Issues Facing the Company

Our Group aims to establish its presence in the growing reuse market by expanding the scale of its operations in the second-hand business for individuals, which is a key segment of its core Second-hand online 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 Products for individuals

In the current fiscal year, we continued to implement productivity enhancement measures such as optimizing our purchasing channels. We also advanced the redeployment of personnel and further promoted DX initiatives to improve productivity per employee. In addition, we began the full-scale utilization of AI in our operations, thereby strengthening our profitability structure through greater operational efficiency. As a result of these efforts, profitability in the second-hand business for individuals steadily improved, and our earnings performance for the fiscal year was solid.

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."

Agricultural machinery equipment

Our Group has been expanding its agricultural machinery and equipment portfolio as a strategic category since 2017.

Although overseas demand for agricultural machinery and equipment remained robust, sales growth slowed during the current fiscal year due to restrained purchasing activity caused by a sharp rise in maritime freight rates, which peaked in the summer.

In addition, the number of port omissions—cases in which vessels skip scheduled port calls—has been increasing in the field of marine transportation for exports, resulting in a higher proportion of temporary inventory awaiting shipment (pending sales recognition) within our total inventory. To address this situation, we are restructuring our operations by reviewing the balance between domestic and international sales, expanding transactions with domestic corporations, and enhancing our product profitability management framework.

From the fiscal year ending June 2026, we plan to integrate agricultural machinery and equipment into our second-hand business for individuals. This integration is designed to further strengthen business synergies and create cross-buying opportunities by maximizing customer contact points. We aim to build a more efficient and profitable operating framework by promoting additional product purchases leveraging our shared customer base and marketing methods.

(2) Strengthen services in the Mobile & Telecommunications business

In our mobile & telecommunications 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 worked to increase revenue per line by enhancing our lineup of optional services tailored to users’ specific usage patterns.

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.

(3) 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.

(4) 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.