- Investor Relations
- Management Policy
- Issues Facing the Company
The business environment surrounding our Group is undergoing significant changes due to the advancement of policy initiatives toward a circular economy, the rapid evolution of digital technologies, including generative AI, and changes in consumer needs and purchasing behavior.
During the fiscal year ended June 30, 2026, our core Second-hand Online Business achieved increases in both revenue and profit. However, consolidated revenue increased while consolidated profit declined, primarily due to lower profitability in the Mobile & Telecommunications Business.
To achieve sustainable growth and enhance our corporate value, we recognize the importance of further expanding our Second-hand Online Business, which is benefiting from market growth and increasing policy support, while transforming the earnings structure of our Mobile & Telecommunications Business to establish a stable revenue base. We will also continue strengthening our human resources, organizational capabilities, and management systems to support the growth of both businesses.
Based on these priorities, we have identified the following four key issues to be addressed.
Japan's reuse market continues to expand, supported by growing consumer awareness of resource circulation and the increasing importance of sustainable consumption. Furthermore, in March 2026, Japan's Ministry of the Environment formulated its Roadmap for Promoting Reuse and Related Initiatives, setting specific targets for 2030. These include expanding the domestic reuse market to ¥4.6 trillion, representing a 32% increase from 2024; doubling the number of local governments collaborating with reuse operators to approximately 600; and increasing the reuse participation rate among consumers to 50%. We recognize that the policy direction toward promoting reuse has become increasingly clear.
We intend to capitalize on these favorable market conditions by leveraging our strengths in digital marketing, our nationwide purchasing and sales network, and our extensive transaction data. In particular, we will further utilize AI to improve operational productivity and service quality. We will also actively invest in new purchasing channels, including the development of specialized purchasing stores in urban areas to strengthen our acquisition of high-value products, thereby expanding purchasing opportunities and transaction volumes.
In addition, through our reuse matching platform, "Oikura," we will further strengthen our partnerships with local governments. By combining our Group's expertise in purchasing and reselling second-hand products with the extensive network of relationships with local governments established through Oikura, we aim to accelerate the handling of used GIGA School Program devices and other products.
As of the end of the fiscal year ended June 30, 2026, Oikura had established partnerships with 336 local governments, representing one of our Group's key strengths. We have also begun concrete initiatives involving used GIGA School Program devices, including securing purchase agreements with local governments.
Going forward, we will continue creating new reuse opportunities through public-private partnerships and synergies among our Group's businesses, aiming to achieve both solutions to social challenges and the expansion of our earnings base.
However, during the fiscal year ended June 30, 2026, the efficiency of advertising expenditures for acquiring new subscribers deteriorated. In addition, the cancellation of certain large-scale contracts toward the end of the fiscal year caused one-time revenue to fall below our initial plan. Consequently, we were unable to sufficiently absorb customer acquisition costs, including advertising expenses, and recorded an operating loss in this business segment.
In response to these circumstances, we will shift away from a business model that relies heavily on one-time revenue generated from new subscriber acquisitions toward a more stable and profitable structure centered on recurring revenue from our existing subscriber base.
As a specific measure, we implemented revisions to our monthly basic service fees beginning in October 2026, with the aim of increasing the average monthly revenue per existing subscriber and expanding recurring revenue.
At the same time, we will carefully monitor subscriber cancellation trends following the fee revisions, while expanding our services to address evolving customer needs and optimizing customer acquisition costs.
Through these initiatives, we aim to establish a stable and sustainable earnings base that is less susceptible to fluctuations in the number of new subscribers acquired.
We will continue enhancing our employee training and development programs, promoting appropriate personnel transfers and assignments, and revitalizing internal communication. In addition, we will promote human resource development and capability building to ensure that our employees can respond effectively to changes in the business environment, particularly advances in AI and digital technologies.
We will also seek to improve employee engagement through initiatives such as raising compensation levels and enhancing employee benefits.
At the same time, we will actively pursue recruitment activities to secure talented individuals, strengthen the delegation of authority in line with business expansion, and enhance our management and supervisory structures.
Through these initiatives, we aim to build an organizational structure in which diverse employees can fully demonstrate their abilities and contribute to our Group's growth, regardless of nationality or gender.
We will proactively utilize AI and other digital technologies to improve operational productivity and enhance the sophistication of performance management. At the same time, we will establish appropriate management systems, including governance frameworks for information security and the use of AI.
Furthermore, we will continue refining our performance management methodologies, strengthening internal controls and compliance systems, and developing and improving business processes in line with the expansion of our business operations.
Through these ongoing initiatives, we aim to establish a more transparent, efficient, and sound management system that supports the sustainable growth of our Group.
During the fiscal year ended June 30, 2026, our core Second-hand Online Business achieved increases in both revenue and profit. However, consolidated revenue increased while consolidated profit declined, primarily due to lower profitability in the Mobile & Telecommunications Business.
