Asteria Corporation (3853) Earnings Call Transcript & Summary

Dear investors, thank you very much for watching today's presentation. We have now become an empire, and we will now begin the financial results briefing for the first commercial period of the fiscal year ending March 2027 for Asteria Company Limited. At today's briefing, we will begin with Yuichiro Harano, Representative Director of Asteria Company Limited and [ Rio dekudo ], Representative Director and CEO of Asteria Canvas. Providing an overview of the financial results and an explanation of the AI application products, Bakusoku.AI. After that, Executive Officer, [ Kuma ], will join us to answer questions submitted by the audience. The briefing is scheduled to last approximately 60 minutes in total, including Q&A. Please note that the explanations that follow may include future outlooks based on current expectations, but these involve risks and uncertainties. Please note that actual results may differ from the outlook. [Operator Instructions]. Now let's proceed with the financial results briefing. Yoichiro Hirano, President and Representative Director of Asteria, will report on the summary of the financial results for the first sales period of the fiscal year ending March 2027. President, please.

Thank you very much for joining us today for Asteria's first sales machine Financial Results Briefing. I will explain the calculations for this first period. First, let me express my heartfelt sympathies to all those affected by the recent Kumamoto earthquake in 2026. Asteria has decided to provide a capital contribution of JPY 3 million and has also announced that it will provide its products and services free of charge to local governments and companies affected by the disaster providing support. Furthermore, the evacuation center and local information map developed using our new product, Superfast AI is currently being used Locally. In light of the recent earthquakes and other natural disasters that have been occurring all over Japan, we hope that our technology can be of some help in addressing these challenges, whether it be through disaster prevention or disaster recovery and reconstruction. We will continue to provide peace of mind. Now let's move on to the financial results announcement. First, since some of you are attending this financial results briefing for the first time, I will briefly explain the company profile. Asteria Corporation is a software manufacturer for businesses. As a software manufacturer, we specialize in providing software as products and in connecting people. We have 5 locations in Japan as well as overseas locations in the United States, China and Singapore. We are currently listed on the Prime stock exchange and our employee base is very compact with a consolidated total of 153 employees. Another feature of our company is our innovative technology. We are leading an organization that promotes this technology, not just within our company but across the entire industry. For example, we are examining no code, blockchain and Generative AI. There are 3 keywords that will help you understand Esperia. The first is connecting the second is cutting-edge technology, and the third is manufacturing. Our products and services specialized in this area of connecting, and they use cutting-edge technology. Recently, we have been working on stable coins and physical AI. As a manufacturer, we have no involvement in housing development, so we take on these very challenging tasks and our staff and members are made up of highly motivated members. However, the times are changing, we are now in the AI era, and our foundation is well-being management, which aims to develop and recruit people who can be experts even in this AI era. The no-code software that we provided is in this line up. Each of these products is extremely strong, and they have the #1 market share of our cutting edge. So today, we will introduce the instruction product called Bakusoku AI, which is shown in the red frame at the bottom right. Before we get into the financial results, I would like to introduce some recent topics. First, let's talk about Bakusoku AI, which we have been talking about. This is a new product that develops business software using AI. We started offering it on August 1. We will also be adding the enterprise version of this super fast AI to our lineup is [indiscernible] AI which will allow us to take the brain code one step further and develop business software at lightning speed simply by having conversations in Japanese. This is what we will be providing Also, as we recently disclosed on August 10, we sold SpaceX shares and reported a valuation. First, the valuation was recorded on August 10 for a profit of approximately JPY 2 billion. Then a little while ago, on June 9, we sold some shares, which is a gain on sale and recorded a profit of JPY 400 million. These are the operating income of our investment business. As a result, we have revised the operating income for the full year and announce this today. Originally, we announced a full year figure of JPY 1.1 billion, but we have revised this information to JPY 1.5 billion. Another recent topic is that the fund specializing in AI and robotics, which we introduced at the previous financial presentation has decided on its first investment. The investment is called FIGR AI and some of you may not have heard of it yet. But it is a company based in the United States that makes humanoid robots Its valuation is the highest in the world. In fact, it is a company with great potential, such as being used in mass production by the automobile company, BMW, and I think we will -- so that's all for the recent topics we've been produced. But based on this, I