Wedge Holdings CO.,LTD.
2388・Growth Market・Other Financing Business
Business
Wedge Holdings Co., Ltd. is a holding company established in 2001 and listed in 2004. It operates the Contents business (planning, production, editing, and distribution of video, music, animation, books, trading card games, etc.) as its sole reportable segment. Major customers include leading entertainment companies such as Konami Digital Entertainment (28.1% of net sales), Shueisha (19.7%), and Bandai (12.5%). In addition, the company promotes a Digital Finance business in Southeast Asia through its equity-method affiliate Group Lease PCL., and pursues overseas expansion of its content business in Vietnam, Indonesia, and Thailand. Its parent company is Showa Holdings Co., Ltd.
Business Model
In the Content business, the company receives orders for game planning and development, book editing, and content-related planning and development from major entertainment companies, earning production/editing fees and royalty income. Of the ¥816 million in net sales in FY2025 (ending September 2025), the top three clients account for approximately 60%, reflecting a concentrated order structure. Meanwhile, the profit and loss of the Digital Finance business, conducted through equity-method affiliate Group Lease PCL., is reflected in consolidated results as equity in earnings of affiliates.
Company Strengths
The top three clients—Konami Digital Entertainment (28.1% of sales), Shueisha (19.7%), and Bandai (12.5%)—account for approximately 60% of total sales. Order backlog as of FY2025 (ending September 2025) stood at ¥87,157 thousand, up 186.88% from the end of the previous fiscal year, indicating expected short-term sales contribution.
Through more than 10 years of business selection and concentration and fixed cost optimization, the Content Business achieved a segment profit margin of 28.1% in FY2025 (ending September 2025) (segment profit of ¥215 million against sales of ¥764 million). Production costs were also kept roughly flat at 104.29% year-on-year.
In Vietnam, the company has developed a trading card game sales network through a partnership with a major bookstore. In Indonesia, sales are conducted through directly-operated stores and franchise-contracted stores, with Indonesia sales increasing approximately 8.7-fold year-on-year in Q1 of FY2026 (ending September 2026). In Thailand, sales are also conducted through local card shops.
ENVALITH's Perspective
Performance Trend
Revenue contracted sharply from ¥5,773 million in FY2021, and after refocusing on the Content business, continued a mild decline from ¥861 million in FY2024 to ¥816 million in FY2025. However, the interim period of FY2026 (ending September 2026) saw acceleration to ¥524 million (up 24.6% year on year), driven by solid orders and strong royalty income in the Content business. On the other hand, operating loss widened to ¥39 million (versus a loss of ¥22 million in the same period last year). The biggest issue was the recording of an equity-method investment loss of ¥317 million, a sharp reversal from an equity-method investment gain of ¥89 million in the same period last year, causing a significant deterioration in consolidated results, with an ordinary loss of ¥267 million and an interim net loss of ¥286 million. This was mainly due to litigation-related cost burdens in the Digital Finance business, which the company expects to continue for the next several years. Full-year earnings guidance has not been disclosed.
Growth Strategy
Aiming for medium- to long-term growth through two pillars: domestic new business expansion in the content business and overseas expansion into Southeast Asia
In addition to expanding orders for game planning and development, book editing, and other content-related planning and development, the company is promoting entry into new domestic businesses. In the first half of FY2026 (ending September 2026), revenue growth exceeded increases in personnel costs and new business investment expenses, securing segment profit of ¥134 million. Investment-type expenses are expected to contribute to profit over the long term.
The company is actively promoting overseas expansion centered on Vietnam, Indonesia, and Thailand. In the first half of FY2026 (ending September 2026), revenue in Indonesia grew to ¥8,100 thousand (approximately 8.7 times the ¥935 thousand recorded in the same period of the previous year), while revenue in Vietnam expanded to ¥30,979 thousand. The company continues its policy of pursuing full-scale business expansion based on its medium-term management plan.
At Group Lease PCL., new lending has been restrained under conservative risk management across all operating countries, with focus placed on collections; going forward, the company aims for renewed growth tailored to conditions by country and product. However, litigation-related expenses continue to be a burden, and an equity-method investment loss of ¥317 million was recorded in the current interim period. The company expects the difficult situation to continue for the next several years.
The company continues to steadily pursue legal responses to multiple international lawsuits with JTA. It has clearly stated its policy of utilizing its ample available funds (cash and deposits of ¥1,303 million and short-term loans receivable of ¥1,770 million) to resolve the long-term deficit. There have been some favorable developments, including multiple dismissals of JTA's petitions for GL's corporate reorganization (with an appeal also dismissed on December 23, 2025).
Last updated: July 17, 2026