[Sanei Corporation] Dissolution of Hong Kong Subsidiary and Future Business Strategy | July 2026

Dissolution and Optimization of Business Resources

Sanei Corporation has resolved to dissolve and liquidate its Hong Kong consolidated subsidiary, Sankatsu Electric Manufacturing Co., Ltd. Established in 1978, the company has engaged in import, export, and sales of home appliances. However, due to changes in the business environment since 2020 and increased competition, profitability has deteriorated. The dissolution was decided in August 2025, planned for dissolution in December 2026, and liquidation is scheduled to be completed in September 2027. The estimated loss from dissolution is expected to be minimal. The Company will continue to promote the optimization of business resources and management efficiency.

Future Outlook and Impact

Losses associated with the dissolution and the impact on consolidated results for the fiscal year ending March 2027 are expected to be minimal. However, any significant changes will be promptly disclosed. The Company will continue to optimize corporate resources across the group, review business strategies, and aim for sustainable growth.