ArkCore, Inc. (3384) Stock Price

Arc Core is a company whose main business operations are the purchase and sale of used motorcycles and fitness franchise management. The company attracts customers through its proprietary website "Bike Kaitori.com," digital advertising, and online appraisals, and purchases motorcycles through home inspections and retail locations.

The company's primary customers are individual users looking to sell motorcycles. It secures revenue by selling most purchased vehicles through dealer auctions in a short timeframe. Additionally, it sells some inventory through direct retail stores and pursues repeat business and profit expansion through ancillary services such as repairs and vehicle inspections. In the fitness business, membership fees and usage charges from franchise locations serve as a key revenue pillar.

The company's business is divided into two main segments: motorcycle operations and fitness operations. In the motorcycle business, it handles the entire process from online customer acquisition and centralized customer information management to rapid appraisals based on market databases, vehicle collection through home inspections, and sales through auctions and direct retail channels. In the fitness business, it operates franchise locations under brands such as "Anytime Fitness" and "Step Golf," providing member services through store operations.

The company aims to achieve business growth and financial stability. Its core strategy centers on used motorcycle buying and selling, along with fitness franchise operations, balancing revenue expansion with reduced exposure to economic fluctuations. Specifically, the company focuses on increasing the direct sales ratio of purchased vehicles to improve per-unit revenue and gross margin, while reducing advertising costs per unit to enhance cost efficiency. In its fitness business—AnytimeFitness franchise launched in 2016 and StepGolf franchise launched in 2018—the primary objective is to reach profitability quickly after opening new locations, while maintaining a state where monthly new memberships exceed cancellations.

The company pursues differentiation through focused investment in high-value segments including large-displacement motorcycles, foreign brands, and luxury models. Concrete initiatives include concentrating on purchasing and direct sales of domestic large-displacement motorcycles and foreign brands such as Harley-Davidson, while leveraging ancillary services at direct sales centers—including sales, maintenance, and vehicle inspections—to drive repeat business and margin expansion. The company uses its proprietary website "Bike Kaitori Dot Com" as the core of its advertising strategy, combining digital advertising and online appraisals for customer acquisition, with field appraisals for vehicle sourcing. This approach balances short-term sales through dealer auctions with direct sales to enhance profitability. Through these measures, the company aims to improve overall profitability.

The company actively pursues business diversification and new market development. While it discontinued its food service business in July 2022, it is exploring new business launches and acquisitions as replacements, utilizing external growth including M&A to smooth earnings volatility. The company continues expanding existing operations through increased franchise locations in fitness and golf schools, as well as expanding its direct sales center network, targeting enhanced regional customer acquisition and early profitability at each location. Through this business expansion, the company aims to build a stable revenue foundation.

The company also prioritizes improvements in technology and operational tools. It is advancing initiatives to enhance appraisal accuracy and response speed through online appraisals, market databases for rapid valuations, and centralized customer information management. Additionally, the company strengthens sales training for appraisal and purchasing staff while improving supporting tools, and stabilizes its organizational structure through identifying and developing management candidates. The company continues regional advertising through direct mail, in-store communications, and social media outreach, aiming to drive customer acquisition and improve customer satisfaction.