SUNWELS Co.,Ltd.

The Company is an operating company whose principal business is the provision of nursing care services, with its operations centered on the management of nursing care facilities. The business comprises a single segment and provides services subject to the Long-Term Care Insurance Act, Health Insurance Act and Comprehensive Support for Persons with Disabilities Act. Its principal sources of revenue consist of insurance benefits under long-term care insurance, health insurance and disability welfare services, user copayments, and charges such as hotel costs that are not covered by insurance. Principal business activities - Operation of nursing care facilities - Nationwide operation of Parkinson’s disease-specialist homes under the “PD House” brand (56 facilities with a total of 3,070 beds) - Medical care-focused housing (fee-based homes for the elderly and serviced housing for the elderly) - 2 group homes providing communal living care for persons with dementia - 3 day-service facilities offering 2 types of day care services (residential-style and rehabilitation-focused) - Home-visit nursing and preventive home-visit nursing care - Home-visit care and comprehensive services for preventive care and daily living support - In-home care support - In-home care and intensive home-visit care for persons with severe disabilities - Rental and sale of welfare equipment and residential renovation services - Operation of pressure-training gyms - Breakdown by revenue categories shown in the business flow chart (insurance revenue, meal-service revenue, real estate revenue, other revenue, welfare equipment revenue and pressure-training revenue) - Revenue from external customers for 1 April 2024 to 31 March 2025: ¥26,496 million - Revenue from external customers for 1 April 2025 to 31 March 2026: ¥28,136 million - Breakdown of revenue (external revenue categories): PD House: ¥25,170 million / Medical care-focused housing: ¥1,805 million / Group homes: ¥168 million / Day services: ¥458 million / Welfare equipment business: ¥501 million / Pressure-training business: ¥32 million - Growth rate (year on year): Total 106.2% Operating results and other items - Revenue for the fiscal year: ¥28,136 million (up 6.2% year on year) - Operating loss: ¥1,223 million (compared with operating income of ¥1,114 million in the previous fiscal year) - Ordinary loss: ¥2,168 million (compared with ordinary income of ¥388 million in the previous fiscal year) - Net loss: ¥1,656 million (compared with a net loss of ¥925 million in the previous fiscal year) - Extraordinary income: ¥1,000 million (donation income) - Extraordinary loss: ¥6 million (loss on disposal of property, plant and equipment) New openings and expansion - As of the end of the fiscal year, the PD House network had expanded nationwide to 56 facilities with 3,070 beds - PD House Sakurayama in Showa-ku, Nagoya, Aichi Prefecture, opened in May 2025; PD House Otsu in Otsu, Shiga Prefecture, opened in June 2025; Okayama Tatsumi in Kita-ku, Okayama, opened in July 2025; Hamamatsu Wago in Chuo-ku, Hamamatsu, opened in August 2025; and new facilities were opened at multiple locations, including Iwate, Hokkaido and Tokyo, in September 2025 - PD House Nakano Shirasagi in Nakano-ku, Tokyo, is scheduled to open in February 2026 Management strategy and policies - The Company is positioning PD House at the center of its management strategy, accelerating its nationwide expansion while promoting the development of new services - New openings may be temporarily suspended to ensure profitability - The Company is conducting joint research with Juntendo University on three-dimensional online medical consultations, fall detection systems and motor function assessment systems, among other areas Funding and financial position - Cash and cash equivalents at the end of the fiscal year: ¥4,092 million - Investment and capital raising: Funding was obtained for new facility openings and through financing activities Employees - Number of employees: 3,570 (temporary employees are disclosed separately as an additional headcount)