The challenge of transformation and the creation of new value

In 2025, the Japanese economy maintained a recovery trend, supported by steady improvements in employment and income conditions as well as the expansion of inbound demand. On the other hand, in addition to rising prices, uncertainties continue due to developments in the US administration’s policies and ongoing geopolitical risks in the international situation.

In December 2024, our company changed its name from Suminoe Textile Co., Ltd. to SUMINOE Co., Ltd. with the aim of accelerating global expansion and enhancing the profitability and competitiveness of each business, including the enhancement of non-textile areas. Now that it has been a year since the company name change, and because our everyday designation remained the same, the transition was smoothly accepted, has been met with wide approval, and fostered anticipation for further changes going forward.

To meet these expectations, we recognize the need to strengthen our current business foundation while driving technological innovation and business transformation that create new value and lead to growth opportunities for the next generation. With this recognition, we have promoted initiatives regarding the “action to implement management that is conscious of cost of capital and stock price,” centering on five priority themes—improving profitability, enhancing non-textile areas, further strengthening global expansion, strengthening management base, and branding—which are set under “SUMINOE GROUP WAY 2025-2027 STEP II,” the targets for the latter three years of the Medium- to Long-term Management Targets. Last year, our initiatives placed particular emphasis on improving profitability, optimizing inventory levels, and enhancing the effectiveness of group governance. Additionally, we put our energies into the development of new products for the next generation by further evolving our core technologies that the Group has cultivated over many years. As represented by smart textiles and other highly functional materials, we have also strived to develop new applications, which will help resolve social issues and greatly expand room for further growth of the Group. Meanwhile, to increase our proposal-making and technology development capabilities, the Group has advanced investments in the respective business segments. At the same time, we have worked to maximize the Group’s comprehensive strengths by enabling diverse human resources to realize their full potential through active personnel changes across departments, including overseas bases. Through these endeavors, we have established a system for steadily raising the level of our true capabilities.

Aspirations for 2026

In 2026, we are entering the final year of the Medium- to Long- term Management Targets. Due to domestic and international circumstances and changes in policy trends, the uncertainty of the business environment is expected to persist. Nevertheless, we will continue to focus on the five priority themes this year and strive to strengthen the foundation for sustainable growth, earn profits from growth investments, and accelerate our initiatives to embrace new challenges.

Toward further development in the future, the Group resolves to take a new step forward without fear of changing in order to create new value while nurturing seeds for growth. We would like to ask for your continued support this year.

SUMINOE Co., Ltd.
President,
Teppei Nagata