Message from CSO

The slowdown in the Chinese economy, the prolonged Russian invasion of Ukraine, and the recent escalation of tensions in the Middle East, coupled with the US Trump tariffs, have all led to a growing sense of uncertainty in the global economic outlook. Domestically, rising prices for resources and energy, as well as the weakening of the yen, have also contributed to inflation, making the outlook for economic recovery uncertain.

At Origin Group, the five-year medium-term management plan (Change & Growth 2026) launched in April 2022 is now entering its final phase. Under this plan, we have adopted the themes of “change” and “growth” as the origin of technology, aiming to become a strategic partner for our customers through our technological advantages, and are advancing our business activities with the goal of achieving “niche leadership.” We are working on “six changes” in “business,” “technology,” “sales,” “culture,” “cost structure,” and “communication,” but due to declines in the mechatronics business and overseas operations, the fiscal year ending March 2025 is expected to see a second consecutive loss in operating profit and net income attributable to parent company shareholders. Therefore, “improving profit margins in core businesses” is recognized as the most important challenge.

In light of this situation, our business strategy for the fiscal year ending March 2026 requires accelerating both “transformation” and “growth” with a strong sense of urgency, in line with our Medium-Term Plan. We will focus our efforts on two key themes: Enhancing Earning Power and Advancing Structural Reform.

To “enhance earning power,” we will strengthen new product development and sales, accelerate the expansion of existing products, and promote production efficiency and automation to increase sales and gross profit, thereby accelerating our growth strategy aimed at becoming a niche leader. To “promote structural reforms,” we will allocate resources to growth areas centered on the Component business as part of our business portfolio management, withdraw from or reduce unprofitable businesses, and accelerate the transition to a business structure suited to our group.

In today’s world, rapid technological innovation—evident in areas such as generative AI—is dramatically accelerating changes in the business environment. Amid this dynamic backdrop, the Origin Group will continue to broaden the applications of the “POCHA Series” through collaboration with other companies, further expand our market share in torque limiters for power back doors, strengthen our lineup of products that contribute to carbon neutrality, and push forward with the development of new, high-demand products.

We sincerely appreciate the continued support of our stakeholders and look forward to your continuous support in the future.

Yoshihiko Naito, CSO, Origin Co.,Ltd.