[Pegasus] Establishment of Vietnam Joint Venture | September 2026

Purpose of Establishing the Joint Venture

Our company will jointly establish a joint venture in Vietnam with Tianjin Baolai Precision Engineering Group Co., Ltd. The main objectives are to secure a procurement base for key parts of industrial sewing machines and to monetize through effective utilization of the factory. This will enable geographical diversification of the supply chain and reduction of procurement lead times, aiming for the enhancement of corporate value over the medium to long term.

Future Outlook and Impact on the Company

The establishment is scheduled for September 2026, with a capital of 700,000 USD and an investment ratio of 14% for our company. The impact on consolidated performance for the fiscal year ending March 2027 is expected to be minimal, contributing to effective asset utilization, stable revenue generation, and strengthening of the supply chain. The formal contract will be subject to approval by relevant authorities, and details may change.