Washington, D.C. 20549<\/p>\n
Tokyo Lifestyle Co., Ltd.<\/p>\n
Indicate by check mark whether the registrant
\nfiles or will file annual reports under cover of Form\u00a020-F or Form\u00a040-F:<\/p>\n
In accordance with the rules and regulations of
\nthe Japanese Companies Act, Tokyo Lifestyle Co., Ltd., a joint-stock corporation with limited liability organized under Japanese law (the
\n\u201cCompany\u201d), has sent a notice and accompanying information, including proxy instructions, to all holders of its ordinary shares
\nand American Depositary Shares with respect to its 20th Annual General Meeting of Shareholders to be held in Tokyo, Japan on June\u00a026,
\n2026 (the \u201cNotice\u201d). A complete copy of the Notice is furnished hereto as Exhibit 99.1.<\/p>\n
Exhibit 99.1 furnished hereto shall not be deemed
\n\u201cfiled\u201d for the purposes of Section\u00a018 of the Securities Exchange\u00a0Act\u00a0of\u00a01934, as amended, or otherwise
\nsubject to the liabilities of that section.<\/p>\n
In the Notice, the Company proposed that the shareholders
\napprove a year-end dividend of JPY1.890 per share\u00a0(the \u201cYear-End Dividend\u201d). Upon shareholders\u2019 approval, the Year-End
\nDividend distribution will become effective on June 30, 2026 and be payable from September 14, 2026 to September 30, 2026 to all shareholders
\nof record as of March 31, 2026 (Japan Standard Time), with an American depositary receipt record date of March 31, 2026 (Eastern Time).<\/p>\n
Pursuant to the requirements of the Securities
\nExchange\u00a0Act\u00a0of\u00a01934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
\nduly authorized.<\/p>\n
Exhibit
\n99.1<\/p>\n
\u00a0<\/p>\n
[This
\nis an English translation of the original issued in Japanese]<\/p>\n
\u00a0<\/p>\n
[Note]
\nThe Company assumes no responsibility for this translation or for direct, indirect, or other forms of damages arising from the translation.
\nThis document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this
\ntranslated document and the Japanese original, the original shall prevail.<\/p>\n
\u00a0<\/p>\n
\u00a0
\n \u00a0
\n June
\n 12, 2026<\/p>\n
Dear
\n Shareholders
\n \u00a0
\n \u00a0<\/p>\n
\u00a0<\/p>\n
Harumi
\nBuilding, 2-5-9 Kotobashi,<\/p>\n
Sumida-ku,
\nTokyo,130-0022<\/p>\n
Tokyo
\nLifestyle Co., Ltd.<\/p>\n
President
\nand Representative<\/p>\n
Director<\/p>\n
Mei
\nKanayama<\/p>\n
\u00a0<\/p>\n
Notice
\nof the 20th Ordinary General Meeting of Shareholders<\/p>\n
\u00a0<\/p>\n
We
\nsincerely appreciate your continued support and kind attention.<\/p>\n
\u00a0<\/p>\n
You
\nare cordially invited to attend the 20th Ordinary General Meeting of Shareholders of our company. The meeting will be held as described
\nbelow.<\/p>\n
\u00a0<\/p>\n
If
\nyou are unable to attend the meeting, you may exercise your voting rights in writing. Please review the attached Reference Documents
\nfor the General Meeting of Shareholders, indicate your approval or disapproval of the proposals on the enclosed Voting Rights Exercise
\nForm, and send it to our company so that it arrives by 4:30 PM on June 25, 2026.<\/p>\n
\u00a0<\/p>\n
Best
\nregards,<\/p>\n
\u00a0<\/p>\n
Notice<\/p>\n
\u00a0<\/p>\n
1.Date:
\n Friday, June 26, 2026 at 11:00 AM (Reception starts at 10:00 AM)<\/p>\n
\u00a0<\/p>\n
2.Place:
\n Harumi Bldg. 5th Floor, Kotobashi 2-5-9, Sumida-ku, Tokyo, Japan<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Matters
\nto be reported:<\/p>\n
\u00a0<\/p>\n
Business
\nReport for the 20th Fiscal Year (from April 1, 2025 to March 31, 2026)<\/p>\n
\u00a0<\/p>\n
Matters
\nto be resolved:\u00a0<\/p>\n
\u00a0<\/p>\n
Proposal
\n 1Approval
\n of the Financial Statements for the 20th Fiscal Year<\/p>\n
\u00a0\u00a0\u00a0<\/p>\n
\u00a0Proposal
\n 2Partial
\n Amendments to the Articles of Incorporation<\/p>\n
\u00a0\u00a0<\/p>\n
(Establishment
\n of a Board of Auditors and Appointment of an Accounting Auditor)<\/p>\n
\u00a0\u00a0\u00a0<\/p>\n
\u00a0Proposal
\n 3Appropriation
\n of Surplus<\/p>\n
\u00a0\u00a0\u00a0<\/p>\n
\u00a0Proposal
\n 4Appointment
\n of Accounting Auditor<\/p>\n
\u00a0\u00a0\u00a0<\/p>\n
\u00a0Proposal
\n 5Election
\n of Three Corporate Auditors<\/p>\n
\u00a0<\/p>\n
The
\nabove<\/p>\n
\u00a0<\/p>\n
When
\nattending the meeting, please bring this Notice of Convocation, the attached documents, and the Reference Documents for the General Meeting
\nof Shareholders, and submit the enclosed Voting Rights Exercise Form to the reception desk.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Reference
\nDocuments for the General Meeting of Shareholders<\/p>\n
\u00a0<\/p>\n
Proposal
\n1: Approval of the Financial Statements for the 20th Fiscal Year<\/p>\n
\u00a0<\/p>\n
Approval is hereby requested, in accordance with applicable laws and
\nregulations and the provisions of the Articles of Incorporation, for the financial statements of the Company\u2019s 20th fiscal year
\n(from April 1, 2025 to March 31, 2026).<\/p>\n
\u00a0<\/p>\n
These
\nfinancial statements have undergone a voluntary audit by an independent audit firm serving as the accounting auditor; however, they have
\nnot been audited under the Companies Act by a Board of Corporate Auditors or an Accounting Auditor in the capacity of a company with
\nsuch institutions established. Such audits are scheduled to commence from the 21st fiscal year.\u00a0<\/p>\n
\u00a0<\/p>\n
Proposal
\n2: Partial Amendments to the Articles of Incorporation (Establishment of a Board of Auditors and Appointment of an Accounting Auditor)<\/p>\n
\u00a0<\/p>\n
Reason
\nfor the Amendments<\/p>\n
\u00a0<\/p>\n
In
\nconnection with the establishment of an Accounting Auditor, the Company proposes to partially amend the current Articles of Incorporation
\nin accordance with the provisions of the Companies Act by newly establishing provisions regarding the Accounting Auditor.<\/p>\n
\u00a0<\/p>\n
2.Details
\nof the Amendments<\/p>\n
\u00a0<\/p>\n
(1)In
\n connection with the Company\u2019s transition to a company with a Board of Corporate Auditors,
\n new provisions relating to the Board of Corporate Auditors and Corporate Auditors shall be
\n established in the Articles of Incorporation.<\/p>\n
\u00a0<\/p>\n
(2)New
\n provisions shall be established to provide that the number of Corporate Auditors shall be
\n three (3) or more, and that a majority of such Corporate Auditors shall be Outside Corporate
\n Auditors.<\/p>\n
\u00a0<\/p>\n
(3)In
\n addition, necessary amendments shall be made, including renumbering of articles resulting
\n from the above additions and other related revisions.<\/p>\n
\u00a0<\/p>\n
Proposal
\n3: Appropriation of Surplus<\/p>\n
\u00a0<\/p>\n
The
\nCompany hereby requests approval for the distribution of dividends from surplus as set forth below, with March 31, 2026 (Tuesday) as
\nthe record date.<\/p>\n
\u00a0<\/p>\n
Details<\/p>\n
\u00a0<\/p>\n
Type
\nof dividend property: Cash<\/p>\n
Matters
\nconcerning the allocation of dividend property: JPY 1.890 per share of common stock<\/p>\n
Total
\namount of dividends: JPY 79,999,557<\/p>\n
Effective
\ndate of dividend distribution: June 30, 2026<\/p>\n
Dividend
\nPayment Commencement Date: September 14, 2026\u00a0<\/p>\n
Dividend
\nPayment End Date: September 30, 2026\u00a0<\/p>\n
\u00a0<\/p>\n
Proposal
\n4: Appointment of Accounting Auditor<\/p>\n
\u00a0<\/p>\n
The
\nCompany requests approval for the appointment of Sakurazaka Audit Corporation as the Accounting Auditor.<\/p>\n
\u00a0<\/p>\n
Proposal
\n5: Election of Three Corporate Auditors<\/p>\n
\u00a0<\/p>\n
As
\nthe Company will transition to a company with an Audit & Supervisory Board, subject to the approval and adoption of Proposal No.
\n2, we hereby request the election of three (3) Audit & Supervisory Board Members.<\/p>\n
\u00a0<\/p>\n
Mr. Keiichi Kimura, who currently serves as an Audit & Supervisory
\nBoard Member, is scheduled to resign upon the conclusion of this General Meeting. This resignation is intended to align the terms of office
\nof all newly elected Audit & Supervisory Board Members following the transition to a company with an Audit & Supervisory Board
\npursuant to Proposal No. 2, thereby facilitating the smooth operation of the Audit & Supervisory Board.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Accordingly,
\nwe request the election of the following three individuals as Audit & Supervisory Board Members. The remuneration of the Audit &
\nSupervisory Board Members shall be determined within the total amount of remuneration previously approved by resolution of the shareholders\u2019
\nmeeting.<\/p>\n
\u00a0<\/p>\n
The
\ncandidates for Corporate Auditor are as follows:\u00a0<\/p>\n
\u00a0<\/p>\n
Candidate<\/p>\n
Number<\/p>\n
Name
(Date of birth)<\/p>\n
Brief Biography, Position, Significant Concurrent Positions, and Special Interests with the Company.
\n Number of
Company\u2019s
Shares Held <\/p>\n
1<\/p>\n
Keiichi Kimura<\/p>\n
(February 9, 1966)<\/p>\n
Reappointment<\/p>\n
(Career summary and position)
\u00a0<\/p>\n
November 2014 Joined Takuetsu
\nCo., Ltd.
