Improving Profitability at Existing Stores and Promoting New Stores

「The company completely withdrew from the Operations business after transferring Toki Grand Bowl effective 1 April 2024 and transferring all shares of its subsidiary 株式会社ケンテン effective 30 April of the same year.」

「Although revenue for the first quarter of the current consolidated cumulative period declined to ¥25 million, from ¥45 million in the same period of the previous year, following the end of operations at the internet café stores during the previous fiscal year, segment profit increased to ¥2 million, from a segment loss of ¥1 million in the same period of the previous year.」

「The group currently operates bowling alleys and apparel and accessories stores through the company, 株式会社ホテルシステム二十一, a consolidated subsidiary, and 株式会社ケンテン, a consolidated subsidiary.」

「During the fiscal year, following the sale of the hotel property Blue Port Hotel Kanda Kitakyushu Airport, hotel operations were transferred to an affiliated company of the buyer. The contract for the hospital food-service operations also ended on 31 March 2023.」

「In the third quarter, although the other locations were affected by the prolonged spread of COVID-19, performance across the locations began to recover as no restrictions such as priority preventive measures were imposed. As a result, revenue was ¥490 million, down 3.0% year on year, and the segment loss narrowed to ¥30 million from a segment loss of ¥45 million in the same period of the previous year.」

「In the second quarter, although the Group was affected by the prolonged spread of COVID-19, the easing of restrictions as booster vaccinations progressed enabled performance across its locations to begin recovering. As a result, revenue was ¥331 million, down 2.0% year on year, and the segment loss narrowed to ¥19 million from a segment loss of ¥30 million in the same period of the previous year.」

「Although affected by the prolonged spread of COVID-19, performance across the business locations began to recover as restrictions on activities were eased with the progress of booster vaccinations against COVID-19. As a result, revenue amounted to ¥156 million, down 8.1% year on year, and the segment loss was ¥15 million, down 1.3% from the same period of the previous year.」

「In the third quarter, although the Group was affected by the prolonged spread of COVID-19, performance across its locations recovered as vaccinations were introduced. As a result, revenue increased 2.5% year on year to ¥505 million, while the segment loss was ¥45 million, compared with a segment loss of ¥85 million in the same period of the previous year.」

「In the second quarter, although the Group was affected by the prolonged spread of COVID-19, performance across its locations began to recover as vaccinations were introduced. As a result, revenue increased 16.81% year on year to ¥338 million, while the segment loss narrowed to ¥30 million from a segment loss of ¥73 million in the same period of the previous year, indicating a gradual recovery.」

「As a result, revenue amounted to ¥170 million, up 41.7% year on year, and the segment loss was ¥16 million, compared with a segment loss of ¥53 million in the same period of the previous year, indicating the beginning of a recovery.」

「Based on a resolution adopted at a Board of Directors meeting held on 13 October 2020, the company decided to acquire R Hotel Inn Kitakyushu Airport, which had been operated by R Hotels International Co., Ltd. The company entered into a business transfer agreement on 30 October 2020 and completed the business transfer effective 1 November 2020.」

「In the third quarter, operations commenced at R Hotel Inn Kitakyushu Airport in November 2020. 株式会社ケンテン, which was not affected by COVID-19, maintained stable performance, and the hospital food-service business at Ehime University Hospital contributed to earnings, while the company withdrew from the Kakogawa Plaza Hotel business in November 2020.」

「In the second quarter, Kakogawa Plaza Hotel, the Internet cafés and Toki Grand Bowl were severely affected by COVID-19. Although economic activity gradually resumed and a gradual recovery trend emerged after the lifting of the state of emergency, conditions remained difficult at Kakogawa Plaza Hotel and the Internet cafés, while the apparel and accessories stores operated by 株式会社ケンテン continued to operate steadily. The hospital food-service business at Ehime University Hospital grew without being affected by COVID-19. As a result, revenue amounted to ¥289 million, down 48.0% year on year, and the segment recorded a loss of ¥73 million, compared with segment profit of ¥4 million in the same period of the previous year. The company will withdraw from operating Kakogawa Plaza Hotel at the end of November 2020.」

「In the first quarter, customer traffic declined sharply due to temporary store closures, shortened business hours and other effects associated with the spread of COVID-19, causing overall performance across the business locations to stagnate. As a result, revenue amounted to ¥119 million, down 59.1% year on year, and the segment recorded a loss of ¥53 million, compared with segment profit of ¥12 million in the same period of the previous year.」