would like to give you an overview of the financial results for the first fiscal period from April to the end of June. First, Sales revenue was JPY 824 million, up 7% from the previous period, and the gross profit margin was JPY 696 million, which is a very high profit margin of 84%. Operating income was JPY 2,451 million, up 688%, in other words, it was more than 7x higher. And then there's the commercial profit. This was JPY 1,703 million, up 620%. This was also more than 7x higher. Yes. And then from this operating profit to the trial period profit, there's nothing particularly noteworthy between these two. Financial losses and gains and losses are small, and there are adjustments for taxes such as corporate tax and noncontrolling interests. And that's what gives us the final commercial profit. Now let's look at the money spend, SG&A expenses. This time, SG&A expenses have increased significantly. Okay. So JPY 700 million is JPY 2 million, and this is the high-speed violation expenses or marketing expenses, which have increased significantly. They have more than doubled. So we have new products, including the Superfast AI, and we are intentionally investing in marketing for these products, assuming that they will generate investment. Another notable item is outsourcing expenses, but thankfully, the number of shareholders has increased. Compared to a year ago, it has increased by about 7,000 people to around 17,000. The various postage costs for sending mail to shareholders and other expenses have also increased. Yes. That's how it is. And as a result, the statement of financial position, which is called the balance sheet under Japanese standards has also increased. Cash and deposits are JPY 3.4 billion, and the equity ratio was 75%. And PBR as of the end of June is 2.1x. Next, I will talk about the status of the products and services that support these -- our products have been mainly software up until now, but in a word, subscriptions are being taken lightly and the transition to stock-based sales is progressing. In this first trial period, stock-based sales composition expenses have increased to 86%. This will fluctuate slightly if we put it into the commercial period, but it is the highest percentage for the first trial period. Of this, subscriptions account for 41% in support accounts for 45%. And the cautiousness in subscriptions is explained here. [indiscernible] is the largest accounting for about 60%. The handbook series accounts for 18% and [indiscernible] for 17% this is how subscriptions are structured. Now let's talk about data linkage tools. This is our main product. Here is the product status of a stereo war. First, in terms of evolution, we are providing new adapters. Adapters for services and personal information acquisition systems are available. New examples include [indiscernible] and tower records, which are companies that many of you know have adopted our system. Among our various activities, we have also received the [indiscernible] Sibos award. This is also one of the results of ASTERIA Warps activities. We are also focusing on strengthening the use of AI. In the new version, we have enhanced the use of AI. First, the hysteria workflow can now create data linkage flows. First, we provided drag and drop. Then we provided templates. -- and now we have finally reached an era where we can create flow charts using AI. Here is a conversation with AI, automatically generate data linkage flows through conversation. This has been included in the new version. In addition, you can ask questions on the spot using an AI chat bot. Furthermore, we have an adapter for generative AI. I think you are using various general device. The function to link in car data to such things. And then we're focusing on a new stable point currency adapter. We've also prepared things like this. Now let me explain about Platio. Platio is a business application platform for the field and Platio has been continuously evolving. It's a web application, and now you can actually create applications to be used on PCs. Up until now, we've been talking about mobile applications, but now you can finally create PC applications, and we've also added Excel output, which was a popular request, and we're expanding our new lineup. The market is also growing significantly. We're receiving a lot of inquiries. There's an increasing demand for mobile applications in manufacturing, construction, retail, inspections and recordkeeping. We've also published 3 case studies Lino, the Kumamoto prefectural government and [indiscernible], where it's being used in a variety of fields. That's [indiscernible]. Platio is also accelerating the use of AI. Just like W, it automates the creation of applications through conversations with AI. This is also an evolution of the brain code that has advanced one step further, yes. And then there is the on-site data accumulated in place. This means that this can be utilized in MCP. Data can be utilized in places like CloudChat/GPTIN. These are the types of responses that are enhancing the use of AI. Now let's take a look at other products. First, there is H&B Voltex, which also has a large number of examples from the railway industry. But in addition to that, there is construction. As an example from Sitech, we have also published this example. And then there is Gravio. This is a platform for utilizing physical AI and inquiries from seminars on physical AI are very strong, and new projects are being created one after another. Yes. And then there is a stable point business. Stable points are very hot right now. In addition to JPIC which we are supporting and promoting as shareholders, we are also working on SBI's new stable coin and the one from 3M