Notice Regarding Acquisition of Business and Real Estate by a Consolidated Subsidiary

Overview of the M&A

Sanko Gosei Ltd., through its consolidated subsidiary Sanko Gosei Technologies USA, Inc., entered into an agreement on October 21, 2026 to acquire the business of Cumberland Plastic Systems, LLC, which manufactures precision plastic injection molded products, along with related real estate. Aimed at strengthening production capacity in the southern United States and acquiring a new customer base, the acquisition will complement the existing Indiana site and enhance the Group's production capabilities and supply chain. Through the acquisition, the company will expand its North American business base and pursue future overseas expansion opportunities. The acquisition schedule sets the closing date on November 2, 2026, which is also the planned start-up date for Sanko Gosei Technologies USA, Inc.'s Alabama plant.

Financial Impact and Target Business

The acquisition target is the precision plastic injection molding business operated by Cumberland Plastic Systems, LLC and related real estate. For the fiscal year ended December 2025, the target recorded net sales of 48,418 thousand USD and operating income of 1,375 thousand USD, including the local evaluation at that time. The acquisition price has not been disclosed and was determined based on third-party market valuation and estimates of future earning capacity. The acquisition is expected to have a minimal impact on consolidated full-year results for the fiscal year ending May 2027.