「During the fiscal year, the apparel and accessories stores operated by 株式会社ケンテン and the hospital food-service business at Ehime University Hospital operated steadily. However, Kakogawa Plaza Hotel, the core business, which had stable earnings through February 2020, rapidly entered a difficult business environment thereafter due to requests to refrain from going out and other measures to prevent the spread of COVID-19. As a result, revenue amounted to ¥1,077 million, down 6.3% year on year, and the segment recorded a loss of ¥6 million, compared with segment profit of ¥24 million in the same period of the previous year.」

「In the third quarter, the apparel and accessories stores operated by 株式会社ケンテン and Toki Grand Bowl continued to operate steadily. At the core business, Kakogawa Plaza Hotel, the lodging division maintained stable earnings due to increased inbound visitors to Japan, but revenue and profit were affected by intensifying competition resulting from an increase in competing hotels and more intense competition for corporate banquets and weddings. As a result, revenue amounted to ¥845 million, down 1.0% year on year, and segment profit amounted to ¥9 million, down 3.3%.」

「In the second quarter, supported by firm personal consumption driven by special demand associated with the transition to the Reiwa era and the extended holiday period, as well as an increase in inbound visitors to Japan, the company maintained solid operations at its core business, Kakogawa Plaza Hotel, and at the apparel and accessories stores operated by 株式会社ケンテン. As a result, revenue amounted to ¥557 million, up 0.6% year on year, and segment profit amounted to ¥4 million, up 323.4%.」

「In the first quarter, personal consumption remained firm due to special demand associated with the transition to the Reiwa era and the extended holiday period. However, overall business performance stagnated due to higher procurement costs resulting from soaring raw material prices, rising personnel expenses, labor shortages and other factors. As a result, revenue amounted to ¥293 million, down 2.0% year on year, and segment profit amounted to ¥12 million, down 15.7%.」

「During the fiscal year, the hospital food-service business at Ehime University Hospital grew, while the Internet cafés continued to operate steadily. As a result, revenue amounted to ¥1,149 million,」

「In the third quarter, the hospital food-service business at Ehime University Hospital grew, while the Internet cafés continued to operate steadily. As a result, revenue amounted to ¥854 million, an increase of 1.2% from revenue of ¥844 million in the same period of the previous year excluding Hotel JAL City Matsuyama, which ceased operations in June of the previous fiscal year.」

「In the second quarter, operations at the 7 apparel accessories stores operated by 株式会社ケンテン remained solid, and the catering business at Ehime University Hospital grew. As a result, revenue was ¥553 million, but this represented a 23.2% decline from revenue of ¥721 million in the same period of the previous year, due to the impact of temporary closures during major renovation work at Hotel JAL City Matsuyama and Kakogawa Plaza Hotel, which ended operations last June.」

「Alongside solid operations at each location, including Kakogawa Plaza Hotel, the 7 apparel and accessories stores operated by 株式会社ケンテン were added following its conversion into a consolidated subsidiary effective 1 April. As a result, revenue amounted to ¥298 million.」

「Competition intensified due to new hotel openings near Kakogawa, resulting in a decline in the occupancy rate at Kakogawa Plaza Hotel and other effects. As a result, revenue excluding the impact of the closed business locations decreased 2.7% from the same period of the previous year.」

「After recording ¥11 million in costs for introducing Airweave and other equipment at Kakogawa Plaza Hotel, segment profit, excluding the impact of the business locations that were closed, decreased by ¥14 million, or 33.4%.」

「Against this economic backdrop, during the second quarter, the Group actively pursued various initiatives, including acquiring new rental properties and improving profitability at each location of its operations business, to enhance and further stabilize its earnings capacity.」

「In the first quarter, operations were generally solid, including at Hotel JAL City Matsuyama, which closed at the end of the quarter. As a result, revenue was ¥454 million, up 1.4% year on year. After recording ¥11 million in installation costs for equipment to improve customer service, including airweave products, at Kakogawa Plaza Hotel, segment profit was ¥8 million, up 26.3% year on year.」

「Although revenue declined 15.8% year on year to ¥1,813 million, segment profit increased 19.5% to ¥74 million as a result of improved profitability at each location.」

「Under these economic conditions, during the third quarter the group actively advanced initiatives to strengthen recurring earnings, including acquiring new rental properties and measures to maintain and improve profitability at hotels and other business locations.」

「Under these economic conditions, during the first quarter the group actively advanced initiatives to strengthen recurring earnings, including acquiring new rental properties, measures to maintain and improve profitability at hotels and other business locations, and production and order-taking activities for food manufacturing machinery.」

「The company actively advanced initiatives to strengthen recurring earnings, including the sale and acquisition of rental properties, improving profitability at existing stores such as hotels, promotional activities for new stores, and production and order-taking activities for food manufacturing machinery.」