\u00a0<\/p>\n
June 2020 Appointed as Corporate
\nAuditor of the Company
\u00a0<\/p>\n
October 2021 Appointed
\nas Inside Corporate Auditor of the Company
\u00a0<\/p>\n
June 2025 Reappointed as
\nInternal Corporate Auditor of the Company (incumbent)
\u00a0<\/p>\n
(Significant Concurrent Positions)
None
\u00a0<\/p>\n
(Special Interests with our Company)<\/p>\n
None<\/p>\n
0 shares<\/p>\n
2<\/p>\n
Akira Kotajima<\/p>\n
(August 20, 1984)<\/p>\n
New Appointment<\/p>\n
(Career summary and position)<\/p>\n
\u00a0<\/p>\n
December 2013 Joined DinnerBank
\n Co., Ltd.<\/p>\n
\u00a0<\/p>\n
March 2016 Appointed Representative
\n Director of DinnerBank Co., Ltd.<\/p>\n
\u00a0<\/p>\n
July 2024 Resigned as Representative
\n Director of DinnerBank Co., Ltd.<\/p>\n
\u00a0<\/p>\n
July 2024 Left DinnerBank Co.,
\n Ltd.<\/p>\n
\u00a0<\/p>\n
(Significant Concurrent Positions)
None<\/p>\n
\u00a0<\/p>\n
(Special Interests with our Company)
None<\/p>\n
\u00a0<\/p>\n
0 shares<\/p>\n
\u00a0<\/p>\n
3<\/p>\n
Yoshie Nakamura<\/p>\n
(November 8, 1978)<\/p>\n
New Appointment<\/p>\n
(Career summary and position)<\/p>\n
\u00a0<\/p>\n
March 2017 Joined Shinichi
\n Shoji Co., Ltd.<\/p>\n
\u00a0<\/p>\n
November 2022 Retired
\n from Shinichi Shoji Co., Ltd.<\/p>\n
\u00a0<\/p>\n
July 2023 Joined
\n Kosei Co., Ltd.<\/p>\n
\u00a0<\/p>\n
(Significant Concurrent Positions)<\/p>\n
None<\/p>\n
\u00a0<\/p>\n
(Special Interests with our Company)<\/p>\n
None<\/p>\n
\u00a0<\/p>\n
0 shares<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
*Among
\n the above candidates, Mr. Akira Kotajima and Ms. Yoshie Nakamura are candidates for Outside
\n Corporate Auditor as defined in Article 2, Item 16 of the Companies Act.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Appendix<\/p>\n
\u00a0<\/p>\n
Current
\n Articles of Incorporation
\n \u00a0
\n \u00a0
\n Proposed
\n Amendments<\/p>\n
(Organs)<\/p>\n
\u00a0
\n \u00a0
\n (Organs)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
Article
\n 4\u3000<\/p>\n
In
\naddition to the General Meeting of Shareholders and Directors, the Company shall establish the following organs:<\/p>\n
\u00a0<\/p>\n
1.Board
\n of Directors<\/p>\n
\u00a0<\/p>\n
2.Corporate
\n Auditors<\/p>\n
\u00a0
\n \u00a0
\n Article
\n 4\u3000<\/p>\n
In addition to the General Meeting
\nof Shareholders and Directors, the Company shall establish the following organs:<\/p>\n
\u00a0<\/p>\n
1.Board
\n of Directors<\/p>\n
\u00a0<\/p>\n
2.Corporate
\n Auditors<\/p>\n
\u00a0<\/p>\n
3.Board
\n of Corporate Auditors<\/p>\n
\u00a0<\/p>\n
4.Accounting
\n Auditor<\/p>\n
\u00a0<\/p>\n
Chapter
\n 5 Corporate Auditors
\n \u00a0
\n \u00a0
\n Chapter
\n 5 Corporate Auditors<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
(Number
\n of Corporate Auditors)
\n \u00a0
\n \u00a0
\n (Number
\n of Corporate Auditors)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
Article
\n 26
\n The
\n Company shall have no more than ten (10) Corporate Auditors.
\n \u00a0
\n \u00a0
\n Article
\n 26
\n The Company shall have no fewer than three (3) and no more than ten
\n(10) Corporate Auditors.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
(Method
\n of Election)
\n \u00a0
\n \u00a0
\n (Method
\n of Election)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
Article
\n 27
\n Resolutions
\n for the election of Corporate Auditors shall be adopted at a General Meeting of Shareholders by a majority of the voting rights of
\n the shareholders present at the meeting who hold one-third or more of the voting rights exercisable by all shareholders.
\n \u00a0
\n \u00a0
\n Article
\n 27
\n Resolutions
\n for the election of Corporate Auditors shall be adopted at a General Meeting of Shareholders by a majority of the voting rights of
\n the shareholders present at the meeting who hold one-third or more of the voting rights exercisable by all shareholders.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
(Term
\n of Office)
\n \u00a0
\n \u00a0
\n (Term
\n of Office)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
Article
\n 28
\n The
\n term of office of a Corporate Auditor shall expire at the conclusion of the Ordinary General Meeting of Shareholders relating to
\n the final fiscal year ending within four (4) years after the election.
\n \u00a0
\n \u00a0
\n Article
\n 28
\n The
\n term of office of a Corporate Auditor shall expire at the conclusion of the Ordinary General Meeting of Shareholders relating to
\n the final fiscal year ending within four (4) years after the election.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n 2.
\n The term of office of a Corporate Auditor elected as a substitute for a Corporate Auditor who retired before the expiration of his
\n or her term shall continue until the expiration of the term of office of the retired Corporate Auditor.
\n \u00a0
\n \u00a0
\n \u00a0
\n 2.
\n The term of office of a Corporate Auditor elected as a substitute for a Corporate Auditor who retired before the expiration of his
\n or her term shall continue until the expiration of the term of office of the retired Corporate Auditor.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
(Remuneration,
\n etc.)
\n \u00a0
\n \u00a0
\n (Remuneration,
\n etc.)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
Article
\n 29
\n The
\n remuneration, etc. of Corporate Auditors shall be determined by resolution of the General Meeting of Shareholders.
\n \u00a0
\n \u00a0
\n Article
\n 29
\n The
\n remuneration, etc. of Corporate Auditors shall be determined by resolution of the General Meeting of Shareholders.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Current
\n Articles of Incorporation
\n \u00a0
\n \u00a0
\n Proposed
\n Amendments<\/p>\n
(Exemption
\n from Liability of Corporate Auditors)
\n \u00a0
\n \u00a0
\n (Exemption
\n from Liability of Corporate Auditors)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
Article
\n 30
\n The
\n Company may, by resolution of the Board of Directors, exempt Corporate Auditors (including former Corporate Auditors) from liability
\n for damages under Article 423, Paragraph 1 of the Companies Act, to the extent permitted by laws and regulations, limited to the
\n amount obtained by deducting the minimum liability amount prescribed by laws and regulations from the total amount of liability for
\n damages.
\n \u00a0
\n \u00a0
\n Article
\n 30
\n The
\n Company may, by resolution of the Board of Directors, exempt Corporate Auditors (including former Corporate Auditors) from liability
\n for damages under Article 423, Paragraph 1 of the Companies Act, to the extent permitted by laws and regulations, limited to the
\n amount obtained by deducting the minimum liability amount prescribed by laws and regulations from the total amount of liability for
\n damages.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0<\/p>\n
2.
\nPursuant to Article 427, Paragraph 1 of the Companies Act, the Company may enter into an agreement with a Corporate Auditor limiting
\nliability for damages arising from negligence in the performance of duties; provided, however, that the limit of liability under such
\nagreement shall be the higher of either an amount predetermined to be no less than JPY 1,000,000 or the minimum liability amount prescribed
\nby laws and regulations.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0<\/p>\n
2.
\nPursuant to Article 427, Paragraph 1 of the Companies Act, the Company may enter into an agreement with a Corporate Auditor limiting
\nliability for damages arising from negligence in the performance of duties; provided, however, that the limit of liability under such
\nagreement shall be the higher of either an amount predetermined to be no less than JPY 1,000,000 or the minimum liability amount prescribed
\nby laws and regulations.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n (Convocation
\n of the Board of Corporate Auditors)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n Article
\n 31
\n Notice
\n of a meeting of the Board of Corporate Auditors shall be given to each Corporate Auditor at least three (3) days prior to the date
\n of the meeting; provided, however, that this period may be shortened in cases of urgent necessity.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n 2.
\n A meeting of the Board of Corporate Auditors may be held without following the convocation procedures if all Corporate Auditors consent
\n thereto.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n (Rules
\n of the Board of Corporate Auditors)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n Article
\n 32
\n Matters
\n concerning the Board of Corporate Auditors shall be governed not only by laws and regulations and these Articles of Incorporation,
\n but also by the Rules of the Board of Corporate Auditors established by the Board of Corporate Auditors.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Current
\n Articles of Incorporation
\n \u00a0
\n \u00a0
\n Proposed
\n Amendments<\/p>\n
\u00a0
\n No
\n corresponding provision.
\n \u00a0
\n \u00a0
\n Chapter
\n 6 Accounting Auditor<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n (Election
\n of Accounting Auditor)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n Article
\n 33
\n The
\n Accounting Auditor shall be elected by resolution of the General Meeting of Shareholders.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n (Term
\n of Office of Accounting Auditor)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n Article
\n 34
\n The
\n term of office of the Accounting Auditor shall expire at the conclusion of the Ordinary General Meeting of Shareholders relating
\n to the final fiscal year ending within one (1) year after the election.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n 2.
\n Unless otherwise resolved at the Ordinary General Meeting of Shareholders referred to in the preceding paragraph, the Accounting
\n Auditor shall be deemed to have been reappointed at such meeting.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n (Remuneration,
\n etc. of Accounting Auditor)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n Article
\n 35
\n The
\n remuneration, etc. of the Accounting Auditor shall be determined by the Representative Director with the consent of the Board of
\n Corporate Auditors.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n (Exemption
\n from Liability of Accounting Auditor)<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n Article
\n 36
\n The
\n Company may, by resolution of the Board of Directors, exempt the Accounting Auditor (including former Accounting Auditors) from liability
\n for damages under Article 423, Paragraph 1 of the Companies Act, to the extent permitted by laws and regulations, limited to the
\n amount obtained by deducting the minimum liability amount prescribed by laws and regulations from the total amount of liability for
\n damages.<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
\u00a0
\n \u00a0
\n \u00a0
\n \u00a0<\/p>\n
2.
\n Pursuant to Article 427, Paragraph 1 of the Companies Act, the Company may enter into an agreement with the Accounting Auditor limiting
\n liability for damages arising from negligence in the performance of duties; provided, however, that the limit of liability under
\n such agreement shall be the higher of either an amount predetermined to be no less than JPY 1,000,000 or the minimum liability amount
\n prescribed by laws and regulations. \u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
(Attachments)<\/p>\n
Business
\nReport<\/p>\n
\u00a0<\/p>\n
From
\nApril 1, 2025<\/p>\n
To
\nMarch 31, 2026<\/p>\n
\u00a0<\/p>\n
Statutory
\nFinancial Statements Prepared in Accordance with Japanese GAAP<\/p>\n
\u00a0<\/p>\n
Note:
\nThe statutory financial statements on the following pages have been prepared in accordance with Japanese GAAP. These results may differ
\nin material respects from our audited consolidated financial results under U.S. GAAP that will be reported later and included in our
\nAnnual Report on Form 20-F, which will be filed with the U.S. Securities and Exchange Commission and available at www.sec.gov. The attached
\nfinancial statements are provided to our shareholders and ADS holders solely in accordance with requirements under the Japanese Companies
\nAct in connection with our Annual Meeting.<\/p>\n
\u00a0<\/p>\n
1.Current
\n Status of the Company<\/p>\n
\u00a0<\/p>\n
(1)Progress
\n and Results of the Project<\/p>\n
\u00a0<\/p>\n
During
\nthe current fiscal year, while the U.S. economy showed resilience in consumer spending and the employment market, significant regional
\ndisparities emerged due to factors such as the delayed recovery of the Chinese economy and concerns over an economic slowdown in Europe.
