This corporate group is a consumer electronics mass retailer group centered on EDION Corporation SANKYU Co.,Ltd. Some of the products we sell are affected by seasonal factors, and long-term rainy season in the summer, cold summer and warm winter may affect the business performance and financial position of the Group.

EDION Corporation which operates in the Kanto, Chubu, Kinki, Chugoku, Shikoku, and Kyushu regions, SANKYU Co.,Ltd. which operates mainly in the Hokuriku and Hokkaido regions. In some areas of Kyushu, there are many stores of other companies that handle similar products, and competition is intensifying. In addition, even if there are no competing stores of other companies in the vicinity of the stores of this corporate group, competition will intensify depending on the opening of new stores of other companies in the future. Under the circumstances of repeated consolidation and reorganization of companies, competition for opening stores and price competition may intensify, which may affect the business performance and financial position of the Group.

In order to ensure customer safety from natural disasters and accidents, the Group conducts thorough disaster prevention measures, such as ensuring compliance with the Fire Service Law and strengthening store earthquake resistance. However, if a store is damaged by a large-scale natural disaster such as an earthquake or typhoon, or if a fire occurs in a store, the store will be shut down, the liability for those who suffered damages, and the loss of human resources. This could result in damage to fixed assets and inventories, which could affect the Group's business performance and financial position. In addition, damage to business partners may make it difficult to supply normal products, which may affect the Group's business performance and financial position.

The Group handles a lot of personal information, such as cardholder information and customer purchase history data. In addition, we hold a lot of confidential information, etc. regarding the technology and sales of each group company. This information is strictly managed by the EDION Group Information Security Management Regulations. However, in the unlikely event that information is leaked due to unforeseen circumstances, etc., the performance and financial position of the Group May be affected.

The Group has a large amount of fixed assets such as tangible fixed assets and intangible fixed assets related to stores. If the book value of each store cannot be recovered due to the decline in profitability of the store, or if there is a change in the “Accounting Standard for Impairment of Fixed Assets,” etc., an impairment loss is recorded for the store and the Group May affect the business performance and financial position of the company.

When selecting a store to open a new store, the Group places the highest priority on the profitability of the store, and considers the store conditions such as security deposits and rent, the trade area population, the competitive situation, the traffic volume in front of the store, etc. Properties that meet certain conditions, such as the payback period based on the location survey and the expected profit, are to be opened. For this reason, if the number of properties that meet the Company's opening conditions is less than the planned number of openings, the business performance and financial position of the Group may be affected.

In conducting business activities, the Group has concluded contracts with some outside contractors to manage information system equipment, deliver, install and repair products, and dispose of industrial waste. You. Regarding these outsourcing companies, after rigorous screening according to the internal “outsourcing management rules” and various rules regarding information management, etc., we select outsourcing companies and always pay close attention to compliance, Any act that violates laws and guidelines that an outsourcer must comply with in conducting its business may affect the performance of the Group. In addition, the Group constantly checks the credit status of the outsourcing companies.However, if these outsourcing companies go bankrupt, etc. Unexpected credit losses on receivables from third-party contractors could also affect the Group's performance.