Strengthening manufacturing operations and competitiveness through the acquisition of Tokyo Neo Print as a wholly owned subsidiary

「We will first aim to achieve profitability through stronger sales, cost reductions and greater manufacturing efficiency.」

「From a revenue perspective, sales exceeded the same period of the previous year as a result of continued focus on active promotional activities and SEO initiatives, strengthened sales efforts targeting corporate customers, and revenue contributed by Tokyo Neo Print Co., Ltd., which became a consolidated subsidiary.」

「The Group is also working to reduce material costs through joint procurement, while redeveloping systems owned by the company, including order-management and production-management systems, for Tokyo Neo Print Co., Ltd. to improve the company's operational efficiency and productivity. In addition, the Group is strengthening its overall supply structure by using Tokyo Neo Print Co., Ltd. as one of its manufacturing and shipping hubs in the Kanto region.」

「This further strengthened the complementary relationship with the multi-product, small-lot sales model that has traditionally been one of our group's strengths, advancing the expansion of our product lineup and strengthening our earnings base. Going forward, we will seek to improve the competitiveness of the group as a whole through higher production efficiency and the realization of cost reductions.」

「At a meeting of the Board of Directors held on 15 May 2025, the company resolved to acquire 100% of the shares of Tokyo Neo Print Co., Ltd. (hereinafter, “Tokyo Neo Print”) and make it a wholly owned subsidiary, and acquired the shares on 30 June of the same year. Through this share acquisition, the company believes it can further accelerate the pace of market-share gains by introducing its systems, which enable small-lot, high-mix manufacturing, into Tokyo Neo Print's manufacturing technology and production facilities, which specialize in mass production. In addition, the company believes that combining Tokyo Neo Print's technical capabilities with its own IT technology will enable it to offer new products and services. Since there are relatively few companies of significant scale in the manufacture and sale of vertical flags and banners, the share acquisition is expected to generate synergies, including substantial reductions in material unit costs through economies of scale and the in-house production of some sewing and other operations previously outsourced, thereby strengthening the Group's competitiveness. Through strengthening its manufacturing structure and offering new products and services, the Group will seek to improve customer satisfaction and maximize corporate value.」