Medical Tourism Business Operated by a Hong Kong Joint Venture

「日本和心醫藥有限公司 was excluded from the scope of consolidation because its liquidation was completed during the fiscal year.」

「At a board meeting held on 21 December 2022, the company resolved to dissolve and liquidate its consolidated subsidiary 日本和心醫藥有限公司 (head office: Hong Kong; chair: Nagasawa Kazuchu (長沢和宙)). As of the date of filing this report, the company is proceeding with the necessary procedures in accordance with local laws and regulations.」

「Amid the difficulty of forecasting an end to the COVID-19 pandemic, we determined that business growth in the near term would be challenging for the inbound and outbound businesses centred on cross-border e-commerce and medical tourism, and decided to withdraw from them at the end of the current consolidated accounting year.」

「With respect to the inbound and outbound businesses, centred on cross-border e-commerce and medical tourism, we will consider both resuming and withdrawing from these businesses depending on the recovery of the business environment.」

「For the inbound and outbound businesses, centered on cross-border e-commerce and medical tourism, the company will consider resuming operations depending on the recovery of the business environment.」

「It is expected to be difficult to build a customer base for medical tourism until measures taken by countries in response to COVID-19, such as travel restrictions, are lifted. Even after they are lifted, inbound tourism is expected to recover only gradually for the time being. Accordingly, in the fiscal year ending August 2021, the company will continue to form alliances with medical institutions in Japan and overseas and develop systems, but does not expect the business to contribute to earnings.」

「In the medical tourism and cross-border e-commerce businesses built around China, the global COVID-19 pandemic had a significant impact, particularly on customer acquisition. However, the Group worked to concentrate its management resources and improve management efficiency by consolidating its local entities in Hong Kong and liquidating its Shanghai entity.」

「In the medical tourism and cross-border e-commerce businesses, which use China as their base for development, the global COVID-19 pandemic affected progress to some extent. However, anticipating growing interest in medical care, hygiene and health, the Company actively sought to develop customers and partners.」

「Names of consolidated subsidiaries: 株式会社ブルークエスト; 株式会社ギフトカムジャパン; 株式会社ルイスファクトリー; 魅仕坊（上海）互聯网科技有限公司; 株式会社メディトラ; 日本和心醫藥有限公司」

「From the third quarter consolidated accounting period, the newly established 日本和心醫藥有限公司 (English name: Japan Hexin Medical Limited) has been included in the scope of consolidation.」

「In its new businesses, the company focused on promoting medical tourism and cross-border e-commerce, centered on its Chinese subsidiary 魅仕坊（上海）互聯网科技有限公司, subsidiary Meditra and the Hong Kong joint venture Japan Hexin Medical Limited, established with a Chinese individual investor.」

「Amid the recent growth in inbound tourism, and with particular attention to rising demand for health and medical services in China, the company is planning and promoting a medical tourism business as a new business initiative, with the aim of providing high-quality, advanced medical services to visitors to Japan. In connection with this, the company decided to establish a Hong Kong joint venture with Chinese individual investor Bao Shengjie (包盛杰) to develop customers in China, research their needs and facilitate business development. Planned establishment: late November 2018; planned capital: HK$5.7 million; shareholding: the company 60%, Bao Shengjie (包盛杰) 40%.」