The heart to give, The heart to share｜JTC Inc.

We would like to thank you all for your continued support.We would like to briefly report on the overview of our 30th fiscal year (2023.03-2024.02).

The global economy has suffered from the slow growth and the inflation due to the prolonged Russian invasion of Ukraine and the conflicts in the Middle East. On the other hand, many countries have resumed vigorous economic activities since the World Health Organization (WHO) officially announced the end of the pandemic of the new coronavirus.

Japan economy, where we are, has been quite firm, despite the monetary tightening originated in the U.S. The Nikkei Stock Average has reached the record high for the first time in 34 years and is on a gradual recovery track with a gradual increase in domestic prices. It was led by the expectations that the corporate performance would improve as a result of the weaker yen brought by the Bank of Japan's monetary easing and other factors.

The number of foreign visitors to Japan has steadily recovered resulting from the lifting of COVID-19 restrictions in FY2022 except for the visitors from China. The ban of the group travel from China to Japan was lifted in August 2023. Since then, we have seen higher monthly numbers of Chinese visitors than the ones before COVID-19 in spite of the problem of contaminated water discharge.

Under these circumstances, we have decisively taken aggressive measures to improve management efficiency and financial structure, We have also reopened closed stores, opened the new stores in new areas to deal with the increase in foreign visitors to Japan, strengthened our sales organization, and enhanced our PB product lineups.

As a result, the net sales for the current fiscal year (IFRS basis) increased 4 times or more as much as the previous fiscal year to JPY 16.3 billion. The operating profit was approximately JPY 2.37 billion. The recurring profit was JPY 2.22 billion. We successfully turned around our business performance for the first time since the company was designated as a Stock Under Supervision in May 2022.

We believe that the lifting of the designation as Stock Under Supervision is the gift from the heartfelt support who trusted us and watched over the company despite the difficulties in Corona period. We continue to focus on improving the business performance, ensuring the financial soundness, making the great efforts to restore corporate credibility, and increasing the shareholder’s value.

I hope that you will join us in watching our efforts and growth this year and will give us your generous support.