GIMIC Co., Ltd

There is a risk that intensifying competition for talent may prevent the Company from securing and developing excellent human resources as planned. While the Company has established training and personnel systems centered on new graduate hiring and supporting long-term career development, there is also concern about the departure of existing excellent personnel to outside companies. If the human resource base underpinning business expansion is impaired, it could have a significant impact on the business and results of operations.

If a leakage of personal information occurs due to cyberattacks or employee misconduct or negligence, there is a risk of suspension of service provision, damage to the brand, and claims for damages. The Company has implemented measures such as obtaining Privacy Mark certification, building a personal information protection management system, conducting regular training and tests, and restricting access, but complete prevention is difficult.

Of the net sales of ¥3,842,867 thousand recorded in FY2026 (ending March 2026), "Doctor's File" accounted for ¥2,717,423 thousand (70.7%), indicating a high degree of dependence on a specific service. If intensified competition or a decline in brand strength occurs, there is a risk that the revenue base could be significantly impaired. The Company is working to reduce this dependence by expanding market share and developing and providing other services.

The core service "Doctor's File" is based on a subscription model, and the continuation of contracts with existing customers is directly linked to revenue stability. If cancellations exceeding expectations occur due to a decline in service appeal, a decline in customer satisfaction, deterioration in the business environment of medical institutions, or other factors, there is a risk that stock-type recurring revenue could decline significantly. The Company has established a customer retention support system to address this, but there are limits to responding to changes in the external environment.

The speed of technological innovation and changes in customer needs in the internet industry is fast, and there is a risk that the competitiveness of services could decline if the Company's response is delayed. The Company has taken measures such as supporting in-house developers in obtaining qualifications, providing training, and collaborating with outsourcing partners that possess advanced technology, but it may become difficult to rapidly build a development system.

The Company has not paid dividends in the past on the grounds that it is still in a growth stage, and at this stage, the possibility and timing of dividend payments remain undecided. Depending on the priority given to business investment and the state of cash flow, the Company may not pay dividends in the future, or may reduce planned dividends. While the Company recognizes returning profits to shareholders as an important issue, a specific timeline for implementation has not been disclosed.

There is a possibility of new entrants from other companies in the business areas in which the Company operates, and if competitors with superior capital strength, brand recognition, or development capabilities focus on providing similar services, it may become difficult to acquire and retain customers. The Company believes it has secured uniqueness and competitive advantage, but if this competitive advantage is lost, it could lead to a decline in earnings.

Medical information services are subject to regulations such as the Medical Care Act, medical advertising guidelines, and the Pharmaceuticals and Medical Devices Act, and there is a risk that new laws or changes in interpretation could result in response costs and business restrictions. The Company has established a quality control committee to respond to guidelines in cooperation with the Ministry of Health, Labour and Welfare, review internal guidelines, and conduct sample surveys of article content. The business and results of operations may be affected during the period of responding to regulatory changes.

Web services such as "Doctor's File" depend on organic search traffic from major search engines, and there is a risk that traffic could decline if search algorithms undergo major changes. The Company has established systems to ensure the reliability, authority, and expertise of content and to respond promptly, but it may not be able to keep up with major changes.

If the 1st through 4th stock acquisition rights are exercised, an additional 273,700 shares (equivalent to 5.23%) of potential shares would be issued against the total number of issued shares of 5,235,200 shares, creating a risk of dilution of the value per share. These were granted as incentives to officers and employees, and the likelihood of future exercise is high.