Tokyo Lifestyle Co., Ltd 6-K, filed Jun 20, 2025
Tokyo Lifestyle Co., Ltd. (TKLF)
About this 6-K
Tokyo Lifestyle Co., Ltd filed this 6-K on June 20, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of June 2025
Commission File Number: 001-41181
Tokyo Lifestyle Co., Ltd.
Harumi Building, 2-5-9 Kotobashi
Sumida-ku, Tokyo, 130-0022
Japan
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Convocation of the 19th Annual General Meeting of Shareholders of Tokyo Lifestyle Co., Ltd.
In accordance with the rules and regulations of the Japanese Companies Act, Tokyo Lifestyle Co., Ltd. has sent a notice and accompanying information, including proxy instructions, to all holders of its ordinary shares and American Depositary Shares with respect to its 19th Annual General Meeting of Shareholders to be held in Tokyo, Japan on June 27, 2025. A complete copy of the notice is furnished hereto as Exhibit 99.1.
Exhibit 99.1 furnished hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Tokyo Lifestyle Co., Ltd. | ||
| Date: June 18, 2025 | By: | /s/ Mei Kanayama |
| Name: | Mei Kanayama | |
| Title: | Representative Director and Director (Principal Executive Officer) | |
2
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Notice of Convocation of Annual General Meeting of Shareholders to be held on June 27, 2025 |
3
Exhibit 99.1
[This is an English translation of the original issued in Japanese]
[Note] The Company assumes no responsibility for this translation or for direct, indirect, or other forms of damages arising from the translation. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
| Dear Shareholders | June 12, 2025 |
Harumi Building, 2-5-9 Kotobashi,
Sumida-ku, Tokyo,130-0022, Japan
Tokyo Lifestyle Co., Ltd.
President and Representative Director
Mei Kanayama
Notice of the 19 th Ordinary General Meeting of Shareholders
We sincerely appreciate your continued support and kind attention.
You are cordially invited to attend the 19 th Ordinary General Meeting of Shareholders of our company Corporation. The meeting will be held as described below.
If you are unable to attend the meeting, you may exercise your voting rights in writing. Please review the attached Reference Documents for the General Meeting of Shareholders, indicate your approval or disapproval of the proposals on the enclosed Voting Rights Exercise Form, and send it to our company by 4:30 PM, Thursday, June 26, 2025.
Best regards,
Notice
| 1. | Date: Friday, June 27, 2025 at 11:00 AM (reception starts at 10:00 AM) |
| 2. | Place: Harumi Bldg. 5th Floor, Kotobashi 2-5-9, Sumida-ku, Tokyo、Japan |
| 3. | Purpose |
Matters to be reported: Business Report for Fiscal Year 19 (from April 1, 2024 to March 31, 2025), Report on the contents of financial statements, and Report on the results of audit of financial statements by the Accounting Auditor and the Board of Corporate Auditors
Matters to be resolved
| Proposal 1 | Partial Amendments to the Articles of Incorporation | |
| Proposal 2 | Election of Four Directors |
The above
When attending the meeting, please bring this Notice of Convocation, the attached documents, and the Reference Documents for the General Meeting of Shareholders, and submit the enclosed Voting Rights Exercise Form to the reception desk.
- 1 -
Reference Documents for the General Meeting of Shareholders
Proposal 1: Partial Amendments to the Articles of Incorporation
1. Reason for the Proposal
As of March 21, 2025, our company reduced its capital to 10 million yen. As a result, we no longer qualify as a large company that is required to have a board of auditors and an accounting auditor pursuant to the provisions of the Companies Act.
Accordingly, from the viewpoint of simplifying and improving the management structure in the future, we propose that our company abolish the establishment of a board of auditors and an accounting auditor, and delete or amend the relevant provisions of the Articles of Incorporation.
2. Details of Changes
The details of the changes are as follows. In order to eliminate missing article numbers resulting from the deletion, the numbers and chapter numbers of subsequent articles shall be moved up sequentially to maintain consistency in the Articles of Incorporation. The underlined portion indicates the changes.
| Current Articles of Incorporation | Proposal for Changes |
(Organization)
Article 4 In addition to the general meeting of shareholders and directors, the Company has the following organizations:
1. Board of Directors 2. Corporate Auditors 3. Board of Corporate Auditors 4. Accounting Auditor
Chapter 5 Corporate Auditor and Board of Corporate Auditors
(Convocation of Board of Corporate Auditors) Article 31 Notice of convocation of a Board of Corporate Auditors meeting shall be sent to each Corporate Auditor at least three days prior to the date of the meeting. However, this period may be shortened if there is an urgent need.
2 If the consent of all Corporate Auditors is obtained, the Board of Corporate Auditors meeting may be held without convocation procedures.
(Regulations of the Board of Corporate Auditors) Article 32 Matters concerning the Board of Corporate Auditors shall be governed by the regulations of the Board of Corporate Auditors established by the Board of Corporate Auditors in addition to those stipulated in laws and regulations and these Articles of Incorporation.
Chapter 6 Accounting Auditor
|
(Organization)
Article 4 The Company shall have the following organs in addition to the general meeting of shareholders and directors.
1. Board of Directors 2. Corporate Auditors
Chapter 5 Corporate Auditors
Delete
Delete
Delete
The entire chapter is deleted.
|
- 2 -
Proposal 2: Election of Four Directors
The terms of the current all four Directors will reach an end upon the conclusion of this general meeting. We kindly request the reappointments of four Directors.
The candidates for Director are as follows:
| Candidate Number |
Name (Date of birth) |
Brief Biography, Position, Significant Concurrent Positions, and Special Interests with the Company. | Number of Company’s Shares Held |
| 1 | Mei Kanayama (October 24, 1979) Reappointment of Director |
(Career summary and position) November 2000 Joined Yonechiku Co., Ltd. September 2007 Resigned from Yonechiku Co., Ltd. January 2008 Joined our company as Director June 2009 Appointed Representative Director of our company (current position) October 2019 Established TOKYO LIFESTYLE Appointed Representative Director (current position)
(Significant Concurrent Positions) Representative Member of Tokushin G.K. Representative of TOKYO LIFESTYLE CO., LTD
(Special Interests with our Company) None
|
7,216,436 shares |
| 2 | Yoichiro Haga (July 5, 1966) Reappointment of Director |
(Career summary and position) April 1991 Joined The Mitsubishi Bank, Ltd. September 2020 Retired from MUFG Bank, Ltd. October 2020 Joined our company in charge of Finance June 2021 Appointed Director of our company June 2023 Reappointed Director of our company (current position)
(Significant Concurrent Positions) No significant concurrent positions
(Special Interests with our Company) None
|
0 shares |
| 3 | Yoji Takenaka (August 26, 1963) Reappointment of External Director |
(Career summary and position) April 1993 Registered as an attorney April 2005 Opened Takenaka Law Office (current position) June 2021 Appointed Outside Director of our company June 2023 Reassigned Outside Director of our company (current position)
(Significant Concurrent Positions) Lawyer, Takenaka Law Office
(Special Interests with our Company) None |
0 shares |
- 3 -
| 4 | Tetsuya Sato (May 26, 1970) Reappointment of External Director |
(Career summary and position) May 1995 Joined Marco Corporation July 2017 Appointed Representative Director, WDM, Inc. July 2019 Appointed CFO, Director, RSK, Inc. (current position) June 2021 Appointed Outside Director, our company June 2023 Reappointed Outside Director, our company (current position)
(Significant Concurrent Positions) Director, CFO, RSK Co., Ltd.
