BUSINESS ENVIRONMENT

In the first six months of the fiscal year ending December 31, 2021, the outlook for the Japanese economy remained uncertain due to the resurgence of novel coronavirus infections, which significantly impacted economic activities and employment conditions, as well as the declaration of a fourth state of emergency and uncertainty as to when the pandemic will come to an end.
 In this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating new value, developing high-quality, appealing outlets, and providing high value-added services in the bridal, hotel, and wellness and relaxation (W&R) markets and on taking all possible measures to prevent coronavirus infections at all its facilities.
However, all segments of the Group were severely impacted by ongoing restrictions on overseas travel, declines in hotel occupancy and restaurant customer numbers (due to government requests for people to refrain from outings and for businesses to shorten operating hours), postponement of weddings, and sluggish growth in the number of people reactivating their frozen fitness club memberships.