Risk of inventory and receivables losses from a fire at an outsourced warehouse used by a Chinese subsidiary

「On 31 January 2024, a fire broke out at an outsourced warehouse where 理研計器商貿(上海)有限公司, the Company's Chinese subsidiary, and its sales agents had entrusted the storage of inventory. For the current consolidated fiscal year, the Company recorded a disaster loss of ¥76.610 million in connection with inventory destroyed in the warehouse fire.」

「On 31 January 2024, a fire broke out at an outsourced warehouse where 理研計器商貿(上海)有限公司, the Company's Chinese subsidiary, and its sales agents had entrusted the storage of inventory. At the time of the fire, the warehouse contained inventory owned by 理研商貿 and products that had already been delivered to sales agents. The related inventory and receivables from sales were approximately ¥589 million in total, equivalent to approximately RMB30 million. The amount of damage, including inventory destroyed and receivables expected to be uncollectible, is currently under detailed review, including the contractual arrangements with the warehouse operator and sales agents and the insurance coverage, and is difficult to estimate reasonably at this stage.」