(Special Interests with our Company) None |
0 shares |
| (Note) | 1. | Mr. Yoji Takenaka and Mr. Tetsuya Sato are candidates for External Directors. |
| 2. | Mr. Yoji Takenaka and Mr. Tetsuya Sato have been appointed as Outside Directors of our company since June 2021, and their term of office has been 4 years at the conclusion of this General Meeting of Shareholders. | |
| 3. | Reasons for the appointment of the candidates as External Directors and the rationale for the Company’s determination that they can fulfill their duties effectively as External Directors. |
| ① | Regarding Mr. Yoji Takenaka, we request his appointment as an External Director to utilize his knowledge, experience, and expertise as a lawyer for the benefit of the Company’s management. | |
| ② | Regarding Mr. Tetsuya Sato, we request his appointment as an External Director to utilize his extensive experience as a business executive and his broad insights, which will contribute to the management of the Company. |
| 4. | The Company has entered into limited liability agreements (the “Agreements”) with Mr. Yoji Takenaka and Mr. Tetsuya Sato. In the event that their reappointments are approved, we intend to continue the Agreements with them. Under the Agreements, the limit of liability for damages is set at either 10 million Japanese Yen or the amount specified by law, whichever is higher, provided that the performance of their duties is carried out in good faith and without gross negligence. |
The above
- 4 -
(Attachments)
B u s i n e s s R e p o r t
[From April 1, 2024
To March 31, 2025]
Statutory Financial Statements Prepared in Accordance with Japanese GAAP
Note: The statutory financial statements on the following pages have been prepared in accordance with Japanese GAAP. These results may differ in material respects from our audited consolidated financial results under U.S. GAAP that will be reported at a later date and included in our Annual Report on Form 20-F,which will filed with the U.S. Securities and Exchange Commission and available at www.sec.gov. The attached financial statements are provided to our shareholders and ADS holders solely in accordance with requirements under the Japanese Companies Act in connection with our Annual Meeting.
| 1. | Current status of the company |
| (1) | Business progress and results |
The global economy continued to be highly uncertain during the fiscal year under review, reflecting a mix of economic recovery and stagnation in major economies such as the United States and China.
On the other hand, in China, economic growth stabilized and the government indicated signs of economic policy recovery, but the decline in external demand and geopolitical risks still had an impact.
In Japan, although there was a recovery in business activity and a pick-up in consumption amid continued policy support for economic recovery, labor shortages, rising raw material prices, and soaring energy costs remained challenges to economic activity.
As a result, net sales for the fiscal year under review were 24,373,722 thousand yen (decreased by 4.8% year-on-year), operating income was 221,228 thousand yen (decreased by 6.4% year-on-year), and ordinary income was 24,506 thousand yen (decreased by 92.5% year-on-year).
Based on the consumption tax audit (survey period: July 2018～December 2021), the Company received a decision to correct the main consumption tax in July 2023 and a decision to levy an additional tax for underpayment and heavy additional tax, and has made partial payments under the approval of deferment of realization, which were paid in full in the current fiscal year.
| (2) | Status of funding |
| ① | In order to allocate the loan to working capital, the Company has established a loan limit of 7,850,000,000 yen through a syndicated loan led by The Bank of Mitsubishi UFJ, Ltd. and Mizuho Bank, Ltd. The outstanding amount of loans executed at the end of the fiscal year under this contract was 7,850,000,000 yen. |
| ② | The Company has secured financing of 200,000,000 yen from Resona Bank in order to convert the equipment loan of 200,000,000 yen from Resona Marchant Bank Asia Limited (Singapore), which was borrowed by our subsidiary, Tokyo Lifestyle Limited (Hong Kong), into an intra-group loan. |
| (3) | Changes in the status of assets and profits and losses |
(Unit: 1,000 yen)
| Period\division | 16th period Fiscal Year Ended March 2022 | 17th period Fiscal Year Ended March 2023 | 18th period Fiscal Year Ended March 2024 | 19th period Fiscal Year Ended March 2025 | ||||||||||||
| Sales | 25,655,250 | 21,667,575 | 25,615,177 | 24,373,722 | ||||||||||||
| Ordinary Income | 486,715 | 192,962 | 328,353 | 24,506 | ||||||||||||
| Net Income | 192,523 | △884,219 | 216,417 | △90,736 | ||||||||||||
| Net income per share (yen) | 5 | △24 | 5 | △2 | ||||||||||||
| Total Assets | 14,860,428 | 22,505,180 | 21,054,009 | 18,704,887 | ||||||||||||
| Net Worth | 5,628,047 | 4,701,910 | 5,701,950 | 5,615,656 | ||||||||||||
Note: Net income per share is calculated based on the total number of shares issued at the end of the fiscal year.
| (4) | Issues to be addressed by the company |
The business and financial issues that we should prioritize are as follows.
| ■ | Improvement and stabilization of internal control system
In order to prevent the recurrence of problems such as corrections related to inadequate consumption tax procedures, we will position the strengthening of our internal control system as a top management issue and strive to build a governance system. |
| ■ | Restructuring of business model with an eye on the after-corona
In Japan, we will restructure our business model with the highest priority on improving profit margins, such as reviewing unprofitable stores and reviewing the products handled in our e-commerce business, and overseas, we will develop our own dedicated apps, make full-scale expansion into Southeast Asia, and start full-scale operation of our own warehouses overseas. |
In order to overcome the above issues, we will make diligent efforts as a company. I would like to ask all of our shareholders for their continued guidance and encouragement.
