International expansion of fast entertainment through partnerships with local partners

「Accordingly, our group will diversify and mitigate risks that could materially affect business performance, and respond appropriately, through the continuous development and production of IP, globalization of the IP portfolio, advanced IP management, alliances with leading partners, and the recruitment and development of talented personnel.」

「On 9 August 2022, we acquired 60% of the issued shares of 麥菲爾股份有限公司. As a result, the company became our consolidated subsidiary. Consideration for the acquisition: cash, ¥299,925 thousand. Amount of goodwill recognized: ¥214,823 thousand.」

「MyFeel, whose shares we are acquiring, is a startup company that operates crowdfunding and media businesses in Taiwan. Despite having been established only recently, it has attracted many fans and achieved remarkable growth. By making MyFeel part of the group, we expect to create various synergies for both parties by combining MyFeel's strengths with our group's design, branding and production capabilities, while enabling our group to roll out its services and products in Asia. We will therefore make MyFeel part of the group. Acquisition price: common shares through subscription for newly issued shares, ¥99 million; common shares through share transfer, ¥199 million; advisory fees and other costs (estimated), ¥5 million; total (estimated), ¥304 million. Number of shares held after the change: 225,000 shares (voting rights ownership ratio: 60.0%). Date of execution of share transfer: June 2022 (scheduled).」

「Following our investment in CARAVAN in September 2020, we had been considering a joint business in Japan. We have now decided to establish a subsidiary to expand our group's business, primarily by bringing CARAVAN's celebrity business, which has a track record in the United States and elsewhere, to Japan.」

「At a meeting of the Board of Directors held on 27 May 2020, the company resolved to enter into an agreement with PEGASUS TECH VENTURES MANAGEMENT II,LLC, an investment company based in Silicon Valley, regarding the establishment of a fund. The fund was established on 1 July 2020, the company made its investment on 10 July 2020, and Pegasus Tech became a consolidated subsidiary of the company.」

「We have decided to pursue more active international expansion with the aim of achieving our management vision: "to become the world's leading creator of high-value-added products, the world's most admired entertainment and communications company, and a company that receives high recognition and expectations worldwide." The fund operates a short-form video posting platform app focused on music, and we invested in Triller, LLC, which could become an ideal partner for collaboration with us.」

「We will diversify and mitigate risks that could materially affect business performance, and respond appropriately, through the globalization of our IP portfolio, alliances with leading partners, and the recruitment and development of talented personnel.」

「Our group is promoting local expansion and the fast entertainment business jointly with local partners, including through a joint business with a Chinese content production company.」

「For "The Secret Society Eagle Talon," in addition to holding "Eagle Talon SHIROZEME" at the national treasure Matsue Castle, an entertainment-style siege tour and Japan's first event of its kind offering participants a realistic experience of attacking a castle from the Sengoku period, we began activities aimed at international expansion, including participating in a tourism promotion event in Shanghai, China, hosted by the Consulate-General of Japan in Shanghai.」

「For "The Secret Society Eagle Talon," in addition to holding "Eagle Talon SHIROZEME" at the national treasure Matsue Castle again this year, an entertainment-style siege tour and Japan's first event of its kind offering participants a realistic experience of attacking a castle from the Sengoku period, we began activities aimed at international expansion, including participating in a tourism promotion event in Shanghai, China, hosted by the Consulate-General of Japan in Shanghai.」

「Based on our experience developing IP businesses adapted to the multimedia era, we will continue to form alliances with leading partners in each country and actively promote the international expansion of our fast entertainment business.」