 55,560
Total other comprehensive income * 431,715 * △ 48,723
comprehensive income 821,193 △ 25,723
(breakdown)
Comprehensive income related to parent company shareholders 821,193 △ 25,723

Comprehensive income related to non-controlling shareholders - -
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Securities report
③ [Consolidated statement of changes in shareholders' equity]
Previous consolidated fiscal year (from September 1, 2021) (To August 31, 2022)
capital capital surplus an earned surplus Treasury stock Total shareholders' equity
Balance at the beginning of the current period 671,787 729,938 2,830,316 △ 298,957 3,933,085
Current period change amount
Dividend of surplus △ 112,972 △ 112,972

389,477 389,477
Net income
Acquisition of treasury stock △ 71,016 △ 71,016
Items other than stockholders' equity for the current period
Change amount (net amount)
Total amount of changes for the current period - - 276,505 △ 71,016 205,489
Balance at end of current period 671,787 729,938 3,106,822 △ 369,973 4,138,574
Total net assets

Other securities valuation Accumulated other comprehensive income
Foreign currency translation adjustment account
difference amount Total amount
Balance at the beginning of the current period 65,857 622,952 688,809 4,621,894
Dividend of surplus △ 112,972

389,477
Net income
Acquisition of treasury stock △ 71,016

△ 46,128 477,843 431,715 431,715
Total amount of changes for the current period △ 46,128 477,843 431,715 637,204
Balance at end of current period 19,728 1,100,796 1,120,524 5,259,099
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Securities report
Current consolidated fiscal year (from September 1, 2022) (To August 31, 2023)
capital capital surplus an earned surplus Treasury stock Total shareholders' equity
Balance at the beginning of the current period 671,787 729,938 3,106,822 △ 369,973 4,138,574

23,000 23,000
Net income
Total amount of changes for the current period - - △ 64,577 - △ 64,577
Balance at end of current period 671,787 729,938 3,042,244 △ 369,973 4,073,997
Total net assets

Other securities valuation Accumulated other comprehensive income
Foreign currency translation adjustment account
difference amount Total amount
Balance at the beginning of the current period 19,728 1,100,796 1,120,524 5,259,099
Dividend of surplus △ 87,577

23,000
Net income

6,837 △ 55,560 △ 48,723 △ 48,723
Total amount of changes for the current period 6,837 △ 55,560 △ 48,723 △ 113,301
Balance at end of current period 26,565 1,045,235 1,071,800 5,145,798
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Securities report
④ [Consolidated cash flow statement]

Cash flow from operating activities
Net income before income taxes 655,678 156,896
depreciation expense 252,864 262,469
Increase/decrease in reserve for bonuses (△ indicates a decrease) △ 17,568 4,096
Increase/decrease in reserve for directors' bonuses (△ indicates a decrease) △ 4,450 △ 1,810
Increase/decrease in reserve for directors' retirement benefits (△ indicates a decrease) △ 2,530 2,950
Increase/decrease in liability related to retirement benefits (△ indicates a decrease) 1,525 3,676
Increase/decrease in allowance for doubtful accounts (△ indicates decrease) △ 50 70
Interest and dividends received △ 46,773 △ 47,586
Impairment loss 4,169 128,832
Gain/loss on sale of investment securities (△ is gain) - △ 9,508
Interest expense 72 15
Foreign exchange gain/loss (△ is profit) △ 25,457 △ 34,820
Gain/loss on sales of tangible fixed assets (△ is gain) 697 △ 567
Loss on retirement of property, plant and equipment 1,609 4,254
Increase/decrease in trade receivables (△ indicates increase) 171,833 262,202
Increase/decrease in inventories (△ indicates increase) △ 48,893 267,803
Increase/decrease in other current assets (△ indicates increase) △ 48,488 138,744
Increase/decrease in trade payables (△ indicates a decrease) △ 323,802 △ 205,694
Increase/decrease in accrued expenses (△ indicates a decrease) 2,078 △ 16,168
Increase/decrease in accrued consumption taxes, etc. (△ indicates a decrease) △ 42,243 11,137
Increase/decrease in other current liabilities (△ indicates a decrease) △ 43,352 △ 20,212
others △ 229 39
subtotal 486,691 906,820
Amount of interest and dividends received 20,248 40,895
interest payment amount △ 72 △ 15
Amount of corporate tax etc. paid △ 253,494 △ 192,027
Cash flow from operating activities 253,372 755,673
Cash flow from investing activities
Expenses due to fixed deposits △ 26,371 △ 647,396
Income from withdrawal of term deposits 127,676 385,190
Expenditures for acquisition of tangible fixed assets △ 429,249 △ 281,284
Proceeds from sale of tangible fixed assets 12,443 4,760
Expenditures for acquisition of intangible fixed assets △ 6,555 △ 19,452
Expenditures for acquisition of investment securities △ 6,640 △ 6,214
Proceeds from sale of investment securities - 18,155
Income from cancellation of insurance reserve fund 10,229 -
Other expenses △ 5,216 △ 3,257
Other income 116 569
Cash flow from investing activities △ 323,569 △ 548,927
Cash flow from financing activities
Expenses due to repayment of lease obligations △ 695 △ 308
Dividend payment amount △ 112,736 △ 87,454
Expenditures for acquisition of treasury stock △ 71,016 -
Cash flow from financing activities △ 184,448 △ 87,763
Exchange differences on cash and cash equivalents 164,467 11,438
Increase/decrease in cash and cash equivalents (△ indicates a decrease) △ 90,178 130,420
Opening balance of cash and cash equivalents 1,345,429 1,255,251
Ending balance of cash and cash equivalents *1,255,251 *1,385,671
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Securities report
[Notes]
(Important matters that form the basis for preparing consolidated financial statements) 1.
Matters regarding the scope of consolidation
Number of consolidated subsidiaries: 2
Names of major consolidated subsidiaries
Asahi Plastic Products (Kunshan) Co., Ltd.
Asahi Plus Co.,Ltd.

2. Matters regarding application of equity method
Not applicable.
3. Matters related to the business year, etc. of consolidated subsidiaries
The fiscal year end of consolidated subsidiaries is December 31st for Asahi Plastic Products (Kunshan) Co., Ltd. and June 30th for Asahi Plus
Co., Ltd. In preparing the consolidated financial statements, Asahi Plus Co.,Ltd. uses the financial statements prepared by performing
provisional settlement of accounts in accordance with the final settlement of accounts as of June 30th for Asahi Plus Co.,Ltd. . uses financial
statements as of June 30th.
However, necessary adjustments for consolidation are made for important transactions that occurred during the period from July 1st to the consolidated closing
date.
4. Matters related to accounting policies
(1) Evaluation standards and methods for important assets
Securities
Other securities
Things other than stocks, etc. that have no market price
Market value method (valuation differences are accounted for directly into net assets, and cost of sales is calculated using the moving average method)
Stocks, etc. with no market price
Cost method using moving average method
Inventory
Products/work in process
Molded and assembled products - Cost method based mainly on average method
(Balance sheet value is a method of writing down book value based on decline in profitability) Resin molds -
Cost method using the specific identification method
(Balance sheet value is a book value reduction method based on decline in profitability) Raw
materials and supplies
Cost method, mainly determined by the gross average method
(Balance sheet value is a book value reduction method based on decline in profitability)
(2) Depreciation method for important depreciable assets
The Company uses the declining-balance method, and overseas consolidated subsidiaries use the straight-line method.
However, the Company does not sell buildings acquired on or after April 1, 1998 (excluding equipment attached to buildings), equipment attached
to buildings and structures acquired on or after April 1, 2016, and molds among tools, fixtures, and fixtures. The straight-line method is used.
The main useful lives are as follows.

buildings and structures 3-38 years
Machinery and vehicles 4-10 years
Intangible fixed assets
Software (for internal use) is amortized using the straight-line method over the estimated internal usable period (5
years).
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(3) Standards for recording important reserves
Allowance for doubtful accounts
In order to prepare for losses due to bad debts on receivables, the expected uncollectible amount is recorded for general receivables based on the actual rate of
bad debts, and for specific receivables such as doubtful debts, taking into account the collectibility of each individual receivable.
Reserve for bonuses
In order to prepare for the payment of employee bonuses, an amount is recorded based on the estimated amount to be paid in the current consolidated fiscal
year.
Reserve for directors' bonuses
In order to cover the expenditure of bonuses paid to executives, the amount is recorded based on the estimated payment amount. Reserve for directors'
retirement benefits
In order to prepare for the payment of retirement benefits for directors, the amount required to be paid at the end of the current consolidated fiscal year based on the rules for retirement benefits
for directors is recorded.
(4) Accounting method for retirement benefits
Certain consolidated subsidiaries apply the simplified method to calculate retirement benefit liabilities and retirement benefit costs.
(5) Standards for recording significant income and expenses
The main business of the Company and its consolidated subsidiaries is the manufacture and sale of plastic molded products and
plastic molding molds.
The plastic molded products business primarily manufactures and sells power tool parts and automobile parts. As a general
rule, revenue from these sales transactions of molded products is recognized when the performance obligation is determined
to be satisfied upon acceptance inspection by the customer. For domestic transactions, if the period from the time of
shipment to the time control of the product is transferred to the customer is a normal period, revenue is recognized at the
time of shipment. The plastic molding business primarily manufactures and sells plastic molding molds, etc. As a general rule,
revenue from sales transactions of plastic molds, etc. is recognized when the performance obligation is determined to be
satisfied upon acceptance by the customer.
(6) Criteria for converting significant foreign currency-denominated assets or liabilities into Japanese currency
Monetary receivables and payables denominated in foreign currencies are converted into yen at the spot exchange rate on the consolidated balance sheet date, and foreign exchange differences are
treated as profit or loss. The assets, liabilities, revenues, and expenses of foreign consolidated subsidiaries are converted into yen using the spot exchange rate on the fiscal year-end and provisional
fiscal year-end dates of the foreign consolidated subsidiaries, and foreign currency translation differences are included in the foreign currency translation adjustment account in net assets. It is
included.
(7) Scope of funds in the consolidated statement of cash flows

