Business Risks

Among the matters related to the status of business and accounting described in the Annual Securities Report, the following are matters that may have a significant impact on investors' decisions.
The information described here is based on the judgment made at the end of the current consolidated fiscal year.


Many of the Group's products are used by motorcycle riders for leisure touring during the early spring to early winter seasons, and there is a possibility that sales will decrease due to unseasonable weather such as rainfall and abnormal weather at the height of the season, which may adversely affect the Group's business performance and financial position.

Exchange rate fluctuations

Foreign currency-denominated transactions in the domestic wholesale business and the Asian base wholesale business are subject to foreign exchange rate fluctuation risks. Major transactions are hedged against risks such as foreign exchange contracts as necessary, but they cannot be completely avoided and may have a significant impact on business performance due to sudden exchange rate fluctuations.

Impairment accounting

The Group owns fixed assets, but if land prices decline or the profitability of businesses using these assets declines, it will be necessary to record them as losses based on impairment accounting, which may adversely affect the Group's business performance and financial position.

Personal information

The Group sells motorcycle parts and accessories on the Internet and possesses a large amount of personal information.
We comply with the "Act on the Protection of Personal Information" and strive to strictly manage personal information. However, if such personal information is leaked, the Group's business performance may be affected due to loss of social credibility and the occurrence of large expenses due to accident response.

Novel Coronavirus Infection

Although the Group has implemented infection prevention measures to ensure thorough hygiene management and to allow business travelers to areas with a high number of infected people to work from home before coming to work, if the infection spreads to those involved in shipping and consignment, there is a possibility that sales will continue to decline for a certain period of time due to loss of sales opportunities due to delays in product shipping operations.
In addition, due to the outbreak of the new coronavirus infection overseas, the Group's business performance and financial position may be affected by concerns about the suspension of operations at factories in the countries from which we source overseas products, manufacturing delays due to insufficient supply of raw materials, delivery delays due to a shortage of containers by sea, and related increases in transportation costs.


Amid a significant increase in demand for purchased products, such as shortages of raw materials and delays in marine transportation, we are responding by holding a large amount of spare inventory as one of the measures against shortages. However, there is a risk that profits will decrease due to an increase in product valuation losses due to a decline in the valuation of inventories in accounting when sales decline due to soaring prices of imported products due to sudden fluctuations in exchange rates or sudden changes in sales conditions.

Impairment of goodwill

The Company is proceeding with the amortization of 650 million yen of goodwill acquired in October 2017 over 10 years. Currently, the balance of goodwill after five years is 325 million yen. Due to future trends in the performance of subsidiaries, there is a risk that the balance of goodwill will be treated as an impairment loss if it falls below the business plan planned at the time of acquisition.

Natural disaster

The Group's domestic wholesale business has offices and warehouses and other logistics bases in Shizuoka and Aichi prefectures. If damage exceeds the Group's business continuity plan (BCP) due to natural disasters such as earthquakes and storm and flood damage, the Group's business performance and financial position may be adversely affected.