IMAGE MAGIC Inc.

The company operates a single-segment on-demand print solutions business, providing an "automated on-demand manufacturing platform" that combines advanced AI technology with proprietary systems and hardware. Through its on-demand print services, it provides printing for apparel and miscellaneous goods, and offers solution services comprising software and hardware incorporating AI-powered workflow optimization. For design support, it uses image-generative AI and is accelerating development of autonomous inspection and production-process control systems using AI cameras, promoting a "factory that never stops" in response to labor shortages through thorough labor reduction and DX of manufacturing processes to prevent errors before they occur. By pursuing on-demand production, the company is building a system that makes "only what is needed, when it is needed, and in the quantity needed," eliminating excess inventory and contributing to a lower environmental impact. Market trends in the on-demand print solutions business include shorter lead times, deeper personalization, and growing demand related to fan communities' support activities. The market is expanding through synergies with diverse content created using generative AI technology. The company is responding to these changes by building a competitive advantage in high-mix, ultra-small-lot production through advanced integration of AI and hardware. Sales and profit for the current interim accounting period were as follows: net sales were ¥5,148.230 million, up 17.6% year on year; operating income was ¥242.370 million, up 16.6%; ordinary income was ¥245.086 million, up 17.2%; and interim net income was ¥164.331 million, up 41.4%. Net sales from on-demand print services were ¥4,622.014 million, up 17.6% year on year, while net sales from solution services were ¥526.215 million, up 18.2%. The company operates the on-demand print solutions business as a single segment and therefore does not provide segment-by-segment disclosures.