This consists of cash on hand, deposits that can be withdrawn at any time, and short-term investments with maturities within three months from the
date of acquisition that are easily convertible into cash and bear only minimal risk of fluctuations in value.
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(Significant accounting estimate)
(1) Impairment of fixed assets
① Amounts recorded in the consolidated financial statements for the current consolidated fiscal year
Tangible fixed assets 2,252,896 thousand yen 2,143,254 thousand yen
Intangible fixed assets 14,864 thousand yen 25,703 thousand yen
Impairment loss 4,169,000 yen 128,832 thousand yen
② Information regarding the content of significant accounting estimates related to the identified items
a. Calculation method
The Group generally groups its assets into the smallest units that generate independent cash flows. In
addition, idle assets and assets scheduled for disposal are grouped separately.
For each asset group, check whether there are any signs of impairment due to continued negative profits or losses from operating activities,
changes in the scope or method of use that significantly reduce the recoverable amount, or significant declines in the market prices of major assets.
The Group assesses the recognition of impairment losses for asset groups for which signs have been identified.
The recognition of impairment losses is determined by comparing the total undiscounted future cash flows of each
asset group with the book value of fixed assets in each asset group.
As a result of the judgment, if the total amount of undiscounted future cash flows is less than the book value and it is necessary to recognize an impairment loss,
the book value is reduced to the recoverable amount (the higher of the net selling price or the value in use) and the book value is The amount of decrease in value is
recognized as an impairment loss.
The Group uses the net selling price as the recoverable amount because the net selling price exceeds
the use value.
B Key assumptions
In calculating the net sale price, the net sales price for real estate is calculated based on real estate appraisal, and for other fixed assets,
it is calculated based on the estimated disposal amount.
The process of calculating the net sale price is complex, and the valuation method for real estate appraisal, selection of transaction cases, and
determination of appraised value include elements of estimation.
Ha Impact on consolidated financial statements for the next fiscal year
If the underlying conditions change, such as a decline in real estate appraisal value due to changes in real estate market conditions, this could have
a significant impact on the amount of impairment loss in the consolidated financial statements for the following fiscal year.
(2) Recoverability of deferred tax assets
① Amounts recorded in the consolidated financial statements for the current consolidated fiscal year (Unit: 1,000 yen)
Deferred tax asset 13,665 254
a. Calculation method
When determining the recoverability of deferred tax assets, we reduce future tax burden by scheduling temporary differences based on the estimated
amount of taxable income before adding or subtracting temporary differences, etc., which is calculated based on future business plans. Deferred tax
assets are recorded to the extent that they are deemed to have the effect of
B Key assumptions
Future taxable income before temporary differences is estimated based on the business plan approved by the Board of Directors, and the main
assumption is the projected sales of products included in the business plan.
Ha Impact on consolidated financial statements for the next fiscal year
Product sales forecasts, a key assumption included in our business plans, are influenced by trends in our main customers, the power tools
and automobile industries. Therefore, if the timing and amount of taxable income before temporary differences that actually arise differ
from the estimates, this could have a material impact on the amount of deferred tax assets in the consolidated financial statements for the
next fiscal year. there is.
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(Change in accounting policy)
(Application of application guidelines for accounting standards regarding calculation of market value)
“Guidelines for the Application of Accounting Standards for Calculating Market Values” (Corporate Accounting Standards Application Guidelines No. 31) June 17, 2021. Below, “market value calculation”
``Guidelines for the Application of Standard Accounting Standards.'' ) from the beginning of the current consolidated fiscal year, and in accordance with the transitional treatment stipulated in
Paragraph 27-2 of the Mark-to-Market Accounting Standard Application Guidance, apply the new accounting policy specified by the Mark-to-Market Accounting Standard Application
Guidance in the future. That's it.
Please note that the application of the accounting standards application guidelines has no impact on the consolidated financial statements for the current consolidated fiscal year.
(Related to consolidated balance sheet)
*1 Among notes receivable and accounts receivable-trade, the amounts of receivables arising from contracts with customers are as
follows.
(August 31, 2022) (August 31, 2023)
bills recivable 7,736,000 yen 5,283 thousand yen
Electronically recorded debt 13,074 13,526

accounts receivable 1,059,789 795,660
*2 The accumulated depreciation of tangible fixed assets is as follows.
(August 31, 2022) (August 31, 2023)
Accumulated depreciation 5,326,295 thousand yen 5,429,373 thousand yen
*3 Contract liabilities are included in “Other current liabilities.” The amount of contract liabilities is shown in the consolidated financial statements “Notes.”
(Regarding revenue recognition) (3) ① Balance of contract liabilities.
(Related to consolidated income statement)
*1 Revenue generated from contracts with customers
All sales amount is the amount of revenue generated from contracts with customers, and does not include revenue other than revenue generated
from contracts with customers.
*2 Total amount of research and development expenses

Research and development expenses included in general and administrative expenses 4,771 thousand yen 3,720,000 yen
*3 The details of gain on sale of fixed assets are as follows.

Machinery and vehicles 2,299,000 yen 1,095,000 yen
total 2,299 1,095
*4 Details of loss on sale of fixed assets are as follows.


Machinery and vehicles 2,996,000 yen 527,000 yen
total 2,996 527
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*5 The details of loss on retirement of fixed assets are as follows.

buildings and structures - 1,000 yen 190,000 yen
Machinery and vehicles 1,609 3,837

others - 226
total 1,609 4,254
*6 The breakdown of impairment loss is as follows.

In the previous fiscal year, our group recorded impairment losses for the following asset groups.
place Purpose kinds Impairment loss (thousand yen)
Machinery and vehicles

Asahi Plus Co.,Ltd.
Business equipment assets Tangible fixed assets and others 4,169
(Kingdom of Thailand, Rayong Province)
In principle, the Group groups business assets based on business divisions, and idle assets are grouped by
individual asset.
In the previous fiscal year, Asahi Plus Co., Ltd., a consolidated subsidiary of the Company, reduced its book value to the recoverable amount and
recorded an impairment loss in extraordinary losses due to a decline in profitability. I'm here. This consists of 146,000 yen for machinery, equipment and
vehicles, and 4,023,000 yen for other items.
The recoverable amount is measured based on the net sale price, which is calculated based on the real estate appraisal value or estimated
disposal amount by a real estate appraiser.
During the fiscal year under review, the Group recorded impairment losses for the following asset groups.
place Purpose kinds Impairment loss (thousand yen)

Asahi Chemical Industry Co., Ltd.
(Aichi Prefecture, Japan)

Asahi Plus Co.,Ltd.
(Kingdom of Thailand, Rayong Province)
In principle, the Group groups business assets based on business divisions, and idle assets are grouped by
individual asset.
During the current consolidated fiscal year, the Company and its consolidated subsidiary Asahi Plus Co., Ltd. reduced the book value to the recoverable amount
due to a decline in profitability and recorded an impairment loss in extraordinary losses. Doing. The breakdown for the Company is machinery, equipment and
vehicles of 91,135,000 yen and other 27,767,000 yen. The breakdown for Asahi Plus Co., Ltd. is machinery, equipment and transportation equipment of 5,690,000 yen
and other 4,240,000 yen.
The recoverable amount is measured based on the net sale price, which is calculated based on the real estate appraisal value or estimated
disposal amount by a real estate appraiser.
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(Related to consolidated statement of comprehensive income)
*Reclassification adjustments and tax effects related to other comprehensive income

Valuation difference on other securities:
Amount incurred in the current period △ 65,992 thousand yen 19,419,000 yen
Reclassification adjustment amount - △ 9,637

Before tax effect adjustment △ 65,992 9,781
Tax effect amount 19,863 △ 2,944
Valuation difference on other securities △ 46,128 6,837
Foreign currency translation adjustment account:
Amount incurred in the current period 477,843 △ 55,560

Total other comprehensive income 431,715 △ 48,723
(Related to consolidated statement of changes in shareholders' equity)
Previous consolidated fiscal year (from September 1, 2021 to August 31, 2022)
1 Matters regarding the type and total number of issued shares and the type and number of treasury shares
Current consolidated fiscal year Current consolidated fiscal year Current consolidated fiscal year End of current consolidated fiscal year
Number of shares at beginning of period Increased number of shares Number of shares decreased Number of shares
(1,000 shares) (1,000 shares) (1,000 shares) (1,000 shares)
Issued shares
common stock 3,896 - - 3,896
total 3,896 - - 3,896
Treasury stock
common stock 668 100 - 768
total 668 100 - 768

(Note) The increase in the number of treasury shares of common stock of 100,000 shares is due to an increase of 100,000 shares due to the acquisition of treasury shares by resolution of the Board of Directors and an increase
of 0,000 shares due to the purchase of shares constituting less than one unit.
2 Matters regarding dividends
(1) Dividend payment amount
per share
Total amount of dividends
resolution Type of stock Dividend amount Reference date Effective date
(1,000 yen)
(circle)
November 25, 2021
common stock 80,694 25.00 August 31, 2021 November 26, 2021
Ordinary general meeting of shareholders
April 11, 2022

common stock 32,277 10.00 February 28, 2022 May 16, 2022
board of directors
(2) Among dividends whose record date falls in the current consolidated fiscal year, the effective date of the dividend is in the next consolidated fiscal year.
per share
resolution Type of stock Source of dividend Dividend amount Reference date Effective date
(1,000 yen)
(circle)
November 24, 2022
common stock 56,299 an earned surplus 18.00 August 31, 2022 November 25, 2022
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Current consolidated fiscal year (from September 1, 2022) (To August 31, 2023)
1 Matters regarding the type and total number of issued shares and the type and number of treasury shares
Current consolidated fiscal year Current consolidated fiscal year Current consolidated fiscal year End of current consolidated fiscal year
Number of shares at beginning of period Increased number of shares Number of shares decreased Number of shares
(1,000 shares) (1,000 shares) (1,000 shares) (1,000 shares)
Issued shares
common stock 3,896 - - 3,896
total 3,896 - - 3,896
Treasury stock
common stock 768 - - 768
total 768 - - 768
2 Matters regarding dividends
(1) Dividend payment amount
per share
resolution Type of stock Dividend amount Reference date Effective date
(1,000 yen)
(circle)
November 24, 2022
common stock 56,299 18.00 August 31, 2022 November 25, 2022
April 12, 2023

common stock 31,277 10.00 February 28, 2023 May 15, 2023
board of directors
(2) Among dividends whose record date falls in the current consolidated fiscal year, the effective date of the dividend is in the next consolidated fiscal year.
per share
resolution Type of stock Source of dividend Dividend amount Reference date Effective date
(1,000 yen)
(circle)
November 28, 2023
common stock 9,383 an earned surplus 3.00 August 31, 2023 November 29, 2023
(Related to consolidated cash flow statement)

