#Japan #Fukuoka #Ureru Group #ADWAYS China #ADWAYS Asia

Ureru Net Advertising Group Expands into Chinese Market

In a recent board meeting, Ureru Net Advertising Group (TSE: 9235), headquartered in Fukuoka, Japan, announced a significant strategic acquisition. The group has entered into a share transfer agreement with ADWAYS Inc. (TSE: 2489), securing a foothold in the Chinese digital marketing landscape by acquiring its subsidiaries, ADWAYS CHINA and ADWAYS ASIA.

Importance of the Acquisition

The decision to acquire these companies is pivotal for Ureru, as the group recognizes the vast potential of the Chinese market, which is one of the largest e-commerce and social media hubs worldwide. With a projected annual revenue of 3.3 billion yen, ADWAYS CHINA and ADWAYS ASIA are well-placed within the market, offering extensive digital marketing services including brand advertising, app marketing, and live commerce. These capabilities will enhance Ureru’s existing operations in D2C and e-commerce.

Through this acquisition, Ureru aims to leverage its expertise honed in Japan alongside the established local networks and operational competencies of ADWAYS. This synergy is expected to elevate the group's marketing support services, particularly in the realms of Chinese social media, e-commerce, and live commerce.

Strategic Goals

The acquisition is more than just an expansion; it's part of Ureru's long-term growth strategy. By integrating the local know-how of ADWAYS with Ureru's powerful sales mechanisms — termed 'the strongest selling know-how' — the group aims to deliver high-value services beyond traditional advertising support. The goal is to create innovative marketing solutions that enhance revenue streams and accelerate business growth.

Ureru plans to evolve its marketing support framework into a full-funnel model that encompasses app advertising, brand advertising, influencer marketing, and social media management. This comprehensive approach is designed to maximize the lifetime value (LTV) of clients in the dynamic Chinese market.

Financial Expectations

As of December 31, 2025, ADWAYS CHINA will not be listed on the stock exchange, thus no typical financial statistics such as net assets per share or dividends will be disclosed. In contrast, ADWAYS ASIA's financials indicate total assets of approximately 552 million yen, with a projected revenue of around 284 million yen for their upcoming fiscal year.

Ureru's acquisition includes ADWAYS CHINA's share at a nominal price of 1 yen and similar terms for ADWAYS ASIA. The total estimated cost, including due diligence and valuation expenses, amounts to approximately 4 million yen.

Future Prospects

Following this acquisition, both ADWAYS CHINA and ADWAYS ASIA are set to become consolidated entities by July 2026. Ureru anticipates recognizing special profits related to negative goodwill, which they are currently calculating.

Moving forward, Ureru aims to accelerate its operational expansion in China using its robust marketing framework. The integration of live commerce, social media marketing, and cross-border e-commerce services will not only open new revenue opportunities but also enhance added value for clients.

With an expectation of improved profitability gradually over time as the company's expertise is utilized in the new operations, Ureru plans to transition into a stable profit generation phase in the medium term. More importantly, this will mark the starting point for Ureru's global business expansion, leveraging a cross-border strategy that seeks to increase the group’s overall overseas revenue ratios and drive collective growth.

Conclusion

In summary, Ureru Net Advertising Group's acquisition of ADWAYS CHINA and ADWAYS ASIA represents a decisive move to strengthen its presence in the booming Asian market. With this strategic investment, Ureru is poised to make significant strides in digital marketing, showcasing its commitment to adapting and thriving in an increasingly globalized business environment.