3. Conclusion of strategic business partnerships.

(2) Growth Partners

Growth Partners is an investment company engaged in investment and hands-on support services, involved not only in venture capital but also in investing in publicly traded companies and handling buyout projects. The purpose of the planned fund formation is to combine the company's fund management skills with Growth Partners' expertise in selecting investment targets and hands-on support for portfolio companies to pursue fund performance.

※ Takakyu <8166>, No.1 <3562>, Lancers <4484>, etc.

■ Performance Outlook

1. Financial estimates for the fiscal year ending March 2025.

Japan Asia Investment <8518> is subject to significant impacts from fluctuations in the stock market and other factors, making it difficult to provide reasonable financial estimates, and therefore the publication of financial estimates (consolidated fund standards) has not been conducted. However, for the fiscal year ending March 2025, "preliminary values based on traditional consolidated standards" have been disclosed as reference information based on certain assumptions.

According to the "preliminary values based on traditional consolidated standards," the estimated operating revenue for the fiscal year ending March 2025 is expected to range from 1,600 million yen to 2,650 million yen, operating profit from 1.5 million yen to 850 million yen, ordinary profit from 300 million yen to 1,000 million yen, and net income attributable to shareholders of the parent company from 250 million yen to 950 million yen, with the initial estimates remaining unchanged.

The upper limit is based on the realization of the relatively large amount of planned investment in the sale of unlisted Stocks, while the lower limit is set for cases where such sales do not occur. However, even in the case of the lower limit, it is assumed that profitability will be achieved through the sale of projects. The projects intended for sale are primarily focused on group homes for persons with disabilities, but as mentioned earlier, the transfer of the group homes for persons with disabilities (16 units) has already been completed by October. Additionally, there seems to be progress in the sale of mega-solar projects (3 cases).

2. Points of Interest by Our Company

Our company also sees that the performance for the fiscal year ending March 2025 is largely dependent on the planned sale of unlisted Stocks. Since the sale of the group homes for persons with disabilities (16 units) has already been completed, the lower end of the performance estimate is assumed to be almost secured, so the key point will be whether the upper limit can be achieved through the sale of unlisted Stocks. The main focus is on the business expansion moves based on the business policy set forth in the new medium-term management plan (especially the formation of a new fund). The full-scale move is expected to start from the fiscal year ending March 2026, but collaboration with business partners has already begun, and there may be some progress during the fiscal year ending March 2025. To anticipate what kind of funds (in terms of asset classes and sizes, etc.) will be launched to expand AUM, it will be necessary to follow the progress.

(Written by Fisco Guest Analyst Ikuo Shibata)