Cross-border e-commerce product demand, inventory obsolescence and overseas transaction risks

「Hobby-related products such as character merchandise handled in our Group's cross-border e-commerce business tend to be affected by rapidly changing trends, as well as by supply and demand and economic conditions. In particular, because sales currently rely heavily on certain product categories, they are strongly affected by the timing of new product launches in those categories and market trends. Our Group is seeking to mitigate these effects by broadening its product lineup, but if it fails to respond appropriately to changes in consumer demand, this may affect the Group's operating results and financial position.」