ENVALITH
株式会社オークファン logo

Aucfan Co.,Ltd.

3674・Growth Market・Information & Communication

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株式会社オークファン logo
Aucfan Co.,Ltd.3674

Business

Aucfan Co., Ltd. has adopted "RE-INFRA COMPANY" as its corporate identity, leveraging over 70 billion pieces of merchandise transaction data accumulated since its founding along with AI technology to advance the visualization and efficiency of distribution. Its primary customer base is the Small B segment referred to as "Appreciators," comprising sole proprietors, side-business operators, influencers, and others. The company operates three segments: the Solutions Business (aucfan.com and others), the Platform Business (BtoB marketplaces such as NETSEA), and the Incubation Business (business investment and consulting). It is currently in a period of business transformation, shifting from BtoB distribution DX toward D2X commerce (AP LAB and NETSEA MallLive).

Business Model

In the Solutions Business, the main revenue sources are paid membership fees ranging from ¥1,100 to ¥11,000 per month (31,328 subscribers) and internet advertising revenue. The Platform Business combines NETSEA's distribution fees (8.5–10.5% of transaction value) and monthly membership fees, OSR Exhibition & Trade Show's booth fees and payment processing fees, and AP LAB's product sales revenue. The Incubation Business is centered on gains from the sale of Operational Investment Securities, dividends, and consulting revenue. In FY2025 (ending September 2025), the Solutions Business maintained high profitability with net sales of ¥2,893 million and an operating margin of 21.4%, while upfront investment in the new D2X commerce initiative is weighing on overall earnings.

Company Strengths

aucfan.com has accumulated actual transaction price data for over approximately 70 billion product sales as of the end of September 2025 since the service launch. This scale of data assets forms an entry barrier that is difficult for competitors to replicate in a short period, serving as the differentiation foundation for AI-driven price visualization and optimization services.

In FY2025 (ending September 2025), the Solutions Business achieved net sales of ¥2,893 million (up 8.8% year-on-year), operating profit of ¥619 million (up 8.8% year-on-year), and an operating margin of 21.4%. Due to the price revision in July 2024, the average monthly billing amount per paying member rose from ¥1,508 (as of the end of FY2023, September 2023) to ¥2,216 (as of the end of FY2025, September 2025), improving the revenue structure.

The equity ratio remained at a high level of 57.8% as of the end of FY2025 (ending September 2025). Cash and cash equivalents stood at ¥3,790 million, ensuring sufficient liquidity, while interest-bearing debt remained limited at ¥1,302 million. This underpins, from a financial perspective, the company's capacity for upfront investment during its business transformation phase.

ENVALITH's Perspective

In the first half of FY2026 (ending September 2026), the company achieved revenue growth to ¥2,643 million (up 9.6% year on year), but selling, general and administrative expenses expanded to ¥1,376 million due to increased upfront investment in the Platform Business (AP LAB, KACHIKA, NETSEA MallLive), resulting in an operating loss of ¥4 million. The full-year forecast calls for revenue of ¥5,600 million and operating profit of ¥50 million, returning to profitability, but this presupposes a sharp recovery in the second half. Balancing the pace of D2X commerce revenue expansion with cost control will be key to achieving this target.

Merchandise inventory as of the end of March 2026 surged 3.7-fold to ¥474 million from ¥127 million at the end of the previous fiscal year. This was mainly due to increased procurement for D2X commerce, but the ¥348 million increase in inventory assets placed significant pressure on operating cash flow, resulting in negative operating cash flow of ¥330 million for the interim period. The pace of inventory turnover, return risk, and obsolescence risk warrant close monitoring as factors that could affect future performance, particularly for KACHIKA in the fashion category, which is highly susceptible to seasonality and trend fluctuations.

The Incubation Business deteriorated sharply in the first half of FY2026 (ending September 2026), with revenue of ¥27 million (down 88.3% year on year) and an operating loss of ¥31 million. In the same period of the previous year, the segment posted operating profit of ¥32 million driven by sales of operational investment securities and similar items, but the current period did not see proceeds from sales at a comparable level. This segment's structure, which depends on temporary and non-recurring gains, is a factor undermining the stability of overall company performance. The outlook for revenue contribution is also unclear following the reclassification of the Overseas Business (China subsidiary) into the Platform Business.

Growth Strategy

Three pillars: establishing D2X commerce, improving profitability in existing businesses, and restructuring the business portfolio

The company positions its proprietary brands "AP LAB" and "KACHIKA"—covering product planning, manufacturing, and domestic sales (B2C and B2B wholesale) leveraging its China production network—together with the live commerce service "NETSEA MallLive" as growth drivers, and continues to make upfront investments in them. AP LAB continues to grow sales, while KACHIKA is expanding sales in the fashion category. However, due to increased initial costs, the Platform Business posted an operating loss of ¥120 million in the interim period.

Sales of aucfan marketing's advertising management services performed well, securing interim net sales of ¥1,474 million and operating profit of ¥333 million. For aucfan.com, the rebound decline following the price revision in FY2024 (ended September 2024) has affected subscription revenue, but advertising management services have offset this. Given the continued expansion of the EC market as an external environment, demand from the Appreciator segment is expected to increase.

While cross-border distribution and trade show initiatives centered on Yiwu achieved certain results in market development, monetization has taken time, prompting a policy shift to concentrate management resources on more profitable areas. The two Chinese subsidiaries have been reclassified from the Incubation Business to the Platform Business, clarifying their role as a product supply function for D2X commerce.

Last updated: July 17, 2026