To Our Shareholders
We sincerely appreciate your continued support and patronage.
TAIYO BUSSAN operates as an independent trading company with a core focus on specialized products in each business field. Our business covers a wide range of products, centered on livestock products as food ingredients, as well as materials related to all aspects of daily life, including clothing, food, and housing. By pursuing our own unique management strategy, we strive to become a leading specialized trading company in selected regions and industries, while building a strong company that achieves maximum performance with a lean and efficient organization.
Since the outbreak of COVID-19 in 2020, TAIYO BUSSAN has experienced a significant impact on its food-related businesses, particularly because many of our major customers are in the restaurant industry. In the beef and processed food sectors, declining demand directly resulted in lower sales volumes. However, in the poultry business, we have successfully expanded sales through new product agreements and higher-margin products. We have also steadily secured contracts aimed at ensuring a stable supply of domestic chicken products. In the agricultural products sector, new business transactions — particularly in buckwheat — progressed steadily, leading to increases in both sales and transaction volumes. In our China-related business, sales and transaction volumes also increased, mainly driven by exports to China and trilateral trade transactions.
As a result, in the 84th fiscal year, TAIYO BUSSAN recorded net sales of JPY 18.758 billion, operating profit of JPY 266 million, ordinary profit of JPY 202 million, and net income of JPY 162 million. Net assets also increased by JPY 114 million from the end of the previous fiscal year, reaching JPY 802 million. In the 85th fiscal year, we expect the impact of the COVID-19 pandemic to continue affecting our food-related business, particularly because our primary customers are in the restaurant industry. As a result, expanding sales volume and revenue is expected to remain challenging. Nevertheless, we will strengthen profitability by expanding new sales channels, developing new products, and enhancing the overall quality and value of our product portfolio under the policy of “quality over quantity.” In the poultry business, we recognize the importance of reducing market price risks and will aim to secure stable profits by adopting sales and purchase contracts designed to minimize the impact of market fluctuations. In addition to food-related businesses, we continue to expand sales activities in agricultural products, chemicals, and China-related trade by offering attractive products and business proposals. In particular, for exports to China, we will continue to respond to strong consumer demand not only through Japanese products but also through trilateral trade transactions.
Based on these circumstances, all of our officers and employees will work together as one under the following basic policies.
Improving profit margins and securing stable profits.
Within our core livestock products business, TAIYO BUSSAN KAISHA, LTD. will continue to broaden and diversify its customer base while strengthening the expansion of primary processed and heat-processed products. At the same time, we will focus on more specialized products in our areas of expertise in order to improve profit margins and secure stable earnings. In addition, driven by growing domestic demand in countries such as China and India, we aim to create new business opportunities and profits by supplying high-demand products from Japan as well as through trilateral trade transactions.
Securing stable profits and expanding our product portfolio.
To secure stable profits, we will continue to expand our agricultural products business and strengthen support for the overseas expansion of companies in the food service industry.
Strategic selection of products based on capital efficiency.
From the perspective of capital efficiency, we aim to build a business structure capable of securing stable profits by expanding domestic transactions, including Japanese domestic chicken products.
Strengthening China-related business operations.
Utilizing funds raised through a third-party allotment, TAIYO BUSSAN will promote new businesses such as cross-border e-commerce and accelerate the syrup business operated by our local subsidiary in China. Through these initiatives, we aim to further expand our China-related business and strengthen our financial foundation.
Based on these policies, we will continue to promote our longstanding concept of “Shinka” and devote ourselves to further strengthening our business activities.
We will continue striving to expand our business operations and strengthen our financial foundation, while viewing the current business environment as a valuable opportunity to acquire expertise and experience. Through these efforts, we are committed to becoming a stronger company capable of achieving further growth.
We sincerely ask for the continued support and encouragement of our shareholders in the years ahead.