ENVALITH
ReYuu Japan株式会社 logo

ReYuu Japan Inc.

9425・Standard Market・Information & Communication

Official website
ReYuu Japan株式会社 logo
ReYuu Japan Inc.9425

Business

ReYuu Japan Inc. (formerly Nippon Telephone Co., Ltd.) is an information & communications business whose core operation is the buying and selling of reuse mobile devices such as smartphones, tablets, and personal computers. Founded in 1988, the company is listed on the Standard Market of the Tokyo Stock Exchange. Devices procured by the company undergo assessment, data erasure, exterior cleaning, and other processing at its own Mobile Refurbish Center (Refurbishment & Recycling Processing), and are then sold to MVNO operators, mobile phone agencies, wholesalers, retailers, general corporations, overseas markets, and individual consumers via EC channels. In the fiscal year ended October 2025, net sales were ¥6,259 million, with unit sales of 227,360 units. The company also operates other businesses, including Corporate Communication Device Rental.

Business Model

Devices are procured through purchases from suppliers and direct buybacks from businesses and consumers (end-sourcing), processed for added value at the company's own Mobile Refurbish Center (Refurbishment & Recycling Processing), and then sold through multiple channels including domestic corporate sales, overseas sales, and consumer EC. The primary revenue source is the trading margin, with per-unit profitability improved through expansion of end-sourcing. Recurring revenue from Corporate Communication Device Rental is accumulated as a complementary structure.

Company Strengths

Unit sales for FY2025 (ending October 2025) reached 227,360 units (up 60.9% from 141,278 units in the prior period), with net sales of ¥6,259 million (up 32.3% year on year). Under the new management structure, the company pursued expansion of its domestic and overseas procurement network and sales promotion measures, achieving a substantial increase in the number of units handled.

The company's own Mobile Refurbish Center (Refurbishment & Recycling Processing) handles assessment, data erasure, exterior cleaning, and other processes on an integrated basis. It holds ISO/IEC27001 certification (obtained December 2021), Reuse Mobile Business Operator Certification (obtained November 2020), and Privacy Mark certification (obtained December 2005), and has established a quality and information security management system.

The company has expanded its sales network in overseas markets, including Hong Kong and Dubai, which serve as central hubs for reuse mobile device distribution. It has built a trading structure covering both procurement and sales, establishing a foundation that enables flexible optimization of the sales balance in response to foreign exchange trends and regional market conditions.

ENVALITH's Perspective

Revenue for the interim period of FY2026 (ending March 2026, October fiscal year-end) expanded sharply to ¥4,721 million (up 58.8% year on year), but the thin-margin structure—cost of sales ratio of 96.4% and gross margin of 3.6%—remains unchanged, and the downward pressure on gross profit from planned inventory clearance also continues. The full-year forecast calls for revenue of ¥8,000 million (up 127.8% year on year) and an operating loss of ¥105 million, requiring loss reduction in the second half. Inventory clearance is planned to continue into the third quarter, and its completion within the current fiscal year is a prerequisite for profitability improvement.

With the payment completion on June 5, 2026 of the 1st Series Convertible Bond-type Bonds with Stock Acquisition Rights (total amount ¥180 million, conversion price ¥231.3, 864,680 potential shares), the 5th Series Stock Acquisition Rights (3,300,000 potential shares, exercise price ¥257), and the 6th Series Stock Acquisition Rights (3,600,000 potential shares, exercise price ¥257), the total number of potentially dilutive shares reaches 7,764,680 shares. While the dilution risk to existing shareholders is significant, the funds raised are planned to be allocated to growth investments such as expansion of the reuse business, M&A, and AI infrastructure, making the feasibility of these fund uses a key point of assessment.

The company has posted operating losses for five consecutive fiscal years since FY2022 (ending April 2022), and material events related to going-concern assumptions have existed. Although the current interim period is judged to have "no material uncertainty recognized," this judgment is based on the sharp revenue expansion and secured liquidity, and does not confirm a fundamental improvement in the profit structure. The equity ratio has been on a downward trend, at 52.7% (versus 58.8% at the end of the previous fiscal year), and the accumulated deficit in retained earnings has expanded to ¥549 million. Whether the full-year forecast of an operating loss of ¥105 million can be achieved is an important point to watch in preventing the re-emergence of going-concern risk.

Growth Strategy

Expansion of the reuse business scale, inventory optimization, and deployment of funds raised through subscription rights to bonds/warrants toward new areas such as AI

Promoting the development of a three-tier channel structure comprising domestic corporate sales, wholesale, and consumer EC, alongside expansion of direct end-user procurement (purchasing business devices directly from general corporations). In the first half of FY2026 (ending October 2026), unit sales reached 165,660 units (up 79.2% year on year), reflecting progress in acquiring new customers and expanding transactions with existing business partners.

Currently implementing planned clearance of inventory that has been held for a certain period since purchase. While this will weigh on gross profit in the short term, it represents a structural shift aimed at improving capital efficiency and inventory turnover. This initiative, carried out in the second quarter, will continue into the third quarter, with completion expected within the current fiscal year.

Implemented a funding scheme combining the 1st Series Bonds with Subscription Rights to Shares (¥180 million), the 5th Series Subscription Rights to Shares (up to ¥852 million), and the 6th Series Subscription Rights to Shares (up to ¥930 million), with payment completed on June 5, 2026. The proceeds are earmarked for expansion of the existing reuse business, M&A, capital and business alliances, and investment in new growth areas.

Pursuant to a resolution of the Board of Directors on May 22, 2026, the company will jointly establish AI Data Partners Inc., which will lead the development and operation of AI-specialized high-performance data centers (with the company holding a 30% stake, capital of ¥30 million). The company aims to expand profit opportunities through investment in new growth areas such as AI infrastructure and crypto-asset-related fields.

Building on the achievement of quarterly operating profit in the second half of the previous fiscal year, the company plans to reduce its full-year operating loss to ¥105 million (from ¥164 million in the previous fiscal year) through the combined effect of improved profitability following the completion of inventory clearance and expanded sales scale. The company aims to achieve sustainable profit growth from the following fiscal year onward.

Last updated: July 17, 2026