Strengthening Business Expansion in Overseas Markets

「During the fiscal year, we expanded sales bases and networks primarily in Asia, including by opening an official flagship store in Beijing, China, while strengthening collaboration with strategic partners and developing our e-commerce sales structure, including the rollout of local e-commerce sites in Hong Kong and Thailand. From the perspective of improving the operating efficiency of the Kotobukiya Group, we decided to transfer the e-commerce business operated in China by the Chinese joint venture Kotobukiya Fuzheng Culture Development Co., Ltd. to the wholly owned Chinese subsidiary Shanghai Kotobukiya Import & Export Co., Ltd. and liquidate the joint venture.」

「The Company planned to expand the operations of Shanghai Kotobukiya Import & Export Co., Ltd. and Kotobukiya America Inc. beyond the level of the fiscal year ending June 2025. As these subsidiaries were expected to become increasingly important to the creation of value for the Company and the Kotobukiya Group, they were included in the scope of consolidation, and the Company transitioned to consolidated financial reporting from the interim consolidated accounting period.」

「In North America, the BISHOUJO series was well received by the market through summer events such as Anime Expo 2025 and San Diego Comic-Con 2025, where the company exhibited to raise awareness of the コトブキヤ brand, contributing to sales during the period.」

「In North America, the Company actively pursued promotional activities for new products and its EC website in the United States, launched in March 2025, as well as the development of new business partners. However, sales in the region declined from the previous fiscal year, mainly because expected shipments could not be made in the second half due to the impact of U.S. tariff policies.」

「In North America, we exhibited at Anime Expo 2024 in Los Angeles and San Diego Comic-Con 2024 in San Diego, actively promoting new products and our company-operated e-commerce site scheduled to launch during the fiscal year.」

「In China, we established the joint venture Kotobukiya Fuzheng in Shenzhen to plan, manufacture and sell products and to provide services, with the aim of increasing awareness of the KOTOBUKIYA brand and expanding our products and services, and will pursue further business development.」

「In North America, the Company actively pursued promotional activities and the development of new business partners. However, sales in the region remained sluggish due to a decline in the number of items contributing to sales compared with the same period of the previous year, as well as the impact of inventory adjustments stemming from logistics disruptions during the COVID-19 pandemic. In Asia, “Roxy Migurdia” from “Mushoku Tensei: Jobless Reincarnation” contributed to figure sales, while model kit sales remained sluggish.」

「In North America, the company exhibited at New York Toy Fair 2023 and actively pursued promotional activities and the development of new business partners. However, sales in the region remained sluggish, mainly because the number of items contributing to sales declined from the same period of the previous year.」

「We are currently pursuing sales expansion to achieve the basic policy of our growth strategy, including creating and expanding new IP, expanding overseas and strengthening our supply chain. To address the expansion of domestic Chinese content and the increasing number of competitors in China, and to accelerate marketing and branding for the KOTOBUKIYA brand, we established a joint venture with Fuzheng (Shenzhen) Culture Technology Co., Ltd., which specializes in media development in China, to plan, develop, manufacture and sell figures, goods and other products. The joint venture is intended to increase awareness of our proprietary IP and commercialize anime and game IP originating in China. The two companies are discussing the details with the aim of commencing operations in December 2023.」

「In North America, products including Vampire BISHOUJO Morrigan and Vampire BISHOUJO Felicia, developed under the BISHOUJO series, contributed significantly to figure sales. However, sales in the region remained sluggish because the number of product titles declined from the previous fiscal year. In Asia, the company’s proprietary-IP plastic model products, centered on the Megami Device series and including Arcanadea, performed steadily, while figure sales remained sluggish.」

「In North America, sales remained firm, particularly for figure products, following the launch of “TRANSFORMERS BISHOUJO Convoy,” among other products in the “BISHOUJO Series.” In Asia, proprietary IP plastic model products, including “FRAME ARMS GIRL” and led by the “MEGAMI DEVICE” series, remained firm, while figure product sales were sluggish.」