Bank, which will be launched within the fiscal year. As the first prototype, we have announced the standard wallet and authorized wallet, allowing each company to choose the wallet that best toot their policies. As for JPIC itself, we have announced that we will hold JPY 1 billion. And as of now, it has exceeded JPY 170 million. Our sales department is increasing this amount every day, and it now accounts for about 1/3 of the total capital. We are planning to hold this amount in JPIC stable point. In addition to holding it, we are also working on using it. This is the JPIC shareholder Foundation. This is complete. Yes, Well, that's all for now. Okay. So regarding the product status, as the last product status, I would like to hear from Mr. Kudo, the President of Asteria Canvas about our new product, BakusokuAI. As you have just heard, my name is Kudo, the CEO of Asteria Canvas. Today, I would like to explain about our new product, BakusokuAI. Yes. Bakusoku AI is not a no-code, drag-and-drop solution that evolves business processes, but rather an AI-native product that allows you to easily create applications simply by speaking natural language words like the ones you use. The important thing here is that it is AI may do. Rather than incorporating AI into existing application systems, it is an AI-native business platform that uses AI as its core and allows you to easily create business applications. In many workplaces, even if you have ideas, it is difficult to put them into shape. In this case, there are programming requirements definition, design and operational improvement to actually release them. Bakusoku AI's strength lies in its ability to handle all of these aspects in a consistent manner. In many workplaces, it is a product that allows you to quickly put ideas that have not yet been formed into shape into production. In fact, Bakusoku AI is packed with the know-how of creating over 80,000 apps that we have cultivated in our no-code approach. I will show you a demo later, but when you input into Bakusoku AI, the kind of app you want to create the kind of business you want to improve or the kind of goals you want to achieve, Bakusoku AI will provide you with recommendations such as how about this application, functions and they know how to release it. This is a platform that provides all of this. Recently, when releasing AI products, security has become a hot topic. People create something, but are unable to release it as a service because they are worried about security. We often hear such stories. Bakusoku AI also ensures security and you can share the product with everyone via URL or QR code by simply pressing the solve button. This is one such product. We have also released Platio Canvas AI at the same time, which has even stronger security features. Now I would like everyone listening to this talk to imagine being a supermarket manager. This time, we will use Bakusoku AI from the perspective of a supermarket manager. As a supermarket manager, we would like to ask Bakusoku AI measures to acquire new customers. Yes. This is the actual generation screen of Bakusoku AI. Here, we run a supermarket. When asked for ideas to increase loyal customers, Bakusoku will come up with a few ideas such as how about this format. Among them, in the area of digital utilization, we particularly like the idea of a point card. And when asked if it could be turned into an app, Bakusoku AI will respond by saying, let's make a point card out. When it comes to the requirements definition design here, we make full use of the experience we have gained from developing 80,000 no-code apps so far. Now since this is a membership app, we want to create an application that can be used with a membership registration. Next, we ask what kind of application functions would be good. Should it be a coupon -- or should it be a point system that awards points based on the amount of purchases. By repeating these questions one by one, even amateurs will be able to design applications without even realizing it. When asked what kind of design to use when actually using the application, we say, since it can be used by the general public, I want a cute pop design that's the reminiscence of Harajuku. Then after selecting a design pattern, a flyer like this is created before the application is actually generated. Based on the information we gathered, I showed you earlier what the completed app will look like. If there are no problems with this app, we can proceed to the next step in Bakusoku AI will already be working on creating the application. Here are the requirements we gathered in the completed application. Apps created by Bakusoku can be created responsibly for smartphones, tablets and PCs. With this many functions and graphical design, the application can be completed in just 3 minutes at Bakusoku speed. There is no need to actually upload the application we created to the server with Bakusoku. Just press the published button here, and he will be able to use it as an application by simply sharing the dedicated QR code in URL with everyone. So this time, we have created an application to increase new customers for supermarkets. The next challenge is to understand the status of employees submitting their shifts. We want to check things like this, so let me show you how Bakusoku AI can be used. The applications we created earlier with Bakusoku AI are all compatible with a technology called MCP. so they can be seamlessly linked with AI agents that you normally use, such as chat GPT, Gemini and Cloud. All applications created with Bakusoku AI can be linked with MCP. Let me show you what this means. In this case, it's club. When you ask Claude to grab the SIP submission status, it automatically