Issues Facing the Company

On August 14, 2023, we announced a new three-year medium-term management plan using a rolling approach based on the results for the fiscal year ended June 30, 2023 and recent business performance trends.

Our latest plan aims to achieve net sales of 23 billion yen and operating income of 700 million yen in the fiscal year ending June 2025, and to establish our company's presence in the ever-expanding reuse market by expanding mainly in our group's core Internet-based reuse business.

In order to achieve growth in line with our plan for the fiscal year ending June 2026, we will take the following issues seriously and work to maximize our enterprise value to realize our vision of becoming an "Optimized Trading Company for the creation of Sustainable Society".

(1) Re-expansion of the Second-hand Online Business

We recognize that the basic condition for improving the corporate value of the Group is to re-expand the core Second-hand Online Business. To this end, we will strive to improve profitability by focusing on the following points in each field.

Second-hand Business for individuals

In order to further expand our network-based reuse business, we strengthened our approach to latent needs in our strong area of home-visit purchasing, continuing from the previous fiscal year, and achieved certain results in the current fiscal year. However, our focus on home-visit purchasing caused an imbalance with other purchasing channels, such as mail-order and in-store purchasing, leading to a temporary decline in profitability. Based on these results, from the latter half of the second quarter onward, we have been working to improve profitability by optimizing our purchasing channels according to expected revenue, adjusting staff allocations, and promoting various digital transformation (DX) initiatives utilizing technology.

Looking ahead, we will further strengthen these initiatives with a focus on improving productivity, aiming not only to expand sales but also to pursue business development with a stronger emphasis on profitability."

Machinery (agricultural equipment)

Since 2017, our group has been expanding its handling of machinery products as a strategic commodity. Initially, we developed the business based on purchases from individuals, but more recently, we have focused on purchasing initiatives targeting corporations. This effort proved successful during the current fiscal year, with a significant increase in purchase volume, particularly from corporate clients. On the sales front, export sales have been driving growth, supported by the increasing demand for used Japanese agricultural machinery abroad.

However, the recent emergence of geopolitical risks, as well as the global shortage of shipping containers caused by the recovery of supply chains after the COVID-19 pandemic, has led to delays in shipments to certain export countries and a decline in overseas customers' willingness to purchase due to rising maritime freight costs. Although there are signs of recovery from these issues, we are focusing on expanding into new regions and developing relationships with new shipping providers to mitigate the risk of recurrence and to build a stable revenue base for future growth.

(2) Further improve the profitability of the Media Business

In our media business, we provide valuable information through eight internet media platforms that supports the consumption behavior of consumers seeking 'smart shopping.' In the current fiscal year, multiple search engine algorithm updates had a negative impact, particularly on our first-half performance. However, in the second half, our efforts to diversify the revenue base, which had been in progress, proved effective, and we shifted to a recovery trend. Going forward, we will continue to focus on providing useful content and improving usability, while leveraging our in-house web marketing expertise to enhance customer acquisition. Additionally, by launching media in new fields, we will work to further diversify our revenue base.

(3) Strengthen services in the Mobile & Telecommunications business

In our mobile communications business, we offer low-cost, simple, and easy-to-understand services that help reduce communication costs, providing mobile data communication services. During the current fiscal year, we focused on acquiring new 5G contract subscribers by strengthening customer acquisition through proactive web marketing efforts, including collaboration with our media business. We also prioritized encouraging existing users to renew their contracts as they reached the end of their contract periods, aiming to extend contract durations and reduce cancellations.

Looking ahead, we will continue to strengthen efforts to acquire new contract subscribers while expanding option menus and developing new pricing plans tailored to user needs. Additionally, we plan to introduce new fixed-line services to further expand our long-term stock revenue base.

(4) Hiring and training of excellent human resources and strengthening of organizational structure

We recognize that securing and developing talented personnel is essential for the further expansion of our business. To retain talent and enhance their abilities, we are committed to improving employee compensation levels, strengthening education and training systems, fostering internal communication, and enriching employee benefits. At the same time, we will actively pursue recruitment efforts to secure outstanding talent that aligns with our group's corporate philosophy and culture. Additionally, we will strengthen our organizational structure by appropriately delegating authority in line with business expansion and ensuring the management and supervision of business execution, while optimizing personnel placement regardless of nationality or gender.

(5) Strengthening of business management system

In addition to our existing businesses, as the expansion of new businesses and services accelerates and our group enters a period of diversification, we recognize that strengthening our management system to ensure fairness, transparency, and continuity in management is a critical challenge. As the scale of our organization grows alongside business expansion, we are committed to building a more transparent and sound management structure. This includes promoting a digital shift in various operations to improve productivity, updating performance management methods, regularly reviewing compliance with the Corporate Governance Code, and establishing and operating business processes that support internal controls, while implementing corrective actions as needed.