Ureru Net Advertising Group Co.,Ltd. (TSE Growth, code 9235) reported that shareholders' equity attributable to its own owners turned negative at the close of the year to July 2026, and that the shortfall breached the Tokyo Stock Exchange's minimum net-asset requirement for Growth Market listings.
Revenue rose 6.0% to ¥1.66bn, but the operating loss more than tripled to ¥543mn from ¥166mn a year earlier, a result the company attributes to existing businesses missing sales plans, M&A-related costs and bad-debt provisions. Impairments on software and goodwill, plus a write-down on investment securities, pushed special losses to roughly ¥536mn, widening the net loss attributable to owners to ¥1.11bn from ¥444mn. Shareholders' equity fell to negative ¥124.7mn from a positive ¥677mn, an equity ratio of -5.3%. On the narrower measure the exchange uses for its listing standard, which strips out non-controlling interests, net assets stood at negative ¥124.1mn at fiscal year-end, below the exchange's minimum.
| Metric | Year to July 2025 | Year to July 2026 |
|---|---|---|
| Revenue | ¥1.57bn | ¥1.66bn |
| Operating profit/(loss) | -¥166mn | -¥543mn |
| Net profit/(loss) attributable to owners | -¥444mn | -¥1.11bn |
| Shareholders' equity | ¥677mn | -¥124.7mn |
The filing also flagged conditions that can trigger going-concern doubt: three consecutive years of operating losses and negative operating cash flow of ¥214mn. Management concluded that no material uncertainty exists, citing planned cost controls and the first full-year contribution from newly consolidated units.
Ureru says the shortfall has already been addressed outside the reporting period. Effective August 10, 2026, a share exchange making a Kampo (Japanese herbal-medicine) products subsidiary wholly owned, together with share deliveries to Step y's and a mobile-communications reseller it also absorbed into the group, increased equity and reduced non-controlling interests enough to push net assets on the exchange-defined basis positive that same day. A separate plan for coming into compliance with the listing standard has not yet been disclosed. For the year to July 2027, the company is guiding to revenue of ¥5.0bn and operating profit of ¥202mn, leaning on those acquisitions for roughly ¥3.28bn of the projected top line.