| (5) | Principal Businesses (as of March 31, 2025) |
Management of domestic drug stores
Domestic e-commerce operation and management
Domestic and overseas (including trading) wholesale
| (6) | Major business establishments and stores |
| Head Office | 2-5-9 Kotobashi, Sumida-ku, Tokyo Harumi Building | ||
| Tokyo Sales Department | 16F, Island Triton Square Office Tower W, 1-8-8 Harumi, Chuo-ku, Tokyo | ||
| Saitama Center | 3-1-5 Koshigaya City Distribution Complex, Saitama |
Subsidiary Offices
| trade name | location | |
| Tokyo Lifestyle Limited | Unit 11, 12/F., Wing On Plaza, No.62 Mody Road, Tsim Sha Tsui East, Kowloon |
- 2 -
The names and locations of domestic drugstores are as follows
| Store Name | location | Store Name | location | |||
| Nishikasai Yokohama Chinatown | Edogawa-ku, Tokyo Yokohama City,Kanagawa | Koshigaya-Ryutsudanchi Quiz Gate Urawa Nishikawaguchi | Koshigaya City,Saitama Urawa City,Saitama Kawaguchi City,Saitama |
| Note: | 1. | The Shinbashi store was closed as of February 2025. |
| (7) | Status of employees (as of March 31, 2025) |
| Number of Employees | Change from the end of the previous fiscal year | Average age | Average length of service | |||
| 95 | -18 | 41 years and 2 months old | 4 years 3 months |
| Note: | The number of employees includes part-time workers (43). |
| (8) | Status of important subsidiaries |
| Company Name | location | Paid-in Capital | Description of Business | Investment Ratio | ||||
| Tokyo Lifestyle Limited | Hong Kong | HK$15.95 million | Wholesale & Retail Trade | 100％ |
| (9) | Major borrowers and borrowing amounts (as of March 31, 2025) |
| ① | Commitment Line Agreement |
(Unit: 1,000 yen)
| Loans | Outstanding Balance | |||
| Mizuho Bank, Ltd. | 1,550,000 | |||
| MUFG Bank, Ltd. | 1,300,000 | |||
| Resona Bank, Inc. | 943,396 | |||
| Sumitomo Mitsui Banking Corporation, Ltd. | 849,056 | |||
| Note: | 1. | In order to procure stable and efficient working capital, the Company has entered into a commitment line agreement with a maximum borrowing amount of 7,850,000,000 yen. The agreement is a syndicated loan and is cofinanced by a total of 17 banks led by MUFG Bank, Ltd. and Mizuho Bank, Ltd. |
| Note: | 2. | The outstanding balance of loans executed at the end of the fiscal year under this contract is 7,850,000,000 yen. |
| 2. | Status of Stocks (as of March 31, 2025) |
| ① | Total number of shares authorized: 100,000,000 shares |
| ② | Total number of shares issued: 42,327,806 shares |
| ③ | Number of shareholders: 3 |
| ④ | Principal Shareholders |
| Name of Shareholder | Number of shares held | Percentage of shares held | ||||||
| THE BANK OF NEW YORK MELLON | 21,536,266 shares | 50.88 | % | |||||
| Tokushin G.K. | 13,575,104 shares | 32.07 | ％ | |||||
| Mei Kanayama | 7,216,436 shares | 17.05 | ％ | |||||
NOTE: THE BANK OF NEW YORK MELLON IS A DEPOSITARY SECURITIES COMPANY THAT ISSUES AMERICAN DEPOSITARY RECEIPTS (ADR).
- 3 -
| ３． | Matters Concerning the Company’s Stock Acquisition Rights, etc. (as of March 31, 2025) The total number of stock acquisition rights as of the end of the fiscal year under review is as follows. |
| (1) | First series of stock acquisition rights |
| ① | Total number of stock acquisition rights: 300,000 units |
| ② | Type and number of shares subject to stock acquisition rights 300,000 shares of the Company’s common stock represented by U.S. depositary shares in the U.S. |
| ③ | Amount paid for stock acquisition rights |
US$0.01 divided by the number of Stock Acquisition Rights offered
| ④ | Value of assets invested in the exercise of stock acquisition rights |
US$4.80 per common stock
| ⑤ | Period for exercising stock acquisition rights |
From July 6, 2022 to January 7, 2027
| ⑥ | Increased capital and capital reserves in the case of issuance of shares through the exercise of stock acquisition rights |
| 1. | Amount of capital increased by the exercise of stock acquisition rights |
The amount shall be one-half of the maximum amount of increase in capital, etc., calculated in accordance with the provisions of Article 17, Paragraph 1 of the Company Accounting Regulations, and if a fraction of less than 1 yen is obtained as a result of the calculation, the amount shall be rounded up.
| 2. | Amount of capital reserves to increase due to the exercise of stock acquisition rights |
The amount shall be calculated in accordance with the provisions of Article 17, Paragraph 1 of the Company Accounting Regulations, minus the amount of capital increase from the maximum amount of increase in capital, etc.
| ⑦ | Allottee of Stock Acquisition Rights - Univest Securities, LLC |
| (2) | 2nd Series of Stock Acquisition Rights |
| ① | Total number of stock acquisition rights: 5,862,552 |
| ② | Type and number of shares subject to stock acquisition rights |
5,862,552 shares of the Company’s common stock represented by U.S. depositary shares in the U.S.
| ③ | Amount paid for stock acquisition rights |
No payment required
| ④ | Value of assets invested in the exercise of stock acquisition rights |
US$0.27391 per common stock
| ⑤ | Period for exercising stock acquisition rights |
From January 30, 2024 to July 30, 2029
- 4 -
| ⑥ | Increased capital and capital reserves in the case of issuance of shares through the exercise of stock acquisition rights |
| 1. | Amount of capital increased by the exercise of stock acquisition rights |
The amount shall be one-half of the maximum amount of increase in capital, etc., calculated in accordance with the provisions of Article 17, Paragraph 1 of the Company Accounting Regulations, and if a fraction of less than 1 yen is obtained as a result of the calculation, the amount shall be rounded up.
| 2. | Amount of capital reserves to increase due to the exercise of stock acquisition rights |
The amount shall be calculated in accordance with the provisions of Article 17, Paragraph 1 of the Company Accounting Regulations, minus the amount of capital increase from the maximum amount of increase in capital, etc.
