Impact of the Kanto Daiichi Plant Fire on Production and Supply Operations

「A portion of the insurance proceeds relating to the equipment at the Kanto No. 1 Factory and associated costs following the incident at the factory on 6 December 2023 was finalized. The finalized insurance proceeds received of ¥63 million were recorded as extraordinary income under insurance proceeds received in connection with the fire.」

「The Kanto No. 1 plant was fully restored in April 2025, and the Group's annual production volume rose significantly to approximately 43,000 tons, versus the initial plan of 40,000 tons, contributing to a stable supply structure.」

「Under these circumstances, the Company fully restored the Kanto No. 1 Factory in April 2025 in its food business and established a stable supply system. Group-wide annual production is planned at 40,000 tonnes, up 5.6% year on year.」

「At its production factories, the core of its manufacturing operations, the Company fully restored the Kanto No. 1 Factory in April 2025. In addition, to strengthen its production system in western Japan, it acquired Lot G in the Sakuragi district of Miyakonojo Inter Industrial Park, with a site area of 8,259.88 m², and is proceeding with construction of a new factory in Miyakonojo, Miyazaki Prefecture, as a new supply base, targeting the start of operations in 2026.」

「In the food business, the Company struggled to secure production volumes matching planned sales quantities because the number of production lines declined following the Kanto No. 1 Factory fire in December 2023. Meanwhile, it installed hybrid production lines for Osaka王将 Winged Gyoza and Osaka王将 Sauced Meat Shumai at the Kanto No. 3 Factory to help make up the shortfall in production and improve efficiency. At its production factories, the core of its manufacturing operations, the Company aims to fully restore the production lines affected by the fire at the Kanto No. 1 Factory by February 2025.」

「Due to the fire at the Group's Kanto No. 1 Factory on 6 December 2023, the Company recorded ¥1,454 million as an extraordinary loss for the factory equipment and related costs that were destroyed or damaged during the fiscal year.」

「A fire broke out on 6 December 2023 (Wednesday) in part of a production line at the Kanto No. 1 Factory of the Group. As full recovery will take time, the final amount is expected to take time to determine, but the Company expects to record a ¥1,400 million extraordinary loss for the factory's equipment and related costs in its fiscal year ended February 2024 results. The adjacent Kanto No. 2 and Kanto No. 3 factories were not affected by the fire and remain in normal operation. Some production lines resumed operations on 25 December 2023. For product supply, production is being transferred to other factories within the Group, and the Company is working to restore the supply system fully as soon as possible.」