* Relationship between the end-of-year balance of cash and cash equivalents and the amounts of items listed on the consolidated balance sheet

cash and deposit accounts 1,647,951 thousand yen 2,332,503 thousand yen
Time deposits with a deposit period of more than 3 months △ 392,700 △ 946,832
cash and cash equivalents 1,255,251 1,385,671
(Lease transaction related)
Due to its lack of importance, the description has been omitted.
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(Financial products related)
1. Matters related to the status of financial products
(1) Policy on financial products

The Group's policy is to invest temporary surplus funds in highly liquid financial instruments and not engage in speculative transactions.
(2) Details of financial products and their risks
Notes and accounts receivable, which are trade receivables, are exposed to customer credit risk. In addition, trade receivables denominated in foreign
currencies arising from conducting business overseas are exposed to exchange rate fluctuation risk.
Investment securities are stocks held for purposes other than pure investment and are exposed to market price
fluctuation risk.
Most accounts payable, which are operating payables, are due within two months. Certain foreign currency-denominated assets
are exposed to exchange rate fluctuation risk.
(3) Risk management system related to financial products
① Management of credit risk (risk related to non-performance of contracts by business partners, etc.)
In accordance with our receivables management regulations, our general affairs department manages the due dates and balances of notes and accounts receivable for each
trading partner, and works with our sales department to quickly identify and alleviate concerns about collection due to deterioration in financial conditions, etc. I'm here.
Consolidated subsidiaries are also managed in the same manner in accordance with the Company's receivables management regulations.
② Management of market risks (risk of fluctuations in exchange rates, interest rates, etc.)
The Company does not engage in derivative transactions to protect against exchange rate fluctuation risks arising from trade receivables and
payables denominated in foreign currencies. In addition, to deal with the risk of price fluctuations arising from investment securities, we regularly
monitor market prices and the financial status of issuers (client companies).
③ Management of liquidity risk related to financing (risk of not being able to make payments on due date) To manage
liquidity risk, the Company always secures liquid funds on hand equivalent to at least one month's sales amount. is
our basic policy. Consolidated subsidiaries also manage liquidity risk in a similar manner.
(4) Supplementary explanation regarding matters related to the market value of financial instruments Because variable factors are taken into consideration
when calculating the market value of financial instruments, the value may fluctuate by adopting different assumptions, etc. .
(5) Concentration of credit risk
69.0% of trade receivables as of the consolidated closing date for the current consolidated fiscal year are from specific large customers.
2. Matters related to the market value of financial instruments, etc.
The carrying amount on the consolidated balance sheet, the market value, and the difference between these are as follows.
Previous consolidated fiscal year (August 31, 2022)
Consolidated balance sheet amount

Market price (thousand yen) Difference (thousand yen)
(1,000 yen)
(1) Investment securities
Other securities 75,909 75,909 -
(2) Long-term deposit 610,548 615,498 4,950
Asset total 686,457 691,408 4,950
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Current consolidated fiscal year (August 31, 2023)
Consolidated balance sheet amount

Market price (thousand yen) Difference (thousand yen)
(1,000 yen)
(1) Investment securities
Other securities 83,263 83,263 -
(2) Long-term deposit 299,436 301,418 1,982
Asset total 382,699 384,681 1,982

(*) "Cash and deposits," "notes and accounts receivable," "accounts payable," and "accrued income taxes, etc." are cash and short-term.
This information is omitted because the fair value approximates the book value as it is settled between
(Note) Scheduled redemption amount of monetary receivables and securities with maturity after the consolidated closing date
Within 1 year (1,000 yen) More than 1 year but less than 5 years (1,000 yen) Over 5 years (1,000 yen)
cash and deposits 1,647,951 - -
Notes and accounts receivable 1,080,600 - -
long term deposit - 610,548 -
total 2,728,552 610,548 -
Within 1 year (1,000 yen) More than 1 year but less than 5 years (1,000 yen) Over 5 years (1,000 yen)
cash and deposits 2,332,503 - -
Notes and accounts receivable 814,470 - -
long term deposit - 299,436 -
total 3,146,974 299,436 -
3. Matters related to the breakdown of the market value of financial instruments by level, etc.
The fair value of financial instruments is classified into the following three levels depending on the observability and materiality of the inputs
involved in calculating the fair value.
Level 1 market value: Among the inputs related to the calculation of observable market value, the relevant time formed in an active market
The market value calculated from the market price of the asset or liability subject to the value calculation.
Level 2 market value: Among the inputs related to the calculation of observable market value, calculation of market value other than level 1 inputs.
Market value calculated using inputs related to

Level 3 market value: Market value calculated using unobservable market value calculation inputs.
If multiple inputs that have a significant impact on the calculation of market value are used, the market value is
classified into the level to which each input belongs, which has the lowest priority in calculating market value. .
(1) Financial instruments recorded on the consolidated balance sheet at market value
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Market price (thousand yen)
classification
level 1 level 2 level 3 total
Investment securities
Other securities
stock 75,909 - - 75,909
Asset total 75,909 - - 75,909
classification
Other securities
stock 83,263 - - 83,263
Asset total 83,263 - - 83,263
(2) Financial instruments other than those recorded on the consolidated balance sheet at market value
classification
long term deposit - 615,498 - 615,498
Asset total - 615,498 - 615,498
classification
long term deposit - 301,418 - 301,418
Asset total - 301,418 - 301,418
(Note) Explanation of valuation techniques used to calculate market value and inputs related to calculation of market value
Listed stocks are valued using market prices. Listed stocks are classified as Level 1 market value because they are traded
in an active market.
long term deposit
The market value of long-term deposits is calculated using the discounted present value method based on their future cash flows and deposit interest rates, and is Level 2.
Classified according to market value.
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(Securities related)
1. Other securities
Consolidated balance sheet recording

kinds Acquisition cost (thousand yen) Difference (thousand yen)
Amount (thousand yen)
(1) Stocks 75,909 47,685 28,224
(2) Bonds
① National bonds, local bonds, etc. - - -

The amount recorded on the consolidated balance sheet is
② Corporate bonds - - -
More than acquisition cost
③ Others - - -
(3) Others - - -
subtotal 75,909 47,685 28,224
(1) Stocks - - -
(2) Bonds

not exceeding the acquisition cost
③ Others - - -
(3) Others - - -
subtotal - - -
total 75,909 47,685 28,224
Consolidated balance sheet recording

kinds Acquisition cost (thousand yen) Difference (thousand yen)
(1) Stocks 83,263 45,258 38,005
(2) Bonds

More than acquisition cost
③ Others - - -
(3) Others - - -
subtotal 83,263 45,258 38,005
(1) Stocks - - -
(2) Bonds

not exceeding the acquisition cost
③ Others - - -
(3) Others - - -
subtotal - - -
total 83,263 45,258 38,005
2. Other securities sold

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Not applicable.
Current consolidated fiscal year (from September 1, 2022 to August 31, 2023)
Total amount of gain on sale Total loss on sale

kinds Sales amount (thousand yen)
(1,000 yen) (1,000 yen)
(1) Stocks 18,284 9,508 -
(2) Bonds
③ Others - - -
(3) Others - - -
total 18,284 9,508 -
(Related to derivative transactions)
There are no applicable matters as our group does not engage in any derivative transactions.
(retirement benefits related)
1. Overview of the retirement benefit system adopted
Our company has adopted a defined contribution plan. In addition, some consolidated subsidiaries have adopted a lump-sum retirement benefit plan
(an unfunded defined benefit plan) and calculate retirement benefit liabilities and retirement benefit expenses using the simplified method.
2. defined benefit plan

(1) Reconciliation table of beginning balance and end-of-year balance of retirement benefit liability for plans applying the simplified method (1,000 yen)

Beginning balance of retirement benefit liability 6,142 8,400
Amount of retirement benefits paid - -
Ending balance of retirement benefit liability 8,400 12,557
(2) Retirement benefit costs
Retirement benefit expenses calculated using the simplified method: 2,258 thousand yen in the previous fiscal year 4,156 thousand yen in the current fiscal year
3. defined contribution plan
The required contribution amount to the Company's defined contribution plan was 14,151 thousand yen in the previous consolidated fiscal year and 14,311 thousand yen in the current consolidated fiscal year.
(related to stock options, etc.)

Not applicable.
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(Related to tax effect accounting)
1. Breakdown of deferred tax assets and deferred tax liabilities by main cause
(August 31, 2022) (August 31, 2023)
Deferred tax asset
Reserve for bonuses 4,515 thousand yen 4,515 thousand yen
Impairment loss 137,341 thousand yen 154,748 thousand yen
Reserve for directors' retirement benefits 13,284 thousand yen 14,172 thousand yen
Loss on inventory valuation 13,698 thousand yen 14,733 thousand yen
business taxes payable 386,000 yen 1,778,000 yen
Tax loss carryforwards (Note 2) 236,840 thousand yen 239,398 thousand yen
others 17,468 thousand yen 16,503 thousand yen
Deferred tax asset subtotal 423,535 thousand yen 445,850 thousand yen
Valuation allowance for tax loss carryforwards (Note 2) △ 236,157 thousand yen △ 239,398 thousand yen
Valuation allowance related to total deductible temporary differences, etc. △ 165,217 thousand yen △ 206,196 thousand yen
Valuation allowance subtotal (Note) 1 △ 401,374 thousand yen △ 445,595 thousand yen
Total deferred tax assets 22,161 thousand yen 254,000 yen
Deferred tax liability
Retained profits of overseas subsidiaries △ 175,711 thousand yen △ 137,843 thousand yen
Valuation difference on other securities △ 8,495 thousand yen △ 11,439 thousand yen
Total deferred tax liability △ 184,206 thousand yen △ 149,283 thousand yen
Net deferred tax liability △ 162,045 thousand yen △ 149,028 thousand yen
(Note) 1. The amount of valuation allowance has increased by 44,221 thousand yen. This increase was mainly due to the Company's tax carryforwards.
This is because a loss occurred.