\nAs a result, the overall outlook remained uncertain. Furthermore, prolonged monetary tightening and ongoing geopolitical risks, coupled
\nwith exchange rate fluctuations, began to impact international trade.<\/p>\n
\u00a0<\/p>\n
In
\nthe domestic economy, a moderate recovery trend continued, driven by a recovery in consumer spending against the backdrop of improving
\nemployment and income conditions, as well as the expansion of inbound tourism demand. On the other hand, the environment surrounding
\ncorporate activities remains challenging, with issues such as a worsening labor shortage, persistently high resource and energy prices,
\nand rising prices due to the weak yen.<\/p>\n
\u00a0<\/p>\n
Under
\nthese conditions, the Company has worked to secure sales opportunities while responding to changes in customer demand trends and shifts
\nin regulatory and logistics environments in various countries, with the aim of stabilizing overseas transactions. At the same time, we
\nhave worked to strengthen our sales capabilities and improve operational efficiency at our domestic stores, striving to reinforce our
\nearnings base.<\/p>\n
\u00a0<\/p>\n
As
\na result, for the current fiscal year, the Company\u2019s net sales amounted to 38,783,862 thousand yen (up 59.1% year-on-year), operating
\nincome was 309,111 thousand yen (up 39.7% year-on-year), and ordinary income was 193,321 thousand yen (up 688.9% year-on-year).<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u2460To
\n fund working capital, we have borrowed 300,000,000 yen from Tokushin G.K. of which our Representative
\n Director, Kanayama, serves as a representative partner.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
(3)Changes
\n in Financial Position and Profit or Loss<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Period \\division\u00a0
\n 17th period
Fiscal Year Ended March 2023\u00a0\u00a0
\n 18th period
Fiscal Year Ended March 2024\u00a0\u00a0
\n 19th period
Fiscal Year Ended March 2025\u00a0\u00a0
\n 20th period
Fiscal Year Ended March 2026\u00a0<\/p>\n
Sales\u00a0
\n \u00a021,667,575\u00a0\u00a0
\n \u00a025,615,177\u00a0\u00a0
\n \u00a024,373,722\u00a0\u00a0
\n \u00a038,783,862\u00a0<\/p>\n
Ordinary Income\u00a0
\n \u00a0192,962\u00a0\u00a0
\n \u00a0328,353\u00a0\u00a0
\n \u00a024,506\u00a0\u00a0
\n \u00a0193,321\u00a0<\/p>\n
Net Income\u00a0
\n \u00a0△884,219\u00a0\u00a0
\n \u00a0216,417\u00a0\u00a0
\n \u00a0△90,736\u00a0\u00a0
\n \u00a039,659\u00a0<\/p>\n
Net Income per share(yen)\u00a0
\n \u00a0△24\u00a0\u00a0
\n \u00a05\u00a0\u00a0
\n \u00a0△2\u00a0\u00a0
\n \u00a01\u00a0<\/p>\n
Total Asset\u00a0
\n \u00a022,505,180\u00a0\u00a0
\n \u00a021,054,009\u00a0\u00a0
\n \u00a018,704,887\u00a0\u00a0
\n \u00a030,583,696\u00a0<\/p>\n
Net Worth\u00a0
\n \u00a04,701,910\u00a0\u00a0
\n \u00a05,701,950\u00a0\u00a0
\n \u00a05,615,656\u00a0\u00a0
\n \u00a05,575,316\u00a0<\/p>\n
\u00a0<\/p>\n
Note:
\nNet income per share is calculated based on the total number of shares issued at the end of the fiscal year.<\/p>\n
\u00a0<\/p>\n
(4)Issues
\n to be addressed by the company<\/p>\n
\u00a0<\/p>\n
The
\nbusiness and financial issues that we should prioritize are as follows.<\/p>\n
\u00a0<\/p>\n
\u25a0<\/p>\n
Improvement
\n and Stabilization of Internal Control Systems<\/p>\n
\u00a0<\/p>\n
To
\n address the diversification of risks associated with our business expansion, we have been
\n working to strengthen our internal control systems. Specifically, we have reviewed our business
\n processes and ensured the thorough implementation and operation of internal controls, while
\n also striving to raise compliance awareness and strengthen our risk management framework,
\n thereby promoting the improvement and stabilization of our internal control systems.<\/p>\n
\u00a0<\/p>\n
\u25a0<\/p>\n
Restructuring
\n the Business Model to Strengthen the Revenue Base<\/p>\n
\u00a0<\/p>\n
As
\n part of our efforts to achieve sustainable growth and improve profitability, we will review
\n our operational structure and restructure our store strategy to improve the profitability
\n of unprofitable stores in our domestic business. In our overseas business, we will work to
\n stabilize existing transactions while promoting full-scale business expansion into Southeast
\n Asia to expand our sales channels and strengthen our business foundation. Furthermore, to
\n improve profitability across the entire company, we will work to improve profit margins by
\n reviewing our product mix and transaction terms, and we will promote the restructuring of
\n a sustainable business model.<\/p>\n
\u00a0<\/p>\n
To
\novercome the challenges outlined above, we will make every effort as a company. We ask for the continued guidance and support of our
\nshareholders.<\/p>\n
\u00a0<\/p>\n
(5)Principal
\n Businesses (as of March 31, 2026)<\/p>\n
\u00a0<\/p>\n
Management
\nof domestic drug stores<\/p>\n
\u00a0<\/p>\n
Domestic
\ne-commerce operation and management<\/p>\n
\u00a0<\/p>\n
Domestic
\nand overseas (including trading) wholesale<\/p>\n
\u00a0<\/p>\n
(6)Major
\n business establishments and stores<\/p>\n
\u00a0<\/p>\n
\u00a0
\n Head
\n Office
\n \u00a0
\n 2-5-9
\n Kotobashi, Sumida-ku, Tokyo Harumi Building<\/p>\n
\u00a0
\n Tokyo
\n Sales Department
\n \u00a0
\n 16F,
\n Island Triton Square Office Tower W, 1-8-8 Harumi, Chuo-ku, Tokyo<\/p>\n
\u00a0
\n Saitama
\n Center
\n \u00a0
\n 3-1-5
\n Koshigaya City Distribution Complex, Saitama<\/p>\n
\u00a0<\/p>\n
Subsidiary
\nOffices<\/p>\n
\u00a0<\/p>\n
trade
\n name
\n \u00a0
\n location<\/p>\n
Tokyo
\n Lifestyle Limited
\n \u00a0
\n Unit
\n 11, 12\/F., Wing On Plaza, No.62 Mody Road, Tsim Sha Tsui East, Kowloon<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
The
\nnames and locations of domestic drugstores are as follows<\/p>\n
\u00a0<\/p>\n
Store
\n Name
\n \u00a0
\n location
\n \u00a0
\n Store
\n Name
\n \u00a0
\n location<\/p>\n
Nishi
\n Kasai Yokohama Chinatown
\n \u00a0
\n Edogawa-Ku,
\n Tokyo Yokohama City, Kanagawa
\n \u00a0
\n Koshigaya-Ryutsudanchi
\n Quiz Gate Urawa Nishi Kawaguchi
\n \u00a0
\n Koshigaya
\n City, Saitama Urawa City, Saitama Kawaguchi City, Saitama<\/p>\n
\u00a0<\/p>\n
(7)Status
\n of employees (as of March 31, 2026)<\/p>\n
\u00a0<\/p>\n
Number
\n of Employees
\n \u00a0
\n Change
\n from the end of the previous fiscal year
\n \u00a0
\n Average
\n age
\n \u00a0
\n Average
\n length of service<\/p>\n
85
\n \u00a0
\n -19
\n \u00a0
\n 42
\n years and 5 months old
\n \u00a0
\n 5
\n years 3 months<\/p>\n
\u00a0<\/p>\n
Note:The
\n number of employees includes part-time workers (34).<\/p>\n
\u00a0<\/p>\n
(8)Status
\n of important subsidiaries<\/p>\n
\u00a0<\/p>\n
Company
\n Name
\n \u00a0
\n location
\n \u00a0
\n Paid-in
\n Capital
\n \u00a0
\n Description
\n of Business
\n \u00a0
\n Investment
\n Ratio<\/p>\n
Tokyo
\n Lifestyle Limited
\n \u00a0
\n Hong
\n Kong
\n \u00a0
\n HK$15.95
\n million
\n \u00a0
\n Wholesale
\n & Retail Trade
\n \u00a0
\n 100\uff05<\/p>\n
\u00a0<\/p>\n
(9)Major
\n borrowers and borrowing amounts (as of March 31, 2026)<\/p>\n
\u00a0<\/p>\n
\u2460Commitment
\n Line Agreement<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Loans\u00a0
\n Outstanding\u00a0Balance\u00a0<\/p>\n
Mizuho Bank Ltd.\u00a0
\n \u00a01,248,614\u00a0<\/p>\n
MUFG Bank Ltd.\u00a0
\n \u00a01,025,724\u00a0<\/p>\n
Resona Bank, Inc.\u00a0
\n \u00a0841,096\u00a0<\/p>\n
Sumitomo Mitsui Banking Corporation, Ltd.\u00a0
\n \u00a0756,986\u00a0<\/p>\n
\u00a0<\/p>\n
Note:1.To
\n procure stable and efficient working capital, the Company has entered into a commitment line
\n agreement with a maximum borrowing amount of 7,850,000,000 yen. The agreement is a syndicated
\n loan and is cofinanced by a total of 17 banks led by MUFG Bank, Ltd. and Mizuho Bank, Ltd.<\/p>\n
\u00a0<\/p>\n
Note:2.The
\n outstanding balance of loans executed at the end of the fiscal year under this contract is
\n 6,732,147,000 yen.<\/p>\n
\u00a0<\/p>\n
2.Status
\n of Stocks (as of March 31, 2026)<\/p>\n
\u00a0<\/p>\n
\u2460Total
\n number of shares authorized: 100,000,000 shares<\/p>\n
\u00a0<\/p>\n
\u2461Total
\n number of shares issued: 42,327,806 shares<\/p>\n
\u00a0<\/p>\n
\u2462Number
\n of shareholders: 3<\/p>\n
\u00a0<\/p>\n
\u2463Principal
\n Shareholders<\/p>\n
\u00a0<\/p>\n
Name
\n of Shareholder\u00a0
\n Number\u00a0of
\n shares held\u00a0
\n Percentage
\n of\u00a0shares held<\/p>\n
THE
\n BANK OF NEW YORK MELLON\u00a0
\n \u00a021,536,266
\n shares\u00a0\u00a0
\n \u00a050.88%<\/p>\n
Tokushin
\n G.K.\u00a0
\n \u00a013,575,104
\n shares\u00a0\u00a0
\n \u00a032.07%<\/p>\n
Mei
\n Kanayama\u00a0
\n \u00a07,216,436
\n shares\u00a0\u00a0
\n \u00a017.05%<\/p>\n
\u00a0<\/p>\n
NOTE:
\nTHE BANK OF NEW YORK MELLON IS A DEPOSITARY SECURITIES COMPANY THAT ISSUES AMERICAN DEPOSITARY RECEIPTS (ADR).<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
3.Matters
\n Concerning the Company\u2019s Stock Acquisition Rights, etc. (as of March 31, 2026)<\/p>\n
\u00a0<\/p>\n
The
\ntotal number of stock acquisition rights as of the end of the fiscal year under review is as follows.<\/p>\n
\u00a0<\/p>\n
(1)First
\n series of stock acquisition rights<\/p>\n
\u00a0<\/p>\n
\u2460Total
\n number of stock acquisition rights: 300,000 units<\/p>\n
\u00a0<\/p>\n
\u2461Type
\n and number of shares subject to stock acquisition rights 300,000 shares of the Company\u2019s
\n common stock represented by U.S. depositary shares in the U.S.<\/p>\n
\u00a0<\/p>\n
\u2462Amount
\n paid for stock acquisition rights<\/p>\n
\u00a0<\/p>\n
US$0.01
\ndivided by the number of Stock Acquisition Rights offered<\/p>\n
\u00a0<\/p>\n
\u2463Value
\n of assets invested in the exercise of stock acquisition rights<\/p>\n
