(366A) Stock Price

Wellness Communications is a company that provides wellness services centered on health screenings for corporations and health insurance associations. Its main offerings are i-Wellness, a health screening solution through its Network Health Screening service, and Growbase, a SaaS-based health management cloud platform. Through both services, the company streamlines corporate health management operations by handling reservations, billing, digitizing diagnostic results, and centralizing data management.

The company's primary customers are large-scale enterprises and health insurance associations, with a substantial number of business partners. Revenue is primarily generated through subscription-based billing tied to the number of screenings and registered IDs, with exceptionally high contract retention rates. For example, i-Wellness charges approximately ¥4,300 per ID annually, while Growbase charges approximately ¥60 per ID monthly. This billing model ensures stable, predictable revenue.

The business is divided into three main pillars: health screening solutions, health management cloud, and medical institution support services. The health screening solution operates through a nationwide network of medical facilities to handle reservation and billing processing, as well as standardize and digitize diagnostic results. The cloud platform centralizes diagnostic results, stress check data, and occupational health physician consultation records, while providing features such as report generation, schedule management, and employee personal portals.

The company operates under the mission "Creating the future with wellness data." It serves corporations and health insurance unions by providing comprehensive support starting with health screenings. The core growth strategy focuses on deepening penetration in the large enterprise market, with 3,540 client companies as of March 2025. Health screening result shipments (representing actual participants) have grown steadily from 247,000 cases in 2021 to 388,000 cases in 2025. Additionally, the health management cloud platform "Growbase" has expanded from approximately 54,000 IDs in 2007 to approximately 1.744 million IDs in 2025. The company aims to strengthen its recurring revenue base further and enhance profitability by improving Annual Contract Value (ACV) per customer and Average Revenue Per User (ARPU).

The company prioritizes investment in both technology and services. Specifically, it is enhancing Growbase by adding features such as mental health support, e-learning, organizational analysis, and line management assistance, while strengthening its BPaaS (Business Process as a Service) offering through occupational health physician and nurse referrals combined with counseling services. Key competitive advantages include the medical institution network built through years of health screening specialization, end-to-end service delivery from appointment scheduling to rapid diagnostic data delivery with strict quality control, seamless system integration through proprietary cloud infrastructure, and enhanced personal information management via ISMS certification. The company has implemented 1,526 feature enhancements over the past six periods in response to customer needs, driving high retention rates and new customer acquisition.

The company is advancing market expansion and business growth in phases. It will deepen large enterprise services while increasing ARPU through feature expansion and new BPO and staffing services. Simultaneously, it is preparing for digital transformation support for small and medium enterprises and laying groundwork for personalized services leveraging PHR (Personal Health Records), positioning itself as a health management platform. For medical institution support, the company is developing and marketing solutions for regional core hospitals and facilities seeking digitalization, accounting for PET business contract expiration risk in 2026. It is also pursuing higher-value network health screening services through standardization of screening menus, pricing restructuring, and expanded upselling opportunities before and after screenings.

The company positions technological innovation as central to revenue generation. Beginning in 2025, it is establishing a cross-functional Center of Excellence (CoE) to focus on operational digitalization, paperless processes, infrastructure strengthening, and data utilization. Specific initiatives include enhanced integration with online conferencing tools and HR systems, infrastructure reinforcement through subsystem integration of core systems and i-Wellness, and advanced organizational analysis capabilities through centralized data management and analytics. These efforts will enable personalized health interventions and PHR-based customized health promotion services, supporting sustainable platform growth.