| ⑦ | Assignee of Stock Acquisition Rights |
| Assignee | Number of allocations | |||
| LIND GLOBAL FUND II LP | 746,269 | |||
| S.H.N. FINANCIAL INVESTMENTS LTD | 638,669 | |||
| L1 CAPITAL GLOBAL OPPORTUNITIES MASTER FUND | 746,269 | |||
| ALTO OPPORTUNITY MASTER FUND, | 746,269 | |||
| INTRACOASTAL CAPITAL LLC | 746,269 | |||
| CVI Investments, By: Heights Capital Management, Inc., | 746,269 | |||
| Hudson Bay Master Fund Ltd. | 746,269 | |||
| Empery Asset Master, LTD | 414,861 | |||
| Empery Tax Efficient, LP | 147,466 | |||
| Empery Tax Efficient III, LP | 183,942 | |||
| 4. | Matters Concerning Company Officers (as of March 31, 2025) |
| (1) | Status of Directors and Corporate Auditors |
| Position | Name | Status of responsibilities and important concurrent positions | ||
| President and Representative Director | Mei Kanayama | President & CEO | ||
| Director | Yoichiro Haga | Executive Officer, Administrative Departments | ||
| Director | Tetsuya Sato | Director, Japan International Medical Association Representative Director, CBJ, Inc. | ||
| Director | Yoji Takenaka | Lawyer | ||
| Corporate Auditor | Tadao Iwamatsu | |||
| Corporate Auditor | Keiichi Kimura | Administrative scrivener | ||
| Corporate Auditor | Junji Sato | Dinner Bank Co., Ltd. Employee |
| Note: | 1. | Directors Tetsuya Sato and Yoji Takenaka are outside directors as defined in Article 2, Item 15 of the Companies Act. |
| 2. | Corporate Auditors Keiichi Kimura and Junji Sato are Outside Corporate Auditors as stipulated in Article 2, Item 16 of the Companies Act. |
- 5 -
| (2) | Total amount of remuneration, etc. of officers for the current fiscal year |
(Unit: 1,000 yen)
| Total amount by type of remuneration, etc. | ||||||||||||||||||
| District | Number of members | Total amount of remuneration, etc. | Monetary Rewards | Performance- linked remuneration, etc. | Non- monetary remuneration, etc. | |||||||||||||
| Director | 4 persons | 52,050 | 52,050 | — | — | |||||||||||||
| (Outside Directors) | (2 persons) | （7,200 | ） | （7,200 | ） | （— | ） | （— | ） | |||||||||
| Corporate Auditor | 3 persons | 9,600 | 9,600 | — | — | |||||||||||||
| (Outside Corporate Auditors) | (2 persons) | （3,600 | ） | （3,600 | ） | （— | ） | （— | ） | |||||||||
| Total | 7 persons | 61,650 | 61,650 | — | — | |||||||||||||
| (Outside Officers) | (4 persons) | （10,800 | ） | （10,800 | ） | （— | ） | （— | ） | |||||||||
| Note: | 1. | The maximum amount of remuneration for directors was resolved to be 150,000,000 yen per year at the Ordinary General Meeting of Shareholders held on May 26, 2021. |
| 2. | The maximum amount of remuneration for Board of Corporate Auditors member was resolved to be 30,000,000 yen per year at the Extraordinary General Meeting of Shareholders held on October 19, 2021. |
| 5． | Status of Accounting Auditors (as of March 31, 2025) |
| (1) | Name |
Sakurazaka Audit Corporation
| (2) | Amount of remuneration, etc. |
Amount of remuneration, etc. related to the work stipulated in Article 2, Paragraph 1 of the Certified Public Accountant Act (Act No. 103 of 1948): 14,300,000 yen
The Board of Corporate Auditors made a decision to agree to the remuneration, etc. of the accounting auditor after necessary verification of the appropriateness of the content of the audit plan of the accounting auditor, the performance of duties of the accounting audit, and the basis for calculation of the remuneration estimate .
| (3) | Policy for Determining the Dismissal or Non-Reappointment of the Accounting Auditor If the Board of Corporate Auditors determines that there is a hindrance to the execution of the duties of the Accounting Auditor or that it is necessary, the Board of Corporate |
Auditors shall decide the content of the proposal regarding the dismissal or non- reappointment of the Accounting Auditor to be submitted to the General Meeting of Shareholders.
| ６． | System to ensure the appropriateness of business operations (as of March 31, 2025) |
| (1) | System to ensure that the execution of duties by directors and employees complies with laws and regulations and the Articles of Incorporation |
| ① | Directors of the Company and its subsidiaries shall comply with laws and regulations and the Articles of Incorporation and promote the establishment of a compliance system. |
| ② | Directors of the Company and its subsidiaries shall establish a compliance system to ensure that employees comply with laws and regulations and the Articles of Incorporation and shall manage and supervise the status of compliance. |
- 6 -
| ③ | Board of Corporate Auditors Members shall investigate the status of the compliance system and whether there are any problems with laws and regulations or the Articles of Incorporation, and report to the Board of Directors. The Board of Directors shall periodically review the compliance system and strive to identify problems and make improvements. |
| ④ | The Company shall establish rules for whistleblowing and establish a whistleblowing system to promptly report and consult with directors and employees of the Company and its subsidiaries in the event that they discover an act that is suspected of violating laws and regulations. |
| (2) | System for the storage and management of information related to the execution of duties by directors |
| ① | Information related to the execution of duties by directors shall be prepared and stored in accordance with laws and regulations and internal regulations, etc., by establishing document management regulations, etc. In addition, if necessary, the Company shall manage the information in a state where it can be viewed by Directors, Corporate Auditors, Accounting Auditors, etc. |
| ② | The status of the creation, storage, and management of information related to the execution of duties by directors shall be audited by Corporate Auditors. |
| (3) | Regulations and other systems related to the management of the risk of loss |
| ① | The Company shall formulate the Basic Rules for Risk Management as the basis of the risk management system for the entire Group and establish a risk management system in accordance with the Regulations. In addition, in the event of an unforeseen situation, the Company shall establish a Crisis Management Committee chaired by the President and Representative Director, and shall establish a system to prevent and minimize the spread of damage by responding promptly with the advice of legal advisors and others. |
| ② | Directors and employees shall organize the content of their duties with regard to risk management in each department, grasp, analyze, and evaluate inherent risks, consider and implement appropriate measures, and periodically review the status of such risk management. |
| ③ | Corporate Auditors shall audit the status of risk management in each division and report the results to the Board of Directors. The Board of Directors shall periodically review the risk management system and strive to identify problems and improve them. |
| (4) | System to ensure efficient execution of duties by directors |
| ① | With the aim of increasing corporate value, we will work to achieve our goals based on a business plan formulated based on our corporate philosophy, and manage the progress of our goals. |
| ② | In addition to the regular Board of Directors meeting (once a month), extraordinary meetings of the Board of Directors shall be held as necessary as the basis of the system to ensure that the execution of duties by directors is carried out efficiently. |
| ③ | The Company shall establish various internal regulations, such as the Regulations on the Segregation of Duties, the Regulations on Administrative Authority and Decision-Making Authority, and establish a system for the proper and efficient execution of duties by clarifying the authority and responsibilities of each officer. |
| ④ | The Company shall supervise the establishment and operation of internal control systems at its subsidiaries to ensure a balance between ensuring the efficiency and promptness of the execution of duties by directors. |
- 7 -
| (5) | System to ensure the appropriateness of business operations of the corporate group consisting of the Company and its subsidiaries |
In order to ensure the appropriateness of business operations of the entire Group, including subsidiaries, we will strive to build a compliance system for the entire Group.