\u00a0<\/p>\n
US$4.80
\nper common stock<\/p>\n
\u00a0<\/p>\n
\u2464Period
\n for exercising stock acquisition rights<\/p>\n
\u00a0<\/p>\n
From
\nJuly 6, 2022, to January 7, 2027<\/p>\n
\u00a0<\/p>\n
\u2465Increased
\n capital and capital reserves in the case of issuance of shares through the exercise of stock
\n acquisition rights<\/p>\n
\u00a0<\/p>\n
1.Amount
\n of capital increased by the exercise of stock acquisition rights<\/p>\n
\u00a0<\/p>\n
The
\namount shall be one-half of the maximum amount of increase in capital, etc., calculated in accordance with the provisions of Article
\n17, Paragraph 1 of the Company Accounting Regulations, and if a fraction of less than 1 yen is obtained because of the calculation, the
\namount shall be rounded up.<\/p>\n
\u00a0<\/p>\n
2.Amount
\n of capital reserves to increase due to the exercise of stock acquisition rights<\/p>\n
\u00a0<\/p>\n
The
\namount shall be calculated in accordance with the provisions of Article 17, Paragraph 1 of the Company Accounting Regulations, minus
\nthe amount of capital increase from the maximum amount of increase in capital, etc.<\/p>\n
\u00a0<\/p>\n
\u2466Allottee
\n of Stock Acquisition Rights – Univest Securities, LLC<\/p>\n
\u00a0<\/p>\n
(2)2nd
\n Series of Stock Acquisition Rights<\/p>\n
\u00a0<\/p>\n
\u2460Total
\n number of stock acquisition rights: 5,862,552<\/p>\n
\u00a0<\/p>\n
\u2461Type
\n and number of shares subject to stock acquisition rights<\/p>\n
\u00a0<\/p>\n
5,862,552
\nshares of the Company\u2019s common stock represented by U.S. depositary shares in the U.S.<\/p>\n
\u00a0<\/p>\n
\u2462Amount
\n paid for stock acquisition rights<\/p>\n
\u00a0<\/p>\n
No
\npayment required<\/p>\n
\u00a0<\/p>\n
\u2463Value
\n of assets invested in the exercise of stock acquisition rights<\/p>\n
\u00a0<\/p>\n
US$0.27391
\nper common stock<\/p>\n
\u00a0<\/p>\n
\u2464Period
\n for exercising stock acquisition rights<\/p>\n
\u00a0<\/p>\n
From
\nJanuary 30, 2024, to July 30, 2029<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u2465Increased
\n capital and capital reserves in the case of issuance of shares through the exercise of stock
\n acquisition rights<\/p>\n
\u00a0<\/p>\n
1.Amount
\n of capital increased by the exercise of stock acquisition rights<\/p>\n
\u00a0<\/p>\n
The
\namount shall be one-half of the maximum amount of increase in capital, etc., calculated in accordance with the provisions of Article
\n17, Paragraph 1 of the Company Accounting Regulations, and if a fraction of less than 1 yen is obtained because of the calculation, the
\namount shall be rounded up.<\/p>\n
\u00a0<\/p>\n
2.Amount
\n of capital reserves to increase due to the exercise of stock acquisition rights<\/p>\n
\u00a0<\/p>\n
The
\namount shall be calculated in accordance with the provisions of Article 17, Paragraph 1 of the Company Accounting Regulations, minus
\nthe amount of capital increase from the maximum amount of increase in capital, etc.<\/p>\n
\u00a0<\/p>\n
\u2466Assignee
\n of Stock Acquisition Rights<\/p>\n
\u00a0<\/p>\n
Assignee\u00a0
\n Number of allocations\u00a0<\/p>\n
LIND GLOBAL FUND II LP\u00a0
\n \u00a0746,269\u00a0<\/p>\n
S.H.N. FINANCIAL INVESTMENTS\u3000LTD\u00a0
\n \u00a0638,669\u00a0<\/p>\n
L1 CAPITAL GLOBAL OPPORTUNITIES MASTER FUND\u00a0
\n \u00a0746,269\u00a0<\/p>\n
ALTO OPPORTUNITY MASTER FUND,\u00a0
\n \u00a0746,269\u00a0<\/p>\n
INTRACOASTAL CAPITAL LLC\u00a0
\n \u00a0746,269\u00a0<\/p>\n
CVI Investments, By: Heights Capital Management, Inc.,\u00a0
\n \u00a0746,269\u00a0<\/p>\n
Hudson Bay Master Fund Ltd.\u00a0
\n \u00a0746,269\u00a0<\/p>\n
Empery Asset Master, LTD\u00a0
\n \u00a0414,861\u00a0<\/p>\n
Empery Tax Efficient, LP\u00a0
\n \u00a0147,466\u00a0<\/p>\n
Empery Tax Efficient III, LP\u00a0
\n \u00a0183,942\u00a0<\/p>\n
\u00a0<\/p>\n
4.Matters
\n Concerning Company Officers (as of March 31, 2026)<\/p>\n
\u00a0<\/p>\n
(1)Status
\n of Directors and Corporate Auditors<\/p>\n
\u00a0<\/p>\n
Position
\n \u00a0
\n Name
\n \u00a0
\n Status
\n of responsibilities and important concurrent positions<\/p>\n
President
\n and Representative Director
\n \u00a0
\n Mei
\n Kanayama
\n \u00a0
\n President
\n & CEO<\/p>\n
Director
\n \u00a0
\n Yoichiro
\n Haga
\n \u00a0
\n Executive
\n Officer, Administrative Departments<\/p>\n
Director
\n \u00a0
\n Tetsuya
\n Sato
\n \u00a0<\/p>\n
Director,
\n Japan International Medical Association<\/p>\n
Representative
\n Director, CBJ, Inc.<\/p>\n
Director
\n \u00a0
\n Yoji
\n Takenaka
\n \u00a0
\n Lawyer<\/p>\n
Corporate
\n Auditor
\n \u00a0
\n Keiichi
\n Kimura
\n \u00a0
\n Administrative
\n scrivener<\/p>\n
\u00a0<\/p>\n
Note:1.Directors
\n Tetsuya Sato and Yoji Takenaka are outside directors as defined in Article 2, Item 15 of
\n the Companies Act.<\/p>\n
\u00a0<\/p>\n
2.Tadao
\n Iwamatsu and Junji Sato resigned from their positions as auditors effective as of the Annual
\n General Meeting of Shareholders held on June 27, 2025.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
(2)Total
\n amount of remuneration, etc. of officers for the current fiscal year<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
\u00a0\u00a0
\n \u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n Total
\n amount by type of
remuneration, etc.\u00a0<\/p>\n
District\u00a0
\n Number
\n of
members\u00a0
\n Total
\n amount
of
remuneration, etc.\u00a0\u00a0
\n Monetary
Rewards\u00a0\u00a0
\n Performance-
\n linked
remuneration, etc.\u00a0\u00a0
\n Non-
\n monetary
remuneration, etc.\u00a0<\/p>\n
Director\u00a0
\n 4
\n persons\u00a0
\n \u00a055,200\u00a0\u00a0
\n \u00a055,200\u00a0\u00a0
\n \u00a0\u2014\u00a0\u00a0
\n \u00a0\u2014\u00a0<\/p>\n
(Outside
\n Directors)\u00a0
\n (2
\n persons)\u00a0
\n \u00a0(7,200)\u00a0
\n \u00a0(7,200)\u00a0
\n \u00a0(\u2014)\u00a0
\n \u00a0(\u2014)<\/p>\n
Corporate
\n Auditor\u00a0
\n 3
\n persons\u00a0
\n \u00a04,150\u00a0\u00a0
\n \u00a04,150\u00a0\u00a0
\n \u00a0\u2014\u00a0\u00a0
\n \u00a0\u2014\u00a0<\/p>\n
(Outside
\n Corporate Auditors)\u00a0
\n (2
\n persons)\u00a0
\n \u00a0(900)\u00a0
\n \u00a0(900)\u00a0
\n \u00a0(\u2014)\u00a0
\n \u00a0(\u2014)<\/p>\n
Total\u00a0
\n 7
\n persons\u00a0
\n \u00a059,350\u00a0\u00a0
\n \u00a059,350\u00a0\u00a0
\n \u00a0\u2014\u00a0\u00a0
\n \u00a0\u2014\u00a0<\/p>\n
(Outside
\n Officers)\u00a0
\n (4
\n persons)\u00a0
\n \u00a0(8,100)\u00a0
\n \u00a0(8,100)\u00a0
\n \u00a0(\u2014)\u00a0
\n \u00a0(\u2014)<\/p>\n
\u00a0<\/p>\n
Note:1.The
\n maximum amount of remuneration for directors was resolved to be 150,000,000 yen per year
\n at the Ordinary General Meeting of Shareholders held on May 26, 2021.<\/p>\n
\u00a0<\/p>\n
2.The
\n maximum amount of remuneration for Board of Corporate Auditors was resolved to be 30,000,000
\n yen per year at the Extraordinary General Meeting of Shareholders held on October 19, 2021.<\/p>\n
\u00a0<\/p>\n
5.System
\n to ensure the appropriateness of business operations (as of March 31, 2026)<\/p>\n
\u00a0<\/p>\n
(1)System
\n to ensure that the execution of duties by directors and employees complies with laws and
\n regulations and the Articles of Incorporation<\/p>\n
\u00a0<\/p>\n
\u2460Directors
\n of the Company and its subsidiaries shall comply with laws and regulations and Articles of
\n Incorporation and promote the establishment of a compliance system.<\/p>\n
\u00a0<\/p>\n
\u2461Directors
\n of the Company and its subsidiaries shall establish a compliance system to ensure that employees
\n comply with laws and regulations and the Articles of Incorporation and shall manage and supervise
\n the status of compliance.<\/p>\n
\u00a0<\/p>\n
\u2462Board
\n of Corporate Auditors Members shall investigate the status of the compliance system and whether
\n there are any problems with laws and regulations or the Articles of Incorporation, and report
\n to the Board of Directors. The Board of Directors shall periodically review the compliance
\n system and strive to identify problems and make improvements.<\/p>\n
\u00a0<\/p>\n
\u2463The
\n Company shall establish rules for whistleblowing and establish a whistleblowing system to
\n promptly report and consult with directors and employees of the Company and its subsidiaries
\n if they discover an act that is suspected of violating laws and regulations.<\/p>\n
\u00a0<\/p>\n
(2)System
\n for the storage and management of information related to the execution of duties by directors<\/p>\n
\u00a0<\/p>\n
\u2460Information
\n related to the execution of duties by directors shall be prepared and stored in accordance
\n with laws and regulations and internal regulations, etc., by establishing document management
\n regulations, etc. In addition, if necessary, the Company shall manage the information in
\n a state where it can be viewed by Directors, Corporate Auditors, Accounting Auditors, etc.<\/p>\n
\u00a0<\/p>\n
\u2461The
\n status of the creation, storage, and management of information related to the execution of
\n duties by directors shall be audited by Corporate Auditors.<\/p>\n
\u00a0<\/p>\n
(3)Regulations
\n and other systems related to the management of the risk of loss<\/p>\n
\u00a0<\/p>\n
\u2460The
\n Company shall formulate the Basic Rules for Risk Management as the basis of the risk management
\n system for the entire Group and establish a risk management system in accordance with the
\n Regulations. In addition, in the event of an unforeseen situation, the Company shall establish
\n a Crisis Management Committee chaired by the President and Representative Director and shall
\n establish a system to prevent and minimize the spread of damage by responding promptly with
\n the advice of legal advisors and others.<\/p>\n
\u00a0<\/p>\n
\u2461Directors
