Geographic and Vertical Expansion as a Meta-EC Company

「We are developing the global market by actively participating in overseas trade shows. In 2025, we focused on securing orders from Europe and the United States.」

「The Group has been implementing measures to achieve the plan described in “Business Plan and Matters Related to Growth Potential (Progress of the Medium-Term Management Plan),” announced on 28 January 2026.」

「The Group has numerous overseas production bases and overseas partner suppliers, and the success or failure of its overseas business is an important management issue. In its overseas business, the Group is promoting global business expansion tailored to the characteristics of each region, focusing on Asia, including China, Vietnam and Laos, from the perspectives of risk management and the selection and concentration of management resources. Going forward, it will continue strengthening collaboration among its subsidiaries and distributors and work to expand orders in Europe and the United States and in Oceania.」

「The Group has set out its objective of “building an Asian value chain spanning the Asian region, including product development and raw-material procurement tailored to customer needs, by circulating marketing data accumulated through e-commerce throughout Asia,” and has been implementing measures to achieve the medium-term management plan announced on 29 January 2025. In the EC Marketing Business, it has promoted the expansion of its D2C business, under which products planned by the Group and manufactured overseas are delivered directly to customers, as well as the launch of a cumulative total of 10 stores and the expansion and selection of products in the Unique Stores Platform Business (the “USP Business”). In the Product Planning-Related Business, it accelerated the development of recovery wear and negotiations with sales outlets, focusing on securing orders, with a view to expanding functional fibers into the apparel business.」

「Against this backdrop, the Group has set out its objective of “building an Asian value chain spanning the Asian region, including product development and raw-material procurement tailored to customer needs, by circulating marketing data accumulated through e-commerce throughout Asia,” and is narrowing down its priority investments for this purpose. In the EC Marketing Business, the Group is investing in the expansion of its D2C operations, under which products planned by the Group and manufactured overseas are delivered directly to customers. As a new business, it has also begun building a platform business based on a group of proprietary e-commerce sites, called the “Unique Stores Platform Business,” by establishing numerous distinctive proprietary e-commerce sites that would be difficult to realize through existing e-commerce malls and organically linking them. In the Product Planning-Related Business, the Group plans to establish a manufacturing subsidiary in the Lao People’s Democratic Republic to diversify sources of materials and other supplies, primarily in Asia, and increase production capacity for functional-fiber products, which have continued to expand steadily.」

「The Group has set out its objective of “building an Asian value chain spanning the Asian region, including product development and raw-material procurement tailored to customer needs, by circulating marketing data accumulated through e-commerce throughout Asia,” and is narrowing down its priority investments for this purpose.」

「Qingdao Xinjiacheng Home Textile Co., Ltd. Factory (Shandong Province, China) Product planning-related business Leased assets (Factory) 69,465 69,465 June 2023」

「In Vietnam, on-site support through overseas business travel resumed and sales activities were strengthened, while progress in establishing the production system improved the factory operating rate.」

「Tangible fixed assets increased by ¥22 million, mainly due to a ¥26 million increase in machinery, equipment and vehicles.」

「Under extraordinary losses, ¥22 million in losses from temporary closures and other measures due to restrictions on factory operations at Genepa Vietnam Co.,Ltd., and ¥144 million in impairment losses on fixed assets, have been recognized.」

「ジェネパベトナム社 is establishing a structure capable of stable operations and is expected to contribute to profit from the following fiscal year onward.」

「The main factor was a ¥110 million increase in machinery, equipment, and vehicles due to capital investment at ジェネパベトナム社, among other factors, resulting in a ¥71 million increase in property, plant and equipment.」

「Genepa Vietnam commenced factory operations during the second-quarter consolidated accounting period. It is expected to establish a structure for expanding production and contribute to revenue and profits from the following quarter onward.」

「Genepa Vietnam completed its establishment at the end of October 2019, and factory operations began in January 2020. It is expected to establish the necessary structure to expand production and contribute to revenue and profits going forward.」

「In October 2019, Genepa Vietnam Co., Ltd. was established in Vietnam as an overseas base capable of importing raw materials, exporting products, and planning, manufacturing, assembling, and inspecting wood products.」

「Furthermore, in Japan, the company expects to introduce original products at competitive prices for its e-commerce marketing business, making it possible to pursue geographic and vertical expansion simultaneously and contributing to the group’s positioning as a “meta e-commerce company.”」