ENVALITH
abc株式会社 logo

abc Co., Ltd.

8783・Standard Market・Other Financing Business

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abc株式会社 logo
abc Co., Ltd.8783

Business

abc Corporation (formerly GFA Co., Ltd.) was established in 2002 and is listed on the Standard Market of the Tokyo Stock Exchange. The group comprises 13 companies in total—9 consolidated subsidiaries and 3 equity-method affiliates—and operates five businesses: the Financial Services Business (Financial Advisory, investment & financing, real estate investment), the Cybersecurity Business (overseas product sales and consulting), the Space Production Business (Restaurant Operations and Lodging Facility Operations), the Game Business (the online crane game "Kuremasu"), and the Healthcare Business (development and sale of quasi-drugs). Its main customers span a wide range, including listed companies, small and medium-sized enterprises, government agencies, and general consumers. Its management philosophy is "Making diversity our currency."

Business Model

In the Financial Services Business, the main revenue sources are fundraising support fees for listed companies, loan interest from SME financing, and real estate brokerage commissions. The Cybersecurity Business secures stable revenue through multi-year license sales of overseas products such as OPSWAT Products and consulting fees. The Space Production Business earns revenue from lodging, dining, and space rental. The Game Business and Healthcare Business are centered on BtoC and BtoB sales. In FY2025 (ending August 2025), a gain of ¥1,631,999 thousand on the sale of crypto assets was recorded as non-operating income, contributing significantly to consolidated results.

Company Strengths

In the fiscal period ended August 2025 (5 months), the Cybersecurity Business recorded net sales of ¥382 million and segment profit of ¥56 million. The company systematically secured large multi-year contracts for OPSWAT Products, and sales to Intelligent Wave Inc. accounted for 20.1% of total company sales, indicating an established transaction base with key customers.

In the fiscal period ended August 2025 (5 months), the company recorded gain on sale of crypto assets of ¥1,631,999 thousand (non-operating income) and gain on crypto assets received as donation of ¥294,599 thousand (extraordinary income). As a result, the company achieved ordinary profit of ¥781,288 thousand and profit attributable to owners of parent of ¥526,527 thousand, functioning as a revenue source that supplements business losses.

The equity ratio at the end of the fiscal period ended August 2025 improved to 47.4% (from 33.7% at the end of the previous consolidated fiscal year). The exercise of stock acquisition rights increased both common stock and capital surplus by ¥631,887 thousand each, expanding total net assets to ¥4,430,463 thousand (up ¥1,635,072 thousand from the end of the previous period). Total liabilities were also reduced to ¥4,601,464 thousand (down ¥388,604 thousand from the end of the previous period).

ENVALITH's Perspective

Operating loss for the cumulative nine months of the fiscal year reached ¥1,884 million, continuing a substantial deficit, and the full-year forecast also projects an operating loss of ¥2,143 million. Ordinary income of ¥657 million was supported by a gain on sale of crypto assets of ¥5,872 million, and given the resolution to fully withdraw from that business, this revenue source will disappear going forward. The combined earning power of the six core businesses is significantly insufficient, and it is judged that a return to profitability will be difficult without a fundamental restructuring of the business portfolio.

Progress Audit Corporation resigned on May 8, 2026, leaving the company without an accounting auditor at this time. A review of the quarterly consolidated financial statements by a certified public accountant or audit firm has also not been conducted. Material uncertainty regarding the going-concern assumption has been identified, and a delay in appointing a successor audit firm poses a direct risk to continued listing. The issuance of the 20th series of stock acquisition rights (potential shares of 26,100,000) is also heightening concerns about dilution among existing shareholders, making the restoration of confidence in governance an urgent priority.

While the direction of withdrawing from crypto-asset dealing, selling the Cybersecurity subsidiary, and concentrating management resources on Web3 consulting has been indicated, the impact on performance in each case is still "under review." In the full-year earnings forecast, ordinary income and net income attributable to owners of parent also remain undetermined, described as "difficult to calculate." New M&A activity continues as well, including the acquisition of Bond Co., Ltd. (amusement poker) as a subsidiary through a share exchange, raising doubts as to whether selection and concentration of businesses is genuinely progressing. The situation continues to make it extremely difficult for investors to form a clear outlook on performance.

Growth Strategy

Complete withdrawal from crypto asset business and subsidiary divestiture to concentrate management resources on Web3 consulting and financial businesses

Withdrawing from the crypto asset investment and holding business, including meme coins, to eliminate accounting treatment uncertainty and resolve the bottleneck to appointing a new accounting auditor. Board resolution passed on July 6, 2026, with withdrawal scheduled for July 15 of the same month. Proceeding with sequential sale and disposal of held crypto assets (balance sheet amount of ¥5,560 million).

Consolidated Metabit Inc. and Metabit SDN.BHD. (deemed acquisition date in Q1) and established a new consulting business providing end-to-end support spanning Web3 strategy formulation, token design, system development, and community management assistance. Web3 business revenue for the cumulative third quarter remained at ¥44 million, but segment profit was ¥2,534 million (on an ordinary income basis, including gains from crypto asset sales, etc.).

Selling all held shares (29,400 shares, 49.0% voting rights) of Next Security Co., Ltd. to ReYuu Japan Co., Ltd. for a planned transfer price of ¥254,800,000. Execution scheduled for late July 2026. The impact of the gain on sale on consolidated profit/loss is under review. Aims to concentrate management resources on growth businesses and improve capital efficiency.

Concurrent with the partial acquisition and cancellation of the 19th series stock acquisition rights, issuing via third-party allotment the 1st series unsecured ordinary bonds (total amount ¥200 million, interest rate 0%, redemption date July 21, 2027) and the 20th series stock acquisition rights (261,000 units, 26,100,000 potential shares, initial exercise price of ¥92) (payment date July 22, 2026). Total funds to be raised amount to up to ¥2,414 million (estimated net proceeds of ¥2,272 million after deductions).

Following the resignation of Progress Audit Corporation (May 8, 2026), the company currently has no accounting auditor. Final discussions are underway with candidate successor audit firms, while advancing reforms to the administrative division structure and establishing an appropriate audit environment. Normalizing the audit framework, which is essential for maintaining the listing, is the top priority. Appointment has not yet been completed as of the present time, and material uncertainty regarding the going concern assumption remains.

Last updated: July 17, 2026