pulls data from the Bakusoku AI product database that you created earlier in automatically grasps the submission status without having to output the data. So you can create new marketing initiatives create an executive summary for last year's expenses or ask your customer what the next step should be. You can use Bakusoku AI data to come up with initiatives just by asking the AI agent you normally use. Bakusoku AI can be used in a variety of cases regardless of industry or sector. Prime Minister, distribution, e-commerce, manufacturers, manufacturing, construction, medical clinics, real estate, back office. It is possible to utilize Bokusoku AI natively in cases such as these regardless of industry. Yes. That concludes the explanation of Bakusoku AI. Thank you very much. Yes, what did you think? This is Bakusoku AI and Platio Canvas AI and these are products that will contribute to the initiation of various companies. Now as we enter the era of AI native, let me also talk about our strategy for this era. The general framework and the more in-depth details were explained in detail at the business strategy briefing held after the General Meeting of Shareholders, but I would like to briefly summarize. First, in this world, AI has emerged, and this is the AI revolution. This is changing the competitiveness of various companies and industries around the world. The Industrial Revolution saw large established companies create the world and the Internet revolution saw companies such as Golf Farm create the world and now this software-only value can be created by anyone. This is the same as Bakusoku AI and anyone can create it. In that case, the value of software alone will become very weak as a competitive advantage. So what is next? What we are thinking about is something called acid hooks. The scalability of software and real assets that cannot be replaced by AI. The idea is that we are entering an arrow where these two things are combined for restore value. And we are also transforming our business in line with this idea and the trends of the times moving from software only to something beyond that. To that end, we first obtained approval for certain changes at the General Meeting of Shareholders. We will work to restore our software business to include hardware, robots, AI, digital currency and even satellite communications and to restore value through a variety of real assets. We have also launched a new business division for this purpose. We have also revived a new fund to gain synergies by forming alliances with various cutting-edge companies, not only within the company, but also outside the company and the first target of this fund is figured AI. In this way, we will realize this asset book and continue to grow. Last year, due to Thursday, various software companies suffered from falling stock prices. As shown in the diagram above, future growth will no longer depend on strict competitiveness. The market has reacted sensitively to the fact that anyone can do it and buy it. So what we are proposing is a competitive edge going forward is this asset hook. We do not just propose this, but we want to realize it ourselves improve it. In this context, our native society is definitely coming. We will become the next experts in the foundation for this AI native society. This is our aim. And in terms of connecting, we want to sell to the world market, including overseas markets that are more than 30x larger than Japan, not just domestically. Our scale is still small. Yes, in the fiscal year ending March 2014, sales were JPY 3.4 billion. Operating income was JPY 1.03 billion, and total equity value was JPY 24.6 billion. This is as of the end of March. We want to use this change in the AI era as a hook and use it as an opportunity to grow significantly. First of all, we are expanding as a management strategy. stable growth in the stock business. We will continue to build on this and further increase sales of new therapeutic solutions, stablecoin, robots and hardware, as I mentioned earlier, and increased value through corporate investment and M&A. Furthermore, overseas, unlike before, we will utilize AI to develop new businesses. We would like to proceed with these efforts. Our target is to achieve a corporate value of JPY 100 billion. The reason it does not say total equity is because stock prices change daily, but we aim to achieve JPY 100 billion in corporate value. This is not a goal, but rather a monetary value as a company that serves as the foundation for AI native. Yes. More details on this point will be explained at the business strategy briefing, which is available on YouTube, so please take a look. Now let me summarize the financial results for the first fiscal year. First, regarding the financial results, both revenue and profit increased, and software sales were also strong. Furthermore, profits increased significantly when the evaluation of SpaceX was added. And as for the Superfast AI, I explained it earlier. With this announcement, we are now moving forward with the itemization. We are also strengthening AI compatibility for each product. And the new fund, this is a fund specializing in AI and robotics. The first fund is Figure AI. Based on this, we have revised the operating income forecast for this fiscal year to fiscal year ending March 2027, we have announced that full year operating income will be JPY 1.5 billion. So this is the first prototype. And although it has only been in production for 3 months, I hope you can get a sense of the new transformation and direction of Asteria. That concludes my explanation of the financial results for the first commercial period. Thank you very much for listening. Now we will open the Q&A session.