| (6) | System for employees who assist the duties of Corporate Auditors and the independence of such employees from Directors; |
Matters concerning the effectiveness of instructions to the employees
Employees who assist the duties of the Corporate Auditors shall be assigned to assist the Corporate Auditors when requested, and the consent of the Board of Corporate Auditors shall be obtained for the transfer and evaluation of such employees.
| (7) | System for directors and employees to report to Corporate Auditors, other systems for reporting to Corporate Auditors, and other systems to ensure that audits by Corporate Auditors are conducted effectively |
| ① | Directors and employees of the Company and its subsidiaries shall immediately report to the Corporate Auditors of the Company any fact that may cause significant damage to the Company. |
| ② | Corporate Auditors shall attend important meetings of the Board of Directors, etc., and receive reports from the directors of the Company and its subsidiaries on the status of the execution of the duties for which they are responsible. |
| ③ | Corporate Auditors may inspect important documents related to the execution of business, such as approval documents, and request explanations from directors and employees of the Company and its subsidiaries. |
| ④ | Corporate Auditors and Representative Director shall hold regular meetings to exchange opinions in order to promote mutual communication. |
| (8) | To ensure that persons who report to the Corporate Auditors are not treated unfavorably because of such reports system |
The Company and its subsidiaries shall prohibit any person who reports unfavorably to a person who has reported to the Corporate Auditors on the grounds that he or she has made a report and shall ensure that this is fully informed.
| (9) | Matters concerning procedures for advance payment or reimbursement of expenses incurred in the execution of duties by Corporate Auditors and other policies related to the processing of expenses or liabilities incurred in the execution of such duties |
When an Corporate Auditors requests advance payment or reimbursement of expenses incurred in the execution of his/her duties, we will respond promptly.
| (10) | Basic Approach to the Elimination of Anti-Social Forces and Status of Development In order to ensure sound corporate management, we will take a resolute stance against antisocial forces. |
Our basic policy is not to have any relationship whatsoever.
The General Affairs Department is the department that oversees the response to anti-social forces, and the General Manager is responsible for it. In addition, we work closely with external organizations such as corporate lawyers, the police, and the Federation of Special Violence Prevention Measures under the jurisdiction of the Metropolitan Police Department to develop a system and collect information that enables the organization as a whole to respond promptly, and to thoroughly educate employees.
| ７． | Overview of the operational status of the system to ensure the appropriateness of business operations |
The Company has established a system to ensure the appropriateness of business operations, and the Board of Directors and other meetings continuously identify and analyze management risks and consider countermeasures. As a result, we review internal regulations and operations as necessary to improve the effectiveness of the internal control system. In addition to audits by Corporate Auditors, Corporate Auditors also attend important internal meetings to monitor the status of business execution and risks related to compliance. In addition, we regularly conduct internal audits to verify that our day-to-day operations do not violate laws and regulations, the Articles of Incorporation, internal regulations, etc.
- 8 -
Financial statements
Balance Sheet
As of March 31, 2025
(Unit: 1,000 yen)
| Assets | Liabilities | |||||||||
| Subject | Amount | Subject | Amount | |||||||
| liquid assets | 12,532,187 | Current liabilities | 11,574,389 | |||||||
| Cash & Deposits | 509,038 | accounts payable | 2,851,320 | |||||||
| Accounts Receivable | 10,986,467 | Short-term borrowings | 8,050,000 | |||||||
| Products | 261,852 | Long-term loans to be repaid within one year | 256,163 | |||||||
| Previous Payment | 183,064 | Payables | 181,511 | |||||||
| For prepayment | 15,230 | Accrued expenses | 3,885 | |||||||
| Short-term loans | 200,000 | Deposit | 3,993 | |||||||
| Reimbursement | 15,175 | Down payment | 131,643 | |||||||
| Unearned money | 2,045 | Advance Payments | 30,000 | |||||||
| Accrued refundable corporate tax, etc. | 251,785 | Accrued corporate taxes, etc. | 2,263 | |||||||
| Accrued refundable consumption tax, etc. | 218,977 | Accrued consumption tax, etc. | 14,970 | |||||||
| Allowance for Bad Debts | △ | 111,450 | Bonus allowance | 3,087 | ||||||
| fixed asset | 6,144,522 | Point Allowance | 421 | |||||||
| Property, plant and equipment | 997,422 | Contractual liabilities | 6,854 | |||||||
| building | 409,595 | Short-term lease obligations | 23,622 | |||||||
| Facilities attached to the building | 359,276 | Asset retirement obligations | 14,651 | |||||||
| structure | 32,204 | Fixed liabilities | 1,514,841 | |||||||
| Vehicle transport equipment | 9,090 | Long-term borrowings | 762,515 | |||||||
| Tools, Equipment, and Fixtures | 115,511 | Deposit | 16,450 | |||||||
| Tangible Leased Assets | 138,268 | Long-term payables | 87,626 | |||||||
| land | 340,148 | Long-term lease obligations | 17,870 | |||||||
| Accumulated depreciation | △ | 384,803 | Deferred tax liabilities | 518,173 | ||||||
| Cumulative Impairment Loss | △ | 21,869 | Provision for retirement benefits | 37,005 | ||||||
| Intangible Assets | 272,406 | Asset retirement obligations | 75,200 | |||||||
| Intangible Leased Assets | 11,728 | Total Debt | 13,089,231 | |||||||
| software | 260,677 | Net Worth Sections | ||||||||
| Investments and Other Assets | 4,874,693 | subject | amount of money | |||||||
| Investment | 2,010 | Shareholders’ Equity | 5,615,644 | |||||||
| deposit | 85,518 | Paid-in Capital | 10,000 | |||||||
| deposit | 107,805 | Capital surplus | 3,655,033 | |||||||
| Insurance Reserve Fund | 25,306 | Capital Reserve | 3,655,033 | |||||||
| Recycling Deposits | 8 | Retained earnings | 1,950,611 | |||||||
| Long-term upfront costs | 3,538 | Other retained earnings | 1,950,611 | |||||||
