Financial Summary for Second Quarter (Interim) of Fiscal Year Ending August 2026 [Japanese GAAP] (Consolidated)

Business Overview

In the second quarter of the fiscal year ending August 2026, net sales reached JPY 14,845 million (9.9% YoY increase), operating income was JPY 3,166 million (16.2% YoY increase), ordinary income was JPY 3,249 million (11.3% YoY increase), and net income attributable to owners of the parent (interim) was JPY 2,117 million (7.7% YoY increase), achieving higher revenue and profits. By sales channel, e-commerce performed strongly with a 21.1% increase to JPY 4,492 million. By product category, lifestyle products rose 13.4%, and eco products increased 8.7%. The company is strengthening its own factories, launching new products, and expanding customer acquisition efforts, advancing initiatives to achieve plans as the first year of the 5th Medium-Term Management Plan.

Financial Position and Cash Flow

Total assets stood at JPY 24,390 million, net assets at JPY 20,482 million, and equity ratio improved to 84.0% compared to the previous year. This improvement was mainly due to increases in current assets and reductions in liabilities. Cash flow from operating activities recorded an inflow of JPY 1,406 million, while investing activities used JPY 481 million and financing activities used JPY 1,530 million. Dividend payments amounted to JPY 1,680 million, and the full-year dividend forecast was revised upward to 31 yen.

M&A and Business Development

On March 31, 2026, Transaction Corporation acquired all shares of Thousand Co., Ltd., making it a consolidated subsidiary. Thousand’s main business involves OEM manufacturing and prototype creation for figures, contributing to strengthening the entertainment (IP) business. This acquisition is expected to facilitate joint development of new products and mutual utilization of sales channels, thereby enhancing corporate value.

Outlook

Although tensions in the Middle East, yen depreciation, and rising crude oil prices are concerns, the company expects limited impacts due to foreign exchange hedging and securing raw materials. The full-year earnings guidance for fiscal 2026 anticipates net sales of JPY 300 billion, operating income of JPY 6,300 million, and net income of JPY 4,288 million, forecasting growth in both revenue and profit. Dividends were revised upward based on a policy of a payout ratio of 40% or above.