Global market expansion into the United Kingdom, China and the United States

「As part of our structural reforms, we transferred the shares of the SFL Group, an overseas sub-subsidiary in the UK, on 27 March 2026.」

「The Group is further advancing its shift from physical stores to online operations and globalisation ahead of its peers, promoting live shopping and beginning sales through overseas websites in regions where it had previously been unable to sell, including China, Europe and the US. For example, several new websites generated more than ¥10 million in sales in a single day when products were uploaded.」

「As part of these efforts, Shanghai Daiku opened Daikokuya Gaoqing Road, its first purchasing store, inside Alibaba Group's Freshippo in late December last year, and expects to further expand its store network. In addition, Chrono24 was launched at Daikokuya's headquarters in July last year as a cross-border e-commerce platform serving customers worldwide.」

「The Group is further advancing its shift from physical stores to online operations and globalisation ahead of its peers, promoting live shopping and beginning sales through overseas websites in regions where it had previously been unable to sell, including China, Europe and the US. For example, several new websites generated more than ¥10 million in sales in a single day when products were uploaded.」

「Meanwhile, the group centred on SPEEDLOAN FINANCE LIMITED in the UK, referred to below as "SFL," was transferred to Harvey & Thompson Limited, a major UK pawn finance company, and had almost completed the withdrawal of its 114 stores during the COVID-19 pandemic in the UK, thereby nearly completing its withdrawal from the business.」

「The group centred on SPEEDLOAN FINANCE LIMITED in the UK, referred to below as "SFL," is being transferred to Harvey & Thompson Limited, a major UK pawn finance company, and is proceeding with its withdrawal, as previously announced.」

「In China, Beijing XinBang Daikokuya Trading Corporation Ltd., a joint venture between the Company and CITIC XINBANG ASSET MANAGEMENT CORPORATION LTD., a consolidated subsidiary of China's largest business group, the CITIC Group, and a major player in China's pawnshop industry, operates a used branded-goods trading business at its Beijing store. In the UK, the group centred on SPEEDLOAN FINANCE LIMITED, referred to below as "SFL," has entered into an agreement to transfer its business to Harvey & Thompson Limited, a major UK pawn finance company, for £9 million (¥1.2 billion, converted at the end-September exchange rate of ¥132.9 per pound), as previously announced, and is proceeding with its withdrawal.」

「In the UK, the SFL Group operates pawn financing and used-goods trading businesses. In China, 信黒屋 operates used-goods trading businesses at its Beijing and Shanghai stores.」

「With the goal of becoming the world's number-one branded-goods reuse market, the Company has operated in Japan, the UK and China as a leading company in the pawnshop and used-goods trading industry, centred on 株式会社大黒屋, referred to below as "Daikokuya."」

「The first store of the Chinese joint venture, an equity-method affiliate, opened in Beijing in December 2016. The Shenyang store, its second location, opened during the second quarter, followed by the Shanghai store in the third quarter and the Qingdao store in the fourth quarter. The Chinese business is therefore progressing steadily.」

「The Company has reached a basic agreement in principle to integrate the domestic and UK businesses currently held through its subsidiary Daikokuya Global Holdings Co., Ltd. into its wholly owned subsidiary 株式会社エスビーオー, with CITIC acquiring a 30% equity interest in SBO. The purpose is to expand globally through SBO, which will be owned by the Company and CITIC.」

「The Company intends to further promote globalisation, expand its business by capitalising on its strengths, and adopt risk-mitigation measures linking its domestic and overseas operations.」

「Beijing XinBang Daikokuya Trading Corporation Ltd., a joint venture between the Company and CITIC XINBANG ASSET MANAGEMENT CORPORATION LTD., a major player in China's pawnshop industry and a consolidated subsidiary of China's largest business group, the CITIC Group, was established in August 2016. Its first store, focused primarily on purchasing and selling used branded goods based on the Daikokuya store model, opened in Beijing in December of the same year.」

「To prepare for the decline in duty-free sales caused by the stronger yen described above, eliminate the effects of foreign exchange movements over a short period and respond to fluctuations in global demand, the Company has been rapidly expanding overseas since last year, prompted by the recognition overseas of demand for used Japanese branded goods created by the shopping boom among Chinese visitors.」

「The UK SFL Group opened a store in London, where many affluent customers live, in July 2016 to purchase and sell used goods based on the Daikokuya business model, and plans to continue expanding its store network, primarily in the region. The first store under the joint venture with CITIC in China is scheduled to open in Beijing in November this year, and the joint venture's e-commerce business in China is expected to begin by year-end.」

「③ Expansion into global markets: In addition to growing the acquired UK business, the Company will establish a joint venture in China and enter the US market.」