2. Amounts of tax loss carryforwards and their deferred tax assets by carryforward deadline
Over 1 year Over 2 years Over 3 years Over 4 years

Within 1 year Over 5 years total
Within 2 years Within 3 years Within 4 years Within 5 years
(1,000 yen) (1,000 yen) (1,000 yen)
(1,000 yen) (1,000 yen) (1,000 yen) (1,000 yen)
Tax carryover deficit

39,114 32,549 37,583 40,761 23,163 63,668 236,840
Loss (a)
Valuation allowance △ 39,114 △ 32,549 △ 37,583 △ 40,078 △ 23,163 △ 63,668 △ 236,157
Deferred tax asset - - - 683 - - (b)683
(a) Tax loss carryforwards are the amount multiplied by the effective statutory tax rate.
(b) Deferred tax assets of 683 thousand yen have been recorded for tax loss carryforwards of 236,840 thousand yen (the amount multiplied by the effective statutory
tax rate). No valuation allowance is recognized for the tax losses carried forward from the deferred tax assets, as it is determined that they are recoverable
based on the expectation of future taxable income.
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Over 1 year Over 2 years Over 3 years Over 4 years

Within 1 year Over 5 years total
Within 2 years Within 3 years Within 4 years Within 5 years
(1,000 yen) (1,000 yen) (1,000 yen)
(1,000 yen) (1,000 yen) (1,000 yen) (1,000 yen)
Tax carryover deficit

34,409 39,730 42,294 24,437 18,301 80,225 239,398
Loss (c)
Valuation allowance △ 34,409 △ 39,730 △ 42,294 △ 24,437 △ 18,301 △ 80,225 △ 239,398
Deferred tax asset - - - - - - -
(c) Tax loss carryforwards are the amount multiplied by the effective statutory tax rate.
2. If there is a material difference between the statutory effective tax rate and the corporate tax burden rate after applying tax effect accounting, the cause of the difference.
Breakdown of major items

(August 31, 2022) (August 31, 2023)
Statutory effective tax rate 30.1% 30.1%

(adjustment)
Items that are permanently excluded from deductions such as entertainment expenses 0.1 0.3
Items that are permanently excluded from income, such as dividends received △ 24.9 △ 97.4
Resident tax per capita 0.6 2.6
Increase/decrease in valuation allowance 2.8 45.9
foreign withholding tax 8.7 34.1
Retained profits of overseas subsidiaries 1.7 △ 24.1
Tax rate difference between parent and subsidiary △ 4.9 △ 10.2
Elimination of dividends received from subsidiaries 26.2 102.5
others 0.2 1.7
Corporate tax burden rate after applying tax effect accounting 40.6 85.3
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(Related to business combinations, etc.)
Not applicable.
(Asset retirement obligation related)
Not applicable.
(Revenue recognition related)
(1) Information disaggregating revenue generated from contracts with customers
Information disaggregated into revenue generated from contracts with customers is as described in “Notes (segment information,
etc.).”
(2) Information that is the basis for understanding revenue arising from contracts with customers. As stated in ``Policy-
related matters (5) Standards for recording significant income and expenses''.
(3) The relationship between the satisfaction of performance obligations based on contracts with customers and cash flows arising from those contracts, and the amount of revenue expected to be
recognized from the next fiscal year onward from contracts with customers that exist as of the end of the current fiscal year. Information regarding amount and timing
① Balance of contract debt
(Unit: 1,000 yen)
Contract liability (beginning balance) 98,322 80,656

Contract liability (end balance) 80,656 65,570
Contract liabilities are mainly advances received from customers based on orders for plastic molding molds, and are included in “Other”
under current liabilities on the consolidated balance sheet. Contract liabilities are reversed as revenue is recognized.
② Transaction price allocated to remaining performance obligations
Information has been omitted as there are no important contracts with an initially expected contract period of more than one year.
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(Segment information, etc.)
[Segment information]
1. Overview of reportable segments
The Company's reportable segments are constituent units of the Company for which separate financial information is available and are regularly reviewed by the
Board of Directors to determine the allocation of management resources and evaluate performance. This is something that is happening.
Our group has a single business of molding and processing plastic products, with our company operating domestically, Asahi Plastic
Products (Kunshan) Co., Ltd. operating in China, and Asahi Plus Co., Ltd. operating in Thailand overseas. I am in charge of each.
Therefore, our group consists of regional segments based on our production and sales systems, and we
have three reportable segments: Japan, China, and Thailand. Each reportable segment produces and sells
power tool parts, automobile parts and other plastic products.
2. Calculation method for sales, profit or loss, assets, and other items for each reportable segment
The accounting method for the reported business segments is generally the same as described in “Important matters underlying the
preparation of consolidated financial statements.”
Reportable segment profits are based on operating income. Inter-segment internal

profits and transfer amounts are based on prevailing market prices.
3. Information regarding the amounts of sales, profits or losses, assets, and other items by reportable segment and breakdown of revenues
information
(Unit: 1,000 yen)
Reportable segment
Adjustment amount Consolidated financial statement total
(Note 1) Upper amount (Note 2)

Japan China Thailand total
amount of sales
product sales 3,471,353 5,698,919 718,366 9,888,639 - 9,888,639
mold sales 216,330 539,940 76,031 832,301 - 832,301
Revenue from contracts with customers 3,687,683 6,238,860 794,397 10,720,941 - 10,720,941
Other income - - - - - -
Sales to external customers 3,687,683 6,238,860 794,397 10,720,941 - 10,720,941

Internal sales between segments
- 149,104 - 149,104 △ 149,104 -
is the transfer amount
total 3,687,683 6,387,964 794,397 10,870,045 △ 149,104 10,720,941
Segment profit or loss (△) △ 44,295 611,340 △ 25,544 541,500 △ 14,405 527,095
segment assets 3,645,217 3,881,926 551,815 8,078,958 △ 1,232,352 6,846,605
Other items
depreciation expense 145,092 107,402 369 252,864 - 252,864
Tangible fixed assets and intangible fixed assets

222,845 218,029 4,169 445,044 - 445,044
increase in production
(Notes) 1. The adjustment amount is mainly the elimination of intersegment transactions.
2. Segment profit or loss is adjusted with operating income in the consolidated statement of income.
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Securities report
Current consolidated fiscal year (from September 1, 2022) (to August 31, 2023)
(Unit: 1,000 yen)
Reportable segment
Adjustment amount Consolidated financial statement total
(Note 1) Upper amount (Note 2)

amount of sales
product sales 3,328,317 3,750,708 642,945 7,721,971 - 7,721,971
mold sales 190,765 637,344 113,216 941,326 - 941,326
Revenue from contracts with customers 3,519,082 4,388,053 756,162 8,663,297 - 8,663,297
Other income - - - - - -
Sales to external customers 3,519,082 4,388,053 756,162 8,663,297 - 8,663,297

Internal sales between segments
- 72,210 - 72,210 △ 72,210 -
is the transfer amount
total 3,519,082 4,460,263 756,162 8,735,507 △ 72,210 8,663,297
Segment profit or loss (△) △ 115,071 300,063 △ 20,537 164,454 5,341 169,796
segment assets 3,919,737 3,266,078 489,341 7,675,156 △ 1,238,033 6,437,123
Other items
depreciation expense 146,790 115,265 413 262,469 - 262,469
Tangible fixed assets and intangible fixed assets

147,584 137,737 11,459 296,780 - 296,780
increase in production
(Notes) 1. The adjustment amount is mainly the elimination of intersegment transactions.
2. Segment profit or loss is adjusted with operating income in the consolidated statement of income.
【Related information】
Previous consolidated fiscal year (from September 1, 2021) (to August 31, 2022)
1. Information by product and service
As sales to external customers for a single product/service category exceed 90% of sales in the consolidated statement of income, this
information has been omitted.
2. Information by region
(1) Sales
This information is omitted because similar information is disclosed in the segment information.
(2) Tangible fixed assets (Unit: 1,000 yen)
Japan china Thailand total
1,364,703 741,085 147,107 2,252,896
3. Information by major customer (Unit: 1,000 yen)
Customer name or name amount of sales Associated segment name
Makita (China) Co., Ltd. 3,730,445 China
Makita (Kunshan) Co., Ltd. 2,483,095 China
INOAC Corporation Co., Ltd. 1,848,132 Japan
Makita Co., Ltd. 1,132,183 Japan
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Current consolidated fiscal year (from September 1, 2022) (to August 31, 2023)
1. Information by product and service
As sales to external customers for a single product/service category exceed 90% of sales in the consolidated statement of income, this
information has been omitted.
2. Information by region
(1) Sales
This information is omitted because similar information is disclosed in the segment information.
(2) Tangible fixed assets (Unit: 1,000 yen)
Japan china Thailand total
1,246,405 740,197 156,651 2,143,254
3. Information by major customer (Unit: 1,000 yen)
Customer name or name amount of sales Associated segment name
Makita (China) Co., Ltd. 2,991,177 China
INOAC Corporation Co., Ltd. 2,016,917 Japan
Makita (Kunshan) Co., Ltd. 1,384,614 China
Makita Co., Ltd. 775,503 Japan
[Information regarding impairment losses on fixed assets by reportable segment]
(Unit: 1,000 yen)
Impairment loss - - 4,169 4,169
(Unit: 1,000 yen)
Impairment loss 118,902 - 9,930 128,832
[Information regarding goodwill amortization amount and unamortized balance by reportable segment]
Not applicable.
Not applicable.
[Information regarding gain on negative goodwill by reportable segment]
Not applicable.
Not applicable.
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[Related party information]
Previous consolidated fiscal year (from September 1, 2021) (to August 31, 2022)
Officers and major individual shareholders, etc.
capital or Place of voting rights, etc.

Company name Business details with related parties Ending balance
Yes (owned)
Transaction amount
kinds location Capital Transaction details Subject
title or name or occupation connection of (1,000 yen) (1,000 yen)
(1,000 yen) ratio(%)
major shareholders,
(owned)
Representative director company
treasury stock
Officer's next of kin Motomi Sugiura - - - Takeno Nagasugiura 71,000 - -
Direct 9.9 acquisition
person biological father
(Note) The acquisition of treasury stock will be carried out as an off-auction treasury stock purchase transaction on July 14, 2022, based on the resolution of the Board of Directors held on July 13, 2022.
(ToSTNeT-3), and the acquisition price is based on the closing price on July 13, 2022. Additionally, as a result of this stock acquisition, Mr.
Motomu Sugiura no longer falls under the category of a major shareholder of the Company.
Current consolidated fiscal year (from September 1, 2022 to

August 31, 2023) Not applicable.
(Relations to special purpose companies subject to disclosure)
Not applicable.
(Per share information)

Net assets per share 1,681 yen 42 sen 1,645 yen 20 sen
Net income per share 121 yen 24 sen 7 yen 35 sen
(Note) 1. Diluted net income per share is not stated because there are no diluted shares.
2. The basis for calculating net income per share is as follows.