The first question, while business performance is strong, I think the stock price is sluggish. How do you view this as the President? How do you plan to meet investor expectations? We have received many questions about the stock price. Please answer President.

Yes. Thank you for your question. The question is about the stock price. Yes, our stock price rose significantly last year due to stable coins and has remained at a high level since then. Now if you look at the stock price graph, you can see that it is gradually declining. Although we ourselves cannot control the stock price, our perception of our stock price is that our performance and expectations for the future are very important. By further raising expectations for the kind of growth we will achieve in this new era, the age of AI, our stock price will ultimately depend on whether investors will buy our stock rather than on our performance. The key is to make sure that this moves. We have a clear strategy. We will continue to improve our performance. And raise expectations for the future. In addition, we have clearly stated our shareholder return policy.

Okay. So regarding shareholder preference and then regarding actual dividends, we have announced a dividend policy that will not decrease as a type of dividend.

We have already implemented a stock sale in the past. And as is often asked about, we intend to implement it when appropriate. However, this is more of a measure for the immediate future and in terms of achieving significant growth, we believe that we need to accumulate a track record and continue to focus on this. That concludes my answer.

Thank you very much. Given the significant increase in profits, are you planning to increase the dividend payout? I would also like to hear about your policy for shareholder returns as a measure. That concludes my answer.

Thank you for your question. Yes, this is the question about dividends and stock purchase policies. Yes. Regarding dividends. When it comes to dividend payouts, it basically means the percentage of profits. And 2 years ago, we decided to significantly increase the space and are now paying dividends. And since it's a dividend, it won't go down. We're raising the same forecast, and we've also raised our forecast for this year compared to before. We announced a significant increase in profits but, first of all, we need to carefully examine the figures we've raised this time. In particular, the operating profit for the first commercial phase is still subject to valuation and some of it has not yet been converted into actual money for us, so we need to determine where this will end up. Yes. For example, in SpaceX, the actual sales are confirmed profits. Then the valuation, this JPY 200 million figure is unconfirmed profit. The valuation will be determined at the end of March next year, but we will decide on the final dividend based on these factors. And one more thing. As we explained when we announced our policy on cumulative dividends, we basically exclude temporary or perhaps temporary items when paying dividends. By doing so, there will be no chance of something that was expensive becoming cheaper or disappearing. This is the type of dividend, so you can hold on to it with peace of mind. In terms of dividends, this is the format and policy we have. As for shareholder return measures, they are, as I explained earlier, that concludes my answer.

Thank you very much. next question. When do you expect to achieve the target of a total market capitalization of JPY 100 billion set by President Toronto? Please tell us the specific growth drivers that will help achieve that. That's all.

Thank you for your question. First of all, I want to make one thing clear. I mentioned this in the presentation earlier. I also explained the same thing as the business strategy briefing, but this is not total market capitalization. Total market capital changes daily, depending on the stock price. What we are aiming for is a corporate value of JPY 100 billion. Those of you who have seen SoftBank's financial results will understand this. You also said that the stock price is too low compared to the corporate value, but we are steadily building up a corporate value of JPY 100 billion. Of course, there is a correlation between the total amount of time spent and whether it will follow or proceed, so we are focusing on the corporate value as a base. Our corporate value can be greatly increased through our own growth. So we are aiming for a corporate value of JPY 100 billion. And the specific growth drivers to achieve this are the 4 bridges I showed you earlier. We plan to achieve this through these. That concludes my answer.

Thank you. It appears that the number of warp licenses is decreasing, but how does this compare to expectations? Is it a risk factor?

This is an answer from Kuma, the crew member. Thank you for your question. I will answer as Kuma. Compared to expectations, I think we are doing our best, and it is slightly higher than expected. However, we are currently measuring the transition from onetime sales of this license to a subscription model. So this is also a risk factor in that a large transition will not proceed. However, if onetime sales shift to a subscription model too much, there is a possibility that sales will drop dramatically. So this is still a risk factor, and it is difficult to completely control it, but we would like to skillfully switch to a subscription model and achieve stability in management. That concludes my answer.

What is the aim of Palatio's basic plan? Kuma will answer this as.

Well, yes, thank you for your question. Various functions have been added to this basic plan, but the biggest point is the addition of a function for displaying data. When using Niji to explore data stored in place, it is necessary to export it to an external format such as an Excel format or to create a format for a report. In order to automate this, it was previously necessary to purchase a product called Play Connect. This is the war function that we created and used but there were cases where it was not introduced because it was a bit expensive and difficult for customers. In that sense, the basic plan, which will be changed to the life plan from now on, will allow customers who have signed up to it to increase the unit price. Also, because this adjustment function was not included and because there was a price difference with Patio Connect, the unit price was a bit high. So we will be able to take on projects that were lost out on. Overall, we believe that we will be able to secure quantity, sales and increase the unit price. That concludes our answer.

