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We would like to sincerely appreciate your consideration on our business.
This July of 2025 marks 40 years since I first launched my business. Over these four decades, the business environment has changed dramatically. In such a rapidly evolving era, I am constantly aware of the risks of remaining within the same business domain, and I manage our operations with this awareness in mind. Some businesses remain essential to society, while others lose value over time. To continue delivering value to society, we must continually evolve and reshape ourselves.
In the human resources business, I sometimes feel that clients may no longer perceive as much value in traditional staffing service as they once did. Despite strong demand, supply has not kept pace. While we have adjusted pricing to reflect supply pressures, clients now have alternative solutions beyond staffing services. Recognizing this, I feel the time has come to reconsider our business model. The same is true in the CRO industry. Traditionally, many CRO operations have involved procedural tasks outsourced by pharmaceutical companies, and much of the work has been labor-intensive.
However, with the advancement of digital transformation (DX) and the adoption of AI, it is likely that pharmaceutical companies will increasingly reduce their reliance on CROs. As a result, CROs will not only be required to improve operational efficiency, but also to fundamentally restructure their business models to remain competitive.
In response to these circumstances, we have two key directions for the future of our business.
The first is to continue delivering value to our clients through the staffing business. Unlike intermediaries, we provide “job support” services — proactively monitoring client satisfaction and offering support to temporary staffing staff throughout their assignments. We believe this job support provides significant value to both clients and temporary staffing staff.
In order to sustain the business under conditions of declining profitability, we must redefine our operating framework. By shifting intermediary functions to a digital platform, we can reduce SG&A expenses and reallocate resources to ensure fair compensation for those who choose to work in temporary positions. We aim to establish a new service model that combines platform-based operations with human-centered services such as job support, thereby delivering continuous value.
In May 2025, we launched a new centralized staffing management service, marking a new challenge for our Staffing business. This initiative aims to provide a more convenient service offering to clients who do not currently use our staffing services for science-related research positions. Our group company NEZOT Co., Ltd. developed the “doco1” system, which is operated by DOCO1 Co., Ltd., also a member of our group. By offering a new type of service to the traditional staffing market, we aim to further cultivate new business opportunities.
Through the continued provision of valuable staffing solutions, we intend to differentiate ourselves from competitors and, ultimately, transition out of the current highly competitive environment. Our goal is to build a new business model that can once again deliver high profit margins.
The second direction is a shift in our core business domain.
We have experienced significant growth through such a shift — specifically, from administrative to scientific staffing. Our success in scientific staffing was not solely due to tapping into a new market; it was also rooted in the strengths we developed during our administrative staffing days, including our approach to client interviews, candidate selection, and support systems. These strengths became the foundation for our next phase of growth.
This time, we are planning an even more transformative shift. Rather than remaining in the staffing domain, we are aiming to become a platform-based business company and generate revenue through platform services. Our experience developing “doconico” and “doco1” in-house gives us a strong foundation of internal planning and development capabilities, which we will leverage as we transition to a new business domain. As with our previous transformation, we will use the strengths we have built as a lever for our next leap forward.
In conducting our business, it is essential to consider the interests of all our stakeholders — clients, temporary staff, CRO professionals, employees, business partners, local communities, and shareholders. Corporate value should not be measured solely by market capitalization; it must also reflect profitability, safety, productivity, growth potential, market share as a proxy for customer satisfaction, and non-financial factors. As we reach our 40th year, I am reaffirming these beliefs and reflecting deeply on their importance.
With this mindset, we will continue moving forward, and I would like to ask for your continued understanding and further support.