Gizin Inc. 2024 Annual Report - Celebrating Our 10th Anniversary and New Year Aspirations

Dear Valued Customers,

We extend our heartfelt congratulations on welcoming this brilliant new year. We are deeply grateful for your exceptional support and patronage throughout the years.

2025 marks a milestone year as Gizin Inc. celebrates its 10th anniversary. We renew our commitment more than ever to "enriching our customers' daily lives and providing services that bring value to society as a whole." To achieve this goal, we will build upon the experiences and achievements cultivated in 2024 as our foundation for further growth.

This report presents the major achievements we accomplished in 2024 and our vision for 2025.

1. Global Context and Our Strategic Response

2024 was a transformative year marked by continued recovery from the COVID-19 pandemic and the rapid evolution of generative AI that captured global attention, bringing significant changes to society as a whole.

Generative AI expanded its applications beyond business and creative fields into education, healthcare, entertainment, and many other domains, holding the potential to dramatically transform people's lifestyles and values. This movement accelerated the trend of companies and individuals leveraging generative AI to enhance their competitive advantages.

Simultaneously, the proliferation of generative AI highlighted renewed challenges in AI ethics and data security. Our company embraced these societal changes and challenges, fulfilling our expected role through the practical implementation and market application of generative AI. Specifically, we advanced sophisticated technology development to meet user needs and executed numerous projects that bring new value to our customers' lives.

Through these initiatives, we strengthened our generative AI capabilities and realized applications across diverse fields including image generation, music creation, video production, and 3D object modeling. As society's digitalization accelerates, our research and development represents a crucial step toward expanding future possibilities.

2. Major Achievements in 2024

2-1. Exponential Revenue Growth

In fiscal year 2024 (11th term), our company is projected to achieve revenue growth exceeding 250% compared to the previous year, driven by expansion in our generative AI business, healthcare services, and web development operations. We will provide a detailed update once our official financial statements are finalized, while continuing to pursue sustainable growth.

2-2. Headquarters Relocation and Executive Team Expansion

To support our business growth, we relocated our headquarters to Uesugi, Aoba Ward, Sendai City, establishing a more efficient operational environment and building a foundation for further business expansion. In December 2024, we increased our executive team by one member, strengthening our organizational structure to support continued business expansion.

2-3. Full-Scale Generative AI Business Development

Participation in National University Research Projects We joined generative AI research projects, bridging academic insights with practical business needs. This enhanced our advanced natural language processing and creative content development capabilities, further strengthening our technological advantages.
Collaboration with Major Domestic Telecommunications Companies We participated in examining new business models utilizing Large Language Models (LLMs). Our accumulated technical expertise and proven track record were highly valued, with expectations for application in new projects.
Entertainment Content Expansion Leveraging our existing strengths in manga and music production, we advanced the development and delivery of entertainment content using generative AI. These achievements received high market recognition and became a major growth engine supporting our 2024 success.

2-4. Web Business Expansion

In corporate website and e-commerce site renewal projects, we handled everything from planning and proposals to implementation, contributing to our clients' increased sales and enhanced brand value. One e-commerce site achieved over 200% year-over-year sales growth, demonstrating the high evaluation of our digital marketing capabilities and implementation expertise.

2-5. Healthcare Business Evolution

'Touch to Sleep App' Status and Achievements Our 'Touch to Sleep App' reached 44,000 downloads, with many users expressing joy that "sleep medication is no longer necessary." Recognition has steadily increased through various media coverage and feature articles. We continue working to make this service available to even more people.
Launch of Our Second App: 'Gut Health App' Following 'Touch to Sleep App,' we released 'Memo and Balance Gut Health App - Easy Memo Gut Health.' Download numbers are progressing steadily, with users reporting improvements such as "my irritable bowel syndrome has improved," demonstrating tangible results as a new health management method.
Sleep App Updates By utilizing generative AI in 'Touch to Sleep App,' we successfully reduced production costs by approximately 90% while increasing content volume by 48 times. This resulted in numerous positive user feedback such as "I can enjoy different content every night, so I never get bored" and "I no longer need to rely on sleep medication."

Launch of Digital Sleep Consultant Activities Our CEO, Koizumi, began supervising sleep app comparison articles, objectively analyzing the characteristics and user evaluations of various sleep apps in the market and disseminating reliable information. This helps customers choose apps that suit their needs and contributes to improving sleep quality.
Television Coverage and Interview Publications Miyagi Television (Nippon TV affiliate) featured our 'Touch to Sleep App,' introducing the innovative function that helps users fall asleep just by touching their smartphones. Additionally, the regional information site "Locality" featured an in-depth interview with our CEO, Hiroya Koizumi, discussing his 20-year entrepreneurial journey in Sendai and the appeal of IT development in regional areas. Through this media exposure, our activities gained recognition from many people, further enhancing our social credibility.

3. Vision for 2025

3-1. Creating Enhanced Customer Value

In 2025, we will further deepen technological innovation in generative AI and healthcare fields, particularly accelerating research and development through the utilization of the latest GPU "RTX 5090." This will enable the construction of higher-performance research environments and shorter development times, realizing more rapid and flexible responses than ever before. Through this technological innovation, we will strengthen our foundation for providing higher-quality services to our customers.

Additionally, by leveraging NVIDIA's "Project DIGITS," we will establish an environment for building Large Language Models (LLMs) exceeding 200 billion parameters, enabling efficient design and implementation of high-performance AI environments dedicated to our customers.

Through these initiatives, we will provide highly customizable AI solutions tailored to each customer's individual needs and create new services that enrich daily life.

3-2. Promoting Industry-Academia-Government Collaboration

We have begun expanding our consumer-focused sleep app into corporate solutions. We are strengthening partnerships with research institutions, local governments, and corporations to propose new applications that support workplace environments and employee health management. In June 2025, we plan to exhibit our initiatives at the Japanese Society of Sleep Research. Through this, we will build cooperative relationships with academic fields and further advance the development of products and services based on scientific knowledge.

For example, we will provide customizable sleep improvement programs for corporate customers and establish systems to support understanding and optimization of employee health conditions through data analysis. This aims to contribute to improved performance for workers and enhanced productivity for entire organizations. We will continue providing solutions beneficial to society through industry-academia-government collaboration.

3-3. Global Expansion Preparation

Our 'Touch to Sleep App' has already expanded into global markets, currently acquiring overseas users representing approximately 5% of domestic users. In 2025, we will further expand these results, developing content enhancements accepted by international audiences and marketing strategies suited to local markets.

Specifically, we will enhance multilingual support, customize for regional cultures and needs, and create environments that are easier for broader user bases to utilize. We will also strengthen partnerships with overseas partners, promoting local promotion and distribution to aim for further market share expansion. Through this, we will help users worldwide feel close to our sleep app and support their enriched lives.

Conclusion

We express our heartfelt gratitude for your exceptional support and patronage. This year, we will continue striving for further service improvements and contributions to society, and we humbly request your continued support.

We sincerely pray for your health and happiness.

Respectfully yours, Gizin Inc. Hiroya Koizumi, President and CEO