CORREC HOLDINGS Inc.

CollecX Holdings Inc. is a holding company built on three core businesses: the Energy Business (sales and installation of solar panels and storage batteries), the Outsourcing Business (sales agency and marketing outsourcing centered on lifeline-related products), and the Media Platform Business (operation of owned media such as "Altema," "Ieplus Column," and "CarryHigh Tenshoku"). Founded in 2010 as a BtoC-focused consulting company, it initially centered its operations on NHK contract collection agency services, but completely withdrew from that business in September 2023. Through the use of M&A, the company completed its transition to the current three-business portfolio. Its main customers are individual consumers as well as corporate advertisers and outsourcing clients, with Last One Mile Co., Ltd. being a major business partner (accounting for 11.2% of net sales). The company transitioned to a holding company structure in September 2024, and currently consists of a total of seven companies: the company itself and six consolidated subsidiaries.

In the Media Platform Business, the company adopts a performance-based model in which it receives fees from advertisers upon the occurrence of results, achieving a high profit margin (operating margin of 21.5% in FY2026 (ending February 2026)). In the Outsourcing Business, it collects fees for consumer referrals, contract agency services, and outsourced operations, depending on the content commissioned by client companies. In the Energy Business, it vertically integrates operations from the sale of solar panels and storage batteries through to installation and handover, recognizing revenue upon completion of construction. A distinguishing feature is the structure that improves customer acquisition cost efficiency through cross-marketing among the three businesses.

Over the past five fiscal years, revenue has maintained an expansionary trend, growing from ¥4,825 million in FY2022 to ¥6,468 million in FY2025 and ¥6,685 million in FY2026, while operating profit has remained at a low level (¥63 million in FY2026). In Q1 of FY2027 (ending February 2027), revenue was ¥1,774 million (down 2.3% year on year), and the company posted an operating loss of ¥111 million (versus operating profit of ¥112 million in the same period last year), a sharp deterioration. While cost of sales fell significantly from ¥556 million to ¥69 million year on year, improving the gross margin (from 69.3% to 96.1%), SG&A expenses surged from ¥1,147 million to ¥1,817 million, which was the main cause of the loss. Upfront investment costs associated with personnel recruitment and organizational expansion in the Outsourcing business are weighing on profits. Externally, a weakening economy driven by price increases, persistently high energy prices, and geopolitical risk is affecting the business environment. There has been no change to the full-year earnings forecast (revenue of ¥8,101 million to ¥8,138 million, operating profit of ¥228 million to ¥265 million), but the Q1 progress rate is notably low, making a sharp recovery in the second half essential to achieving the target.