Ohtone Country Club Limited (E04613) Stock Price

**Business Description of Ohitone Country Club**

Ohitone Country Club is a golf course operator managing a 36-hole golf course in Bandō, Ibaraki Prefecture. The company operates under a unique shareholder membership model, where each share grants one membership and provides shareholders with usage rights to the golf course. The company also operates a restaurant within the clubhouse, offering comprehensive services that combine golf and dining.

The company's primary customers are shareholder members and their guests, as well as users referred by members. The facility operates as a completely membership-restricted golf course, with non-members unable to use the facility, thereby ensuring priority access for members. Revenue is primarily derived from golf course usage fees and clubhouse restaurant sales.

In its business operations, the member organization Ohitone Country Club determines operational policies for the golf course and delegates actual management duties to the company. For the restaurant division, the company outsources product manufacturing to Canny Corporation to ensure efficient operations, allowing management resources to focus on golf course operations.

Otone Country Club is pursuing an aggressive growth strategy aimed at securing 59,300 annual visitors in fiscal year 2025. In the previous period, the company recorded a pre-tax net loss of 39,982 thousand yen, attributable to increased depreciation expenses from major capital investments and the impact of rising commodity prices, though this was partially offset by revenue gains from hosting the Japan Women's Open. In response to the "2025 Problem" facing the golf industry—a decline in golfer population due to the aging baby boomer generation—the company is implementing revised pricing structures and usage promotion initiatives.

Key investment priorities include the full operational launch of 24 new five-passenger golf carts. This enables flexible group usage beyond the previous four-person limit, differentiating the facility through enhanced user convenience. Additionally, the company has contracted with external course advisors to maintain optimal course conditions year-round, securing competitive advantage through high-quality service delivery.

In market development, the company is maintaining its member-focused model while actively promoting guest usage. Initiatives include issuing 12 annual guest privilege vouchers for member-accompanied guests on weekdays, designating 19 Fridays annually as guest appreciation days with special rates of 17,750 yen, and implementing tiered discounts for group competitions: 1,100 yen for 9-20 participants, 2,200 yen for 21-39 participants, and 3,300 yen for 40 or more, thereby expanding group bookings.

Regarding technological innovation, the company is building efficient operations suited to the digital era. Measures include special operations on Mondays (normally closed) and applying guest special rates of 28,750 yen on weekends and holidays during slow seasons (July-September and January-February), reflecting demand-responsive pricing strategies. Simultaneously, the company is strengthening its financial foundation through securing and stabilizing cash reserves, establishing funding mechanisms including bank borrowing, and implementing rigorous cash flow management.