4Cs HD Co., Ltd.

In the fiscal year ended September 2025, the Mail Order Business recorded segment profit of ¥184 million (net sales of ¥1,201 million, up 11.0% year on year), while the Wholesale Business recorded segment profit of ¥183 million (net sales of ¥612 million, up 17.7% year on year). Combined, the two businesses generated approximately ¥367 million in segment profit, forming a revenue base that supports the overall group despite its loss.

The in-house call center continues telephone operator sales targeting repeat customers and re-engaging dormant customers. In the Retail Business, the company has achieved over 90,000 registered LINE account followers and over 3,000 new app member acquisitions per month, maintaining customer touchpoints that combine digital and face-to-face channels.

The "Cure" brand has expanded into new markets such as Vietnam by leveraging domestic and overseas YouTuber promotions. "FAVORINA" has begun general trade in China, utilizing KOLs and livestream commerce. The jointly developed product with Phiten Co., Ltd., "AROMA BLOOM Metax Aromatic Lotion," has also been rolled out in Hawaii and Las Vegas, among other examples, demonstrating the construction of overseas sales channels across multiple brands.

Two "DENBA Lounge" stores opened in December 2025. While implementing customer referral measures from existing AROMA BLOOM Stores, the company is also considering renewal into "DENBA Shop" and "DENBA Partner" formats as well as new store openings outside the Kanto region. However, store opening costs and withdrawal costs were incurred ahead of schedule during the interim period, expanding the segment loss.

Solar power plants and grid-scale battery storage facilities have already been acquired through Fantastic Four No. 1 GK, established in December 2024. Sale negotiations with multiple companies are ongoing to maximize revenue, but as of the interim period (end of March 2026), no sale contract had been concluded, and the Consulting Business recorded net sales of ¥7 million and a segment loss of ¥45 million.

For the Korean apparel brands developed by subsidiary MIRAISE Co., Ltd., sales on ZOZOTOWN began in late March 2026. Full-scale sales contribution is expected from April onward. During the interim period, upfront investments (EC site production costs, advertising expenses, etc.) were incurred, with genuine revenue contribution from both the Mail Order and Wholesale channels expected to materialize from the second half onward.

A third-party allotment of new shares to DENBA JAPAN Co., Ltd. (payment received February 19, 2026, ¥756 million) was carried out, strengthening the capital and business alliance. Upfront investments in site and infomercial production costs, advertising expenses, etc. have been incurred to strengthen sales promotion of DENBA Products, and achieving full-scale revenue contribution across the Mail Order, Wholesale, and Retail channels remains a future challenge.

The adjustment amount for company-wide expenses (general and administrative expenses not attributable to reportable segments, etc.) increased 52% year on year to ¥288 million in the interim period, making reduction of administrative department expenses such as listing maintenance costs and share issuance-related costs an urgent priority. Measures such as changing to segmentation by sales style and unifying the production department to ensure efficient cost allocation have been put forward as countermeasures, but their concrete cost-reduction effects have not yet been confirmed.