Image Information Inc.

Business Details

Image Joho Kaihatsu and Image Joho System Co., Ltd. serve as the core, providing Consulting / Design / Construction, Operation / Maintenance, and product sales of IT-related equipment and software as a one-stop service. At the end of FY2026 (ending March 2026), the company sold all shares of three consolidated subsidiaries (Engineer Farm, Vanyans, and TENJIN SYSTEM CONSULTING), removing them from consolidation. Main customers are Oki Electric Industry Co., Ltd. (net sales of ¥97,645 thousand) and Aioss Co., Ltd. (¥75,392 thousand). This core segment accounts for approximately 84% of group net sales.

Recent Overview

Net sales increased, but profit fell sharply due to loss of large-scale subsidiary orders and goodwill impairment; all shares of three subsidiaries sold at period-end

In FY2026 (ending March 2026), IT Solutions segment net sales increased to ¥614 million (up 14.8% year on year), but due to the loss of a large-scale order at a subsidiary, the cost-of-sales ratio, including labor costs, rose, and segment profit deteriorated significantly to ¥54 million (down 56.3% year on year). The company also recorded extraordinary losses of ¥220,149 thousand, including a goodwill impairment loss of ¥78,017 thousand at Vanyans Co., Ltd. As of March 31, 2026, the company sold all shares of Engineer Farm, Vanyans, and TENJIN SYSTEM CONSULTING, removing all three from consolidation. As a subsequent event, the company resolved to absorb-merge Image Joho System Co., Ltd., effective July 1, 2026.

Key Products

Growth Drivers

• Increased orders through deepened sales activities with existing customers (Oki Electric Industry, Aioss, etc.) and promotion of measures to boost sales of existing services
• Favorable market tailwind from increasing corporate IT investment driven by DX promotion and expanding AI investment
• Business scale expansion through M&A promotion via a capital and business alliance with Cybridge LLC (M&A planned for FY2027, ending March 2027)
• Reduced administrative costs and improved business efficiency through the absorption merger of Image Joho System Co., Ltd. (effective July 1, 2026)

Risks

• Risk of losing large-scale orders: a structural risk in which the loss of large-scale orders at subsidiaries exposes fixed costs such as labor costs, causing profitability to deteriorate sharply
• Rising cost-of-sales ratio: a structure in which increasing outsourcing and labor costs push up the cost-of-sales ratio, squeezing profit even when sales increase
• M&A execution risk: the business scale of the acquisition target for the M&A planned in FY2027 (ending March 2027) is uncertain, making it difficult to disclose earnings forecasts
• Delisting risk: the company was designated as a securities under supervision (under confirmation) as of March 31, 2026, and is required to meet listing maintenance criteria by the end of March 2027
• Material event regarding going concern assumption: continuous recording of operating losses and net losses has raised material doubt about the going concern assumption (currently judged that no material uncertainty exists)