「In North America, sales remained firm, particularly for figure products, following the launch of “Vampire BISHOUJO Morrigan” and “Vampire BISHOUJO Felicia,” among other products in the “BISHOUJO Series.” In Asia, proprietary IP plastic model products, including “ARCANADEA” and led by the “MEGAMI DEVICE” series, remained firm, while figure product sales were sluggish.」

「In North America, we exhibited at Anime Expo 2022 in Los Angeles and then at San Diego Comic-Con 2022 in San Diego, conducting active promotional activities. Although the effects of the spread of COVID-19 continued, sales of both figures and plastic models remained strong.」

「We will work to strengthen relationships with overseas distributors, enhance marketing activities, and establish a network including showrooms and e-commerce sites.」

「In Asia, the impact of the spread of COVID-19 on sales activities remained limited. As a result of conducting promotional activities and expanding sales channels, figure product sales were strong. As in Japan, proprietary IP plastic model products, primarily from the “MEGAMI DEVICE” series, also performed well.」

「In Asia, the impact of the spread of COVID-19 on sales activities remained limited. As a result of conducting promotional activities and expanding sales channels, figure product sales were strong. As in Japan, proprietary IP plastic model products, primarily from the “FRAME ARMS GIRL” series and including “MEGAMI DEVICE,” also performed well.」

「In addition to China and North America, which have traditionally been our primary target markets, we intend to expand overseas operations to include Asian countries other than China and Europe in pursuit of further growth from a medium- to long-term perspective, with the aim of transforming the company into a global enterprise.」

「In North America, although the effects of the spread of COVID-19 continued, sales of both figures and plastic models remained firm. In Asia, the impact of the spread of COVID-19 remained limited. As a result of conducting promotional activities and expanding sales channels, figure sales were strong. As in Japan, plastic model products based on our proprietary IP, centered on the Frame Arms Girl series and including Megami Device, also performed well.」

「In Asia, the impact of the spread of COVID-19 on sales activities remained limited. As a result of conducting promotional activities and expanding sales channels, figure sales were strong. As in Japan, plastic model products based on our proprietary IP, including Megami Device, also performed well.」

「In North America, although the effects of the spread of COVID-19 continued, sales of both figures and plastic models remained firm. In Asia, the impact of the spread of COVID-19 on sales activities remained limited. As a result of conducting promotional activities and expanding sales channels, figure sales were strong. As in Japan, plastic model products based on our proprietary IP, including Megami Device, also performed well.」

「In Asia, the impact of the spread of COVID-19 on sales activities remained limited. As a result of conducting promotional activities and expanding sales channels, figure product sales were strong.」

「In overseas markets, we exhibited at “New York Toy Fair” in February 2020, a trade show held in New York, United States, at which more than 1,000 companies exhibiting toys, games and entertainment products participate. We displayed products, including samples of the latest products, and actively promoted our products and brand worldwide. Our proprietary IP products, including “FRAME ARMS GIRL” and the “MEGAMI DEVICE” series, continued to be well received, particularly in Asia, and we continued to focus on region-specific localization activities.」

「In overseas markets, we exhibited at “BILIBILI WORLD 2019 Shanghai” in October 2019, where we operated a sales area featuring venue-exclusive products, displayed the latest figures and character goods, and distributed promotional items that were not for sale. We actively pursued sales activities, particularly in Asia. Our proprietary IP products, including the “MEGAMI DEVICE” series, continued to be well received, particularly in Asia, and we continued to focus on region-specific localization activities.」

「In overseas markets, in July 2019 we exhibited at CCG EXPO 2019 Shanghai, an international anime and game exposition originating in China and jointly hosted by China's Ministry of Culture and the Shanghai municipal government. We also exhibited at San Diego Comic-Con, one of the oldest and most prestigious festivals and the best-attended event within Comic-Con International, the world's largest convention for pop culture including comics, anime and film. We prepared a sales area featuring venue-exclusive products, displays of the latest figures and character goods, and photo spots. The event was highly successful and raised expectations for future overseas expansion. Our proprietary IP products, including the Megami Device series, also continued to be well received, particularly in Asia, and we focused on localization activities tailored to each region.」

