Growth in orders for support services for other companies’ e-commerce businesses

「Meanwhile, at 株式会社カンナート, which handles e-commerce support projects, the value of orders for large projects fell sharply as AI became more widespread, resulting in lower profit for the business as a whole.」

「In the fiscal year under review, although the e-commerce support business, part of our Group's core E-commerce Marketing Business, was affected by project wins not progressing as initially anticipated,」

「Revenue increased year on year, following the delivery of large projects by our subsidiary, 株式会社カンナート.」

「Consolidated operating profit increased significantly year on year, as 株式会社カンナート, a domestic subsidiary, delivered multiple large projects in its e-commerce support business.」

「Going forward, the Group plans to strengthen its marketing business in the e-commerce field and enhance its web production capabilities for supporting other companies' e-commerce businesses. The company believes that by building the e-commerce sites developed through business alliances in-house as an integrated operation with the company, it will be able to build and operate large-scale e-commerce sites without its e-commerce marketing expertise flowing outside the company.」

「In the “e-commerce marketing business,” sales of furniture, home appliances and household goods performed well as the company accurately captured changes in consumer needs and the shift in consumer behaviour toward online channels, including e-commerce demand prompted by COVID-19 and demand for working from home and staying at home. Sales from e-commerce support projects and other services at 株式会社カンナート also increased significantly」

「In terms of profit, investment to expand into new business fields has preceded in the e-commerce support business of 株式会社カンナート, a company subsidiary (hereinafter, “カンナート社”). In the “product planning-related business,” all domestic operations and all locations of the company's subsidiaries Genepa Vietnam Co.,Ltd. (hereinafter, “Genepa Vietnam”) and 青島新綻紡貿易有限会社 (hereinafter, “新綻紡社”) were affected by COVID-19 and a succession of states of emergency, resulting in factors reducing profit, including delivery delays and higher raw material prices.」

「株式会社カンナート (hereinafter, “カンナート社”), a company subsidiary primarily promoting the e-commerce support business, recorded sales above the level of the same period of the previous year as a result of an increase in e-commerce support projects and its active efforts in system development.」

「株式会社カンナート, a company subsidiary primarily promoting the e-commerce support business, achieved its highest sales and profit since its founding as a result of an increase in projects and its active efforts in system development.」

「In addition to web production and e-commerce support, カンナート社 has demonstrated strengths in various system development projects in cooperation with the company. E-commerce support projects have become notably larger, and both sales and profit have performed steadily.」

「In addition to web production and e-commerce support, カンナート社 has demonstrated strengths in various system development projects. E-commerce support projects have become notably larger, and both sales and profit have performed steadily.」

「The e-commerce support business, which uses expertise in e-commerce marketing and big data, has been promoting the operation and maintenance of new e-commerce businesses through the business alliance with FamilyMart Co., Ltd.」

「In the previous consolidated fiscal year, the business alliance with ファミマ社 resulted in revenue from site construction being recorded and made a significant contribution to profit. In the current consolidated fiscal year, the company has been promoting the operation and maintenance of a new e-commerce business.」

「In our e-commerce support business, which uses expertise from the e-commerce marketing business and big data, we have promoted the development of new e-commerce businesses in connection with our business alliance with UFHD Co., Ltd. (hereinafter, “UFHD”).」

「The service provided through the alliance with UFHD社 is expected to be launched in the second half of the current fiscal year, while development costs for the launch were recorded ahead of revenue during the cumulative first quarter of the current fiscal year.」

「The e-commerce support business, which uses expertise in e-commerce marketing and big data, secured substantially more orders than in the previous year, including orders received through the business alliance with UFHD社 that were recognized as revenue, and the number of orders grew steadily.」

「At a meeting of the Board of Directors held on 4 September 2018, the company resolved to acquire all shares of 株式会社カンナート and make it a subsidiary, and on the same date entered into a share transfer agreement and acquired the shares. As a result, 株式会社フォージ, a subsidiary of 株式会社カンナート, also became the company's subsidiary, or sub-subsidiary. The purpose is to strengthen the marketing business in the e-commerce field, enhance web production capabilities supporting other companies' e-commerce businesses, and build and operate large-scale e-commerce sites. The acquired voting interest was 100%.」

「The company also continued to perform well by actively securing orders for e-commerce support services for other companies.」

「The company also continued to perform well by actively securing orders for e-commerce support services for other companies.」