\n and employees shall organize the content of their duties with regard to risk management in
\n each department, grasp, analyze, and evaluate inherent risks, consider and implement appropriate
\n measures, and periodically review the status of such risk management.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u2462Corporate
\n Auditors shall audit the status of risk management in each division and report the results
\n to the Board of Directors. The Board of Directors shall periodically review the risk management
\n system and strive to identify problems and improve them.<\/p>\n
\u00a0<\/p>\n
(4)System
\n to ensure efficient execution of duties by directors<\/p>\n
\u00a0<\/p>\n
\u2460With
\n the aim of increasing corporate value, we will work to achieve our goals based on a business
\n plan formulated based on our corporate philosophy, and manage the progress of our goals.<\/p>\n
\u00a0<\/p>\n
\u2461In
\n addition to the regular Board of Directors meeting (once a month), extraordinary meetings
\n of the Board of Directors shall be held as necessary as the basis of the system to ensure
\n that the execution of duties by directors is carried out efficiently.<\/p>\n
\u00a0<\/p>\n
\u2462The
\n Company shall establish various internal regulations, such as the Regulations on the Segregation
\n of Duties, the Regulations on Administrative Authority and Decision-Making Authority, and
\n establish a system for the proper and efficient execution of duties by clarifying the authority
\n and responsibilities of each officer.<\/p>\n
\u00a0<\/p>\n
\u2463The
\n Company shall supervise the establishment and operation of internal control systems at its
\n subsidiaries to ensure a balance between ensuring the efficiency and promptness of the execution
\n of duties by directors.<\/p>\n
\u00a0<\/p>\n
(5)System
\n to ensure the appropriateness of business operations of the corporate group consisting of
\n the Company and its subsidiaries<\/p>\n
\u00a0<\/p>\n
To
\nensure the appropriate business operations of the entire Group, including subsidiaries, we will strive to build a compliance system for
\nthe entire Group.<\/p>\n
\u00a0<\/p>\n
(6)System
\n for employees who assist the duties of Corporate Auditors and the independence of such employees
\n from Directors;<\/p>\n
\u00a0<\/p>\n
Matters
\nconcerning the effectiveness of instructions to the employees<\/p>\n
\u00a0<\/p>\n
Employees
\nwho assist in the duties of the Corporate Auditors shall be assigned to assist the Corporate Auditors when requested, and the consent
\nof Corporate Auditor shall be obtained for the transfer and evaluation of such employees.<\/p>\n
\u00a0<\/p>\n
(7)System
\n for directors and employees to report to Corporate Auditors, other systems for reporting
\n to Corporate Auditors, and other systems to ensure that audits by Corporate Auditors are
\n conducted effectively<\/p>\n
\u00a0<\/p>\n
\u2460Directors
\n and employees of the Company and its subsidiaries shall immediately report to the Corporate
\n Auditors of the Company any fact that may cause significant damage to the Company.<\/p>\n
\u00a0<\/p>\n
\u2461Corporate
\n Auditors shall attend important meetings of the Board of Directors, etc. and receive reports
\n from the directors of the Company and its subsidiaries on the status of the execution of
\n the duties for which they are responsible.<\/p>\n
\u00a0<\/p>\n
\u2462Corporate
\n Auditors may inspect important documents related to the execution of business, such as approval
\n documents, and request explanations from directors and employees of the Company and its subsidiaries.<\/p>\n
\u00a0<\/p>\n
\u2463Corporate
\n Auditors and Representative Director shall hold regular meetings to exchange opinions in
\n order to promote mutual communication.<\/p>\n
\u00a0<\/p>\n
(8)To
\n ensure that people who report to the Corporate Auditors are not treated unfavorably because
\n of such reports system<\/p>\n
\u00a0<\/p>\n
The
\nCompany and its subsidiaries shall prohibit any person who reports unfavorably to a person who has reported to the Corporate Auditors
\non the grounds that he or she has made a report and shall ensure that this is fully informed.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
(9)Matters
\n concerning procedures for advance payment or reimbursement of expenses incurred in the execution
\n of duties by Corporate Auditors and other policies related to the processing of expenses
\n or liabilities incurred in the execution of such duties<\/p>\n
\u00a0<\/p>\n
When
\na Corporate Auditors requests advance payment or reimbursement of expenses incurred in the execution of his\/her duties, we will respond
\npromptly.<\/p>\n
\u00a0<\/p>\n
(10)Basic
\n Approach to the Elimination of Anti-Social Forces and Status of Development<\/p>\n
\u00a0<\/p>\n
To
\nensure sound corporate management, we will take a resolute stance against antisocial forces.<\/p>\n
\u00a0<\/p>\n
Our
\nbasic policy is not to have any relationship whatsoever.<\/p>\n
\u00a0<\/p>\n
The
\nGeneral Affairs Department is the department that oversees the response to anti-social forces, and the General Manager is responsible
\nfor it. In addition, we work closely with external organizations such as corporate lawyers, the police, and the Federation of Special
\nViolence Prevention Measures under the jurisdiction of the Metropolitan Police Department to develop a system and collect information
\nthat enables the organization to respond promptly, and to thoroughly educate employees.<\/p>\n
\u00a0<\/p>\n
6.Overview
\n of the operational status of the system to ensure the appropriateness of business operations<\/p>\n
\u00a0<\/p>\n
The
\nCompany has established a system to ensure the appropriateness of business operations, and the Board of Directors and other meetings
\ncontinuously identify and analyze management risks and consider countermeasures. As a result, we review internal regulations and operations
\nas necessary to improve the effectiveness of the internal control system. In addition to audits by Corporate Auditors, Corporate Auditors
\nalso attend important internal meetings to monitor the status of business execution and risks related to compliance. In addition, we
\nregularly conduct internal audits to verify that our day-to-day operations do not violate laws and regulations, the Articles of Incorporation,
\ninternal regulations, etc.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Financial
\nstatements<\/p>\n
\u00a0<\/p>\n
Balance
\nSheet<\/p>\n
As
\nof March 31, 2026<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Assets\u00a0
\n Liabilities<\/p>\n
Accounts\u00a0
\n Amount\u00a0
\n Accounts\u00a0
\n Amount<\/p>\n
Current
\n Assets\u00a0
\n \u00a020,751,282\u00a0\u00a0
\n Current
\n Liabilities\u00a0
\n \u00a023,840,527\u00a0<\/p>\n
Cash
\n & deposits\u00a0
\n \u00a0251,215\u00a0\u00a0
\n Accounts
\n payable\u00a0
\n \u00a016,022,856\u00a0<\/p>\n
Accounts
\n receivable\u00a0
\n \u00a017,697,613\u00a0\u00a0
\n Short-term
\n borrowings\u00a0
\n \u00a06,910,459\u00a0<\/p>\n
Products\u00a0
\n \u00a01,954,805\u00a0\u00a0
\n Long-term
\n loans to be repaid within one year\u00a0
\n \u00a0168,220\u00a0<\/p>\n
Previous
\n payment\u00a0
\n \u00a013,962\u00a0\u00a0
\n Payables\u00a0
\n \u00a0151,203\u00a0<\/p>\n
For
\n prepayment\u00a0
\n \u00a011,020\u00a0\u00a0
\n Accrued
\n expenses\u00a0
\n \u00a03,314\u00a0<\/p>\n
Short-term
\n loans\u00a0
\n \u00a0178,312\u00a0\u00a0
\n Advance
\n payments\u00a0
\n \u00a0329,278\u00a0<\/p>\n
Reimbursement\u00a0
\n \u00a0300,292\u00a0\u00a0
\n Deposit\u00a0
\n \u00a05,565\u00a0<\/p>\n
Unearned
\n money\u00a0
\n \u00a0139,007\u00a0\u00a0
\n Accrued
\n corporate taxes, etc.\u00a0
\n \u00a0219,353\u00a0<\/p>\n
Accrued
\n refundable consumption tax, etc.\u00a0
\n \u00a0383,612\u00a0\u00a0
\n Accrued
\n consumption tax, etc.\u00a0
\n \u00a09,783\u00a0<\/p>\n
Allowance
\n for bad debts\u00a0
\n △178,560\u00a0\u00a0
\n Short-term
\n lease obligations\u00a0
\n \u00a012,953\u00a0<\/p>\n
Fixed
\n Assets\u00a0
\n \u00a09,819,604\u00a0\u00a0
\n Bonus
\n allowance\u00a0
\n \u00a01,507\u00a0<\/p>\n
Property,
\n plant and equipment\u00a0
\n \u00a0152,079\u00a0\u00a0
\n Point
\n allowance\u00a0
\n \u00a0221\u00a0<\/p>\n
Facilities
\n attached to the building\u00a0
\n \u00a0212,441\u00a0\u00a0
\n Contractual
\n liabilities\u00a0
\n \u00a05,810\u00a0<\/p>\n
Vehicle
\n transport equipment\u00a0
\n \u00a09,090\u00a0\u00a0
\n Fixed
\n Liabilities\u00a0
\n \u00a01,167,851\u00a0<\/p>\n
Tools,
\n Equipment, and Fixtures\u00a0
\n \u00a0116,111\u00a0\u00a0
\n Long-term
\n borrowings\u00a0
\n \u00a0500,000\u00a0<\/p>\n
Tangible
\n leased assets\u00a0
\n \u00a082,707\u00a0\u00a0
\n Deposit\u00a0
\n \u00a031,922\u00a0<\/p>\n
Accumulated
\n depreciation\u00a0
\n △268,271\u00a0\u00a0
\n Long-term
\n payables\u00a0
\n \u00a054,334\u00a0<\/p>\n
Intangible
\n Assets\u00a0
\n \u00a0208,631\u00a0\u00a0
\n Long-term
\n lease obligations\u00a0
\n \u00a013,878\u00a0<\/p>\n
Intangible
\n leased assets\u00a0
\n \u00a03,813\u00a0\u00a0
\n Provision
\n for retirement benefits\u00a0
\n \u00a045,763\u00a0<\/p>\n
Software\u00a0
\n \u00a0204,818\u00a0\u00a0
\n Asset
\n retirement obligations\u00a0
\n \u00a075,359\u00a0<\/p>\n
Investments
\n and other assets\u00a0
\n \u00a09,458,894\u00a0\u00a0
\n Deferred
\n tax liabilities\u00a0
\n \u00a0446,593\u00a0<\/p>\n
Investment\u00a0
\n \u00a02,010\u00a0\u00a0
\n Total
\n Liabilities\u00a0
\n \u00a025,008,379\u00a0<\/p>\n
Deposit\u00a0
\n \u00a0120,022\u00a0\u00a0
\n Equity\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Deposit\u00a0
\n \u00a0104,048\u00a0\u00a0
\n Accounts\u00a0
\n \u00a0Amount\u00a0<\/p>\n
