JSH Co., Ltd.

Both the home medical care business and the regional revitalization business are labor-intensive, and licensed personnel such as nurses and assistant nurses have high labor mobility, making stable staffing a prerequisite for business growth. The nature of the work environment—whether at users' homes or at farms—tends to generate stress and long working hours, resulting in a high risk of staff turnover. The Company has implemented retention measures such as an internal referral system, introduction of multiple employment formats, and improved treatment, but if these measures fail to be effective, the sustained growth of both businesses could be impeded.

Numerous competing companies exist in the market for disability employment support services, and there is a risk that the Company's service advantages could be lost due to improved competitiveness among existing competitors or new market entrants. The Company is working to improve its service content and marketing methods, but if it becomes difficult to retain or acquire customers, results could be affected.

The Company's disability employment support business (Cordiale Farm) has been subject to fact-finding surveys by the Ministry of Health, Labour and Welfare and cautionary remarks at the Labour Policy Council, and negative reputational commentary also exists. If future legal amendments or ordinances regulate this business model, continuation of the business could become difficult, potentially causing a material impact on results. The Company is responding through legality confirmation by outside counsel and the establishment of an industry association (the General Incorporated Association of Japan Disability Employment Promotion Business Operators).

The statutory employment rate for persons with disabilities has been decided to rise to 2.5% in April 2024 and to 2.7% in July 2026, which is expected to expand demand for the Company's services. However, if future legal amendments suspend the increase or abolish the employment obligation itself, demand could decline significantly and affect results. The Company formulates its business strategy through active collection of industry trends and legislative information.

The home medical care business holds sensitive information such as nursing histories, medication information, and disease information of home-visit nursing care users, while the regional revitalization business holds personal information of disabled persons employed by companies using the farms. If personal information is leaked due to unauthorized external access or system failures, this could damage social credibility and disrupt business operations. The Company has implemented measures such as subdividing access privileges by department, establishing internal regulations, and conducting regular maintenance.

Revenue from the home medical care business depends on medical treatment fees and long-term care fees based on the medical insurance and long-term care insurance systems, which are revised once every two years and once every three years, respectively. If fees are reduced or the business environment of partner medical institutions changes, this could affect the Company's business and results. The Company formulates its business strategy through active collection of industry trend information, including fee schedule revisions.

Representative Director Kazuki Noguchi plays an important role in formulating and deciding management policy and business strategy, and is also the largest shareholder, holding 35.55% of total issued shares (as of March 31, 2026). If unforeseen circumstances make it difficult for him to remain involved in management, this could affect the Company's financial position and business results. The Company is working to reduce this dependence by advancing delegation of authority.

Shares of the Company held by venture capital firms and funds operated by them reach 26.02% of total issued shares, and there is a high likelihood that these will be sold gradually following the listing. If large-scale sales occur, this could adversely affect the market price of the Company's shares.

Stock acquisition rights granted as incentives to officers and employees totaled 258,800 shares as of March 31, 2026 (representing 4.6% of total issued shares as potential shares). If these are exercised, the value of shares held by existing shareholders and their voting ratio could be diluted.

If a decline in profitability due to changes in the business environment or other factors occurs with respect to the Company's fixed assets, an impairment loss may arise and affect results. In addition, the Company has tax loss carryforwards as of the end of the current fiscal year, and if results progress steadily and these carryforwards are exhausted, a tax burden based on the prescribed tax rate will arise, potentially affecting net income and cash flow.