Yoshicon Co.,Ltd.

For sales of condominiums for sale, subdivided residential land, and commercial/industrial facility sites, revenue is recognized at the time of property handover or at completion of post-handover construction work. Since large handover payments arise at a single point in time, concentration or dispersion of handover timing and construction completion timing may cause significant fluctuations in quarterly and periodic business results. No specific countermeasures are described.

The occurrence of a Nankai Trough earthquake is anticipated, particularly centered on Shizuoka Prefecture, and collapse of buildings under construction or damage to owned real estate could affect business results. There are also concerns about personal injury to employees while at work. As countermeasures, the company implements seismic reinforcement of owned real estate, enrollment in appropriate fire insurance and other coverage, and thorough evacuation safety education in the event of an earthquake.

The real estate industry is highly susceptible to economic trends, interest rate trends, employment and wage trends, and housing tax systems, and an economic downturn could lead to reduced purchasing intent among buyers and reduced capital expenditure appetite among companies. In addition, rising construction costs due to labor shortages at construction sites may also affect business results. No specific countermeasures are described.

The Group is subject to regulation under laws such as the Building Lots and Buildings Transaction Business Act, the National Land Use Planning Act, the Building Standards Act, the City Planning Act, and the Financial Instruments and Exchange Act. Amendment or abolition of these laws, or the emergence of new legal regulations, could affect business operations and results. No specific countermeasures are described.

Construction work for condominiums for sale is ordered from contractors, and defects are covered by the contractors' construction warranties. However, if a contractor's financial deterioration or bankruptcy prevents fulfillment of warranty liability obligations, the Group may be forced to take alternative measures, which could affect business results. No specific countermeasures are described.