| Long-term unearned income | 1,623,183 | Retained earnings carried forward | 1,950,611 | |||||||
| Shares of affiliated companies | 682,673 | Stock Acquisition Rights | 11 | |||||||
| Long-term accounts receivable | 2,384,639 | |||||||||
| Allowance for bad debts | △ | 39,990 | ||||||||
| Deferred assets | 28,177 | |||||||||
| Share Grant Costs | 28,177 | Total Net Worth | 5,615,656 | |||||||
| Total Assets | 18,704,887 | Total liabilities and net assets | 18,704,887 | |||||||
- 9 -
Statement of income
From April 1, 2024
To Mar 31, 2025
(Unit: 1,000 yen)
| Discipline | Amount | |||||||
| Sales | 24,373,722 | |||||||
| Cost of goods sold | 22,125,226 | |||||||
| Gross profit | 2,248,495 | |||||||
| Selling, general and administrative expenses | 2,027,267 | |||||||
| Operating Profit | 221,228 | |||||||
| Non-operating income | ||||||||
| Interest Income and Dividends | 7,636 | |||||||
| Miscellaneous Income | 32,286 | 39,923 | ||||||
| Non-operating expenses | ||||||||
| Interest expense | 155,460 | |||||||
| Deferred asset amortization | 15,369 | |||||||
| Foreign exchange loss | 7,407 | |||||||
| Loan fees | 57,949 | |||||||
| Miscellaneous Loss | 457 | 236,645 | ||||||
| Ordinary Income | 24,506 | |||||||
| Special Profits | ||||||||
| Gain on sale of fixed assets | 5,439 | |||||||
| Amount of refunds of consumption tax in previous years | 594,759 | 600,199 | ||||||
| Extraordinary Loss | ||||||||
| Loss on sale of fixed assets | 545 | |||||||
| Impairment loss | 21,869 | |||||||
| Adjustment of damage compensation | 807,722 | 830,137 | ||||||
| Net income before income taxes | △ | 205,431 | ||||||
| Corporate Tax, Resident Tax and Business Tax | △ | 247,258 | ||||||
| Adjustment of Corporate Income Taxes | 132,563 | △ | 114,694 | |||||
| Net Income | △ | 90,736 | ||||||
- 10 -
Statement of Changes in net assets
From April 1, 2024
To March 31, 2025
(Unit: 1,000 yen)
| Shareholders’ Equity | ||||||||||||||||||||||||||||||||
| Capital surplus | Retained earnings | |||||||||||||||||||||||||||||||
| Other retained earnings | ||||||||||||||||||||||||||||||||
| Paid-in Capital | Capital Reserve | Total capital surplus | Retained earnings carried forward | Total retained earnings | Total Shareholders’ Equity | Stock Acquisition Rights | Total Net Worth | |||||||||||||||||||||||||
| April 1, 2024 balance | 1,955,786 | 1,704,804 | 1,704,804 | 2,041,348 | 2,041,348 | 5,701,939 | 11 | 5,701,950 | ||||||||||||||||||||||||
| Fluctuations during the fiscal year | △ | 1,945,786 | 1,950,229 | 1,950,229 | - | - | 4,442 | - | 4,442 | |||||||||||||||||||||||
| Net Income | - | - | - | △ | 90,736 | △ | 90,736 | △ | 90,736 | - | △ | 90,736 | ||||||||||||||||||||
| Items other than shareholders’ equity During the fiscal year Variable Amount (Net) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
| During the fiscal year Total Variable Amount | △ | 1,945,786 | 1,950,229 | 1,950,229 | △ | 90,736 | △ | 90,736 | △ | 86,294 | - | △ | 86,294 | |||||||||||||||||||
| March 31, 2025 balance | 10,000 | 3,655,033 | 3,655,033 | 1,950,611 | 1,950,611 | 5,615,644 | 11 | 5,615,656 | ||||||||||||||||||||||||
- 11 -
Note to Individual Securities
| 1. | Notes on Important Accounting Policy Matters |
| (1) | Valuation Criteria and Methods of Securities Shares of subsidiaries and affiliates......... Cost method based on moving average method |
| (2) | Inventory Valuation Criteria and Methods Cost method based on moving average method (Balance sheet value is calculated by the method of devaluation due to a decrease in profitability.) |
| (3) | Method of depreciation of fixed assets |
| ① | Property, plant and equipment (excluding leased assets) |
Declining Ratio Method (provided, however, that buildings acquired on or after April 1, 1998 (excluding ancillary facilities) and
Facilities and structures attached to buildings acquired on or after April 1, 2016 are subject to the straight-line method.
The main service life is as follows:
| Building | 38～50 years |
| Facilities attached to the building | 3～18 years |
| Construct | 10～30 years |
| Vehicle Transporter | 2～7 Years |
| Tools, Fixtures and Fixtures | 2～20 years |
| ② | Leased Assets |
Leased assets related to finance and lease transactions other than the transfer of ownership
We use a straight-line method in which the lease period is the useful life and the residual value is zero.
| (4) | Criteria for recording allowances |
| (1) | Allowance for doubtful debts |
In order to prepare for losses due to bad debts, we record the expected amount of uncollectible receivables based on the actual rate of bad debts for general receivables and the recoverability of specific receivables such as receivables of doubtful concerns.
| (2) | Allowance for bonuses |
In order to prepare for the payment of bonuses for employees, we have recorded an estimated amount corresponding to the current fiscal year out of the estimated amount to be paid.
- 12 -
| ③ | Provision for retirement benefits |
In order to prepare for retirement benefits for employees, based on the retirement benefit obligations at the end of the current fiscal year, the amount that is recognized as occurring is recorded.
Retirement benefit obligations are calculated based on the amount of voluntary payment at the end of the fiscal year stipulated in the retirement allowance regulations.
| ④ | Point Allowance |
Of the Company’s points issued under the point system for the purpose of sales promotion, they are not attributable to sales.
The amount expected to be used in the future is recorded based on the actual rate of use in the past, etc., for the unused amount.
| (5) | Criteria for Recording Revenues and Expenses |
Our main business is the sale of cosmetics and daily necessities, and the sale of these products is related to the at the time of delivery, the customer has acquired control over the goods and has determined that the performance obligations have been satisfied. Therefore, we are aware of the revenue at the time of delivery of the product. In addition, the revenue goes to contracts with customers. It is measured by the amount obtained by deducting returns, discounts, rebates, etc. from the promised consideration.
| (6) | Other important matters that form the basis for the preparation of financial statements Accounting for consumption tax, etc. |
Consumption tax and other accounting procedures are based on the tax-exclusive method.
