abc Co., Ltd.

Business Details

Comprises two businesses: Financial Advisory (fundraising support and advisory for listed companies, etc.) and Investment & Financing Business (business financing and back-financing for small and medium-sized corporations). The business aims to build up stock revenue, including interest income, and to structure equity finance-related transactions. The crypto asset dealing business was reclassified into the Web3 Business segment from Q1 onward.

Recent Overview

Recorded net sales of ¥269 million, but segment loss expanded significantly to -¥1,805 million

In the cumulative nine months of Q3 FY2026 (ending August 2026) (September 2025 to May 2026), net sales came to ¥269 million. Meanwhile, segment loss (on an ordinary income/loss basis) expanded significantly to -¥1,805 million from -¥890 million in the prior period (a 5-month period). The high level of allowance for doubtful accounts and increased operating expenses appear to be the main causes of the expanded loss. The crypto asset dealing business has already been reclassified into the Web3 Business, and the standalone revenue contribution of the Financial Services Business continues to be limited.

Key Products

Growth Drivers

• Building up stock revenue (interest income) through the continued execution of financing for small and medium-sized corporations
• Structuring equity finance-related transactions (back-financing) for listed companies
• Expanding orders for Financial Advisory engagements (fundraising support)
• Strengthening the financial base through third-party allotment capital increases to nurture the Group's core businesses

Risks

• Material doubt about going concern exists due to continued recording of significant operating losses
• Ongoing cash flow concerns, with improving financial soundness as the top priority
• Segment loss expanded significantly to -¥1,805 million, with an unclear outlook for earnings improvement
• High level of allowance for doubtful accounts (approximately ¥3,228 million combined current and non-current) indicating credit risk
• Segment assets are mostly composed of operating loans receivable and long-term operating receivables, entailing inherent collection risk
• Disclosure and governance risk due to the absence of an accounting auditor (Progress Audit Corporation resigned effective May 8, 2026)

Business Details

Operates three businesses: sale of cybersecurity solutions, consulting, and environment building, deployment & operation support. The core products are OPSWAT Products, with planned acquisition of large-scale new multi-year contracts and expansion of consulting engagements for small and medium-sized enterprises also underway. It is one of the few profitable segments within the Group, but under a resolution of the Board of Directors dated July 1, 2026, a basic agreement was signed to transfer all shares of the consolidated subsidiary Next Security Co., Ltd. to ReYuu Japan Co., Ltd., and the business divestiture is proceeding.

Recent Overview

Remained profitable, but a basic agreement was signed to transfer all shares of the consolidated subsidiary Next Security

For the cumulative nine months of Q3 FY2026 (ending August 2026), net sales were ¥575 million and segment profit was ¥51 million, remaining profitable. The planned acquisition of large-scale new multi-year contracts for OPSWAT Products and expansion of consulting engagements for small and medium-sized enterprises continued. Meanwhile, under a resolution of the Board of Directors dated July 1, 2026, a basic agreement was signed to transfer all shares held in Next Security Co., Ltd. (29,400 shares, 49.0% of voting rights) to ReYuu Japan Co., Ltd. for a (planned) transfer price of ¥254,800,000. The share transfer is scheduled to be executed in late July 2026, and the impact on consolidated earnings is currently being assessed.

Key Products

Growth Drivers

• Stable revenue accumulation through planned acquisition of large-scale new multi-year contracts for OPSWAT Products
• New consulting engagements for small and medium-sized enterprises and expansion of endpoint product sales through distributors
• Expansion of new product lineups and strengthening of proposal-based solutions tailored to customer needs
• Diversification of service revenue through continued acquisition of security consulting engagements

Risks

• Risk of revenue concentration in a specific customer (Intelligent Wave Inc.) (approximately 58.6% of net sales in FY2025 (ended August 2025))
• A basic agreement has been signed for the transfer of all shares of Next Security Co., Ltd.; depending on the outcome of the final agreement and due diligence, there is a risk of changes in terms or non-completion of the transaction
• Foreign exchange risk and vendor dependency risk associated with the procurement and sale of overseas products (OPSWAT)
• Material doubt about going concern exists for the Group as a whole, and cash flow concerns continue
• Risk of price pressure and intensifying order competition due to increasing competition in the cybersecurity market

Business Details

Centers on lodging facility operations and restaurant operations. For the nightclub (CLUB CAMELOT), the business has shifted direction from ordinary store operations to leasing out store space, promoting utilization of the space. Continued updates to META CAMELOT, the metaverse version of CLUB CAMELOT, are ongoing, along with efforts to provide new space development and venues for real-world events. The business is capturing the increase in inbound tourists, with the number of guests continuing to rise.

Recent Overview

Cumulative Q3 net sales of ¥472 million, with the loss margin narrowing compared to H1

For the cumulative nine months of Q3 FY2026 (ending August 2026) (September 1, 2025 to May 31, 2026), net sales were ¥472 million and segment loss was ¥6 million (on an ordinary income/loss basis). Compared to the first half (net sales of ¥301 million, segment loss of ¥14 million), net sales expanded and the loss margin narrowed. The number of lodging guests has increased due to the continued rise in inbound tourists, and demand for consecutive-night stays remains strong. The conversion of the nightclub to space leasing also continues.

