ReYuu Japan Inc.

Business Details

The company procures reuse devices such as smartphones from suppliers and corporations, and sells them to MVNOs, mobile phone agencies, retailers, general corporations, overseas markets, and consumer EC channels. Its in-house Mobile Refurbish Center (Refurbishment & Recycling Processing) performs assessment, data erasure, and exterior cleaning to add value. It also offers comprehensive device services combining corporate rental with product warranties and kitting. Reuse-related business accounts for 98.5% of net sales.

Recent Overview

Net sales surged 58.8% year-on-year to ¥4,721 million, with the loss margin also narrowing

Net sales for H1 FY2026 (ending March 2026) (November 2025 to April 2026) reached ¥4,721 million (up 58.8% year-on-year), and unit sales in the reuse-related business increased significantly to 165,660 units (up 79.2% year-on-year). Although planned inventory clearance associated with inventory composition optimization temporarily depressed gross profit, operating loss improved to ¥132 million from ¥205 million in the same period of the prior year. As a subsequent event, on June 5, 2026, payment was completed for the 1st Series unsecured convertible bonds with stock acquisition rights (total amount ¥180 million), the 5th Series stock acquisition rights (potential shares of 3,300,000), and the 6th Series stock acquisition rights (potential shares of 3,600,000). In addition, AI Data Partners Inc. was established as a joint venture with a 30% equity stake, aimed at developing and operating AI-specialized high-performance data centers. The 2nd Series stock acquisition rights were fully acquired and cancelled on June 3, 2026.

Key Products

Growth Drivers

• Structural expansion of demand for reuse mobile devices due to sustained high prices of new devices and the spread of MVNOs
• Increase in unit sales volume through expansion of sales channels (domestic corporate, overseas, consumer EC) and strengthened procurement networks (165,660 units in H1 FY2026 (ending March 2026), up 79.2% year-on-year)
• Improved per-unit profitability through expansion of direct buyback of business-use devices from corporations (end-user procurement)
• Allocation of funds raised through a combination of convertible bonds with stock acquisition rights and stock acquisition rights toward inventory procurement funds and strategic investments such as M&A
• Expansion of revenue opportunities through investment in new growth fields such as AI infrastructure (30% equity investment in AI Data Partners Inc.) and crypto-asset related areas
• Improvement in inventory turnover and profitability through optimization of inventory composition (planned inventory clearance expected to be completed within the current fiscal year)

Risks

• Existence of material events related to going concern assumptions due to continuous operating losses (since FY2022 (ended March 2022)) (judged as having no material uncertainty as of the current interim period)
• Planned inventory clearance associated with inventory composition optimization is expected to continue into the third quarter, with a continuing short-term downward impact on gross profit
• Future dilution risk from the 1st Series unsecured convertible bonds with stock acquisition rights (conversion price ¥231.3, floor price ¥206) and the 5th and 6th Series stock acquisition rights (exercise price ¥257, total potential shares of 6,900,000)
• Foreign exchange fluctuation risk (high proportion of overseas sales; foreign exchange losses of ¥9 million occurred in the current interim period)
• Risk of sales concentration among major customers (IIJ, Optage, etc.)
• Difficulty in securing a stable procurement structure for reuse devices (risk of rising procurement costs due to market fluctuations and intensifying competition)
• Business risk and uncertainty regarding investment recovery associated with new business investments such as AI Data Partners Inc.