Next question, what is the difference between the free and paid plans for Bakusoku AI is the structure such that an increase in the number of paid plan users contribute to revenue? This will be answered by a [indiscernible] Canvas CEO, Cage.

Thank you for your question about the Bakusoku plan. Yes, that is correct. The difference between the free and paid plans for Bakusoku AI is that the paid plan unlocks various functions. On the other hand, the free plan is available within the free credits. So if you want to go beyond this framework, for example, to integrate, you will need to use the paid plan. Among the paid plans, Bakusoku AI is an AI-native product. So you will use the credits when creating an app. Therefore, the main source of revenue will be sales from the paid plan plus these AI credits. In addition to this, we are currently providing training using Bakusoku AI to Mofield Group companies nationwide. In addition, we will also be combining corporate training with AI native products and sales from training will also be included in the revenue structure. This concludes our answer.

Next, we will answer a question about Bakusoku AI. I think BakusokuAI is B2C. Are there any plans for TV commercial? Also, please tell us the status of inquiries and how much the results for this fiscal year will be. That's all.

Yes. Thank you for your continued questions about Bakusoku AI. Bakusoku AI is available for both B2B2C and B2C. We do not have any plans for TV commercials at the moment, but we do have plans for transit advertising. We also plan to provide various commercials such as online programs in formats other than TV. Yes, regarding inquiries, we are providing no code products. For example, the number of registered members for Click a single product is about 30,000. There are about 100 companies in total. For customers who are not satisfied with click or who have already tried click, we are considering cross-selling to them using AI native. In addition, we would like to propose the Superfast AI to Asteria customers, such as those who are already using Warp or Platty. Yes, that's all.

Next, we have a question about Artifact. Artifact has set a big goal for several years from now. So please tell us about the progress and the prospects for achieving it. That's all.

Yes, this is a question about artifact. Thank you. Yes, speaking of progress in this first quarter, the first change, there was a big announcement. This is that it has been adopted for the JSE project, which is a 5-year project where humans will go to the moon and artifact will be used for the simulation of the Luna Rover. Then as for things that have already been announced, there is a space start-up in Australia. Well, there are some that we have not announced yet, but this space field is clearly written into the government's basic policy in 17 priority areas. And we believe that it will expand rapidly in the future with various space fields, that's how far we've progressed -- but as for the prospects for achieving them, it's still unclear at this point, but we will do our utmost to achieve the goals we've set. Furthermore, artifact is already expanding not only domestically but also overseas. So please look forward to it. That concludes my answers.

Thank you. Next, we have a question about overseas expansion. How about further strengthening sales of stereo products overseas? That's all.

Yes, thank you. Thank you for your suggestion. Overseas sales. This is what we've been aiming for since our founding. And in fact, the Singapore base is a base for strengthening sales. Currently, we are focusing on physical AI, but we are also responding to inquiries for other products. However, overseas is a very important part of this medium-term plan, so we will further strengthen this area from now on. To that end, we will also promote product development that goes beyond Japan. We will also use investment funds to expand our client base. We will use various methods to move forward. Another new method, which I mentioned earlier, is using the to sell products, and the other party may be a company that uses various ICE or the AI itself may make decisions. So rather than people watching, I will make decisions and collect information. We aim to use our policies in this way. That concludes my answers.

Thank you very much Next, we have a question about stable coins. Could you tell us about the status of Tokyo subsidy system using PIC. How is the campaign going? And what are the reactions I think this is a question about the Tokyo Metropolitan Government StablePoint Social Implementation Promotion Project subsidy and the [indiscernible] date campaign. Please answer.

Oh, I see Yes. Thank you for your question. Yes. First, let me tell you about the status of the Tokyo metropolitan government subsidy system. We do not have a complete grasp of this. This subsidy system is designed to provide subsidies for demonstration experiments that will actually be implemented and manufacturers like us to not directly make proposals. We are actually in discussions with the Tokyo metropolitan government on the back end, but we do not have the latest information on the situation. Yes. Next, let me tell you about the campaign status. We are running a campaign for the JPIC gateway. And although we have received many inquiries, there are still many restrictions that we need to work on. Before we allocate the budget for the JPIC date, we must first promote the widespread use of stable points in society. These things need to be recognized and accepted and then people need to start paying for them. For example, we could partner with JPY assets to further promote stable coins. Furthermore, we could partner with SBI to promote stable coins. Furthermore, if 3M is issued, we would like to promote stable coins. Although we are shareholders of JBIC, we cannot get started unless stable coins become widespread. That is why we have already announced the JPIC gateway not just for JBIC. We will also support USBC and other such entities and of course, we are currently in discussions to fully support JPISC once it becomes a public chain. First, we are focusing on expanding the StablePoint test site. That concludes my answers.

