KYOWA ELECTRONIC INSTRUMENTS CO.,LTD.

This report aims to achieve sustainable growth and enhance corporate value through deeper development of existing business areas and the expansion and creation of services, based on a business portfolio centered on measuring instruments and consulting. In the second year of the medium-term management plan KYOWA Vision 2027, the Company continued to implement its basic policies and promote improvements in management efficiency, including higher capital efficiency. At a meeting of the Board of Directors held on 27 July 2026, the Company entered into a basic agreement to absorb and merge its consolidated subsidiaries Yamagata Kyowa Denshi, Kofu Kyowa Denshi and Kyowa Service Center, with 1 January 2027 as the effective date. Orders received were ¥9,078 million, sales were ¥8,027 million, sales in the Measuring Instruments segment were ¥7,355 million, and segment profit was ¥2,709 million. Sales in the Consulting segment were ¥671 million, and segment profit was ¥299 million. Total assets were ¥24,246 million, total liabilities were ¥5,498 million, total net assets were ¥18,748 million, and cash and cash equivalents at the end of the interim period were ¥4,473 million. Interim net income was ¥506 million, and total research and development expenses were ¥565 million. As an interim subsequent event, the execution of the basic agreement for the absorption-type merger is in progress.