Management Information

From rebuilding trust to sustainable corporate value enhancement

We would like to express our sincere gratitude to our shareholders and investors for your continued understanding and support of Sunwels Co., Ltd.

I am Toshihiko Atarashi, and I have recently been appointed as President and Representative Director.

Based on our philosophy of "shining brightly ourselves and energizing others," we have supported the lives and lifestyles of each and every user through our services, including PD House and other paid nursing homes, day services, group homes, welfare equipment rental, and pressure training programs.

Since our founding, the expertise, on-the-ground capabilities we have cultivated, and the dedication of our staff who sincerely engage with our clients and their families are the source of our business value. I will uphold the founder's philosophy of "shining brightly ourselves and energizing others" as a crucial foundation for our future management, and ensure that it is passed on to the next stage of growth.

On the other hand, our company is currently at an extremely critical juncture in its management.

In response to the series of issues concerning medical fee claims, we have caused considerable concern to our shareholders, investors, and many other stakeholders. We take the critical opinions and suggestions we have received to heart and are working to strengthen our compliance, internal controls, record-keeping and billing management, employee training, and governance systems.

Going forward, we will sincerely address the challenges we have faced, steadily rebuild trust, and re-examine our business structure, revenue structure, and management control system to promote management reforms aimed at sustainable improvement of corporate value.

For many years, I was involved in social security administration, including the long-term care system, at the Ministry of Health, Labour and Welfare and local governments. After retiring, I continued to be involved in the medical and long-term care fields from the perspectives of systems, laws, and management, serving as a corporate officer, consultant, and outside director.

Drawing on our past experience, we will thoroughly implement highly transparent management practices that are faithful to the spirit of the system and allow us to explain our operations directly to society.

Our core business, PD House, provides highly specialized care and safe living spaces for people with Parkinson's disease and other neurological disorders.

For people with Parkinson's disease, being able to continue living in their familiar communities and homes with their families is an ideal. However, as the disease progresses, support becomes necessary in a wide range of daily life situations, and it can become difficult for families to provide long-term support on their own. Furthermore, it is often difficult for families and communities alone to provide 24-hour nursing and care, including nighttime and emergency situations.

We believe we have an important social mission to provide these individuals with safe and secure housing, as well as professional nursing, care, and rehabilitation services.

In order to continue fulfilling this social mission into the future, a stable management foundation and appropriate profitability are essential.

Going forward, we will thoroughly implement the fundamentals of providing necessary services reliably, keeping accurate records, and billing appropriately in accordance with the system. On top of that, we will work to improve our revenue structure by improving occupancy rates, streamlining facility operations, optimizing staffing, enhancing the accuracy of record-keeping and billing management, and optimizing headquarters expenses, including external costs.

Furthermore, we recognize that the environment surrounding the medical and long-term care systems will continue to become increasingly challenging. In light of revisions to medical and long-term care fees, difficulties in securing personnel, and rising prices and labor costs, it is important to transform our business structure into one that can withstand systemic changes, rather than continuing with our conventional growth model.

Our company is engaged in socially meaningful businesses, and as a listed company, we are in a position to manage the capital entrusted to us by our shareholders and investors responsibly.

Therefore, in our future management, we will prioritize the following points.

Firstly, we need to restore trust and strengthen governance.

We will continuously improve compliance, internal controls, record and billing management, internal audits, and risk management to build a management system that is transparent to society.

Secondly, we need to restructure our revenue streams.

Based on the environment following the system reform, we will thoroughly examine the operation, unit price, staffing structure, and cost structure of each facility, and proceed with the transition to a sustainable revenue model.

Thirdly, it is about improving business value based on on-the-ground capabilities.

The value of our company is created by our staff who work closest to our customers. We support their expertise and pride on the front lines, and strive to achieve both improved service quality and enhanced operational efficiency.

Fourthly, strengthening the financial foundation and improving corporate value.

We will continue to engage in dialogue with all stakeholders, including financial institutions and capital markets, to consider measures that will contribute to the continuity of our business and the enhancement of our corporate value.

Fifth, timely and appropriate information disclosure and dialogue.

We will communicate to our shareholders and investors, as clearly and honestly as possible, our current situation, the progress of our reforms, the risks involved, and our future plans.

What we at our company must uphold is our founding principle, the philosophy of "shining brightly ourselves and energizing others," our expertise in the field, and the trust placed in us by our clients and their families.

On the other hand, we will not hesitate to make changes to what needs to be changed, taking into account the changing times and systems, as well as the opinions of our stakeholders, including our shareholders and investors.

Our company is now entering a new management phase, moving from rebuilding trust to achieving sustainable growth.

Our goal is for our clients and their families to feel that choosing us was the right decision.

To ensure that staff can work with pride and a sense of fulfillment.

To be a company that continues to be needed by the community and society.

And, to steadily restore and improve corporate value in a way that meets the expectations of our shareholders and investors.

To achieve this, all executives and employees will work diligently and with a sense of urgency.

We sincerely ask our shareholders and investors for their continued understanding and support of our company, and we would also appreciate your frank opinions.