「Fiscal year Total overseas wholesale sales 1,867,170 109.1」

「In overseas markets, in July 2018 we exhibited at Anime Expo 2018, one of North America's largest anime conventions, which attracted more than 100,000 visitors. We also exhibited at San Diego Comic-Con, one of the oldest and most prestigious festivals and the best-attended event within Comic-Con International, the world's largest convention for pop culture including comics, anime and film. In February 2019, we exhibited at New York Toy Fair, a trade show held in New York featuring more than 1,000 companies in toys, games and entertainment, displaying products including samples of our latest products and promoting our products and brand worldwide. Our Megami Device series of proprietary IP products also continued to be well received, particularly in Asia, and we focused on localization activities tailored to each region.」

「In overseas markets, in July 2018 we exhibited at Anime Expo 2018, one of North America's largest anime conventions, which attracted more than 100,000 visitors. We also exhibited at San Diego Comic-Con, one of the oldest and most prestigious festivals and the best-attended event within Comic-Con International, the world's largest convention for pop culture including comics, anime and film. We set up a sales area featuring venue-exclusive products, displays of the latest figures and character goods, and photo spots. The event was highly successful and raised expectations for future overseas expansion. In November 2018, we exhibited at C3 AFA SINGAPORE 2018, one of Southeast Asia's largest anime events, where we held a Frame Arms Girl talk show and mini-live performance and sold related products. Our Megami Device series of proprietary IP products also continued to be well received, particularly in Asia, and we focused on localization activities tailored to each region.」

「In overseas markets, we exhibited at “Anime Expo 2018” in July 2018, an event that attracted more than 100,000 attendees and is one of North America’s largest anime conventions. We also exhibited at “San Diego Comic-Con,” a prestigious event with the largest attendance among the events held under Comic-Con International, the world’s largest pop-culture convention covering comics, anime and film. We set up a sales area featuring venue-exclusive products, displays of the latest figures and character goods, and photo spots. The events were successful and raised expectations for future overseas expansion. Our proprietary IP products, including the “MEGAMI DEVICE” series, were also well received, particularly in Asia, and we continued to focus on region-specific localization activities.」

「In Asia, as in Japan, plastic model products based on our proprietary IP, centered on the Frame Arms Girl series and including Megami Device, performed well. In particular, for social media activities in Asia, we focused on localization by posting in simplified and traditional Chinese on Weibo in China, among other initiatives. We had entered into an exclusive sales agency agreement with KOTO,INC. as described below, but terminated the agreement on 11 July 2018.」

「In overseas markets, we sold products related to “Spider-Man: Homecoming,” released in North America and Europe in July 2017, “Justice League,” released in November 2017, and “Star Wars: The Last Jedi,” released in December 2017. However, orders generally remained sluggish, resulting in lower sales. In Asia, by contrast, performance remained strong, led by new products from the “FRAME ARMS GIRL” and “MEGAMI DEVICE” series.」

「In overseas markets, we sold products related to “Spider-Man: Homecoming,” released in July 2017, “Justice League,” released in November 2017, and “Star Wars: The Last Jedi,” released in December 2017. In addition, the sculpting of “Fullmetal Alchemist ARTFX J Edward Elric Limited Edition,” sold through directly operated stores and exclusively overseas, was well received overseas and contributed to sales. Original licensed products, including the “FRAME ARMS GIRL” series, also performed well, particularly in Asia.」

「In overseas markets, products related to “Spider-Man,” including “MARVEL UNIVERS ARTFX+ VENOM,” “Spider-Man 2099” and “ARTFX+ Carnage,” performed well following the release of the film “Spider-Man: Homecoming” in July 2017. In addition, the sculpting of “Fullmetal Alchemist ARTFX J Edward Elric Limited Edition,” sold through directly operated stores and exclusively overseas, was well received overseas and contributed to sales. Original licensed products, including the “FRAME ARMS GIRL” series, also performed well, particularly in Asia.」

「We believe that strengthening business expansion in overseas markets is important for achieving further growth over the medium to long term. Going forward, we will promote the development of our sales structure and products for overseas markets, while also focusing on establishing sales bases in Asian countries and further advancing our overseas expansion.」