(3674) Stock Price

Aucfan operates a business focused on visualizing and streamlining distribution channels by leveraging vast transaction data and AI. Its core services include aucfan.com, a platform for searching historical auction and e-commerce prices, and NETSEA, a B2B wholesale mall supporting inter-company transactions. In recent years, the company has also expanded into D2X commerce, including OEM sales of its own brand "AP LAB" and live commerce through "NETSEA MallLive."

The company serves a diverse customer base including individual merchants, side-business operators, online retailers, as well as retail stores, wholesalers, and manufacturers (suppliers). Revenue primarily comes from aucfan's paid membership fees and advertising income, NETSEA's transaction fees (approximately 8.5–10.5% of transaction volume) and monthly supplier fees, along with merchandise sales from AP LAB and MallLive, investment gains, and consulting revenue.

The business is organized into three segments: Solutions, Platform, and Incubation. The Solutions segment provides aucfan.com (with approximately 7 billion accumulated data points, roughly 1,078,844 free members and 31,328 paid members at an average monthly fee of approximately ¥2,216), Tatenpo Guide, Aucfan Robot, and Good Sellers; Amacode was discontinued in February 2025. The Platform segment operates NETSEA and the OSRO exhibition and business matching event (NETSEA's transaction volume is in the tens of billions of yen range); the former NETSEA Auction ended in March 2025. The Incubation segment builds foundations for new businesses and overseas expansion through business investments and support for portfolio companies.

The company is leveraging vast transaction data and AI to increase visibility and efficiency in distribution, aiming to build a unique distribution infrastructure under its corporate identity "RE-INFRA COMPANY." The core of its growth strategy is digitizing Japan's domestic B2B transaction market, which is estimated at approximately 300 trillion yen in total size, with approximately 200 trillion yen in non-e-commerce transactions. The company is targeting long-term expansion by digitalizing this untapped market. Leveraging existing assets—aucfan's accumulated data of approximately 7 billion records, approximately 1.07 million free members, and 31,328 paid members (average monthly subscription: 2,216 yen)—the company plans to expand monetization.

Priority investment areas are proprietary brand OEM sales "AP LAB" and live commerce "NETSEA MallLive," which the company positions as D2X commerce and new growth drivers. AP LAB develops its own manufacturing and sourcing operations in China, improving margins by handling both direct-to-consumer sales and wholesale to businesses. NETSEA MallLive sells company-sourced products through live streams on platforms like TikTok, with plans to eventually expand into providing merchandise to livestreamers and sellers. The company differentiates through integration with its existing NETSEA platform (distribution fees of approximately 8.5–10.5% and supplier monthly fees). Regarding overseas operations, the company has focused primarily on China but is reassessing due to prolonged monetization timelines. Based on networks and market insights gained from Japan-to-China and China-to-Japan initiatives, the company is reallocating investments toward higher-margin opportunities rather than simple market expansion. Additionally, the company is restructuring its business portfolio based on profitability, growth potential, and synergies, scaling back or exiting low-margin businesses to concentrate resources on growth areas like AP LAB and MallLive, thereby optimizing fixed costs and improving investment efficiency.

On the technology front, the company centers on AI and data utilization, aiming to establish profitable business models through advanced product planning and improved inventory management. Specifically, the company is continuing to strengthen cloud infrastructure, automate operations, build data analytics capabilities, and invest in information security, while integrating initiatives to improve customer acquisition efficiency and customer lifetime value (LTV). While near-term investments will pressure earnings, the company is pursuing these efforts with a medium-to-long-term perspective on business expansion and enterprise value creation.