Key Products

Growth Drivers

• Expansion of the number of lodging guests and increase in demand for consecutive-night stays driven by the continued rise in inbound tourists
• Diversification of the revenue model through conversion of nightclub operations to space leasing
• Value-added measures such as event planning, pop-ups, and original merchandise offerings
• Exploration of new revenue opportunities through collaboration with the Web3 Business via META CAMELOT

Risks

• Risk of delayed monetization due to continued recording of operating losses
• Risk of decline in the number of lodging guests due to fluctuations in inbound demand (exchange rates, geopolitical risk, infectious diseases, etc.)
• Transitional risk until revenue stabilizes following the shift in the nightclub operating model
• Risk of additional impairment losses (an impairment loss of ¥16 million was recorded in FY2025 (ended August 2025))
• Material uncertainty regarding the going concern assumption for the Group as a whole (continued operating losses, absence of an accounting auditor, cash flow concerns)

Business Details

Centers on the planning, development, and operation of Kuremasu (Online Crane Game), operated by Crane Game Japan Co., Ltd. The business is differentiating itself through digital prizes and blockchain technology, including collaborations with YouTubers and influencers and the sale of a BtoB-oriented online crane game specialized in NFT prizes. Measures are also being promoted with an eye toward franchise expansion.

Recent Overview

Recorded cumulative Q3 net sales of ¥284 million, but the loss continued to expand

For the cumulative nine months of Q3 FY2026 (ending August 2026) (September 1, 2025 to May 31, 2026), net sales were ¥284 million and segment loss was ¥93 million. Compared to the first half (net sales of ¥171 million, segment loss of ¥64 million), net sales expanded, but the loss amount also expanded. Measures such as participation in large-scale customer-attraction events and deployment of a BtoB online crane game specialized in NFT prizes continue, but have not yet led to monetization.

Key Products

Growth Drivers

• Expansion of customer acquisition through collaborations with YouTubers and influencers
• Entry into the digital prize market through deployment of a BtoB online crane game specialized in NFT prizes
• Differentiation of offered products through the use of blockchain technology
• Improved brand recognition through participation in large-scale customer-attraction events
• Promotion of measures aimed at franchising

Risks

• Risk of delayed monetization due to continued recording of operating losses (segment loss of ¥93 million for cumulative Q3)
• An impairment loss was recorded in the prior consolidated fiscal year, indicating a realized risk of asset value impairment
• Existence of material uncertainty regarding the going concern assumption for the Group as a whole
• Risk of intensifying competition in the online game and entertainment market

Business Details

The Transportation Business was a reporting segment operated by the consolidated subsidiary Fifty-One Co., Ltd. In the prior consolidated fiscal year (April 1, 2024 to March 31, 2025), net sales of ¥263 million were recorded, but the company was excluded from the scope of consolidation following the sale of all its shares. It has been excluded from reporting segments from the current consolidated fiscal year (FY2025 (ending August 2025)) onward and is no longer included in abc Co., Ltd.'s Group business portfolio.

Recent Overview

Excluded from consolidation and discontinued as a segment following the sale of all shares of Fifty-One Co., Ltd.

In the prior consolidated fiscal year (FY ended March 2025), the Group sold all shares of Fifty-One Co., Ltd., excluding it from the scope of consolidation. As a result, the "Transportation Business" has been excluded from reporting segments from the current consolidated fiscal year (FY2025 (ending August 2025)) onward. Performance in the final year (FY ended March 2025) was net sales of ¥263 million, segment loss of ¥4 million, and depreciation of ¥16 million. The Group has set a policy of concentrating management resources on the Financial Services Business and Web3-related businesses, and the sale of the Transportation Business is positioned as part of this selection and focus.

Key Products

Growth Drivers

Risks

• Following the sale of all shares of Fifty-One Co., Ltd., the business has been excluded from reporting segments from the current consolidated fiscal year onward, and no future revenue contribution from this business is expected
• Even in the final year, a segment loss of ¥4 million was recorded, and the business was withdrawn from without achieving monetization

Business Details

The business scope covers the development, wholesale, and sale of quasi-drugs, selling its core product, the M-1 Series (Medicated Hair Growth Lotion), through multiple channels including its own e-commerce site, TV shopping, and major shop channels. Strengthening agency sales to expand distribution channels is positioned as a pillar of growth strategy. This is a relatively small segment within the Group, and it recorded a segment loss for the cumulative nine months of Q3 FY2026 (ending August 2026) as well.

Recent Overview

Cumulative Q3 net sales of ¥82 million, but losses expanded while agency sales strengthening continues

For the cumulative nine months of Q3 FY2026 (ending August 2026) (September 1, 2025 to May 31, 2026), net sales were ¥82 million and segment loss was ¥23 million. This continues the shift into loss from the segment profit of ¥18 million recorded in the prior consolidated fiscal year (a 5-month period), with the loss further expanding from the ¥17 million loss recorded in the first half. Sales activities, including strengthened agency sales and multi-channel deployment, continue, but have not yet led to earnings improvement.

Key Products

Growth Drivers

• Expansion of distribution channels through agency development (simultaneous deployment of multiple channels)
• Multi-channel sales strategy encompassing the company's own e-commerce site, TV shopping, and major shop channels
• Expansion of the quasi-drug product lineup centered on the M-1 Series
• Establishment of a healthcare business foundation within the Group through the consolidation of M-One Co., Ltd. as a subsidiary

Risks

• The segment is small in scale (cumulative Q3 net sales of ¥82 million), with a limited contribution to the Group overall
• A segment loss of ¥23 million was recorded for the cumulative nine months of Q3 FY2026 (ending August 2026), continuing and expanding the loss from the prior period's profit
• Risk of intensifying competition in the quasi-drug market and fluctuations in consumer demand
• Risk of delayed distribution channel expansion if agency development does not proceed as planned
• Material uncertainty regarding the going concern assumption exists for the parent Group as a whole