FinTech Global Incorporated

Business Details

Primarily engaged in Private Equity (PE) Investment in companies facing business succession issues, and operates Truck Operating Lease, Asset Management (real estate and investment fund management), and Renewable Energy Related Business. Main consolidated companies include Fintech Asset Management Co., Ltd. and FGI Capital Partners Co., Ltd. Following segment reorganization from the first quarter of FY2026 (ending March 2026)*, the Aircraft Division was separated as an independent segment named "Investment Banking - Aircraft Division." (*Note: fiscal year notation follows source; company's fiscal year end is September)

Recent Overview

PE investment recovery and truck leasing expanded rapidly, with segment profit up 59.8% year on year

In H1 FY2026 (ending September 2026), Investment Banking segment sales were ¥4,903 million (up 28.5% year on year), gross profit was ¥4,472 million (up 44.7% year on year), and segment profit was ¥3,373 million (up 59.8% year on year). The main drivers were progress in the recovery of large-scale PE deals arranged in the previous consolidated fiscal year and Truck Operating Lease arrangement income expanding to more than double the level of the same period of the previous year. Note that from the first quarter of FY2026 (ending March 2026), the Aircraft Division was separated as an independent segment, and the figures for this segment do not include the Aircraft Division.

Key Products

Growth Drivers

• The formation and recovery cycle of PE Investment in business succession deals expanded smoothly, with recovery of large-scale deals arranged in the previous consolidated fiscal year progressing during the current interim period, increasing high-margin sales
• Truck Operating Lease capital contribution sales reached ¥4,270 million in the current interim period, with sales from arrangement and fund management expanding to more than double the level of the same period of the previous year
• The balance of assets under custody increased 0.5% from the end of the previous consolidated fiscal year to ¥162.6 billion, continuing to strengthen the recurring stock-type income base
• The 10 solar power plant development projects progressed smoothly, with 3 projects beginning to sell electricity by the end of March 2026, moving the Renewable Energy Related Business into an earnings-contributing phase
• Increased leasing income from the acquisition of adjacent real estate at Metsä Village and growth in parking revenue, among other income, from an increase in visitors

Risks

• PE Investment depends on the timing of deal formation and recovery, resulting in significant period-to-period earnings volatility, with delays or failures of large-scale deals directly affecting performance
• Credit risk related to investees and borrowers has materialized, with a provision for doubtful accounts of ¥200 million recorded as an extraordinary loss in the current interim period, making credit management an ongoing challenge
• Residential investment by overseas investors in Asset Management is on a declining trend, and changes in the composition of assets under custody may affect earnings
• Fixed costs have increased due to personnel additions, salary level increases, and office space expansion, making it an ongoing challenge whether earnings growth can absorb the cost increases
• Solar power plant development projects depend on construction progress and the timing of the start of electricity sales, creating a risk that schedule delays could affect the timing of revenue recognition