Material Uncertainty Regarding the Going Concern Assumption
The Group comprising 株式会社フォーシーズＨＤ and its consolidated subsidiaries
Retail Business, Consulting Business, solar power plants and grid-scale battery storage facilities
The continuing impact of changes in economic conditions resulting from shifts in the international situation and rising prices, continuing operating losses in the Retail Business and Consulting Business, withdrawal costs for unprofitable stores and store-opening costs associated with the transition to “DENBA Lounge” in the Retail Business, and the absence of signed sale agreements, amortization of goodwill and business outsourcing expenses in the Consulting Business
Operating loss of ¥273.609 million, ordinary loss of ¥336.006 million and interim net loss attributable to owners of the parent of ¥349.197 million (interim period of the fiscal year ending September 2026)
Interim period of the fiscal year ending September 2026 (1 October 2025 to 31 March 2026)
There is no change to the full-year consolidated earnings forecast for the fiscal year ending September 2026 announced on 14 November 2025.
Company response
Withdrawal from unprofitable stores and closure of 1 store in January 2026
1. Mail-order Business ① Expand earnings through business alliances with other companies utilizing the call center ② Expand earnings through sales of new products and services to the Company's customers ③ Expand earnings through digital marketing utilizing influencers and others ④ Expand earnings through sales of the Korean apparel brands “WHITE SANDS” and “BLACK SANDS” ⑤ Expand earnings by strengthening sales of DENBA products, 2. Wholesale Business ① Expand sales channels for the brands handled by the Company in Japan and overseas ② Expand earnings by planning and selling new products in collaboration with retailers, wholesalers and others ③ Expand earnings through sales of the Korean apparel brands “WHITE SANDS” and “BLACK SANDS” ④ Expand sales channels for DENBA products, 3. Retail Business ① Achieve profitability by withdrawing from the remaining unprofitable stores ② Acquire new customer segments and increase customer numbers by strengthening new customer acquisition and improving repeat rates ③ Improve the profit structure by improving the cost-of-sales and labor-cost ratios ④ Strengthen the new business model based on next-generation sleep-tech spaces through a business alliance with DENBA, 4. Consulting Business ① Proceed promptly with signing sale agreements for the acquired solar power plants and battery storage facilities while seeking to maximize earnings ② Expand earnings by continuously purchasing, acquiring and selling solar power plants and battery storage facilities, while considering business alliances with other companies in order to expand the scope of the renewable energy business ③ Expand earnings by strengthening the Web3.0 business, 5. Thorough cost reduction and efficient allocation ① Continue thorough expense-reduction initiatives ② Ensure efficient and effective cost allocation by changing to segments based on sales style and consolidating production functions, 6. M&A of growth companies and businesses and fundraising
To achieve operating profitability and positive operating cash flow, the Group will pursue earnings growth in each segment, withdrawal from unprofitable stores, the transition to “DENBA Lounge,” the signing of sale agreements for solar power plants and battery storage facilities, cost reductions, and consideration of M&A and additional fundraising.
| Item | Details |
|---|---|
| Event name | Material Uncertainty Regarding the Going Concern Assumption |
| Date of occurrence | 31 March 2026 (the date on which this was identified as of the end of the interim consolidated accounting period) |
| Subject Entity | The Group comprising 株式会社フォーシーズＨＤ and its consolidated subsidiaries |
| Target Locations / Products | Retail Business, Consulting Business, solar power plants and grid-scale battery storage facilities |
| Cause | The continuing impact of changes in economic conditions resulting from shifts in the international situation and rising prices, continuing operating losses in the Retail Business and Consulting Business, withdrawal costs for unprofitable stores and store-opening costs associated with the transition to “DENBA Lounge” in the Retail Business, and the absence of signed sale agreements, amortization of goodwill and business outsourcing expenses in the Consulting Business |
| Amount of Impact on Business Performance | Operating loss of ¥273.609 million, ordinary loss of ¥336.006 million and interim net loss attributable to owners of the parent of ¥349.197 million (interim period of the fiscal year ending September 2026) |
| Accounting period in which recognized | Interim period of the fiscal year ending September 2026 (1 October 2025 to 31 March 2026) |
| Impact on Earnings Forecast | There is no change to the full-year consolidated earnings forecast for the fiscal year ending September 2026 announced on 14 November 2025. |
| Suspended operations | Withdrawal from unprofitable stores and closure of 1 store in January 2026 |
| Measures to prevent recurrence | 1. Mail-order Business ① Expand earnings through business alliances with other companies utilizing the call center ② Expand earnings through sales of new products and services to the Company's customers ③ Expand earnings through digital marketing utilizing influencers and others ④ Expand earnings through sales of the Korean apparel brands “WHITE SANDS” and “BLACK SANDS” ⑤ Expand earnings by strengthening sales of DENBA products, 2. Wholesale Business ① Expand sales channels for the brands handled by the Company in Japan and overseas ② Expand earnings by planning and selling new products in collaboration with retailers, wholesalers and others ③ Expand earnings through sales of the Korean apparel brands “WHITE SANDS” and “BLACK SANDS” ④ Expand sales channels for DENBA products, 3. Retail Business ① Achieve profitability by withdrawing from the remaining unprofitable stores ② Acquire new customer segments and increase customer numbers by strengthening new customer acquisition and improving repeat rates ③ Improve the profit structure by improving the cost-of-sales and labor-cost ratios ④ Strengthen the new business model based on next-generation sleep-tech spaces through a business alliance with DENBA, 4. Consulting Business ① Proceed promptly with signing sale agreements for the acquired solar power plants and battery storage facilities while seeking to maximize earnings ② Expand earnings by continuously purchasing, acquiring and selling solar power plants and battery storage facilities, while considering business alliances with other companies in order to expand the scope of the renewable energy business ③ Expand earnings by strengthening the Web3.0 business, 5. Thorough cost reduction and efficient allocation ① Continue thorough expense-reduction initiatives ② Ensure efficient and effective cost allocation by changing to segments based on sales style and consolidating production functions, 6. M&A of growth companies and businesses and fundraising |
| Outlook | To achieve operating profitability and positive operating cash flow, the Group will pursue earnings growth in each segment, withdrawal from unprofitable stores, the transition to “DENBA Lounge,” the signing of sale agreements for solar power plants and battery storage facilities, cost reductions, and consideration of M&A and additional fundraising. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Amid continuing changes in economic conditions resulting from shifts in the international situation and rising prices, the Retail Business incurred costs for withdrawing from unprofitable stores, store-opening, advertising and sales promotion expenses associated with the transition to “DENBA Lounge,” and a decline in sales before and after openings. In the Consulting Business, losses resulted from the absence of signed sale agreements for solar power plants and grid-scale battery storage facilities, amortization of goodwill of ¥21.789 million, business outsourcing expenses of ¥24.570 million and other factors.