Amount of net income attributable to parent company shareholders (thousands of yen) 389,477 23,000
Amounts not attributable to common shareholders (thousand yen) - -
Net income attributable to parent company shareholders related to common stock

389,477 23,000
Average number of common stocks during the period (thousands of shares) 3,212 3,127
(Important subsequent events)
Not applicable.
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⑤ [Consolidated supplementary schedule]
[Corporate bond schedule]
Not applicable.
[Details of borrowings, etc.]
Balance at the beginning of the current period Balance at end of current period average interest rate
(%)
classification Repayment deadline
(1,000 yen) (1,000 yen)
Scheduled to be repaid within 1 year

292 - - -
lease obligations of
Lease obligations (more than 1 year)
scheduled to be repaid within - - - -

except for. )
total 292 - - -
[Asset retirement obligation schedule]
Not applicable.
(2) [Others]
Quarterly information, etc. for the current consolidated fiscal year
(cumulative period) 1st quarter 2nd quarter 3rd quarter Current consolidated fiscal year
Sales (thousand yen) 2,721,045 4,503,533 6,510,819 8,663,297
Quarterly (current period) net income amount before taxes and other adjustments (thousands of yen) 234,319 183,630 197,734 156,896
Amount of quarterly (current period) net income attributable to parent company shareholders
160,090 83,107 97,131 23,000
(1,000 yen)
Quarterly (current period) net income per share (yen) 51.18 26.57 31.05 7.35
(accounting period) 1st quarter 2nd quarter 3rd quarter 4th quarter
Quarterly net income per share or

(circle) 51.18 △ 24.61 4.48 △ 23.70
Quarterly net loss per share (△)
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2 [Financial statements, etc.]
(1) [Financial statements]
① [Balance sheet]
Previous business year Current fiscal year
(August 31, 2022) (August 31, 2023)

Assets section
current assets
cash and deposits 274,683 705,473

bills recivable 7,736 5,283
Electronically recorded debt 13,074 13,526
accounts receivable *379,214 446,851
product 96,760 71,954
Work in process 95,507 47,721
Raw materials and supplies 53,989 45,072
Prepaid expenses 2,401 3,332
Accrued consumption tax, etc. 17,121 -
accrued revenue - 6,533
others 9,469 1,806
Allowance for doubtful accounts △ 470 △ 540
Total current assets 949,488 1,347,016
Fixed asset
building 396,562 377,809

construct 8,271 10,625
machinery and equipment 169,636 65,805
vehicle carrier 19,615 11,176
tools, equipment and equipment 52,035 62,405
land 718,582 718,582
Total tangible fixed assets 1,364,703 1,246,405
Investments and other assets
Investment securities 75,909 83,263

Capital 420 320
Affiliated company investment 1,195,473 1,195,473
Membership rights etc. 1,400 1,400
Long-term prepaid expenses 1,391 1,447
Deferred tax asset 13,333 -
Insurance reserve fund 41,106 42,438
others 5,049 5,032
Allowance for doubtful accounts △ 3,059 △ 3,059
Total investments and other assets 1,331,024 1,326,315
Total fixed assets 2,695,728 2,572,721
Total assets 3,645,217 3,919,737
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(August 31, 2022) (August 31, 2023)

debt section
Current Liabilities
Accounts payable * 215,101 * 251,328

accrued expenses * 96,191 * 101,958
Accrued corporate taxes, etc. - 9,504
deposit 4,344 7,228
Accrued consumption tax, etc. - 14,519
Reserve for bonuses 15,000 15,000
Reserve for directors' bonuses 9,050 7,240
Equipment-related accounts payable 12,980 9,047
others 4,035 978
Total current liabilities 356,704 416,805
Fixed debt
Deferred tax liability - 11,439
Total fixed liabilities 44,136 58,525
Total debt 400,840 475,330
Of Net Assets
capital 671,787 671,787

capital surplus
capital reserve 717,689 717,689
Other capital surplus 12,248 12,248
Total capital surplus 729,938 729,938
an earned surplus
profit reserve 56,150 56,150

Other retained earnings
Separate reserve fund 1,000,000 1,000,000

Retained earnings carried forward 1,136,746 1,329,938
Total retained earnings 2,192,896 2,386,088
Treasury stock △ 369,973 △ 369,973
Total shareholders' equity 3,224,648 3,417,841
Valuation/exchange differences, etc.
Valuation difference on other securities 19,728 26,565

Total valuation/exchange differences, etc. 19,728 26,565
Total net assets 3,244,377 3,444,406
Total debt and net assets 3,645,217 3,919,737
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② [Profit and loss statement]

amount of sales 3,687,683 3,519,082
Cost of sales *1 3,370,423 *1 3,253,474
gross profit 317,259 265,607
Selling, general and administrative expenses *2 361,555 *2 380,678
Operating loss (△) △ 44,295 △ 115,071
Non-operating income
Interest income 18 8,582

Dividend income *1 571,357 *1 534,996
Subsidy income 12,771 2,996
Exchange gain 22,961 35,812
others 8,277 2,064
Total non-operating income 615,385 584,452
Non-operating expenses
others 201 -
Total non-operating expenses 201 -
Ordinary profit 570,888 469,380
special profit
Gain on sale of fixed assets 789 763

Gain on sale of investment securities - 9,508
Total extraordinary profit 789 10,272
extraordinary loss
Loss on retirement of fixed assets - 190

Impairment loss - 118,902
Total extraordinary loss - 119,092
Net income before tax 571,677 360,561
Corporate tax, resident tax and business tax 61,590 57,962
Corporate tax adjustment amount 21,744 21,828
Total corporate taxes, etc. 83,335 79,790
net income 488,342 280,770
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③ [Statement of changes in shareholders' equity]
Previous business year (from September 1, 2021) To (August 31, 2022)

capital surplus an earned surplus

capital
Other capital capital surplus an earned surplus
capital reserve profit reserve
Surplus total retained earnings carried forward total
Separate reserve fund
Surplus money
Balance at the beginning of the current period 671,787 717,689 12,248 729,938 56,150 1,000,000 761,375 1,817,525
net income 488,342 488,342
Acquisition of treasury stock
Items other than stockholders' equity
Current period changes (net amount)
Total amount of changes for the current period - - - - - - 375,370 375,370
Balance at end of current period 671,787 717,689 12,248 729,938 56,150 1,000,000 1,136,746 2,192,896
Shareholders' equity Valuation/exchange differences, etc.
Total net assets

Other securities Evaluation/conversion
Treasury stock Total shareholders' equity
Ticket valuation difference Total difference etc.
Balance at the beginning of the current period △ 298,957 2,920,294 65,857 65,857 2,986,151
net income 488,342 488,342
Acquisition of treasury stock △ 71,016 △ 71,016 △ 71,016

△ 46,128 △ 46,128 △ 46,128
Total amount of changes for the current period △ 71,016 304,353 △ 46,128 △ 46,128 258,225
Balance at end of current period △ 369,973 3,224,648 19,728 19,728 3,244,377
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Current fiscal year (from September 1, 2022 To (August 31, 2023)
capital surplus an earned surplus

capital
Other capital capital surplus an earned surplus
capital reserve profit reserve
Surplus total retained earnings carried forward total
Separate reserve fund
Surplus money
Balance at the beginning of the current period 671,787 717,689 12,248 729,938 56,150 1,000,000 1,136,746 2,192,896
net income 280,770 280,770
Total amount of changes for the current period - - - - - - 193,192 193,192
Balance at end of current period 671,787 717,689 12,248 729,938 56,150 1,000,000 1,329,938 2,386,088
Shareholders' equity Valuation/exchange differences, etc.
Total net assets

Other securities Evaluation/conversion
Treasury stock Total shareholders' equity
Ticket valuation difference Total difference etc.
Balance at the beginning of the current period △ 369,973 3,224,648 19,728 19,728 3,244,377
net income 280,770 280,770

6,837 6,837 6,837
Total amount of changes for the current period - 193,192 6,837 6,837 200,029
Balance at end of current period △ 369,973 3,417,841 26,565 26,565 3,444,406
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Securities report
[Notes]
(Significant accounting policies)
1. Asset evaluation standards and methods
(1) Securities evaluation standards and evaluation methods
Other securities
Things other than stocks, etc. that have no market price
Market value method (valuation differences are accounted for directly into net assets, and cost of sales is calculated using the moving average method)
Stocks, etc. with no market price
Subsidiary stock
(2) Inventory evaluation standards and evaluation methods
Products/work in process
Molded and assembled products - Cost method based on the gross average method
(Balance sheet value is a method of writing down book value based on decline in profitability) Resin molds -
Cost method using the specific identification method
(Balance sheet value is a book value reduction method based on decline in profitability) Raw
materials and supplies
Cost method using gross average method
(The balance sheet value is a book value reduction method based on a decline in profitability)
2. Fixed asset depreciation method

We use the declining balance method.
However, buildings acquired on or after April 1, 1998 (excluding building equipment), building equipment and
structures acquired on or after April 1, 2016, and molds among tools, fixtures, and fixtures: The straight-line
method is used. The main useful lives are as follows.
building 3-38 years
machinery and equipment 8-10 years
Software (for internal use) is amortized using the straight-line method based on the estimated internal usable period (5
years).
3. Standards for converting foreign currency-denominated assets and liabilities into Japanese currency
Monetary receivables and payables denominated in foreign currencies are converted into yen at the spot exchange rate on the balance sheet date, and exchange differences are treated as profit or
loss.
4. Standards for recording reserves
(1) Allowance for doubtful accounts
In order to prepare for losses due to bad debts on receivables, the estimated uncollectible amount is recorded for general receivables based on the actual
rate of bad debts, and for specific receivables such as doubtful debts, taking into account the collectibility of each individual receivable. (2) Reserve for
bonuses
In order to prepare for the payment of employee bonuses, an amount is recorded based on the estimated amount to be paid in the current fiscal year.
(3) Reserve for directors' bonuses
In order to cover the expenditure of bonuses paid to executives, the amount is recorded based on the estimated payment amount. (4)
Reserve for directors' retirement benefits
In order to prepare for the payment of retirement benefits for directors, the amount required to be paid at the end of the current fiscal year based on the rules for retirement benefits for
directors is recorded.
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5. Revenue and expense recording standards
Our main business is the manufacture and sale of plastic molded products and plastic molds. The plastic molded products
business primarily manufactures and sells power tool parts and automobile parts. As a general rule, revenue from these sales
transactions of molded products is recognized when the performance obligation is determined to be satisfied upon
acceptance inspection by the customer. For domestic transactions, if the period from the time of shipment to the time control
of the product is transferred to the customer is a normal period, revenue is recognized at the time of shipment. In the plastic
molding mold business, he primarily manufactures and sells plastic molding molds, etc. As a general rule, revenue from sales
transactions of plastic molds, etc. is recognized when the performance obligation is determined to be satisfied upon
acceptance by the customer.
(Significant accounting estimate)

