Building a stable revenue portfolio by expanding Dancing Stone applications and establishing the tennis bracelet

「「① 国内収益性 × ② 海外拡大 × ③ DtoC × ④ 生産性 × ⑤ M&A」── 売上×1.45倍・利益×8.5倍へ」

「The proportion of related sales fell to 35.9% of total sales in the fiscal year ended July 2025. Accordingly, if demand for new products using Dancing Stone declines because they do not meet user needs or for other reasons, this could affect the Group's financial position and operating results. We will therefore work to improve product quality while expanding sales of tennis chains, EXL-LOCK and the newly developed Single Dancing Stone, with the aim of increasing sales across our various products.」

「To achieve stable growth going forward, expanding overseas sales, which carry high gross profit margins, is essential. At the same time, we believe it is necessary to optimise the sales portfolio so that sales do not depend on particular regions, customers, products or product categories.」

「This was mainly because sales of parts used to make Dancing Stone (*1) and tennis chains (*2) were strong, particularly in Thailand, India and the United States, sales to Hong Kong, including sales at the Hong Kong exhibition held in March, remained firm, and development of new customers in Ecuador and elsewhere progressed, resulting in a substantial increase in overseas revenue and profit.」

「Overseas sales increased substantially, mainly because sales of parts for making Dancing Stone products and tennis chains were strong, particularly in Thailand and India.」

「This was due to growing sales of the tennis chain, supported by its quality among customers in Japan and overseas.」

「To achieve the medium-term management plan, expanding overseas sales and parts sales, which carry high gross profit margins, is essential. At the same time, we believe it is necessary to optimise the sales portfolio so that sales do not depend on particular regions, customers, products or product categories.」

「We will continue these initiatives and build a strong growth platform to move away from dependence on sales to major overseas business partners and secure stable sales.」

「The results of these initiatives are gradually becoming evident, and we will continue to actively pursue the development of overseas markets, which are a growth engine.」

「In addition to the core Dancing Stone and tennis chain products, we are developing and proposing products and services that use our strengths in intellectual property, including the new Star Series and Single Dancing Stone.」

「Sales of the core Dancing Stone and tennis chain products increased, and we pursued sales-expansion proposals aimed at making the new Star Series and Single Dancing Stone the next core products.」

「In Japan, we expanded our lineup by adding the new patent-based “Star Series,” following the existing core products “Dancing Stone” and “tennis chain,” as well as “Single Dancing Stone,” which applies “Dancing Stone” technology, and pursued market expansion using proprietary product technology that competitors cannot replicate.」

「Preparations for the second half of the fiscal year are also progressing smoothly. The Star Series, a new product using patented technology and following the core products “Dancing Stone” (*) and “Tennis Chain,” has been adopted by a major online retailer, and the company is advancing proposals to further expand sales.」

「Specifically, tennis chains, a core product following Dancing Stone, which we had been developing since the fiscal year before last, have finally begun to gain traction. Market development by a new distributor pursuing a licensing agreement in India is progressing smoothly. We will continue to launch the new Star Series and Stamp, produced at a partner factory in Thailand, while expanding sales mainly in India and throughout Southeast Asia and the Middle East, and working to eliminate counterfeit products from the Chinese market.」

「We added the Star Series and Stamp Series to the core product lineup of Dancing Stone, tennis chains and EXL-LOCK.」

「Overseas, mass production of Dancing Stone parts using progressive-die stamping, conducted in cooperation with a partner factory in Thailand, began in May this year after the necessary machinery was installed locally. This operation enables the mass production of high-quality, low-cost Dancing Stone parts, and we will implement measures aimed at full-scale entry into the Indian market, a major population market, and at addressing the Chinese market, where counterfeit products are widespread.」

「Efforts to expand sales are progressing steadily, including the rollout of the VIRUS BLOCK antibacterial service, which has been under development since the end of the previous fiscal year, and proposals for products combining amulets for shrines and temples with Dancing Stone.」

「In addition, the company is working with its factory in Thailand to establish a production system by automating the manufacturing processes for “Dancing Stone” and “EXL-LOCK” (*2), enabling the supply of lower-priced products.」

「For this market, we will first conduct sales activities using the distribution channels built for Dancing Stone. We will also develop new markets, particularly in Southeast Asia and Africa, where market expansion is expected. As automation enables production in the near future, we aim to capture a substantial share of the global fastener market by offering products that are cheaper and more convenient than those of competitors, thereby securing stable sales and profits.」

「The “Tennis Bracelet,” for which full-scale sales were planned to begin in the second half of the fiscal year, began operating under a 24-hour production system in February 2020, but production has been temporarily suspended due to the current circumstances. Similarly, the company had been working with a factory in Thailand to establish an automated production system capable of handling large orders for “EXL-LOCK” (*2), but difficulties in procuring parts due to restrictions on travel and logistics have also led to a temporary suspension.」

「In addition, to prepare for the full-scale launch of the new tennis bracelet product in the second half of the fiscal year, we worked to stabilise quality and, in February 2020, established a 24-hour production system capable of handling large orders. For EZ Clasp, in addition to the cast products for which preparations are in place, we are developing presses capable of automated mass production. We also demonstrated and presented tennis bracelets, EZ Clasp and EZ Clasp Jacket at the International Jewellery Fair held in January to broadly communicate the quality and functional advantages of these new products.」

「For the new “EZ Clasp” (*) and “Tennis Bracelet,” the company is establishing a production system capable of handling large orders ahead of the full-scale sales launch planned for the second half of the fiscal year.」

「Against this backdrop, we successfully developed EZ Clasp, a new product intended to become a second core business after Dancing Stone. We steadily prepared for the full-scale launch of EZ Clasp in the fiscal year ending July 2020 by securing production methods and establishing a production system.」

「Over the medium to long term, we will build a portfolio capable of generating stable sales by expanding sales, including broadening the applications of Dancing Stone, increasing market penetration for the new products EZ Clasp and tennis bracelets, and pioneering the synthetic diamond market as a first mover.」

「Over the medium to long term, we will build a portfolio capable of generating stable sales by expanding sales, including broadening the applications of Dancing Stone, and increasing market penetration for tennis bracelets.」