Striders Corporation

Consolidated subsidiary Trust Advisers Co., Ltd. conducts business under licenses based on the Building Lots and Buildings Transaction Business Act and the Act on Advancement of Proper Administration of Condominium Management, among others. If violations of laws and regulations occur or if laws are amended or repealed, business activities could be restricted. Although the Group strives to ensure legal compliance, the introduction of new regulations could affect its business results and financial position.

In the real estate business, there are numerous competitors due to new market entrants, and technological innovation, such as the development of new services utilizing AI agents, is progressing rapidly. Although Trust Advisers is pursuing new initiatives, intensifying competition could adversely affect the Group's business results and financial position.

Trust Advisers employs a sublease model in which it leases rental properties from real estate owners and subleases them to tenants, making rental income a major revenue source. If occupancy rates decline due to a deteriorating economic environment or population outflow from urban centers, rental income could decrease, affecting business results and financial position.

If events with a negative impact on real estate investment occur, such as tax reforms or changes in financial institutions' lending stance, real estate transactions could stagnate, leading to a decline in sales amounts and the number of transactions in the real estate sales business. Such deterioration in market conditions could have a direct impact on business results and financial position.

In the event of a large-scale earthquake, typhoon, or other natural disaster, damage could occur to buildings and facilities owned by the hotel business, resulting in reduced sales due to temporary business suspension and the burden of repair costs. The risk of natural disasters occurring in Japan is increasing year by year, raising concerns about the impact on business results and financial position.

Global supply chain disruptions, the rapid depreciation of the yen, wage increases accompanying price rises, and policy initiatives to eliminate excessive labor are causing material and service prices as well as labor costs to rise rapidly. If appropriate pass-through of costs to service prices cannot be achieved, the profitability of the hotel business could deteriorate, affecting business results and financial position.

The impact of the COVID-19 pandemic caused personnel outflow from the hotel industry to other industries, and even after normalization, a marked hollowing-out of human resources continues. Difficulty in securing appropriate staffing levels could impede the capture of inbound and domestic demand, potentially leading to a significant loss of revenue opportunities.

Ecosystem changes caused by climate change carry the risk of triggering a second or third pandemic following COVID-19. If a new pandemic were to spread globally, restrictions on long-distance travel and group activities could recur, potentially having a significant impact on business results and financial position, particularly in the hotel business.

Although the Group has established a management framework based on the Act on the Protection of Personal Information, the environment surrounding personal information in the information society is becoming increasingly complex year by year. If personal information were to be leaked due to an unforeseen event, a decline in social credibility and the incurrence of response costs could affect business results and financial position.

Some of the Group's loan agreements include financial covenants, and if these are breached, the Group could lose the benefit of the term and be required to repay borrowings in a lump sum, among other consequences. Should such a situation arise, it could have a material impact on the Group's financial position.