(1) Impairment of fixed assets
① Amounts recorded in the financial statements for the current fiscal year
Tangible fixed assets 1,364,703 thousand yen 1,246,405 thousand yen
Impairment loss - 1,000 yen 118,902 thousand yen
② Information regarding significant accounting estimates related to identified items
The contents are the same as those stated in "Notes (Significant Accounting Estimates) Impairment of Fixed Assets" in the consolidated financial statements.
(2) Recoverability of deferred tax assets

① Amounts recorded in the financial statements for the current fiscal year
(Unit: 1,000 yen)

Deferred tax asset 13,333 -
The contents are the same as those stated in "Notes (Significant Accounting Estimates) Recoverability of Deferred Tax Assets" in the consolidated financial
statements.
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(Change in accounting policy)
Application of accounting standards application guidelines regarding calculation of market value
“Guidelines for the Application of Accounting Standards for Calculating Market Values” (Corporate Accounting Standards Application Guidelines No. 31) June 17, 2021. Below, “market value calculation”
``Guidelines for the Application of Standard Accounting Standards.'' ) from the beginning of the current business year, and in accordance with the transitional treatment specified in Paragraph
27-2 of the Application Guidelines for Mark-to-Market Accounting Standards, the new accounting policies specified by the Application Guidelines for Mark-to-Market Accounting Standards will
be applied in the future. did.
Please note that the application of the fair value accounting standards application guidelines has no impact on the financial statements for the current fiscal year.
(Balance sheet related)

* Monetary claims and debts to affiliated companies
(August 31, 2022) (August 31, 2023)
short-term monetary claims 125,000 yen - 1,000 yen
short-term financial obligations 9,301,000 yen 12,492 thousand yen
(Profit and loss statement related)
*1 Transaction volume with affiliated companies

Transaction volume from business transactions
Purchase amount 123,245 thousand yen 57,867 thousand yen
Transaction volume from transactions other than business transactions 569,761 thousand yen 534,490 thousand yen
*2 The approximate percentage of expenses that belong to selling expenses was 43% in the previous fiscal year and 45% in the current fiscal year, and the approximate percentage of expenses that
belong to general and administrative expenses was 57% in the previous fiscal year and 55% in the current fiscal year.
The major items and amounts of selling, general and administrative expenses are as follows.

Packing and transportation costs 81,119 thousand yen 94,897 thousand yen
Executive compensation 49,484 48,216

Salary/Bonus 85,823 84,055
Provision for bonuses 2,809 2,938
Provision for directors’ bonuses 9,050 7,240
Provision for director retirement benefits 3,009 2,950
depreciation expense 10,009 12,958
Commission paid 41,364 46,945
Provision of allowance for doubtful accounts △ 50 70
(Securities related)
Subsidiary stocks and affiliated company stocks
Not applicable.
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(Related to tax effect accounting)
1. Breakdown of deferred tax assets and deferred tax liabilities by main cause
(August 31, 2022) (August 31, 2023)
Deferred tax asset
Reserve for bonuses 4,515 thousand yen 4,515 thousand yen

Loss on inventory valuation 13,698 14,733
business taxes payable 386 1,778
Loss on valuation of investments in affiliated companies 395,215 395,215
Impairment loss 57,865 83,593
Tax loss carryforwards 78,476 95,033
others 17,136 16,248
Deferred tax asset subtotal 580,578 625,291
Valuation allowance for tax loss carryforwards △ 77,793 △ 95,033
Valuation allowance related to total deductible temporary differences, etc. △ 480,956 △ 530,257
Valuation allowance subtotal △ 558,749 △ 625,291
Total deferred tax assets 21,828 -
Deferred tax liability
Valuation difference on other securities △ 8,495 △ 11,439

Total deferred tax liability △ 8,495 △ 11,439
Net amount of deferred tax assets or deferred tax liabilities (△) 13,333 △ 11,439
2. If there is a material difference between the statutory effective tax rate and the corporate tax burden rate after applying tax effect accounting, the cause of the difference.
Breakdown of major items

(August 31, 2022) (August 31, 2023)
Statutory effective tax rate 30.1% 30.1%

(adjustment)
Items that are permanently excluded from deductions such as entertainment expenses 0.1 0.1
Items that are permanently excluded from income, such as dividends received △ 28.5 △ 42.4
Resident tax per capita 0.7 1.1
Increase/decrease in valuation allowance 2.1 18.5
foreign withholding tax 10.0 14.8
others 0.1 △ 0.1
Corporate tax burden rate after applying tax effect accounting 14.6 22.1
(Revenue recognition related)
The notes are omitted because the same information is included in the consolidated financial statements "Notes (Revenue Recognition Related)."
(Important subsequent events)
Not applicable.
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④ [Attached schedule]
[Details of tangible fixed assets, etc.]

(Unit: 1,000 yen)
classification Asset type Balance at the beginning of the current

Increase
periodamount for the current period
Decrease amount for the current period
Current period depreciation amountBalance at end of current period Accumulated depreciation
building 396,562 11,305 0 30,058 377,809 1,118,371
construct 8,271 3,470 190 925 10,625 69,582
machinery and equipment 89,194

169,636 28,434 43,071 65,805 1,716,127
(89,194)
vehicle carrier 1,941
19,615 1,642 8,140 11,176 55,108
Tangible solid
(1,941)
fixed assets
tools, equipment and 25,554
52,035 100,402 64,478 62,405 1,115,990
and supplies (25,554)
land 718,582 - - - 718,582 -
construction in progress - 160,529 160,529 - - -

277,410
total 1,364,703 305,785 146,674 1,246,405 4,075,180
(116,690)
2,211
Software - 2,328 116 - 1,519
Intangible solid (2,211)
fixed assets 2,211
total - 2,328 116 - 1,519
(2,211)
(Note) 1. The “increase for the current period” in “Tools, furniture and fixtures” is mainly due to molds.
2. The number in parentheses in “Decrease amount for the current period” is the amount of impairment loss recorded.
[Details of reserves]
Subject Balance at the beginning of the current period Increase amount for the current period Decrease amount for the current period Balance at end of current period
Allowance for doubtful accounts 3,529 540 470 3,599
Reserve for bonuses 15,000 15,000 15,000 15,000
Reserve for directors' bonuses 9,050 7,240 9,050 7,240
Reserve for directors' retirement benefits 44,136 2,950 - 47,086
(2) [Details of main assets and liabilities]

This information is omitted because consolidated financial statements are being prepared.
(3) [Others]
Not applicable.
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Section 6 [Summary of stock affairs of the submitting company]
Business year From September 1st to August 31st
Ordinary general meeting of shareholders During November
Reference date August 31st
Record date for dividends of surplus Last day of February, August 31st
Number of shares in one unit 100 shares
Purchase/additional purchase of shares less than one unit
(Special account)
Handling location 1-4-5 Marunouchi, Chiyoda-ku, Tokyo

Mitsubishi UFJ Trust and Banking Corporation Securities Agency Department
(Special account)
Shareholder register administrator 1-4-5 Marunouchi, Chiyoda-ku, Tokyo

Mitsubishi UFJ Trust and Banking Corporation
Agency ―――
Purchase/additional purchase fee free

The announcement will be made electronically. However, if there is an accident or other unavoidable reason that makes it
How to post public notices impossible to make electronic public notices, public notices will be published in the Nihon Keizai Shimbun. Public notice publication
URL https://www.asahikagakukogyo.co.jp/
Benefits for shareholders Not applicable.
(Note) Pursuant to the provisions of the Company's Articles of Incorporation, shareholders of less than one unit may request the acquisition of the rights listed in each item of Article 189, Paragraph 2 of the Companies Act, and shares with the right to make a claim.
The Company does not have any rights other than the right to ask for shares, the right to receive an allotment of offered shares or stock acquisition rights, and the right to request the sale of shares
constituting less than one unit.
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Section 7 [Reference information of the submitting company]
1 [Information on the parent company, etc. of the submitting company]
Our company does not have a parent company as stipulated in Article 24-7, Paragraph 1 of the Financial Instruments and Exchange Act.
2 [Other reference information]

The following documents have been submitted between the start date of the current fiscal year and the date of submission of the securities report.
(1) Securities report, its attached documents, and confirmation letter
Business year (56th period) (From September 1, 2021 to August 31, 2022) Submitted to the Director-General of the Tokai Local Finance Bureau on November 25, 2022
(2) Internal control report and its attached documents
Submitted to the Tokai Local Finance Bureau on November 25, 2022
(3) Quarterly reports and confirmations
(1st quarter of 57th period) (From September 1, 2022) Until November 30, 2022) Submitted to the Tokai Local Finance Bureau on January 13, 2023 Until
(2nd quarter of the 57th term) (From December 1, 2022 February 28, 2023) Submitted to the Tokai Local Finance Bureau on April 13, 2023 Until May 31,
(3rd quarter of the 57th term) (From March 1, 2023) 2023) July 2023 Submitted to the Tokai Local Finance Bureau on the 13th.
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Part 2 [Information on the submitting company's guarantee company, etc.]
Not applicable.
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Securities report
Independent auditor audit report and internal control audit report
November 29, 2023
Board of Directors
Nagoya office
mark
Designated limited liability partner
certified public accountant Furuta Kenji
Executive employee
mark
certified public accountant Honda Ichiaki
Executive employee
<Financial statement audit>
audit opinion
In order to provide audit certification pursuant to the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, our audit firm will conduct audits of Asahi Chemical Co., Ltd.
listed in the "Accounting Status" from September 1, 2022. Consolidated financial statements for the fiscal year ended August 31, 2023, namely, consolidated balance sheet, consolidated statement of income,
consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows, and consolidated statement of comprehensive income. We audited
important matters that form the basis for preparing financial statements, other notes, and consolidated supplementary schedules.
We believe that the above consolidated financial statements reflect the financial position and status of Asahi Chemical Industries, Ltd. and its consolidated subsidiaries as
of August 31, 2023, in accordance with corporate accounting standards generally accepted in Japan. We believe that the operating results and cash flow status for the
consolidated fiscal year ending on the same date have been presented fairly in all material respects.
Basis of audit opinion
Our auditing firm conducted the audit in accordance with auditing standards generally accepted as fair and reasonable in Japan. Our responsibilities under
the auditing standards are described in “Auditor's Responsibilities in Auditing Consolidated Financial Statements.” Our auditing firm is independent from the
company and its consolidated subsidiaries in accordance with the rules regarding professional ethics in Japan, and also fulfills other ethical responsibilities as
an auditor. We believe that we have obtained sufficient appropriate audit evidence to form the basis of our opinion.
Key audit considerations