Thank you very much. Next, we have received questions about StableCoins. How many years do you expect stable coins to contribute to your business performance? Will they contribute in addition to the 8 remittance fee Also, when will JPIC be listed? That's all.

Thank you for your questions. So your question is about stable coins. Yes, in terms of their contribution to business performance, it depends on the level of adoption of stable coins. One thing we are relying on, for example, is the Citigroup's Athyrium, which is also used in PIC. 2030 is a milestone for this. So we are making plans based on the figures we expect to see in about 4 years. That would be 2030. In addition to the AGM remittance fee, JPIC Gateway will also contribute. Yes, there is a basic usage fee. And if the number of start-ups increases, it will increase every month to JPY 98,000 at the current rate. We will be receiving this. So first of all, there will be a basic usage fee, and then there will be a remittance fee of JPY 8. In addition to that, we are also considering various financial services related to that. Regarding the listing of JPI, we do not know about that. Although we are shareholders, we will, of course, ask about it when making such a decision, but we do not know the purpose of the listing. And even if we did know, it is not something we can discuss here. Thank you for your understanding. That concludes my answer.

Thank you. Next, we have a question about stable point. In addition to supporting the expanding AI agent and collaborating with Pragma, JPC is also working on opening up. In this regard, please tell us about the significance of a serious position and your enthusiasm for the future. That is all.

Yes, thank you. So this is a question about our business related to JPIC. Yes. The reason JPIC is open is that its original design is open. It is deployed on a blockchain called a public chain. This is the starting point for openness. Well, this allows various companies to freely access the AI agent and, for example, make payments and receive payments. As for programmer and program integration, 3M is collaborating with Pragma. So the question is how to interact with 3M's coins or how to integrate with what Pragma is already doing. Our position is that we are experts in connecting. We will become a hub for stable coins. This is what we do. Right now, we only have JBIC. So we are only connecting JPIC. But as I mentioned earlier, once JPIC becomes public, which many people misunderstand is not yet a public chain. We will connect it once it becomes in a brick chain. And if [indiscernible] is not closed, we will connect it, and we will also connect dollar-denominated ones and become a hub for the exchange of various stable corns. We will also teach the AI agent, and we will also operate the AI agent. What is actually needed for this is integration with the in-car system. The in-car system uses the AI agent. Therefore, without collaboration with them, it is actually very difficult to use stable coins as an agent. In fact, even just using stable coins, for example, there are issues such as what to do with gas stoves and how to manage them. We are the JPIC gateway, and our position is significant in that we are the central hub. How can we, as connecting experts leverage our accumulated knowledge to become a hub for stable points. How can we make the most of this? How can we take the lead in these areas? We are always aware that we are at the forefront of this, and we are determined to make things happen that are currently impossible. That is all I said about the misunderstanding. Thank you very much.

Next, we have a question about our performance. Operating income has already exceeded the performance forecast for this fiscal year. In contrast, the revised figure seem modest, but are there any risk factors in the second half. That is all.

Yes, thank you for your question. We need to hear about our performance. Operating income exceeded JPY 2.4 billion in the first commercial period, as I mentioned earlier. However, the full year forecast is $1.5 billion. Yes. So I think many people are wondering why it is JPY 1.5 billion for the full year since it exceeded JPY 2.4 billion in the first commercial period. This is not so much a risk factor as it is a matter of content. Operating income exceeding 24% includes investment. This includes SpaceX's valuation as of the end of June, and it changes significantly depending on SpaceX's stock price. In fact, the numbers change daily. As far as I can tell at this point in time, the figure I can present to you as of the end of March is JPY 1.5 billion. If SpaceX continues to grow, it will increase even more, but if it declines, the current difference may narrow. So logically and rationally, we came up with these figures, and it doesn't mean that there are any special risk factors in the second Half, yes, that concludes my answer.