Booking Resort Co., Ltd.

If displays on the Company's reservation platform are found to violate laws such as the Act against Unjustifiable Premiums and Misleading Representations, trust in the Company's services could be undermined, potentially leading to user attrition and a decrease in customer facilities. The Company believes it bears no direct responsibility since listed information is disclosed with the prior consent of customer facilities, but the impact is assessed as high. In response, the Company has established a system to thoroughly verify newly published information with customer facilities and to confirm the validity and accuracy of information when making corrections.

While there is currently no legal regulation directly targeting the Company, it is subject to laws such as the Act on the Protection of Personal Information, the Unauthorized Computer Access Law, and the Act against Unjustifiable Premiums and Misleading Representations. Amendments to laws, enactment of new legislation, or changes in the interpretation of existing laws could affect business operations. In response, the Company has established internal regulations and various rules and conducts regular compliance status checks through internal audits. The impact is assessed as high, and continued monitoring of the regulatory environment is necessary.

For its directly operated accommodation businesses (Dog Villa Chiba Minami-Boso and Chichibu Bettei Kimura), the Company has obtained an inn business license, a restaurant business license, and a hot-spring usage permit, among others. In the event of a violation of laws or occurrence of grounds for disqualification, the Company could be subject to administrative dispositions such as revocation of licenses or suspension of operations. In preparation for the customer-acquisition support business targeting inbound travelers, the Company has also obtained registration as a Type 3 travel agency (Osaka Governor Registration No. 3-3181, valid until November 27, 2028). Inadequate responses to legal amendments pose a risk of hindering business activities, and the impact is assessed as high.

In operating the customer-acquisition support business and the directly operated accommodation business, the Company must handle personal information and customer data, creating a risk of information leakage due to external cyberattacks, computer viruses, or human error by employees. If an information leak occurs, it could give rise to damage claims from customers/users and loss of trust, affecting operating results and financial position. In response, the Company has established personal information handling regulations, conducts regular internal training, and implements technical and physical safeguards such as access restrictions and download limitations.

As the Company's core business is operating a reservation platform via the internet, a system failure caused by software defects, IT infrastructure disruptions, natural disasters, or similar factors could force a temporary suspension of service. Such service suspension could lower customer satisfaction and cause lost business opportunities, affecting operating results and financial position; the impact is assessed as high. In response, the Company is strengthening the security of its internal systems and regularly verifying and evaluating the reliability and backup systems of its contracted reservation system.

The Company's core service, the reservation platform "Resort Glamping.com," is premised on continued growth of the glamping market. External factors such as a chilling of consumer sentiment due to economic stagnation or the introduction of new regulations could cause market growth to fall short of expectations. Although the wave of new entrants leveraging business restructuring subsidies has settled down, entry from other industries is still expected to continue, and changes in the market environment could affect the Company's financial position and operating results.

As the Company is a small organization, if the acquisition and development of personnel necessary to provide high-value-added services does not proceed as planned, this could lead to a decline in competitiveness or constraints on business expansion. The Company is working to quickly develop and retain inexperienced personnel through active recruiting activities and enhanced education/training systems, but there is a risk that recruitment and development could be delayed due to intensifying competition in the labor market, among other factors. This could affect the Company's operating results and financial position, and both the likelihood and impact are assessed as medium.

Numerous competitors exist in the OTA market, customer-acquisition support market, and glamping market in which the Company operates, and further new entrants are expected given these are growth markets. The Company seeks to differentiate itself through a success-fee-based pricing structure, a combination of services, and provision of operational know-how, but if competitors intensify competition by offering similar services, the Company may not be able to maintain its competitive advantage. This could affect the Company's financial position and operating results.

As the Company primarily handles highly seasonal accommodation facilities such as glamping and resort facilities, net sales and profit tend to increase significantly from July to September and stagnate from October to March. In the results for FY2025 (ended April 2025), net sales in the second quarter (August–October) were ¥525,555 thousand (36.1% of the composition ratio), while the third quarter (November–January) saw a significant decline to ¥296,423 thousand (20.4%). The Company is working to stabilize annual performance through leisure program and campaign proposals outside the summer season, but it is difficult to judge full-year performance based solely on a specific quarter, and the likelihood of occurrence is assessed as high.

The parent company, S.N. Holdings Co., Ltd., holds 54.9% of the Company's voting rights (as of April 30, 2025), placing it in a position to influence management decisions through the appointment and dismissal of directors, among other means. The ratio of sales to the parent company group has shrunk to 8.1% in the FY2025 (ended April 2025) results (mainly consisting of customer-acquisition support services provided to Nishigaki Co., Ltd. amounting to ¥115,102 thousand), but changes in the parent company's management policy or deterioration of its financial condition could affect the Company's financial position and operating results. The Company has established a system for prior deliberation of related-party transactions by a special committee composed of outside directors and outside auditors, and strives to ensure independence.