Insurance
\n reserve fund\u00a0
\n \u00a027,342\u00a0\u00a0
\n Shareholders\u2019
\n Equity\u00a0
\n \u00a05,575,305\u00a0<\/p>\n
Recycling
\n deposits\u00a0
\n \u00a08\u00a0\u00a0
\n Paid-in
\n capital\u00a0
\n \u00a010,000\u00a0<\/p>\n
Long-term
\n upfront costs\u00a0
\n \u00a01,804\u00a0\u00a0
\n Capital
\n surplus\u00a0
\n \u00a03,655,033\u00a0<\/p>\n
Long-term
\n unearned income\u00a0
\n \u00a01,622,183\u00a0\u00a0
\n \u00a0Capital
\n reserve\u00a0
\n \u00a03,655,033\u00a0<\/p>\n
Shares
\n of affiliated companies\u00a0
\n \u00a0682,673\u00a0\u00a0
\n Retained
\n earnings\u00a0
\n \u00a09,458,894\u00a0<\/p>\n
Long-term
\n accounts receivable\u00a0
\n \u00a06,984,870\u00a0\u00a0
\n Other
\n retained earnings\u00a0
\n \u00a01,910,271\u00a0<\/p>\n
Allowance
\n for bad debts\u00a0
\n △86,070\u00a0\u00a0
\n Retained
\n earnings carried forward\u00a0
\n \u00a01,910,271\u00a0<\/p>\n
Deferred
\n Assets\u00a0
\n \u00a012,808\u00a0\u00a0
\n Stock
\n Acquisition Rights\u00a0
\n \u00a011\u00a0<\/p>\n
Share
\n grant costs\u00a0
\n \u00a012,808\u00a0\u00a0
\n Total
\n Equity\u00a0
\n \u00a05,575,316\u00a0<\/p>\n
Total
\n Assets\u00a0
\n \u00a030,583,696\u00a0\u00a0
\n Total
\n Liabilities and Equity\u00a0
\n \u00a030,583,696\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Statement
\nof income<\/p>\n
\u00a0<\/p>\n
From
\nApril 1, 2025<\/p>\n
To
\nMarch 31, 2026<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Accounts\u00a0
\n Amount<\/p>\n
Sales\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a038,783,862\u00a0<\/p>\n
Cost
\n of Goods Sold\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a036,161,287\u00a0<\/p>\n
Gross
\n Profit\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a02,622,575\u00a0<\/p>\n
Selling,
\n General and Administrative Expenses<\/p>\n
\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a02,313,464\u00a0<\/p>\n
Operating
\n Profit\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a0309,111\u00a0<\/p>\n
Non-Operating
\n Income\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Interest
\n income and dividends\u00a0
\n \u00a07,717\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Foreign
\n exchange gain\u00a0
\n \u00a026\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Miscellaneous
\n income\u00a0
\n \u00a0104,921\u00a0\u00a0
\n \u00a0112,665\u00a0<\/p>\n
Non-Operating
\n Expenses\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Interest
\n expense\u00a0
\n \u00a0177,711\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Deferred
\n asset amortization\u00a0
\n \u00a015,369\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Loan
\n fees\u00a0
\n \u00a029,928\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Miscellaneous
\n loss\u00a0
\n \u00a05,446\u00a0\u00a0
\n \u00a0228,456\u00a0<\/p>\n
Ordinary
\n Income\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a0193,321\u00a0<\/p>\n
Extraordinary
\n Profits\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Gain
\n on sale of fixed assets\u00a0
\n \u00a0378,569\u00a0\u00a0
\n \u00a0378,569\u00a0<\/p>\n
Extraordinary
\n Losses\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Loss
\n on cancellation of lease\u00a0
\n \u00a05,582\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Consumption
\n taxes for prior periods\u00a0
\n \u00a0378,873\u00a0\u00a0
\n \u00a0384,456\u00a0<\/p>\n
Net
\n income before income taxes\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a0187,434\u00a0<\/p>\n
Corporate
\n tax, resident tax and business tax\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a0219,353\u00a0<\/p>\n
Adjustment
\n of corporate income taxes\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n △71,579\u00a0<\/p>\n
Net
\n Income\u00a0
\n \u00a0\u00a0\u00a0\u00a0
\n \u00a039,659\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Statement
\nof Changes in net assets<\/p>\n
\u00a0<\/p>\n
From
\nApril 1, 2025<\/p>\n
To
\nMarch 31, 2026<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
\u00a0\u00a0
\n Shareholders\u2019
\n Equity\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n \u00a0\u00a0<\/p>\n
\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n Capital
\n Surplus\u00a0\u00a0
\n Retained
\n Earnings\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n \u00a0\u00a0<\/p>\n
\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n Other
\n retained earnings\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n \u00a0\u00a0\u00a0
\n \u00a0\u00a0<\/p>\n
\u00a0\u00a0
\n Paid-in
\n Capital\u00a0\u00a0
\n Capital
\n Reserve\u00a0\u00a0
\n Total
\n capital Surplus\u00a0\u00a0
\n Retained
\n earnings carried forward\u00a0\u00a0
\n Total
\n Retained Earnings\u00a0\u00a0
\n Total
Shareholders\u2019 Equity\u00a0\u00a0
\n Stock
\n
Acquisition
Rights\u00a0\u00a0
\n Total
\n
Equity\u00a0<\/p>\n
April
\n 1, 2025 Balance\u00a0
\n \u00a010,000\u00a0\u00a0
\n \u00a03,655,033\u00a0\u00a0
\n \u00a03,655,033\u00a0\u00a0
\n \u00a01,950,611\u00a0\u00a0
\n \u00a01,950,611\u00a0\u00a0
\n \u00a05,615,644\u00a0\u00a0
\n \u00a011\u00a0\u00a0
\n \u00a05,615,656\u00a0<\/p>\n
Fluctuations
\n during the fiscal year\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0<\/p>\n
\u00a0Net
\n Income\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a039,659\u00a0\u00a0
\n \u00a039,659\u00a0\u00a0
\n \u00a039,659\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a039,659\u00a0<\/p>\n
Dividends
\n from Surplus\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n △79,999\u00a0\u00a0
\n △79,999\u00a0\u00a0
\n △79,999\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n △79,999\u00a0<\/p>\n
Items
\n other than shareholders\u2019 equity During the fiscal year Variable Amount (Net)\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0<\/p>\n
During
\n the fiscal year Total Variable Amount\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n △40,339\u00a0\u00a0
\n △40,339\u00a0\u00a0
\n △40,339\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n △40,339\u00a0<\/p>\n
March
\n 31, 2026 Balance\u00a0
\n \u00a010,000\u00a0\u00a0
\n \u00a03,655,033\u00a0\u00a0
\n \u00a03,655,033\u00a0\u00a0
\n \u00a01,910,271\u00a0\u00a0
\n \u00a01,910,271\u00a0\u00a0
\n \u00a05,575,305\u00a0\u00a0
\n \u00a011\u00a0\u00a0
\n \u00a05,575,316\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Note
\nto Individual Securities<\/p>\n
\u00a0<\/p>\n
1.Notes
\n on Important Accounting Policy Matters<\/p>\n
\u00a0<\/p>\n
(1)Valuation
\n Criteria and Methods of Securities <\/p>\n
Shares of subsidiaries and affiliates……… Cost method based on moving average method<\/p>\n
\u00a0<\/p>\n
(2)Inventory
\n Valuation Criteria and Methods<\/p>\n
Cost method based on moving average method <\/p>\n
(Balance sheet value is calculated by the method of devaluation due to a decrease in profitability.)<\/p>\n
\u00a0<\/p>\n
(3)Method
\n of depreciation of fixed assets<\/p>\n
\u00a0<\/p>\n
\u2460Property,
\n plant and equipment (excluding leased assets)<\/p>\n
\u00a0<\/p>\n
Declining
\nRatio Method (provided, however, that buildings acquired on or after April 1, 1998 (excluding ancillary facilities) and<\/p>\n
\u00a0<\/p>\n
Facilities
\nand structures attached to buildings acquired on or after April 1, 2016, are subject to the straight-line method.<\/p>\n
\u00a0<\/p>\n
The
\nmain service life is as follows:<\/p>\n
\u00a0<\/p>\n
Building
\n 38\uff5e50
\n years<\/p>\n
Facilities
\n attached to the building
\n 3\uff5e18
\n years <\/p>\n
Construct
\n 10\uff5e30
\n years<\/p>\n
Vehicle
\n Transporter
\n 2\uff5e7
\n Years<\/p>\n
Tools,
\n Fixtures and Fixtures
\n 2\uff5e20
\n years<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Leased
\nassets related to finance and lease transactions other than the transfer of ownership<\/p>\n
\u00a0<\/p>\n
We
\nuse a straight-line method in which the lease period is the useful life and the residual value is zero.<\/p>\n
\u00a0<\/p>\n
(4)Criteria
\n for recording allowances<\/p>\n
\u00a0<\/p>\n
(1)Allowance
\n for doubtful debts<\/p>\n
\u00a0<\/p>\n
To
\nprepare for losses due to bad debts, we record the expected number of uncollectible receivables based on the actual rate of bad debts
\nfor general receivables and the recoverability of specific receivables such as receivables of doubtful concerns.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
To
\nprepare for the payment of bonuses for employees, we have recorded an estimated amount corresponding to the current fiscal year out of
\nthe estimated amount to be paid.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u2462Provision
\n for retirement benefits<\/p>\n
\u00a0<\/p>\n
To
\nprepare for retirement benefits for employees, based on the retirement benefit obligations at the end of the current fiscal year, the
\namount that is recognized as occurring is recorded.<\/p>\n
\u00a0<\/p>\n
Retirement
\nbenefit obligations are calculated based on the amount of voluntary payment at the end of the fiscal year stipulated in the retirement
\nallowance regulations.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Of
\nthe Company\u2019s points issued under the point system for the purpose of sales promotion, they are not attributable to sales.<\/p>\n
\u00a0<\/p>\n
The
\namount expected to be used in the future is recorded based on the actual rate of use in the past, etc., for the unused amount.<\/p>\n
\u00a0<\/p>\n
(5)Criteria
\n for Recording Revenues and Expenses<\/p>\n
\u00a0<\/p>\n
Our
\nmain business is the sale of cosmetics and daily necessities, and the sale of These products are related to the delivery at the time
\nof delivery, the customer has acquired control over the goods and has determined that the performance obligations have been satisfied.