- 13 -
| 2. | Notes on Revenue Recognition |
| (1) | Decomposition of earnings |
The Company is engaged in the wholesaling, retailing, and e-commerce businesses for domestic and overseas markets, and the main types of goods or services in each business are daily necessities, cosmetics, and pharmaceuticals.
| Sales of each business | Domestic wholesale | 7,443,437 thousand yen |
| Domestic e-commerce | 775,414 thousand yen | |
| Domestic retail | 1,260,403 thousand yen | |
| Overseas wholesale | 14,894,467 thousand yen |
| (2) | Information that forms the basis for understanding earnings |
This is as described in the “Accounting Standards for Revenues and Expenses” section of the “Notes on Important Accounting Policies.”
| 3. | Notes on the Balance Sheet |
| (1) | Assets provided as collateral and liabilities related to collateral |
| Assets used as collateral | Land | 340,148 thousand yen |
| Building | 370,888 thousand yen | |
| Total | 711,037 thousand yen |
| Debt related to collateral | Long-term borrowing | 630,000 thousand yen |
| (2) | Monetary claims and liabilities to affiliated companies |
| Accounts receivable | 1,293,419 thousand yen | |
| Short-term loan | 200,000 thousand yen | |
| Unearned income | 181 thousand yen | |
| Accounts payable | 1,905 thousand yen | |
| Payable | 2,065 thousand yen |
| (3) Financial obligations to directors | Payable | 1,543 thousand yen |
- 14 -
| (4) | Guarantee obligation |
We provide guarantees for borrowing obligations from financial institutions of other companies.
| Tokyo Lifestyle Limited | 12,500 thousand yen | |
| Total debt guarantee balance | 12,500 thousand yen |
| 4. | Notes on the Income Statement |
| Turnover with affiliated companies | |
| Turnover by operating transactions | |
| Net sales | 2,893,569 thousand yen |
| Purchase amount | 1,105,174 thousand yen |
| Selling, general and administrative expenses | 175,664 thousand yen |
| Turnover of non-business transactions | 135,559 thousand yen |
| 5. | Notes on the Statement of Changes in Shareholders’ Equity |
| ① | Type and total number of shares issued as of the end of the current fiscal year |
| Common stock | 42,327,806 shares |
| ② | The type and number of shares for the purpose of stock acquisition rights (excluding those for which the first day of the exercise period has not arrived) as of the end of the fiscal year under review. |
| Common stock | 6,162,552 shares |
- 15 -
| 6. | Notes on Tax Effect Accounting |
| (1) | Breakdown of deferred tax assets and liabilities by major causes |
| (Deferred Tax Assets) | ||
| Paid Business Establishment Tax | 271 thousand yen | |
| Allowance for bad debts | 10,771 thousand yen | |
| Bonus allowance | 1,068 thousand yen | |
| Point Allowance | 145 thousand yen | |
| Commodity Valuation Loss | 6,620 thousand yen | |
| Asset retirement obligations | 31,079 thousand yen | |
| Cumulative Impairment Loss | 5,861 thousand yen | |
| Provision for retirement benefits | 12,800 thousand yen | |
| Deferred tax asset subtotal | 68,618 thousand yen | |
| Valuation allowance | -49,582 thousand yen | |
| Total deferred tax assets | 19,035 thousand yen | |
| (Deferred Tax Liabilities) | ||
| Retirement costs corresponding to asset retirement obligations | -12,414 thousand yen | |
| Input tax | -98,041 thousand yen | |
| Damages Received | -426,752 thousand yen | |
| Total deferred tax liabilities | -537,208 thousand yen | |
| Net deferred tax liabilities | -518,173 thousand yen |
| (2) | Revision of the amount of deferred tax assets and deferred tax liabilities due to changes in the rate of corporate tax, etc. |
As a result of becoming a corporation exempt from external standard taxation, the statutory effective tax rate has been changed from 30.62% to 34.59% for deferred tax assets and deferred tax liabilities related to temporary differences, etc., which are expected to be resolved in the following fiscal year or later. As a result of this change, deferred tax liabilities (minus the amount of deferred tax assets) increased by 59,390 thousand yen for the fiscal year under review, and the amount of income tax adjustment increased by the same amount.
| 7. | Notes on Financial Instruments |
| (1) | Matters related to the status of financial instruments |
Borrowings are used for working capital (mainly short-term) and capital investment funds (long-term).
| (2) | Matters related to the market value of financial instruments |
As of March 31, 2025 (the closing date of the current fiscal year), the balance sheet amount, market value, and the difference between these amounts are as follows.
In addition, notes are omitted for cash, and notes are omitted for deposits, accounts receivable, accounts payable, and short-term borrowings because they are settled in a short period of time, so the market value approximates the book value.
- 16 -
(Unit: 1,000 yen)
| Amount recorded on the balance sheet (*1) | Market price(*1) | Difference | ||||||||||
| Long-term borrowings (*2) | (1,018,679 | ) | (1,016,848 | ) | 1,830 | |||||||
| (*1) | Liabilities are shown in parentheses. |
| (*2) | Includes long-term loans that are scheduled to be repaid within one year. |
(Note 1) How to calculate the market value of a financial instrument
Debt
Long-term borrowings
The market value of the long-term borrowing period is calculated by discounting the total amount of principal and interest by the interest rate expected if the same new borrowing were made.
In addition, among long-term loans, those with variable interest rates are based on the book value because the market interest rate is reflected in the short term (within one year) and the market value is approximate to the book value unless the Company’s credit position differs significantly after execution.
(Note 2) Amount recorded on the balance sheet of stocks without market prices
(Unit: 1,000 yen)
| Ledger Accounts | Balance sheet | |||
| Shares of affiliated companies | 682,673 | |||
Shares of affiliated companies are not subject to market value disclosure because they do not have a market price.
| 8. | Notes on Related Party Transactions |
| (1) | Subsidiaries and affiliates |
(Unit: 1,000 yen)
| kind | Name of company, etc. | Voting rights, etc. Ownership Percentage | Details of the transaction | Trading Subjects | Transaction Amount | subject | Balance at the end of the period | |||||||||||
| Purchasing goods | Purchase Quantity | 4,576 | ||||||||||||||||
| Selling products | sales | 1,699,616 | ||||||||||||||||
| subsidiary | Tokyo Lifestyle Limited | Owned Directly | Directly managed store operating expenses | Selling, general and administrative expenses | 168,397 | accounts receivable | 1,216,715 | |||||||||||
| 100% | Trademark fees and secondment fees | Miscellaneous Income | 10,541 | Short-term loans | 200,000 | |||||||||||||
| Money Loans | Interest Income | 7,593 | Guarantee Obligation (*Note 2) | 12,500 | ||||||||||||||
| Cancellation of previous year’s damages | Compensation Adjustment | 116,296 | ||||||||||||||||
Transaction conditions and policy for determining transaction conditions, etc.
