Artra Group Corporation

Business Details

Using A-COMS (Artra Cloud Operation Management System) as its core system, the company provides multi-layered services to acupuncture and osteopathic clinics, including the Honetsugi Chain (franchise support), Equipment & Consumables Sales, the Artra Billing Service (insurance claim processing agency), HONEY-STYLE (review and booking support), and Nursing Care Support (Honetsugi Day Service). Within the domestic market of approximately 50,000 acupuncture and osteopathic clinics, the company has achieved adoption at approximately 3,000 clinics and is expanding its subscription-based revenue base. Against the backdrop of a structural industry shift toward declining insurance reimbursement (ryoyohi), the business functions as infrastructure supporting the expansion of self-pay treatments and merchandise sales.

Recent Overview

A-COMS Business achieved a return to profitability for the first time in seven years in Q1 FY2026 (ending December 2026)

In the first quarter of FY2026 (ending December 2026) (January–March 2026), the A-COMS Business recorded segment revenue of ¥597 million (up 3.0% year-on-year) and segment profit of ¥24 million (versus a segment loss of ¥1 million in the same period of the prior year), achieving a return to profitability. Major services showed broad-based revenue growth, with HONEY-STYLE up 40.5% year-on-year, Honetsugi Chain up 7.5%, Artra Billing Service up 4.4%, and Nursing Care Support up 4.5%. On the other hand, Equipment & Consumables Sales remained soft, down 2.6% year-on-year. On a consolidated basis, the company transferred all shares of the Toy Sales Business subsidiary (Pelican Co., Ltd.) effective March 31, 2026, accelerating the concentration of management resources on its core business.

Key Products

Growth Drivers

• Acceleration of new clinic sign-ups and acquisition of switch-over contracts from other companies' systems for the Artra Billing Service
• High growth of the review and booking platform driven by an increase in clinics using HONEY-STYLE (up 40.5% year-on-year in Q1 FY2026, ending December 2026)
• Expansion of sales at existing Honetsugi Chain franchise clinics and promotion of new franchise recruitment (up 7.5% year-on-year)
• Expansion of business scope into the medical (regenerative medicine, dentistry, etc.), relaxation, and beauty salon markets by leveraging the scalability of the A-COMS platform
• Concentration of management resources on the core business and improvement of the revenue structure through the divestiture of the Toy Sales Business
• Continued development of the equipment sales and seminar business against the backdrop of demand for expanded self-pay treatments

Risks

• Risk of market contraction across the acupuncture and osteopathic clinic industry due to the ongoing declining trend in insurance reimbursement (ryoyohi)
• Deterioration of the revenue mix due to the declining trend in Equipment & Consumables Sales (down 2.6% year-on-year in Q1 FY2026, ending December 2026)
• Risk of declining industry-wide trust due to fraudulent insurance claim (ryoyohi) issues (countermeasures being implemented through on-site inspections and A-COMS)
• Risk of increased system development costs associated with expanding A-COMS services and entering new markets
• In the full-year earnings forecast for FY2026 (ending December 2026), consolidated revenue is expected to decline sharply by 38.9% year-on-year to ¥2,400 million; maintaining and expanding revenue for the A-COMS Business alone, following the exclusion of the Toy Sales Business, is a challenge

Business Details

A segment in which the subsidiary Pelican Co., Ltd. sold toys, stationery, and other products at stores under the "Pelican" brand. Amid structural headwinds such as the declining birthrate, the expansion of online retail, and the increase in large competing stores in urban areas, the company had pursued a policy of enhancing services unique to real stores in regional areas. Effective March 31, 2026, Artra Group transferred all shares of Pelican Co., Ltd. with the aim of concentrating management resources on its core business, and the company was removed from the scope of consolidation.

Recent Overview

Transferred all shares of Pelican effective March 31, 2026, removing it from the scope of consolidation

Based on a strategic decision to "select and concentrate" management resources on its core business (A-COMS Business), Artra Group transferred all shares of Pelican Co., Ltd. effective March 31, 2026. As a result, the company recorded a loss on sale of shares of an affiliated company of ¥130 million as an extraordinary loss. In the first quarter (January–March), revenue for the Toy Sales Business was ¥374 million (down 6.7% year-on-year), and the segment loss was ¥7 million (an improvement from a loss of ¥18 million in the same period of the prior year). Following this transfer, the segment will no longer be included in future consolidated results.

Key Products

Growth Drivers

• (As the segment has been removed from the scope of consolidation following completion of the share transfer, no future growth drivers are applicable)

Risks

• Impact on net income for the period due to the recognition of an extraordinary loss of ¥130 million from the loss on sale of shares of an affiliated company associated with the share transfer
• (As the segment has been removed from the scope of consolidation following completion of the share transfer, no ongoing segment risks are applicable)