K.R.S.Corporation (9369) Stock Price

**Q'sai Distribution Systems Business Overview**

Q'sai Distribution Systems is a specialized logistics company providing comprehensive food logistics services. The company handles warehousing, cargo handling (inbound/outbound), transportation, and information processing as an integrated operation, with particular expertise in refrigerated and frozen food logistics. Developed as the logistics division of the Kewpie Group, known for mayonnaise, the company now provides logistics services to a wide range of food manufacturers and retailers.

The company's primary customers include Kewpie Corporation and other Kewpie Group affiliates, as well as general food-related enterprises. The revenue structure is built on stable orders from the Kewpie Group while expanding service offerings to external customers to grow overall business scale. This approach reduces dependency risk on specific clients while diversifying revenue through logistics expertise.

The company's operations are divided into three main segments. The "Shared Logistics Business" provides food warehousing and cargo handling, nationwide shared distribution, and dedicated vehicle transportation of liquid raw materials such as oils and vinegars. The "Dedicated Logistics Business" undertakes logistics center operations for convenience stores and similar retailers. The "Related Business" provides vehicle and logistics equipment sales, as well as overseas logistics services in China and Indonesia.

Q-Sys Distribution System is advancing a long-term strategy under "Group Vision 2036" to build a logistics network expanding from Japan across Asia as a pioneer in temperature-controlled logistics. In its 8th Medium-Term Management Plan covering fiscal years 2025 through 2028, the company has set clear numerical targets for fiscal 2028: operating revenue of 210 billion yen, operating profit of 7.35 billion yen, operating profit margin of 3.5%, and return on equity of 6% or higher. The company projects interim targets for fiscal 2026 of operating revenue of 205 billion yen and operating profit of 5.7 billion yen, aiming for phased growth.

The company's priority investment strategy is organized around three core policies under the theme of "securing logistics sustainability and creating new value." First, "domestic business development" focuses on expanding and optimizing the logistics infrastructure, strengthening revenue capacity through profit improvement initiatives and business segment reorganization. The company is building more efficient operational structures while leveraging its existing strength as a nationwide logistics network covering four temperature zones, creating competitive differentiation.

In new market development, "expanding and further exploring new domains" is the priority policy, with active expansion into new regions overseas. The company already operates temperature-controlled logistics services in China and Indonesia, and plans to expand its business across Asia by applying temperature management technology developed in Japan. Additionally, the company is establishing new business development systems and exploring new business opportunities to identify opportunities beyond its traditional scope.

In technological innovation and strengthening management foundations, the company is investing in talent recruitment and creating environments that foster employee growth. To address labor shortages facing the logistics industry, the company is investing in creating a more comfortable work environment and developing human resources. Simultaneously, through advancing sustainability management and capital policies aimed at enhancing corporate value, the company is working to maintain and improve long-term competitiveness. Under the company motto of "creativity and ingenuity" cultivated since its founding in 1966, the company pursues sustainable growth through continuous technological innovation.