INTERTRADE Co.,Ltd.

Business Details

A business centered on the development and maintenance of the Securities Dealing System, Foreign Exchange Margin Trading System, Crypto Asset Platform, and other systems. It is operated by the Company and its equity-method affiliates, Digital Asset Markets Co., Ltd. and AndGo Co., Ltd. Main customers are financial institutions such as securities companies, with revenue derived from license usage fees, contracted development, and maintenance support. The Company is strengthening resource allocation to the WEB3 domain, promoting the deployment of high-value-added services in the crypto asset and distributed cryptography fields through its strategic partnership with Fireblocks and collaboration with AndGo.

Recent Overview

Revenue increased on higher contracted development orders, but segment profit declined year on year due to increased R&D expenses

In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), the Financial Solutions Business posted revenue of ¥694 million (101.8% year on year), a slight increase. Although revenue declined due to the reactionary drop following enhancement work related to the launch of Tokyo Stock Exchange arrowhead4.0, this was offset by an increase in revenue from contracted development projects and other work. On the other hand, segment profit decreased to ¥197 million (88.0% year on year), affected by increased R&D expenses among other factors. An investment loss under the equity method of ¥95 million from equity-method affiliates Digital Asset Markets and AndGo affected consolidated ordinary income/loss. In the WEB3 domain, the Company continues to promote its strategic partnership with Fireblocks and strengthen collaboration with AndGo.

Key Products

Growth Drivers

• Boost to revenue from increased contracted development orders (achieved year-on-year revenue growth in the current interim period)
• Expansion of business in the WEB3 domain through the strategic partnership regarding WEB3 infrastructure implementation support with Fireblocks (concluded March 2025)
• Strengthened joint development of crypto asset solutions and services utilizing distributed cryptography following AndGo joining the group (April 2025)
• Continued demand for system investment driven by accelerating digitalization and DX in the financial industry
• Improved financial base from a gain of ¥230 million on equity interest changes recorded due to Digital Asset Markets' capital increase (current interim period)

Risks

• Continued tightness in IT talent supply and demand, making it difficult to secure hybrid personnel with expertise in both the financial and technology domains
• Increased R&D expenses due to a shortage of immediately deployable talent in blockchain, smart contracts, and cryptography (a factor that reduced segment profit by 12% year on year in the current interim period)
• Continued caution regarding full-scale commercial adoption in the WEB3 domain, posing a risk of order delays relative to the initial plan
• A declining trend in high-margin license usage fees and a changing profit margin structure due to an increase in contracted development projects
• Losses at equity-method affiliates (Digital Asset Markets and AndGo) affecting consolidated results (an equity-method investment loss of ¥95 million was recorded in the current interim period)

Business Details

A segment operated by the Company and BS Japan Co., Ltd. Its main product is the group management integration platform "GroupMAN@IT e2," centered on the development and sale of group management solution systems. In addition, the segment handles On-site Support Service (Engineer Dispatch) and SI Service for general business corporations. Its share of consolidated revenue was 13.7% (H1 FY2026, ending March 2026).

Recent Overview

Revenue declined, but segment loss improved by ¥15 million year on year due to reduced personnel expenses

Revenue for the first half of FY2026 (ending March 2026) (October 2025 to March 2026) was ¥118 million (94.7% year on year). Although revenue increased in the on-site support service, contracted development projects and license usage fees for the main product "GroupMAN@IT e2" declined, resulting in overall revenue below the prior-year period. On the profit/loss side, however, the segment loss improved significantly to ¥6 million from ¥21 million in the prior-year period, due to effects such as a decrease in personnel expenses.

Key Products

Growth Drivers

• Revenue support from increased sales in the on-site support service and SI service
• Building a stable revenue base through an expanding number of companies adopting "GroupMAN@IT e2"
• Capturing demand for management solutions amid accelerating corporate DX
• Narrowing of segment loss through cost structure improvements such as reduced personnel expenses

Risks

• Risk of continued decline in revenue from contracted development projects and license usage fees for the main product "GroupMAN@IT e2"
• Risk of profit pressure from increased personnel expenses and increased development man-hours
• Risk of constraints on the development structure due to difficulty securing IT talent
• Risk of reduced revenue stability due to fluctuations in license usage fee income
• Constraints on investment capacity for business expansion due to the extremely small scale of segment assets

Business Details

A business operated by the Company and InterTrade Healthcare Co., Ltd., engaged in the production and sale of health foods, cosmetics, and other products made from Hanabiratake, a functional food ingredient. Revenue for the first half of FY2026 (ending March 2026) was ¥55 million, accounting for 6.4% of group revenue, making it a small-scale segment. The Company is working to expand into the femcare supplement market targeting menopausal women as its main target, but has continued to record segment losses.

Recent Overview

Sales continued to fall short of plan, keeping revenue flat; segment loss slightly increased year on year

Revenue for the first half of FY2026 (ending March 2026) (October 2025 to March 2026) was ¥55 million (100.8% year on year), roughly flat. The main cause was that sales of "IT Hanabiratake" products lagged behind plan. On the profit/loss side, the segment loss was ¥25 million, slightly worse than the ¥24 million recorded in the prior-year period. The Company continues its policy of pursuing business expansion through the rollout of its new product "Estro Rich Pure."

Key Products

Growth Drivers

• Expanding sales of "Estro Rich Pure" leveraging the Foods with Function Claims notification number obtained in March 2025
• Strengthened appeal to the growing femcare supplement market (menopausal care segment)
• Improved brand recognition through active use of evidence such as research papers and clinical data
• Promotion of information dissemination measures through social media and word of mouth

Risks

• Sales of "IT Hanabiratake" products have continued to fall short of plan, leaving the outlook for revenue expansion unclear
• In the menopausal care field, symptoms and issues are difficult to visualize, limiting information dissemination via word of mouth and social media, which tends to delay awareness penetration
• The segment loss remained high at ¥25 million in the interim period alone, leaving the outlook for full-year profitability unclear
• Risk of temporary revenue decline due to customers holding off on purchasing older products before and after the launch of new products
• Risk of intensifying competition and regulatory changes in the health food and cosmetics markets