Aiming Q1 2020 Financial Results

Aiming’s financial results for the first quarter of 2020 reflect a period of significant operational contraction and financial loss. During the three-month period ending March 31, 2020, the company reported net sales of 1.116 billion yen, representing a 30.2% decline compared to the same period in the previous year. The company recorded an operating loss of 146 million yen and a quarterly net loss of 155 million yen, a sharp reversal from the profitability observed in the first quarter of 2019.

The company operates exclusively within the online game industry, focusing primarily on smartphone titles. The financial decline is attributed to the volatility inherent in the mobile gaming market and the performance of its current portfolio. To address these losses, the company has initiated a restructuring strategy that includes optimizing operational efficiency for existing titles like "Logres of Swords and Sorcery" and "CARAVAN STORIES." Furthermore, management has shifted its focus toward the joint development of "Dragon Quest Tact" to streamline resources and mitigate development costs.

To stabilize its financial position, the company has implemented cost-reduction measures, including the optimization of its Taiwan studio staff and the divestiture of its Osaka studio. These efforts are complemented by capital-raising activities, specifically through the exercise of stock acquisition rights, which bolstered cash reserves during the quarter. While the company acknowledges that its history of operating losses creates uncertainty regarding its status as a going concern, it maintains that these strategic initiatives and improved liquidity provide a sufficient basis to continue operations. Consequently, no significant doubt regarding its future viability is currently recognized by management.