(Note 1) Prices and other terms and conditions are determined through price negotiations, etc., taking into account market performance.
(Note 2) We provide debt guarantees for loans from financial institutions. In addition, the guarantee fee from the subsidiary
We do not give or receive.
- 17 -
| (2) | Officers, individuals, and major shareholders |
(Unit: 1,000 yen)
| kind | Name of company, etc. | Voting rights, etc. Ownership Percentage | Details of the transaction | Trading Subjects | Transaction Amount | subject | Balance at the end of the period | |||||||||||
| Officers and their immediate family members | Purchasing goods | Purchase Quantity | 1,100,597 | accounts receivable | 15 | |||||||||||||
| Majority of voting rights | Dinner Bank corporation | without | Selling products | sales | 1,193,952 | Unearned money | 71 | |||||||||||
| Owning companies, etc. | Rent, etc. | Selling, general and administrative expenses | 7,267 | accounts payable | 1,905 | |||||||||||||
| Secondment Costs | Miscellaneous Income | 1,127 | Payables | 1,565 | ||||||||||||||
Transaction conditions and policy for determining transaction conditions, etc.
(Note) Prices and other terms and conditions are determined through price negotiations, etc., taking into account market performance.
| 9. | Notes on Fixed Assets to be Used by Lease |
In addition to fixed assets recorded on the balance sheet, some of the office equipment, etc.
It is used under a finance lease agreement outside the transfer of ownership.
| 10.1 | Notes on Per Share Information |
| (1) | Net assets per share | 132.67 yen |
| (2) | Net income per share | -2.14 yen |
| 11. | MISCELLANEOUS NOTES |
The listed amount is rounded down to the nearest 1,000 yen.
- 18 -
Appendix
From April 1, 2024
To March 31, 2025
| 1. | Itemization of property, plant and equipment and intangible assets (including depreciation expenses recorded on investments and other assets) |
(Unit: 1,000 yen)
| division | Asset’s Species | Period Leader Book value | Period Amount of increase | Period Amount of reduction | Period Depreciation amount | End of Period Book value | Impairment loss Cumulative amount | depreciation Cumulative amount | End of Period Acquisition price |
| Building | 381,947 | - | - | 11,059 | 370,888 | - | 38,706 | 409,595 | |
| 50,210 | |||||||||
| Facilities attached to the building | 256,601 | - | 973 | 205,416 | 21,079 | 132,780 | 359,276 | ||
| Solid Capital Production | (21,079) | ||||||||
| structure | 27,440 | - | - | 1,938 | 25,501 | - | 6,703 | 32,204 | |
| Vehicle transport equipment | 921 | - | 0 | 263 | 657 | - | 8,433 | 9,090 | |
| Tools, Equipment, and Fixtures | 44,730 | - | - | 13,392 | 31,338 | 84,172 | 115,511 | ||
| land | 340,148 | - | - | - | 340,148 | - | - | 340,148 | |
| Tangible Leased Assets | 39,009 | - | - | 15,538 (789) |
23,471 | 789 | 114,008 | 138,268 | |
| Total | 1,090,799 | - | 973 | 92,403 (21,869) |
997,422 | 21,869 | 384,803 | 14,04,096 | |
| Intangible fixed asset | Intangible Leased Assets | 19,643 | - | - | 7,915 | 11,728 | |||
| software | 279,297 | - | - | 18,619 | 260,677 | ||||
| Total | 298,941 | - | - | 26,535 | 272,406 | ||||
| Investments & Others Capital | Long-term upfront costs | 5,596 | 388 | 2,151 | 294 | 3,538 | |||
| Total | 5,596 | 388 | 2,151 | 294 | 3,538 | ||||
- 19 -
| (Note) | The figures in parentheses in the “Depreciation and Amortization for the Current Period” column are the amounts recorded for impairment losses for the current fiscal year. |
2. Statement of Allowance
(Unit: 1,000 yen)
| Discipline | Period Length Remaining High | Increments for the current fiscal year | Reduction in the current period | End of Period Remaining High | ||||||||||||
| Allowance for bad debts | 284,260 | 132,820 | 151,440 | |||||||||||||
| Bonus allowance | 8,961 | 3,087 | 8,961 | 3,087 | ||||||||||||
| Point Allowance | 734 | 421 | 734 | 421 | ||||||||||||
| Provision for retirement benefits | 35,744 | 12,516 | 11,255 | 37,005 | ||||||||||||
3. Breakdown of selling, general and administrative expenses
(Unit: 1,000 yen)
| Discipline | Remaining Height | Description | ||||||
| Advertising Expenses | 2,106 | |||||||
| Sales promotion expenses | 8,310 | |||||||
| Packing Charges | 266,519 | |||||||
| Amount of point provision | △312 | |||||||
| Product inventory disposal loss | 1,071 | |||||||
| Officer Remuneration | 61,650 | |||||||
| Salary allowance | 319,894 | |||||||
| Provision for bonuses | 3,438 | |||||||
| Statutory Benefits | 55,331 | |||||||
| Benefit Expenses | 1,087 | |||||||
| Depreciation | 97,068 | |||||||
| Repair Costs | 48 | |||||||
| Hygiene costs | 1,962 | |||||||
| Consumables Costs | 12,336 | |||||||
| Utilities | 15,004 | |||||||
| Travel Expenses | 62,936 | |||||||
| Transportation | 927,597 | |||||||
| Expenses commission Taxes and dues | 11,330 | |||||||
| Entertainment expenses | 42,646 | |||||||
| Insurance Premiums | 17,313 | |||||||
| Communication Costs | 4,350 | |||||||
| Membership Fees | 311 | |||||||
| Cost of Vehicles | 2,010 | |||||||
| Provision for bad debts | △25,420 | |||||||
| Lease Fee | 7,235 | |||||||
| Ground rent | 135,640 | |||||||
| Advisory Fees | 9,500 | |||||||
| Meeting Fees | 291 | |||||||
| Donations | 200 | |||||||
| incidentals | 354 | |||||||
| Retirement benefit costs | 12,516 | |||||||
| Long-term upfront expense amortization | 294 | |||||||
| Difference in performance | △27,358 | |||||||
| Total selling, general and administrative expenses | 2,027,267 | |||||||
- 20 -