(189A) Stock Price

D&M Company operates a management support business for healthcare institutions and care service providers. The company delivers services across three main pillars: Finance and Investment (including accounts receivable factoring and equipment leasing), Management Consulting, and Human Resources and Business Outsourcing. D&M identifies client challenges through consulting, then combines financial support and staffing solutions to improve customer operations.

The company's primary customers are hospitals, clinics, care facilities, and pharmacies. Revenue comes from factoring fees on medical and care service receivables, leasing fees, consulting fees, personnel placement fees, and staffing and outsourcing service fees. D&M operates a model where it deducts factored amounts from insurance payments received by customers before disbursing funds to them, generating both continuous cash flow and fee income.

In its Finance & Investment service, D&M factors both confirmed and future receivables—with future receivables representing a notably high proportion of its factoring portfolio (approximately 60.6% as of May 2025)—and leases medical equipment. The Consulting & Business service provides diagnostic assessments, cost reduction strategies, and hands-on support when needed. The HR & Outsourcing service delivers integrated offerings including executive and management recruitment, administrative and care worker staffing, and accounting and payroll outsourcing to create added value.

D&M Company operates with three core pillars—financial support, management consulting, and human resources services—for healthcare institutions and long-term care providers. The company uses year-over-year growth rates in revenue, operating profit, number of business partners, and investment assets as growth indicators, while monitoring operating margin and equity ratio as key metrics for profitability and financial stability. Currently, the company works with 178 partners, of which 78 engage in debt purchasing. As of May 2025, future receivables account for approximately 60.6% of the F&I (debt purchasing and equipment leasing) portfolio. The company aims to improve these metrics, achieve stable revenue and profit growth, and expand its partner base.

D&M Company prioritizes investment in three areas: financial services centered on debt purchasing (F&I), hands-on management consulting, and human resources supply and business outsourcing. As a differentiation strategy, the company goes beyond intermediation by providing integrated financial and business restructuring support, positioning itself as a partner that "shares the same boat" with clients through business transformation. Specific initiatives include leveraging direct financing through its public listing, pursuing registration as a financial instruments business operator and approval as a real estate specific joint venture operator, and investing in fund formation and social lending to reduce bank dependency. The company is also strengthening talent recruitment and training to enhance consulting quality while diversifying its funding sources.

For market expansion and business growth, the company plans to convert its existing customer network into a platform to acquire new clients and increase revenue per customer by expanding services offered to each partner. In the short term, it will drive new partnerships through management diagnostics, consulting, industry association participation, and web-based strategies. Medium to long-term, it will strengthen M&A support by providing financial backing alongside transaction advisory. On the human resources front, the company aims to significantly expand overseas worker recruitment to address labor shortages in the care sector, partnering with local educational institutions to develop comprehensive pre-employment training and life support programs, thereby opening new talent markets.

Regarding technological innovation, D&M Company prioritizes digital transformation (DX) support in healthcare and long-term care, targeting cost reduction through telemedicine, IT system upgrades, and procurement optimization. Specifically, the company will promote digitalization of outsourced business functions—such as accounting and payroll—for clients and establish an integrated platform to deliver capital, human resources, and operational services cohesively. To reduce external dependency, the company is building self-contained funding and service delivery mechanisms. Through these technology and operational investments, the company aims to strengthen competitiveness in both operational efficiency and service quality.