To achieve sustainable growth and enhance our corporate value, we recognize the importance of further expanding our Second-hand Online Business, which is benefiting from market growth and increasing policy support, while transforming the earnings structure of our Mobile & Telecommunications Business to establish a stable revenue base. We will also continue strengthening our human resources, organizational capabilities, and management systems to support the growth of both businesses.
Based on these priorities, we have identified the following four key issues to be addressed.
(1) Further Growth of the Second-hand Online Business
We recognize that further growth of our core Second-hand Online Business is essential to achieving sustainable growth and enhancing the corporate value of our Group.Japan's reuse market continues to expand, supported by growing consumer awareness of resource circulation and the increasing importance of sustainable consumption. Furthermore, in March 2026, Japan's Ministry of the Environment formulated its Roadmap for Promoting Reuse and Related Initiatives, setting specific targets for 2030. These include expanding the domestic reuse market to ¥4.6 trillion, representing a 32% increase from 2024; doubling the number of local governments collaborating with reuse operators to approximately 600; and increasing the reuse participation rate among consumers to 50%. We recognize that the policy direction toward promoting reuse has become increasingly clear.
We intend to capitalize on these favorable market conditions by leveraging our strengths in digital marketing, our nationwide purchasing and sales network, and our extensive transaction data. In particular, we will further utilize AI to improve operational productivity and service quality. We will also actively invest in new purchasing channels, including the development of specialized purchasing stores in urban areas to strengthen our acquisition of high-value products, thereby expanding purchasing opportunities and transaction volumes.
In addition, through our reuse matching platform, "Oikura," we will further strengthen our partnerships with local governments. By combining our Group's expertise in purchasing and reselling second-hand products with the extensive network of relationships with local governments established through Oikura, we aim to accelerate the handling of used GIGA School Program devices and other products.
As of the end of the fiscal year ended June 30, 2026, Oikura had established partnerships with 336 local governments, representing one of our Group's key strengths. We have also begun concrete initiatives involving used GIGA School Program devices, including securing purchase agreements with local governments.
Going forward, we will continue creating new reuse opportunities through public-private partnerships and synergies among our Group's businesses, aiming to achieve both solutions to social challenges and the expansion of our earnings base.
(2) Stabilization of the Earnings Base of the Mobile & Telecommunications Business
In our Mobile & Telecommunications Business, we have traditionally pursued business growth through a combination of recurring revenue generated from our accumulated subscriber base and one-time revenue associated with the acquisition of new subscribers.However, during the fiscal year ended June 30, 2026, the efficiency of advertising expenditures for acquiring new subscribers deteriorated. In addition, the cancellation of certain large-scale contracts toward the end of the fiscal year caused one-time revenue to fall below our initial plan. Consequently, we were unable to sufficiently absorb customer acquisition costs, including advertising expenses, and recorded an operating loss in this business segment.
In response to these circumstances, we will shift away from a business model that relies heavily on one-time revenue generated from new subscriber acquisitions toward a more stable and profitable structure centered on recurring revenue from our existing subscriber base.
As a specific measure, we implemented revisions to our monthly basic service fees beginning in October 2026, with the aim of increasing the average monthly revenue per existing subscriber and expanding recurring revenue.
At the same time, we will carefully monitor subscriber cancellation trends following the fee revisions, while expanding our services to address evolving customer needs and optimizing customer acquisition costs.
Through these initiatives, we aim to establish a stable and sustainable earnings base that is less susceptible to fluctuations in the number of new subscribers acquired.
(3) Securing and Developing Talented Human Resources and Strengthening Our Organizational Structure
Amid ongoing competition for talent against the backdrop of Japan's declining working-age population, we recognize that securing and developing talented human resources through a human resource strategy aligned with our business strategy is essential to achieving sustainable growth.We will continue enhancing our employee training and development programs, promoting appropriate personnel transfers and assignments, and revitalizing internal communication. In addition, we will promote human resource development and capability building to ensure that our employees can respond effectively to changes in the business environment, particularly advances in AI and digital technologies.
We will also seek to improve employee engagement through initiatives such as raising compensation levels and enhancing employee benefits.
At the same time, we will actively pursue recruitment activities to secure talented individuals, strengthen the delegation of authority in line with business expansion, and enhance our management and supervisory structures.
Through these initiatives, we aim to build an organizational structure in which diverse employees can fully demonstrate their abilities and contribute to our Group's growth, regardless of nationality or gender.
(4) Strengthening of Our Management System
As our Group's business scale expands and our business models become increasingly sophisticated, we recognize that further strengthening our management system is essential to ensuring fairness, transparency, and continuity in management.We will proactively utilize AI and other digital technologies to improve operational productivity and enhance the sophistication of performance management. At the same time, we will establish appropriate management systems, including governance frameworks for information security and the use of AI.
Furthermore, we will continue refining our performance management methodologies, strengthening internal controls and compliance systems, and developing and improving business processes in line with the expansion of our business operations.
Through these ongoing initiatives, we aim to establish a more transparent, efficient, and sound management system that supports the sustainable growth of our Group.
