ENVALITH
クオンタムソリューションズ株式会社 logo

Quantum Solutions Co.,Ltd.

2338・Standard Market・Information & Communication

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クオンタムソリューションズ株式会社 logo
Quantum Solutions Co.,Ltd.2338

Business

Quantum Solutions Inc. is a company listed on the TSE Standard Market, founded in 1999 and listed in 2002. The group consists of eight consolidated subsidiaries and operates the AI Solutions business (76.9% of sales composition), comprising three areas—AI infrastructure (GPU server sales and AIDC conversion), AI games (operation of "GYEE" and joint development of "Project Jewel"), and AI solutions for enterprises—alongside the Eyelash Care business (23.1%), which operates eyelash extension salons and sells cosmetics. With the monetization of AI-related businesses in global markets as a medium- to long-term goal, the company has built an international business structure based in Japan, Hong Kong, and Singapore.

Business Model

In the AI Solutions Business, the main revenue sources are GPU server procurement and sales (¥457 million in net sales for FY2025 (ending February 2025)) and game service revenue based on distribution rights for the game "GYEE" (¥75 million for the same period). The Eyelash Care Business contributes stable revenue (¥161 million for the same period) through salon operations and cosmetics sales. Amid continued operating losses, the structure secures working capital through the conversion of convertible bonds and exercise of stock acquisition rights (financing cash flow of +¥531 million).

Company Strengths

In the GPU server trading business launched in September 2023, the company recorded net sales of ¥457 million in FY2025 (ended February 2025). Sales to a single customer, MEGA Limited, accounted for ¥401 million (57.6% of total sales achieved), with the buildout of the supplier network and customer base leading to the completion of large-scale transactions.

The company acquired distribution rights for the game "GYEE" in July 2024, recording ¥75 million in game service revenue in FY2025 (ended February 2025). Through a capital and business alliance with JP GAMES, Inc. (acquiring a 2.5% equity stake), joint development of the Triple-A game "Project Jewel" is also underway, building a framework for holding and developing multiple game IPs.

Through cost-cutting measures such as consolidating unprofitable stores and reducing personnel expenses, the segment loss in the Eyelash Care business narrowed to ¥5 million in FY2025 (ended February 2025), down from a loss of ¥21 million in the prior period. While maintaining net sales of ¥161 million, the business has moved closer to break-even, functioning as a stable revenue base.

ENVALITH's Perspective

Net assets at the end of Q1 FY2027 (ending February 2027) stood at ¥-424 million (negative net worth), with an equity ratio of -25.8%, a further deterioration from ¥-343 million at the end of the prior fiscal year. Operating loss widened to ¥178 million (from ¥103 million in the same period of the prior year), marking the fifth consecutive fiscal year of operating losses. Convertible bond-type bonds with subscription rights to shares of ¥2,067 million remain outstanding as fixed liabilities, and short-term borrowings also increased to ¥905 million. A material uncertainty regarding the going concern assumption has been noted, and the feasibility of fundraising is key to the company's continued business operation.

The segment loss for the AI Solutions business expanded significantly to ¥103 million (from ¥25 million in the same period of the prior year). The AIDC business generated zero revenue contribution as of the end of Q1, as services had not yet commenced. Meanwhile, selling, general and administrative expenses increased to ¥222 million (from ¥166 million in the same period of the prior year), with upfront investment costs swelling ahead of monetization. Earnings guidance remains undisclosed, described as "difficult to calculate," leaving investors with continued poor visibility into performance.

Ordinary loss for the current Q1 improved to ¥112 million from ¥153 million in the same period of the prior year; however, this improvement was driven by a gain on valuation of crypto assets of ¥101 million (versus zero in the same period of the prior year), while the core business's operating loss actually worsened to ¥178 million from ¥103 million in the same period of the prior year. As an external factor, movements in the crypto asset market (ETH price) directly affect performance, and a decline in the ETH price poses a risk of substantially widening the ordinary loss. The structure of relying on valuation gains without genuine improvement in core business profitability raises questions about sustainability.

Growth Strategy

The company aims to build a revenue foundation around three pillars: monetizing the AIDC business, maintaining the AI game business, and improving the wellness business.

Through the basic terms agreement with Telstra Japan, the company has secured priority access to approximately 3MW of data center capacity (subsequent event). The company is advancing preparations for launching AI computing services in stages, comprehensively considering procurement policy for next-generation GPU equipment including NVIDIA B300, funding plans, and partner discussions. As of the end of Q1, the service had not yet launched and revenue was zero.

The company is working to maintain revenue from its existing game service based on the "GYEE" distribution rights (Q1 net sales of ¥18 million). Regarding "GYEE 2.0," the company is examining its development structure with a policy emphasizing capital efficiency, taking into account the scale of development investment, the investment payback period, and market conditions. Revenue has contracted by 50.3% year on year, making the maintenance of existing revenue itself a challenge.

The company continues to build relationships with potential customers and prospective partners. In light of the rapid changes in the AI computing power market, it is reviewing and reconsidering its business model, and had not yet achieved a clear revenue contribution as of Q1. In conjunction with the development of the AIDC business foundation, the company plans to consider business development aimed at providing more feasible computing power services.

The company has stabilized its operating structure by promoting the return of existing staff, strengthening training functions using headquarters space, and organizing store operation rules. It is advancing preparations for introducing new menus, revising customer acquisition measures, and developing small-scale, high-value-added stores. In Q1, the company secured segment profit of ¥0.3 million (down 92.6% year on year), but profitability remains at a low level.

The company has clarified its policy of utilizing the Ethereum held by its consolidated subsidiary (balance sheet amount of ¥2,179 million) as funds for capital expenditures and business launch costs for the AIDE business. The timing, quantity, and amount of any sale remain undetermined. In Q1, the company recorded a gain of ¥101 million on the valuation of cryptocurrency, which reduced its ordinary loss. The purpose is not short-term trading but the allocation of funds to business investment.

Last updated: July 17, 2026