\nTherefore, we are aware of the revenue at the time of delivery of the product. In addition, the revenue goes to contracts with customers.
\nIt is measured by the amount obtained by deducting returns, discounts, rebates, etc. from the promised consideration.<\/p>\n
\u00a0<\/p>\n
(6)Other
\n important matters that form the basis for the preparation of financial statements Accounting
\n for consumption tax, etc.<\/p>\n
\u00a0<\/p>\n
Consumption
\ntax and other accounting procedures are based on the tax-exclusive method.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
2.Notes
\n on Revenue Recognition<\/p>\n
\u00a0<\/p>\n
(1)Decomposition
\n of earnings<\/p>\n
\u00a0<\/p>\n
Our
\ncompany operates wholesale, retail, e-commerce, and franchise businesses both domestically and internationally. The primary types of
\ngoods and services offered in each of these businesses include daily necessities, cosmetics, pharmaceuticals, consumer electronics, luxury
\ngoods, and trading card games.<\/p>\n
\u00a0<\/p>\n
Sales
\n of each business
\n Domestic
\n wholesale
\n 12,199,589
\n thousand yen<\/p>\n
\u00a0
\n Domestic
\n e-commerce
\n 555,999
\n thousand yen<\/p>\n
\u00a0
\n Domestic
\n retail
\n 738,743
\n thousand yen<\/p>\n
\u00a0
\n Overseas
\n wholesale
\n 24,730,535
\n thousand yen<\/p>\n
\u00a0
\n Franchise
\n business
\n 558,995
\n thousand yen<\/p>\n
\u00a0<\/p>\n
(2)Information
\n that forms the basis for understanding earnings<\/p>\n
\u00a0<\/p>\n
This
\nis as described in the \u201cAccounting Standards for Revenues and Expenses\u201d section of \u201cNotes on Important Accounting Policies.\u201d<\/p>\n
\u00a0<\/p>\n
3.Notes
\n on the Balance Sheet<\/p>\n
\u00a0<\/p>\n
(1)Monetary
\n claims and liabilities to affiliated companies<\/p>\n
\u00a0\u00a0<\/p>\n
\u00a0
\n Accounts
\n receivable
\n 7,491,260
\n thousand yen <\/p>\n
\u00a0
\n Short-term
\n loan
\n 178,312
\n thousand yen<\/p>\n
\u00a0
\n Reimbursement
\n 300,000
\n thousand yen<\/p>\n
\u00a0
\n Unearned
\n money
\n 1,620
\n thousand yen<\/p>\n
\u00a0
\n Deposit
\n 64,900
\n thousand yen<\/p>\n
\u00a0
\n Payable
\n 1,025
\n thousand yen<\/p>\n
\u00a0
\n Long-term
\n borrowings
\n 300,000
\n thousand yen<\/p>\n
\u00a0<\/p>\n
(2)
\n Financial obligations to directors
\n Payable
\n 25,722
\n thousand yen<\/p>\n
\u00a0<\/p>\n
\u00a0\u00a0\u00a0<\/p>\n
4.Notes
\n on the Income Statement<\/p>\n
\u00a0<\/p>\n
Turnover
\n with affiliated companies
\n \u00a0<\/p>\n
Turnover
\n by operating transactions
\n \u00a0<\/p>\n
Net
\n sales
\n 8,963,490
\n thousand yen<\/p>\n
Purchase
\n amount
\n 10,354
\n thousand yen<\/p>\n
Selling,
\n general and administrative expenses
\n 188,348
\n thousand yen<\/p>\n
Turnover
\n of non-business transactions
\n 15,265
\n thousand yen<\/p>\n
\u00a0<\/p>\n
5.Notes
\n on the Statement of Changes in Shareholders\u2019 Equity<\/p>\n
\u00a0<\/p>\n
\u2460Type
\n and total number of shares issued as of the end of the current fiscal year<\/p>\n
\u00a0<\/p>\n
Common
\nstock42,327,806
\n shares<\/p>\n
\u00a0<\/p>\n
\u2461The
\n type and number of shares for the purpose of stock acquisition rights (excluding those for
\n which the first day of the exercise period has not arrived) as of the end of the fiscal year
\n under review.<\/p>\n
\u00a0<\/p>\n
Common
\nstock6,162,552
\n shares<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
6.Notes
\n on Tax Effect Accounting<\/p>\n
\u00a0<\/p>\n
(1)Breakdown
\n of deferred tax assets and liabilities by major causes<\/p>\n
\u00a0<\/p>\n
(Deferred
\n Tax Assets)
\n \u00a0
\n \u00a0<\/p>\n
Paid Business
\n Establishment Tax
\n \u00a0
\n \u00a0\u00a0\u00a0278
\n thousand yen<\/p>\n
Allowance for
\n bad debts
\n \u00a0
\n 33,302
\n thousand yen<\/p>\n
Bonus allowance
\n \u00a0
\n \u00a0\u00a0\u00a0534
\n thousand yen<\/p>\n
Point Allowance\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
\n \u00a0
\n \u00a0\u00a0\u00a0\u00a078
\n thousand yen<\/p>\n
Commodity Valuation
\n Loss
\n \u00a0
\n -4,916
\n thousand yen<\/p>\n
Asset retirement
\n obligations
\n \u00a0
\n 26,701
\n thousand yen<\/p>\n
Provision for
\n retirement benefits
\n \u00a0
\n 16,215
\n thousand yen<\/p>\n
Deferred tax
\n asset subtotal
\n \u00a0
\n 72,193
\n thousand yen<\/p>\n
Valuation allowance
\n \u00a0
\n -71,302
\n thousand yen<\/p>\n
Total deferred
\n tax assets
\n \u00a0
\n \u00a0\u00a0\u00a0891
\n thousand yen<\/p>\n
(Deferred Tax
\n Liabilities)
\n \u00a0
\n \u00a0<\/p>\n
Retirement costs
\n corresponding to asset retirement
\n \u00a0
\n -10,330
\n thousand yen<\/p>\n
Input tax
\n \u00a0
\n \u00a0<\/p>\n
Damages Received
\n \u00a0
\n -437,154
\n thousand yen<\/p>\n
Total deferred
\n tax liabilities
\n \u00a0
\n -447,484
\n thousand yen<\/p>\n
Net deferred
\n tax liabilities
\n \u00a0
\n -446,593
\n thousand yen<\/p>\n
\u00a0<\/p>\n
(2)Revision
\n of the amount of deferred tax assets and deferred tax liabilities due to changes in the rate
\n of corporate tax, etc.<\/p>\n
\u00a0<\/p>\n
In
\nconjunction with the introduction of the Special Defense Corporation Tax (effective for fiscal years beginning on or after April 1, 2026),
\ndeferred tax assets and deferred tax liabilities related to temporary differences expected to be resolved in the following fiscal year
\nor later are calculated using a statutory effective tax rate of 35.43%, up from 34.59%.As a result of this change, deferred tax liabilities
\n(net of deferred tax assets) for the current fiscal year increased by 10,626 thousand yen, and the income tax adjustment increased by
\nthe same amount.<\/p>\n
\u00a0<\/p>\n
7.Notes
\n on Financial Instruments<\/p>\n
\u00a0<\/p>\n
(1)Matters
\n related to the status of financial instruments<\/p>\n
\u00a0<\/p>\n
Borrowings
\nare used for working capital (mainly short-term) and capital investment funds (long-term).<\/p>\n
\u00a0<\/p>\n
(2)Matters
\n related to the market value of financial instruments<\/p>\n
\u00a0<\/p>\n
As
\nof March 31, 2026 (the closing date of the current fiscal year), the balance sheet amount, market value, and the difference between these
\namounts are as follows.<\/p>\n
\u00a0<\/p>\n
In
\naddition, notes are omitted for cash, and notes are omitted for deposits, accounts receivable, accounts payable, and short-term borrowings
\nbecause they are settled in a short period of time, so the market value approximates the book value.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
\u00a0\u00a0
\n Amount
\n recorded on the balance sheet (*1)\u00a0\u00a0
\n Market
\n price(*1)\u00a0\u00a0
\n Difference\u00a0<\/p>\n
Long-term
\n borrowings (*2)\u00a0
\n \u00a0(668,220)\u00a0
\n \u00a0(663,478)\u00a0
\n \u00a04,741\u00a0<\/p>\n
\u00a0<\/p>\n
(*1)Liabilities
\n are shown in parentheses.<\/p>\n
\u00a0<\/p>\n
(*2)Includes
\n long-term loans that are scheduled to be repaid within one year.<\/p>\n
\u00a0<\/p>\n
(Note
\n1) How to calculate the market value of a financial instrument<\/p>\n
\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u3000\u00a0<\/p>\n
Debt<\/p>\n
\u00a0<\/p>\n
Long-term
\nborrowings<\/p>\n
\u00a0<\/p>\n
The
\nmarket value of the long-term borrowing period is calculated by discounting the total amount of principal and interest by the interest
\nrate expected if the same new borrowing were made.<\/p>\n
\u00a0<\/p>\n
In
\naddition, among long-term loans, those with variable interest rates are based on the book value because the market interest rate is reflected
\nin the short term (within one year) and the market value is approximate to the book value unless the Company\u2019s credit position
\ndiffers significantly after execution.<\/p>\n
\u00a0<\/p>\n
(Note
\n2) Amount recorded on the balance sheet of stocks without market prices<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Ledger
\n Accounts\u00a0
\n Balance
\n sheet\u00a0<\/p>\n
Shares
\n of affiliated companies\u00a0
\n \u00a0682,673\u00a0<\/p>\n
\u00a0<\/p>\n
Shares
\nof affiliated companies are not subject to market value disclosure because they do not have a market price.<\/p>\n
\u00a0<\/p>\n
8.Notes
\n on Related Party Transactions<\/p>\n
\u00a0<\/p>\n
\u00a0
\n (1)
\n Parent
\n Company and Major Corporate Shareholders<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Relationship
\n \u00a0
\n Name
\n of company, etc.