Key audit considerations are matters that the auditor, as a professional, determines to be particularly important in the audit of the consolidated financial
statements for the current fiscal year. The main audit matters are the matters that were addressed in the process of auditing the consolidated financial
statements as a whole and in forming the audit opinion, and our auditing firm does not express opinions on such matters individually. .
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Appropriateness of recoverable amount in measuring impairment loss of fixed assets at Asahi Chemical Industry Co., Ltd.
Contents of major audit considerations and reasons for decisions Audit response
The company's main customers belong to the automotive or power tool Our audit firm primarily conducted the following audit procedures in order to
industries. Although orders from the automobile industry increased as the confirm the appropriateness of recoverable amounts in measuring impairment
semiconductor shortage gradually improved, orders from customers in the power losses on fixed assets at Asahi Chemical Industry Co., Ltd.
tool industry decreased due to inventory adjustments, and Asahi Chemical Industry · We confirmed that the calculated recoverable amount, including the
Co., Ltd. continued to record operating losses. There is. Under these circumstances, materials on which it was calculated, had been appropriately approved within
as stated in Notes (Related to Consolidated Statement of Income) *6, Asahi the company.
Chemical Co., Ltd. recorded an impairment loss of 118,902,000 yen. · We inspected the materials used as the basis for calculating the net sale price and
The recoverable amount used in measuring impairment loss is the higher confirmed that the calculation was based on real estate appraisal and the estimated
of the net selling price or value in use of an asset or asset group; however, in disposal amount.
measuring impairment loss for Asahi Chemical Co., Ltd., the recoverable · In addition to evaluating the aptitude, ability, and objectivity of the real estate appraiser
amount is the net selling price. Since the value exceeds the use value, the net who conducted the real estate appraisal, the real estate appraisal report is inspected to
selling price is used as the recoverable amount. determine the evaluation method used in calculating the appraisal value, the selection of
In calculating the net sale price, real estate is calculated based transaction cases, and the determination of the appraised value. The validity of the judgment
on real estate appraisal, and other fixed assets are calculated was examined.
based on the estimated disposal amount. · We compared the estimated disposal amount with estimates from outside
The process of calculating the net sale price is complex, and includes elements of contractors that the company had obtained, and examined the validity of the estimated
judgment and estimation in the valuation method for real estate appraisal, selection of disposal amount.
transaction cases, and determination of appraised value. Therefore, we determined that · We inspected the materials that serve as the basis for calculating the
the appropriateness of the recoverable amount in measuring the impairment loss of fixed recoverable amount and confirmed that the higher of the net selling price and
assets at Asahi Chemical Industry Co., Ltd. falls under the main audit consideration. use value was adopted as the recoverable amount.
Other contents
Other information included in the securities report is information other than consolidated financial statements, financial statements, and their audit reports.
Management is responsible for preparing and disclosing other information. Additionally, the responsibility of the Audit and Supervisory Committee is to
monitor the execution of duties by directors in the development and operation of other reporting processes.
Our audit opinion on the consolidated financial statements does not include any other content, and our audit firm does not
express an opinion on any other content.
Our responsibility in our audit of the consolidated financial statements is to read through the other statements and, in the process of reading them, identify any material differences
between the other statements and the consolidated financial statements or the knowledge we have gained in the course of the audit. The objective is to consider whether there are
significant differences, and to pay attention to whether there are any signs of material error in other statements beyond such material differences.
If our audit firm determines, based on the work we have performed, that there is a material error in other statements, we are required
to report that fact.
There are no other matters to be reported by our auditing firm.
Management and Audit and Supervisory Committee Responsibility for Consolidated Financial Statements
The responsibility of management is to prepare and properly present consolidated financial statements in accordance with corporate accounting standards
generally accepted in Japan. This includes developing and operating internal controls that management deems necessary to prepare and fairly present
consolidated financial statements that are free from material misstatement due to fraud or error.
In preparing consolidated financial statements, management evaluates whether it is appropriate to prepare consolidated financial statements based on the
going concern assumption, and based on business accounting standards generally accepted in Japan. If it is necessary to disclose matters related to going
concern, there is a responsibility to disclose such matters.
The responsibility of the Audit and Supervisory Committee is to monitor the execution of duties by directors in the development and operation of the financial reporting process.
Auditor’s responsibilities in consolidated financial statement audit
The auditor’s responsibility is to obtain reasonable assurance, based on the auditor’s audit, whether the consolidated financial statements, taken as a whole, are free of
material misstatement, whether due to fraud or error, and to provide an independent statement in the auditor’s report. Its purpose is to express its opinion on the
consolidated financial statements from its standpoint. Misstatements may result from fraud or error and are determined to be material if, individually or in the aggregate,
they could be reasonably expected to influence the decisions of users of the consolidated financial statements. Ru.
The auditor shall exercise professional judgment and maintain professional skepticism throughout the audit process in
accordance with auditing standards generally accepted in Japan:
- Identify and assess risks of material misstatement due to fraud or error. In addition, audit procedures that address the risk of material misstatement are implemented.
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Securities report
Plan and implement. The selection and application of audit procedures is at the discretion of the auditor. In addition, obtain sufficient and appropriate audit evidence on
which to base the opinion.
· Although the purpose of an audit of consolidated financial statements is not to express an opinion on the effectiveness of internal control, the auditor uses the audit
to design audit procedures appropriate to the circumstances when performing risk assessments. Consider relevant internal controls.
· Evaluate the appropriateness of accounting policies adopted by management and their application methods, as well as the reasonableness of accounting estimates made by
management and the appropriateness of related notes.
· Whether it is appropriate for management to prepare consolidated financial statements on a going concern basis and, based on the audit evidence
obtained, regarding events or circumstances that cast material doubt on the going concern assumption. Conclude whether a material uncertainty exists. If
there is a material uncertainty regarding the going concern assumption, call attention to the notes to the consolidated financial statements in the auditor's
report, or if the notes to the consolidated financial statements regarding the material uncertainty are inappropriate. is required to express an opinion with
exclusions on the consolidated financial statements. Although the auditor's conclusions are based on the audit evidence obtained up to the date of the
auditor's report, future events or circumstances may cause the entity to cease to continue as a going concern.
· Whether the presentation and notes of the consolidated financial statements comply with corporate accounting standards generally accepted in Japan, as well as the
presentation, structure and content of the consolidated financial statements, including related notes, and the consolidated financial statements. Evaluate whether the
statements fairly represent the underlying transactions and accounting events.
· Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its consolidated subsidiaries in order to express an opinion on the consolidated
financial statements. The auditor is responsible for instructing, supervising and performing the audit of the consolidated financial statements. The auditor is solely responsible for the
audit opinion.
The auditor shall inform the Audit and Supervisory Committee of the planned scope and timing of the audit, important findings of the audit, including any
material deficiencies in internal controls identified during the audit process, and the audit criteria. Report on any other matters requested.
The auditor shall notify the Audit and Supervisory Committee that it has complied with Japan's professional ethics regulations regarding independence, and
that it has identified any matters or impediments that could reasonably be considered to affect the auditor's independence. If safeguards are in place to
eliminate or reduce the risk, report on the details.
Among the matters discussed with the Audit and Supervisory Committee, the auditor has determined that the matters that have been judged to be particularly important in the audit of the consolidated financial statements for the current consolidated
fiscal year are the main matters to be considered in the audit, and the auditor has determined that the matters discussed with the Audit and Supervisory Committee have been determined to be particularly important in the audit of the consolidated financial
statements for the current consolidated fiscal year. Described in . However, in cases where public disclosure of the matter is prohibited by law, etc., or in cases where it is reasonably expected that the disadvantages of reporting in the audit report would
outweigh the public interest, although in extremely limited cases, the audit may be prohibited. If a person determines that the matter should not be reported, do not record the matter.
<Internal control audit>
audit opinion
Our audit firm conducted an audit of Asahi Chemical Co., Ltd.'s internal control report as of August 31, 2023 in order to provide audit certification pursuant to the provisions of Article
193-2, Paragraph 2 of the Financial Instruments and Exchange Act. .
Our audit firm confirms that the above internal control report, which states that Asahi Chemical Industry Co., Ltd.'s internal control over financial reporting as of August 31, 2023, is
effective, is a financial statement that is generally accepted as fair and reasonable in Japan. We believe that the evaluation results of internal control over financial reporting have been
presented appropriately in all important respects in accordance with the standards for evaluation of internal control over reporting.
Our auditing firm conducted an internal control audit in accordance with standards for internal control audits related to financial reporting that are generally accepted as
fair and reasonable in Japan. Our responsibilities under the standards for auditing internal control over financial reporting are described in “Auditor's Responsibilities in
Internal Control Audits.” Our auditing firm is independent from the company and its consolidated subsidiaries in accordance with the rules regarding professional ethics in
Japan, and also fulfills other ethical responsibilities as an auditor. We believe that we have obtained sufficient and appropriate audit evidence to form the basis of our
opinion.
Management and Audit and Supervisory Committee Responsibility for Internal Control Reports
Management is responsible for developing and operating internal controls over financial reporting, and preparing and appropriately presenting internal control reports in accordance
with standards for evaluation of internal controls over financial reporting that are generally accepted in Japan. It's about doing.
The Audit and Supervisory Committee's responsibility is to monitor and verify the development and operational status of internal controls related to financial
reporting. Please note that internal controls over financial reporting may not be able to completely prevent or detect false statements in financial reports.
Auditor’s responsibilities in internal control audits
The auditor's responsibility is to obtain reasonable assurance as to whether the internal control report is free of material misstatements based on the internal control audit conducted by
the auditor, and to maintain an independent position in the internal control audit report. The purpose of this meeting is to express opinions regarding the internal control report.
The auditor shall exercise professional judgment and maintain professional skepticism throughout the audit process in accordance with
standards for auditing internal control over financial reporting that are generally accepted in Japan. Implement.
- Implement audit procedures to obtain audit evidence regarding the evaluation results of internal control over financial reporting in the internal control report.
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Securities report
Ru. Audit procedures for internal control audits are selected and applied based on the auditor's judgment and the significance of their impact on the reliability of financial
reporting.
· Examine the presentation of the internal control report as a whole, including the descriptions made by management regarding the evaluation scope, evaluation procedures, and evaluation results of
internal control over financial reporting.
· Obtain sufficient and appropriate audit evidence regarding the evaluation results of internal control over financial reporting in the internal control report. The auditor
is responsible for instructing, supervising, and conducting the audit of the internal control report. The auditor is solely responsible for the audit opinion.
The auditor shall inform the Audit and Supervisory Committee of the scope and timing of the planned internal control audit, the results of the internal control audit, any identified
material deficiencies in internal control that should be disclosed, the results of their correction, and the internal control audit. report on other matters required by the auditing standards of
the organization.
conflict of interest
According to the provisions of the Certified Public Accountants Act, there are no conflicts of interest between the company and its consolidated subsidiaries and the auditing firm or its executive members that should be
stated.
that's all
(*)1. The original copy of the above audit report is stored separately by our company (the company that submits the securities report).
2. XBRL data is not included in the audit.
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Securities report
Independent auditor's audit report
November 29, 2023
Board of Directors
Nagoya office
mark
certified public accountant Furuta Kenji
Executive employee
mark
certified public accountant Honda Ichiaki
Executive employee
audit opinion
In order to provide audit certification pursuant to the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, our audit firm will conduct audits of Asahi
Chemical Co., Ltd. listed in the "Accounting Status" from September 1, 2022. We audited the financial statements for the 57th business year ending August 31, 2023, including the balance
sheet, income statement, statement of changes in shareholders' equity, important accounting policies, other notes, and supplementary schedules. Ta.
Our audit firm confirms that the above financial statements reflect Asahi Chemical Co., Ltd.'s financial position as of August 31, 2023, and as of August 31,
2023, in accordance with corporate accounting standards generally accepted in Japan. We believe that the business results for the fiscal year have been
presented fairly in all material respects.
Our auditing firm conducted the audit in accordance with auditing standards generally accepted as fair and reasonable in Japan. Our
responsibilities under the auditing standards are described in “Auditor's Responsibilities in Financial Statement Audits.” In accordance with Japan's
professional ethics regulations, our auditing firm is independent from the company and fulfills other ethical responsibilities as an auditor. We
believe that we have obtained sufficient appropriate audit evidence to form the basis of our opinion.
Key audit considerations

