SANYO SHOKAI LTD.

The Group is a corporate group whose principal business is the manufacture and sale of apparel and other textile products, and operates as a single fashion-related business segment centered on its apparel-related operations. Its principal customers are concentrated in Japan and are reached through channels including department stores, directly operated stores, e-commerce and outlets, while its overseas operations are supported through entities such as Shanghai Sanyo Fashion Trading Co., Ltd. The Company has announced its Medium-Term Management Plan for the fiscal years ending February 2026 through February 2028. While pursuing growth through organic growth and the development of new markets, it has also outlined a policy of strengthening shareholder returns by combining its brand, channel and capital strategies. In the consolidated results for the fiscal year ended February 2026, net sales were ¥58,448 million, ordinary income was ¥1,436 million and net income attributable to owners of the parent was ¥4,113 million. The number of employees reported under the submitting company’s information was 1,118, with an average of 1,369 temporary employees. The Company’s long-term targets under the Medium-Term Management Plan are net sales of ¥100 billion, an operating margin of 10% and ROE of 10%, and it has outlined a policy of improving ROE and DOE and strengthening shareholder returns. Following revisions to the targets under the Medium-Term Management Plan, the Company has set targets for the fiscal year ending February 2028 of net sales of ¥62 billion and operating income of ¥1.3 billion, or ¥2.5 billion excluding the impact of the partial transfer of the head office land and the rebuilding of the head office building. The Company assumes a portfolio of 7 core brands and has set a plan to raise each brand’s net sales to ¥10 billion, while pursuing growth strategies including accelerating store openings, strengthening e-commerce, developing new brands, expanding overseas and pursuing M&A. Its sustainability initiatives include addressing climate change, including compliance with TCFD recommendations, reducing Scope 1 and 2 emissions by 52% and Scope 3 emissions by 30% by 2030, and achieving net zero by 2050; promoting a circular economy; promoting CSR procurement; and advancing human capital management. The Company has established various KPIs and manages progress against them. The Company’s business is a fashion-related business centered on apparel, and the consolidated group comprises 4 companies in total, consisting of the Company, consolidated subsidiaries and equity-method affiliates, including Shanghai Sanyo Fashion Trading Co., Ltd., Ecoalf Japan Co., Ltd. and Sanyo Sewing Co., Ltd.