Happy New Year. This is Kitao, Representative of the SBI Group.
In accordance with our customary tradition, I would like to discuss this year’s zodiac sign.
This year’s zodiac sign is 乙巳 (isshi, kinoto-mi).
First, let me address the meanings of the two characters 乙 (itsu) and 巳 (shi).
As for 乙(itsu), in the oldest Chinese dictionary, Shuowen Jiezi (hereinafter Shuowen) written by Xu Shen in the Later Han dynasty , itsu is written as follows: “象春艸木冤曲而出, 陰气尚彊, 其出乙乙也” (original Chinese script), meaning itsu represents the state of plants that, having sprouted the previous year, are twisted and bent as they encounter the cold and external obstacles.
Other literal interpretations of the character 乙(itsu) include its resemblance to a curved sword with blades at both ends, or that it represents the bended and stretched engravings made by a small curved blade.
Regardless, there seems to be no doubt that the literal interpretation of the character essentially means “to bend.”
Next is 巳 (shi). Shi is the sixth sign in the Chinese zodiac, associated with the snake.
In Shuowen, it is written as follows: “四月,阳气已出,阴气已藏,万物见,成文章,故巳为蛇,象形” (original Chinese script), meaning 巳 (shi) represents the shape of a snake that was hibernating, crawling out to the surface. In addition, shi represents the transition from hibernation to activity, symbolizing the end of a dormant period and the commencement of new movements, which is consistent with the idea that 巳 (shi) shows resemblance to the character 已 (yi) which carries the meaning of “to end.” Further, the word simultaneously signifies the beginning of a new activity. According to the Baihu Tong by Ban Gu from Eastern Han Dynasty, it is stated that “巳者物必起 (original Chinese script),” meaning, issues and individuals that were unseen surfaces, and bring about new activities. Thus, shi means for matters to meet a closure and have a fresh start.
Moreover, 巳 (shi) is also thought to symbolize the shape of a fetus’s head and torso formed in the womb, indicating the birth of new life.
Now, let’s examine the year’s fortune according to the doctrine of Yin-Yang and the Five Elements, (which theorizes that all things in the world are composed of five elements; Wood, Fire, Earth, Metal, Water along with Yin and Yang.
The character itsu represents “Yin Wood”, and shi represents “Yin Fire.” Therefore, this year’s zodiac sign isshi forms a Generation cycle of “Wood begets Fire” (木生火). This combination indicates that fire is generated by rubbing together two pieces of wood, which then fuels the fire, resulting in a bigger flame. Thus, the changes that will take place will become very significant.
Based on the above analysis, if I were to summarize this year’s fortune in my own way, the key theme of this year would be to bring things to a “closure” or a “resolution.” No matter how strong the resistance from the outside world may be, we must persist with indomitable spirit and bring “closure” or “resolution” to necessary matters. We must bring “closure” to the ordinary, spineless, and sloppy, deceitful lifestyle, and instead face all matters with vigor, courage, and bold determination.
乙巳 (isshi) is an extremely important and special pairing in the sexagenary cycle, leading to a challenging year that will bring significant transformations. It is no exaggeration to say that our future destiny will be determined by how well we manage the various matters that need to meet its “closure” or “resolution” this year.
By referencing domestic and international historical facts, I believe that one can gain a clearer understanding of what I have mentioned earlier.
Let’s look back at past isshi years and pick out some emblematic examples.
285 AD:
• The Roman Empire began its system of divided governance.
645 AD:
• The famous Taika Reform took place. With the goal of establishing a centralized state under the emperor, Prince Naka-no-Oe and Nakatomi no Kamatari assassinated Soga no Iruka in the imperial court, resulting in Prince Karu ascending the throne, becoming Emperor Kōtoku. The reform marked the end of old customs and brought "closure" to the Asuka period.
1185 AD:
• The Taira clan, once powerful, was defeated at the Battle of Dan-no-ura, marking the rise of the Minamoto clan and the establishment of the Kamakura Shogunate.
1545 AD:
• The Council of Trent opened. Protestant churches split from the Catholic Church.
