Notice Regarding Establishment of a Specified Subsidiary

Business and Organizational Expansion and Establishment of a Specified Subsidiary

JSP Corporation announced the establishment of JSP Advanced Materials (Quanzhou) Co., LTD. in Quanzhou City, Fujian Province, China. The business will manufacture and sell expandable polypropylene beads. Capital will be 1,200 million USD, and the company will be a 100% consolidated subsidiary of JSP Corporation. The establishment date is planned for December 2026, with the board resolution made on the same date; capital injection is scheduled between December 2026 and January 2027, and business commencement is planned for December 2026. The impact on consolidated results for the current fiscal year is expected to be minimal, and any additional disclosures will be made as necessary.

Future Impact and Disclosure Policy

This investment is aimed at strengthening the business base in the Chinese market, and direct impact on consolidated results is considered limited. The capital relationship will be a specified subsidiary wholly owned by JSP Corporation, and JSP Corporation will dispatch directors as personnel relationships. Progress and financial impacts will be promptly disclosed if material disclosure items arise.