Key audit matters are those matters that the auditor, in his or her professional judgment, considers to be of particular importance in the audit of the financial statements
for the current fiscal year. The major audit matters are matters addressed in the process of conducting an audit of the financial statements as a whole and in forming an
audit opinion, and our auditing firm does not express an opinion on such matters individually.
73/75
Securities report
Appropriateness of recoverable amount in measuring impairment loss of fixed assets
The content is the same as the main audit considerations (appropriateness of recoverable amount in measuring impairment loss of fixed assets at Asahi Chemical Industry Co., Ltd.)
described in the audit report of consolidated financial statements, so the description has been omitted. It is omitted.
Other contents
Other information included in the securities report is information other than consolidated financial statements, financial statements, and their audit reports.
Management is responsible for preparing and disclosing other information. Additionally, the responsibility of the Audit and Supervisory Committee is to
monitor the execution of duties by directors in the development and operation of other reporting processes.
The scope of our audit opinion on the financial statements does not include any other contents, and our audit corporation does not
express an opinion on any other contents.
Our responsibility in auditing financial statements is to read through the other statements and, in the process of reading them, identify any significant differences
between the other statements and the financial statements or knowledge we have gained in the course of the audit. The purpose is to consider whether there are any
discrepancies, and to note whether there are any signs of material error in other statements beyond such material discrepancies.
If our audit firm determines, based on the work we have performed, that there is a material error in other statements, we are required
to report that fact.
There are no other matters to be reported by our auditing firm.
Management and Audit and Supervisory Committee Responsibility for Financial Statements
The responsibility of management is to prepare and properly present financial statements in accordance with corporate accounting standards generally
accepted in Japan. This includes developing and operating internal controls that management deems necessary to prepare and properly present financial
statements that are free from material misstatement due to fraud or error.
When preparing financial statements, management evaluates whether it is appropriate to prepare financial statements based on a going concern assumption and
maintains a going concern basis based on business accounting standards generally accepted in Japan. If it is necessary to disclose matters related to the company, they are
responsible for disclosing such matters.
The responsibility of the Audit and Supervisory Committee is to monitor the execution of duties by directors in the development and operation of the financial reporting process.
Auditor's responsibilities in financial statement audit
The auditor's responsibility is to obtain reasonable assurance, based on the audit performed by the auditor, whether the financial statements as a whole are free of
material misstatement, whether due to fraud or error, and to provide an independent perspective in the auditor's report. The purpose of this is to express opinions on the
financial statements. Misstatements may result from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the decisions of users of the financial statements. Ru.
The auditor shall exercise professional judgment and maintain professional skepticism throughout the audit process in
accordance with auditing standards generally accepted in Japan:
· Identify and assess risks of material misstatement due to fraud or error. In addition, audit procedures that address the risk of material misstatement will be designed
and implemented. The selection and application of audit procedures is at the discretion of the auditor. In addition, obtain sufficient and appropriate audit evidence on
which to base the opinion.
· Although the purpose of an audit of financial statements is not to express an opinion on the effectiveness of internal control, the auditor uses the audit to design audit
procedures that are appropriate in the circumstances when performing risk assessments. Consider relevant internal controls.
· Evaluate the appropriateness of accounting policies adopted by management and their application methods, as well as the reasonableness of accounting estimates made by
management and the appropriateness of related notes.
· Whether it is appropriate for management to prepare the financial statements on a going concern basis and, based on the audit evidence obtained, any
material discrepancies regarding events or circumstances that cast material doubt on the going concern assumption. Conclude whether there is certainty. If
there is a material uncertainty regarding the going concern assumption, the auditor should call attention to the notes to the financial statements in the
auditor's report, or if the notes to the financial statements regarding the material uncertainty are inappropriate, is required to express an opinion with
exceptions on the financial statements. Although the auditor's conclusions are based on audit evidence obtained up to the date of the auditor's report,
future events or circumstances may cause the entity to no longer continue as a going concern.
· Whether the presentation and notes of the financial statements comply with business accounting standards generally accepted in Japan, as well as the
presentation, structure and content of the financial statements, including related notes, and the financial statements. Evaluate whether the underlying
transactions and accounting events are presented fairly.
The auditor shall inform the Audit and Supervisory Committee of the planned scope and timing of the audit, important findings of the audit, including any
material deficiencies in internal controls identified during the audit process, and the audit criteria. Report on any other matters requested.
Among the matters discussed with the Audit and Supervisory Committee, the auditor shall determine matters that are deemed to be particularly important in the audit of the financial statements for the current business year as
the main matters to be considered in the audit, and shall include them in the audit report. . However, in cases where publication of such matters is prohibited by laws and regulations, etc.
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Securities report
or, in very limited circumstances, if the auditor determines that the matter should not be reported because the harm that would result from reporting it in the
auditor's report would reasonably be expected to outweigh the public interest, then shall not be stated.
conflict of interest
There is no conflict of interest between the company and our auditing firm or our executive members that should be stated pursuant to the provisions of the Certified Public Accountants Act.
that's all
(*)1. The original copy of the above audit report is stored separately by our company (the company that submits the securities report).
2. XBRL data is not included in the audit.
75/75

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Asahi Chemical Industry Co., Ltd. (E01031)

【Documents to be submitted】 Securities report

[Submit to] Director of Tokai Finance Bureau

【Filing date】 November 29, 2023

【Company Name】 Asahi Chemical Industry Co., Ltd.

[English translation name] ASAHI KAGAKU KOGYO CO.,LTD.

[Location of main store] 2-8-14 Konancho, Hekinan City, Aichi Prefecture

"nearest contact location" below.)

【telephone number】 Not applicable.

[Administrative contact name] Not applicable.

【telephone number】 (0566)92-4181 (Representative)

[Administrative contact name] General Affairs Department Manager Yosuke Matsuo

[Place for public inspection] Tokyo Stock Exchange, Inc.

Asahi Chemical Industry Co., Ltd. (E01031)

Part 1 [Corporate information]

1st [Company overview]

(1) Consolidated management indicators, etc.

amount of sales (1,000 yen) 8,509,929 7,665,678 10,409,489 10,720,941 8,663,297

Ordinary profit (1,000 yen) 191,823 145,115 772,157 662,154 279,907

Current period attributable to parent company shareholders

comprehensive income (1,000 yen) △ 402,926 10,115 816,937 821,193 △ 25,723

Total assets (1,000 yen) 5,211,073 5,187,125 6,435,733 6,846,605 6,437,123

Net income per share

Capital adequacy ratio (%) 74.19 74.17 71.82 76.81 79.94

return on equity (%) - 1.24 13.05 7.88 0.44

stock price earnings ratio (times) - 23.99 6.23 5.94 81.77

Cash from sales activities

number of employees 599 567 549 549 514

accounting standards, etc.

Asahi Chemical Industry Co., Ltd. (E01031)

amount of sales (1,000 yen) 4,418,089 3,857,349 4,480,068 3,687,683 3,519,082

Ordinary profit (1,000 yen) 210,864 59,445 160,520 570,888 469,380

Net income or loss

Total assets (1,000 yen) 3,381,015 3,326,961 3,513,036 3,645,217 3,919,737

Dividend amount per share 9.00 6.00 35.00 28.00 13.00

Capital adequacy ratio (%) 82.33 85.01 85.00 89.00 87.87

return on equity (%) - 1.89 6.16 15.68 8.40

stock price earnings ratio (times) - 21.57 19.23 4.74 6.69

Dividend payout ratio (%) - 36.46 63.07 18.42 14.48

number of employees 165 170 159 163 154

(Comparison index: TOPIX) (%) (87.1) (93.2) (113.0) (113.1) (134.4)

highest stock price (circle) 549 631 1,347 1,104 724

lowest stock price (circle) 332 280 346 597 590

accounting standards, etc.

Asahi Chemical Industry Co., Ltd. (E01031)

year and month matters

April 1980 to respond to increasing demand.

February 1989 Expanded Anjo factory to respond to increasing demand.

March 1989 Absorbed Asahi Mold Co., Ltd.

August 1989 Merged

October 1990 waterfront industrial land.

January 2006 completed at Asahi Plastic Products (Kunshan) Co., Ltd.

(Standard) to the Standard Market.

Asahi Chemical Industry Co., Ltd. (E01031)

Consolidated Financial Statements."

[Business system diagram]

The business structure diagram is as follows.

Asahi Chemical Industry Co., Ltd. (E01031)

Concurrent positions as officers, etc. Yes

Asahi Plus Thailand Molding and processing of plastic products

As of August 31, 2023

Segment name Number of employees (people)