Regarding business trend
Regarding fluctuations in business performance
Earnings forecast is based on management’s assumptions and it should be noted that the accuracy of information is not guaranteed. Changes in unforeseen factors could cause actual results to differ materially.
Also, if accounting standards or taxation systems are changed considerably, it may affect our business performance and financial condition of the Group.
Regarding legal regulations
Based on the laws and regulations, we make a thorough effort to inform users fully about legal compliance and user morals, and are strengthening our efforts on defense and information leakage prevention of unauthorized access. If there would be a new legislation, or strengthening existing regulations for internet business operators or with regard to music copyrights, if we need to pay the royalties to copyright management groups, and the holders of copyright-related rights, or obtain licenses as licensing conditions are changed or new rights emerge, the business performance and financial condition of the Group may be affected. Also, as the service operator, there are possibilities to be brought an action for damages, etc. by the third party who has suffered from an illegal acts in our services.
Regarding internal control systems
Regarding the risks accompanying the dependence on specific management and recruitment
Regarding information security risks
Regarding the risks in personal information management
Regarding risks related to intellectual property rights
Regarding the risks related to natural disaster, etc.
Regarding the risks in future business operation
Moreover, when operating overseas businesses, there is a possibility that we will not be able to cope with potential risks regarding the laws, regulations, politics, social situations, exchange rate fluctuations, and competitive environments in respective countries.
In order to expand our business, we need to bear additional investment in recruiting new personnel, improving equipment, developing businesses, etc. and it would take some time to earn stable profits from these businesses. In addition, there is a possibility that our profitability will decline due to price-cutting competitions and the cost for increasing users will augment for gaining an advantage over competitors.
Regarding the risks in the Internet media and game business
We operate a wide array of contents and services on the internet, including blogs, social media, games, videos, music, and informative websites. We plan to increase and retain users, by developing new contents, enriching the functions of existing services, stabilizing our business operation, and so on. However, if we cannot offer attractive contents and services liked by a broad range of users, the business performance and future business operation of the Group may be affected.
Our company takes various measures when necessary, for the purpose of promoting the sound development of markets related to the usage of games incorporate with industry groups. However, if system adjustment and improvement or an unexpected event occurs, the business performance and future business operation of the Group may be affected.
Our Internet media business offers services in accordance with the contracts with the card companies, platform operators, telecommunications carriers, etc. If there are changes in technical specifications, revisions to contracts, cancellation of contracts, or other unexpected events, the business performance and future business operation of the Group may be affected.
Regarding the risks in the Internet advertising and Ad Tech Businesses
The Internet Advertisement Business may be affected by business trends, including the reduction of Ad costs by advertisers. In addition, there is a possibility that we may have to fulfill the obligation to pay additional Ad fees to the media because of the worsening the financial standings of advertisers, the wrong distribution of Ads etc.
If we become unable to procure ad spaces or products due to the discontinuance of transactions with media firms or if the conditions for transactions are changed, the business performance of the Group may be affected.
In the Ad Technology, if new technologies or methods for advertisement are invented, the competitiveness of services we offer may decline considerably. As for the most of ad technology, advertising we handle are for smart devices, there is a possibility that the changes to the regulations, the guidelines for the providers of OS for smart devices and its functions will affect the business performance and future business operation of the Group.
Regarding the risks related to the investment development business
As for unlisted companies, there is a possibility that their performance will worsen due to uncertainties, affecting the business performance, financial standing, and future business operation of the Group.