(E03841) Stock Price

Hokkaido Construction Industry Credit Guarantee is a company specializing in guarantee services for the construction industry. Its primary services include guarantee operations for construction companies that receive advance payments on construction contracts for public works projects, and credit guarantee services for construction company loans. Through these services, the company supports construction companies' fundraising and facilitates the smooth implementation of public works projects.

The company's main customers are construction companies in Hokkaido, with a focus on small to medium-sized businesses that undertake public works projects. Revenue is primarily generated from guarantee fees, with the main income source being fees collected from customers when guarantees are executed. Through its community-focused business model, the company has built long-term trust relationships with Hokkaido's construction industry.

The company's business segments are divided into two categories: public works advance payment guarantee operations and financial guarantee operations. Public works advance payment guarantees cover advance payment guarantees on construction contracts, while financial guarantees handle credit guarantees for bank loans. Additionally, through its subsidiary Hokkaido Guarantee Service Co., Ltd., the company provides information gathering related to the construction industry and various ancillary services, establishing a comprehensive support system for its client companies.

Hokkaido Construction Industry Credit Guarantee focuses on a growth strategy centered on advance payment guarantees for public works projects. To address structural challenges in the construction industry, including labor shortages and an aging workforce, the company prioritizes improving and promoting its advance payment guarantee system. Specifically, it actively advocates for eliminating advance payment limits with municipalities throughout Hokkaido and introducing interim advance payment systems, aiming to stabilize the industry by improving cash flow for construction companies.

As a priority investment area, the company focuses on developing an environment for interim advance payment guarantees. By promoting interim advance payment guarantees alongside traditional advance payment guarantees, it provides construction companies with more flexible funding opportunities and differentiates itself from competitors. Through these efforts, the company expands its guarantee product offerings to address funding needs during construction projects, simultaneously improving customer convenience and expanding its revenue base.

For new market development, the company strengthens its participation in securing and supporting the development of skilled workers in the construction industry. Beyond guarantee services, it actively engages in communicating the appeal of construction work and supporting workforce development. By promoting young people's entry into the construction industry and supporting workplace reform initiatives, the company pursues a strategy to maintain and expand its customer base over the long term.

The company also prioritizes operational efficiency and management improvement. Through reducing business expenses and reviewing operational processes, it aims to strengthen guarantee capital. While maintaining competitive guarantee rates through these efficiency measures, the company pursues a policy of balancing stable revenue generation with improved customer service. It promotes a strategy to achieve sustainable corporate growth while contributing to the overall development of the construction industry.