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)