Aiming Annual Securities Report: Fiscal Year 2018

Summary

Aiming Inc. faced a period of significant financial volatility during the 2018 fiscal year, characterized by persistent operational losses and a heavy reliance on a narrow portfolio of titles. Despite achieving a 7% increase in annual revenue to approximately 7.3 billion yen, the company reported an operating loss of 1.48 billion yen and a net loss of 1.55 billion yen. This financial strain was underscored by a notable decline in cash and deposits, which dropped from 5.11 billion yen to 2.92 billion yen, and the liquidation of the subsidiary Aiming Global Service, Inc. The company’s revenue stream remains highly concentrated, with 81% of total sales generated by only two titles: Logres of Swords and Sorcery and CARAVAN STORIES.

The company encountered substantial business risks throughout the year, including regulatory compliance requirements, dependence on key management personnel, and challenges in human resource acquisition. These factors, combined with recurring losses, initially triggered concerns regarding the company’s ability to continue as a going concern. However, these uncertainties were effectively mitigated by February 2019 through successful capital procurement efforts and the renewal of agreements with financial institutions. A strategic third-party allotment of shares to Delightworks Inc. further bolstered the company’s liquidity, providing necessary funding for ongoing game development and operational stability.

Corporate governance remains a priority, with the company maintaining a board of five directors and three external auditors to ensure transparency. While the company has suspended dividend payments due to its financial performance, it continues to refine its internal controls and risk management frameworks. Moving forward, the organization is focused on diversifying its title portfolio, strengthening internal management, and pursuing international market expansion through strategic partnerships to transition toward sustainable profitability. Founder Tadashi Shiiba maintains a significant influence over the company, holding a 24.25% stake as of the end of 2018.