1605 AD:
• Tokugawa Ieyasu resigned as sei-i taishōgun (Commander-in-Chief of the Expeditionary Force Against the Barbarians) and passed the position to Tokugawa Hidetada who became the second shogun. This signified the end of the Sengoku period (Warring States period).
1845 AD:
• Mizuno Tadakuni resigned as the rōjū (member of shogun's council of elders), marking the end of the Tenpō Reforms.
1905 AD:
• The Treaty of Portsmouth was signed, ending the Russo-Japanese War that began the previous year, and bringing a “closure” to the conflict.
• The First Russian Revolution (a civil unrest to overthrow the House of Romanov of the Russian Empire) broke out.
1965 AD:
• The period of rapid economic growth known as the "Izanagi boom" began in November, lasting 57 months.
• The full opening of the Meishin Expressway opens in its entirety.
• The Treaty on Basic Relations between Japan and the Republic of Korea was signed, normalizing diplomatic relations between Japan and the Republic of Korea.
• The Osaka Expo was officially confirmed to be held.
• Sin-Itiro Tomonaga won the Nobel Prize in Physics.
• The Tōkai Nuclear Power Plant began supplying electricity.
• The United States escalated the Vietnam War with direct airstrikes against North Vietnam.
Based on historical facts, it becomes clear what the zodiac isshi symbolizes. It is a year to bring a “closure” to entrenched, rigid situations such as political upheavals and the start or end of wars, breaking free from old customs and constraints. Surely, it is evident that this year will not be an easy one. This theme is not just relevant to countries but also to businesses and individuals.
Let us now examine how to navigate these difficult circumstances and bring “closure” to key matters.
Firstly, since this year will bring dramatic change, it is essential for countries, companies, and individuals to remain flexible and adapt to the waves of change. Without hesitation or vacillation, we must quickly overcome resistance, carve out new paths, and transform changes into opportunities.
Secondly, bringing “closure” or “resolution” to things is no easy feat. What must we do to take the steps toward reform and innovation that can drive history forward? Simply envisioning an ideal image is not enough. One must cultivate a sense of timing that is accompanied by foresight and passion that matches the new era and trends. Additionally, an indomitable spirit along with courage and insight are indispensable
Thirdly, the snake repeatedly sheds its skin, which is a form of metabolism that removes the old keratin layer. Proper shedding is a sign of health, and as Nietzsche said, "the snake which cannot cast its skin has to die." For humans too, continuous metabolism (=renewal) is essential for life. Our own "metabolism" is the strong desire to absorb new knowledge and at times, the willingness to transform our values.
Given the fortune of the isshi year, let me now outline specific plans for the SBI Group.
Firstly, to bring “closure” to the repayment of public funds (remaining approximately 330 billion yen) for SBI Shinsei Bank. Once the repayment is completed, we will endeavor to go public as soon as possible. Following that, we will actualize our vision of creating the “fourth megabank” with SBI Shinsei Bank as the core and contributing to local community as a wide-area regional platform.
Secondly, the “ZERO Revolution” spearheaded by SBI SECURITIES has thus far been a success. This year, we will move to phase two of this initiative. We will expand the customer base of SBI SECURITIES by creating new products, developing new markets, and strengthening alliances with other group companies. Our target is to more than double the customer base to 30 million customers.
Thirdly, the Crypto-asset Business, which we have patiently nurtured, is expected to flourish and grow significantly, in tandem with the rise of U.S. President Donald Trump. We endeavor to rapidly develop and expand the digital ecosystem from a global perspective. To that end, we will actively recruit and promote talented individuals in the field.
Finally, there is a saying in the stock market: “辰巳天井” (meaning, stock prices tend to surge to new heights in the years of the dragon and the snake). To avoid being swept away by stock market conditions or currency fluctuations, we must not only rely on conventional hedging methods but also develop new techniques. For that, we will build a business portfolio that thoroughly considers the risk hedging strategies.
January 6, 2025
SBI Holdings, Inc.
Representative Director, Chairman, President & CEO
Yoshitaka Kitao