\n \u00a0<\/p>\n
Voting
\n rights, etc.<\/p>\n
Ownership
\n Percentage<\/p>\n
\u00a0
\n Details
\n of the transaction
\n \u00a0
\n Trading
\n Subjects
\n \u00a0
\n Transaction
\n Amount
\n \u00a0
\n Accounts
\n \u00a0
\n Balance
\n at the end of the period<\/p>\n
Major
\n Shareholder<\/p>\n
(Corporation,
\n etc.)<\/p>\n
\u00a0
\n Tokushin
\n G.K.
\n \u00a0<\/p>\n
By
\n all direct<\/p>\n
32.07%<\/p>\n
\u00a0<\/p>\n
Secondment
\n fee<\/p>\n
Vehicle
\n rental expenses<\/p>\n
Borrowing
\n of funds<\/p>\n
\u00a0<\/p>\n
Selling,
\n general<\/p>\n
and
\n administrative expenses<\/p>\n
Interest
\n expense<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
13,904<\/p>\n
953,424<\/p>\n
\u00a0<\/p>\n
Payables<\/p>\n
Long-term
\n borrowings<\/p>\n
\u00a0<\/p>\n
1,025<\/p>\n
300,000<\/p>\n
\u00a0<\/p>\n
Transaction
\nconditions and policy for determining transaction conditions, etc.<\/p>\n
\u00a0<\/p>\n
(Note
\n1) Prices and other terms and conditions are determined through price negotiations, etc., considering market performance.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
(2)Subsidiaries
\n and Affiliates, etc.<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Relationship
\n \u00a0
\n Name
\n of company, etc.
\n \u00a0<\/p>\n
Voting
\n rights, etc.<\/p>\n
Ownership
\n Percentage<\/p>\n
\u00a0
\n Details
\n of the transaction
\n \u00a0
\n Trading
\n Subjects
\n \u00a0
\n Transaction
\n Amount
\n \u00a0
\n Accounts
\n \u00a0
\n Balance
\n at the end of the period<\/p>\n
Subsid-iary
\n \u00a0<\/p>\n
Tokyo<\/p>\n
Lifestyle<\/p>\n
Limited<\/p>\n
\u00a0<\/p>\n
Owned
\n Directly<\/p>\n
100%<\/p>\n
\u00a0<\/p>\n
Purchase
\n of goods<\/p>\n
Sale
\n of goods<\/p>\n
Direct
\n store expenses<\/p>\n
Trademark
\n fees<\/p>\n
Lending
\n of funds<\/p>\n
\u00a0<\/p>\n
Cost
\n of goods sold<\/p>\n
Sales<\/p>\n
Selling,
\n general<\/p>\n
and
\n administrative expenses<\/p>\n
Miscellaneous
\n income<\/p>\n
Interest
\n income<\/p>\n
\u00a0<\/p>\n
920<\/p>\n
8,963,057<\/p>\n
\u00a0<\/p>\n
154,480<\/p>\n
7,346<\/p>\n
5,520<\/p>\n
\u00a0<\/p>\n
Accounts
\n receivable<\/p>\n
Short-term
\n loans<\/p>\n
Reimbursement<\/p>\n
Unearned
\n money<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
7,491,260<\/p>\n
178,312<\/p>\n
300,000<\/p>\n
1,620<\/p>\n
Affiliated
\n Companies
\n \u00a0<\/p>\n
Dinner
\n Bank<\/p>\n
corporation<\/p>\n
\u00a0
\n without
\n \u00a0<\/p>\n
Purchase
\n of goods<\/p>\n
Sale
\n of goods<\/p>\n
Rent
\n expenses and others<\/p>\n
Secondment
\n fee<\/p>\n
\u00a0<\/p>\n
Cost
\n of goods sold<\/p>\n
Sales<\/p>\n
Selling,
\n general<\/p>\n
and
\n administrative expenses<\/p>\n
Miscellaneous
\n income<\/p>\n
\u00a0<\/p>\n
9,434<\/p>\n
433<\/p>\n
\u00a0<\/p>\n
19,963<\/p>\n
1,445<\/p>\n
\u00a0<\/p>\n
Unearned
\n money<\/p>\n
Deposit<\/p>\n
Payables<\/p>\n
\u00a0<\/p>\n
128,582<\/p>\n
64,900<\/p>\n
172<\/p>\n
\u00a0<\/p>\n
Transaction
\nconditions and policy for determining transaction conditions, etc.<\/p>\n
\u00a0<\/p>\n
(Note)
\nPrices and other terms and conditions are determined through price negotiations, etc., considering market performance.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
9.Notes
\n on Fixed Assets to be Used by Lease<\/p>\n
\u00a0<\/p>\n
In
\naddition to fixed assets recorded on the balance sheet, some of the office equipment, etc.<\/p>\n
\u00a0<\/p>\n
It
\nis used under a finance lease agreement outside the transfer of ownership.<\/p>\n
\u00a0<\/p>\n
10.Notes
\n on Per Share Information<\/p>\n
\u00a0<\/p>\n
(1)Net
\n assets per share
\n 131.72
\n yen<\/p>\n
(2)Net
\n income per share
\n 0.94
\n yen<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
The
\nlisted amount is rounded down to the nearest 1,000 yen.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Appendix<\/p>\n
\u00a0<\/p>\n
From
\nApril 1, 2025<\/p>\n
To
\nMarch 31,2026<\/p>\n
\u00a0<\/p>\n
1.Itemization
\n of property, plant and equipment and intangible assets (including depreciation expenses recorded
\n on investments and other assets)<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Category<\/p>\n
Asset\u2019s<\/p>\n
Species<\/p>\n
Period
\n Leader<\/p>\n
Book
\n value<\/p>\n
Period<\/p>\n
Amount
\n of increase<\/p>\n
Period<\/p>\n
Amount
\n of reduction<\/p>\n
Period<\/p>\n
Depreciation
\n amount<\/p>\n
End
\n of Period<\/p>\n
Book
\n value<\/p>\n
Impairment
\n loss<\/p>\n
Cumulative
\n amount<\/p>\n
Depreciation<\/p>\n
Cumulative
\n amount<\/p>\n
End
\n of Period<\/p>\n
Acquisition
\n price<\/p>\n
Solid
\n Capital Production
\n Building
\n 370,888
\n –
\n 359,829
\n 11,059
\n –
\n –
\n –
\n –<\/p>\n
Facilities
\n attached to the building
\n 205,416
\n –
\n 71,927
\n 24,698
\n 108,789
\n –
\n 103,651
\n 212,441<\/p>\n
structure
\n 25,501
\n –
\n 23,562
\n 1,938
\n –
\n –
\n –
\n –<\/p>\n
Vehicle
\n transport equipment
\n 657
\n –
\n –
\n 219
\n 437
\n –
\n 8,652
\n 9,090<\/p>\n
Tools,
\n Equipment, and Fixtures
\n 31,338
\n 1,211
\n –
\n 10,063
\n 22,486
\n –
\n 93,624
\n 116,111<\/p>\n
land
\n 340,148
\n –
\n 340,148
\n –
\n –
\n –
\n –
\n –<\/p>\n
Tangible
\n Leased Assets
\n 23,471
\n 12,660
\n 5,895
\n 9,871
\n 20,365
\n –
\n 62,341
\n 82,707<\/p>\n
Total
\n 997,422
\n 13,872
\n 801,363
\n 57,851
\n 152,079
\n –
\n 268,271
\n 420,351<\/p>\n
Intangible<\/p>\n
fixed
\n asset<\/p>\n
Intangible
\n Leased Assets
\n 11,728
\n –
\n \u00a0
\n 7,915
\n 3,813
\n \u00a0<\/p>\n
software
\n 260,677
\n –
\n \u00a0
\n 55,859
\n 204,818<\/p>\n
Total
\n 272,406
\n –
\n \u00a0
\n 63,774
\n \u00a0<\/p>\n
Investments
\n & Others<\/p>\n
Capital<\/p>\n
Long-term
\n upfront costs
\n 3,538
\n –
\n 1,539
\n 194
\n 1,804<\/p>\n
Total
\n 3,538
\n –
\n 1,539
\n 194
\n 1,804<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Accounts\u00a0
\n Period
\n Length Remaining High\u00a0\u00a0
\n Increments
\n for the current fiscal year\u00a0\u00a0
\n Reduction
\n in the current period\u00a0\u00a0
\n End
\n of Period Remaining High\u00a0<\/p>\n
Allowance
\n for bad debts\u00a0
\n \u00a0151,440\u00a0\u00a0
\n \u00a0113,190\u00a0\u00a0
\n \u00a0–\u00a0\u00a0
\n \u00a0264,630\u00a0<\/p>\n
Bonus
\n allowance\u00a0
\n \u00a03,087\u00a0\u00a0
\n \u00a01,507\u00a0\u00a0
\n \u00a03,087\u00a0\u00a0
\n \u00a01,507\u00a0<\/p>\n
Point
\n Allowance\u00a0
\n \u00a0421\u00a0\u00a0
\n \u00a0221\u00a0\u00a0
\n \u00a0421\u00a0\u00a0
\n \u00a0221\u00a0<\/p>\n
Provision
\n for retirement benefits\u00a0
\n \u00a037,005\u00a0\u00a0
\n \u00a012,587\u00a0\u00a0
\n \u00a03,829\u00a0\u00a0
\n \u00a045,763\u00a0<\/p>\n
\u00a0<\/p>\n
3.
\nBreakdown of selling, general and administrative expenses<\/p>\n
\u00a0<\/p>\n
(Unit:
\n1,000 yen)<\/p>\n
Accounts\u00a0
\n Current
\n
Balance\u00a0\u00a0
\n Description\u00a0<\/p>\n
Advertising
\n expenses\u00a0
\n \u00a022,678\u00a0\u00a0
\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n
Sales
\n promotion expenses\u00a0
\n \u00a043,800\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Packing
\n charges\u00a0
\n \u00a0411,828\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Amount
\n of point provision\u00a0
\n △199\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Product
\n inventory disposal loss\u00a0
\n \u00a099\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Executive
\n compensation\u00a0
\n \u00a059,350\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Salary
\n allowance\u00a0
\n \u00a0361,788\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Provision
\n for bonuses\u00a0
\n \u00a04,181\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Statutory
\n benefits\u00a0
\n \u00a046,279\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Benefit
\n expenses\u00a0
\n \u00a0686\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Depreciation\u00a0
\n \u00a0121,626\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Repair
\n costs\u00a0
\n \u00a0980\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Hygiene
\n costs\u00a0
\n \u00a01,396\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Consumables
\n costs\u00a0
\n \u00a010,378\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Utilities\u00a0
\n \u00a011,401\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Travel\u3000expenses\u00a0
\n \u00a041,932\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Commission
\n and fees\u00a0
\n \u00a0795,878\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Taxes
\n and dues\u00a0
\n \u00a016,639\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Entertainment
\n expenses\u00a0
\n \u00a066,097\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Insurance
\n premiums\u00a0
\n \u00a016,436\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Communication
\n costs\u00a0
\n \u00a03,438\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Membership
\n fees\u00a0
\n \u00a0153\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Cost of
\n vehicles\u00a0
\n \u00a013,259\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Lease
\n fee\u00a0
\n \u00a04,485\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Ground
\n rent\u00a0
\n \u00a0118,054\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Advisory
\n fees\u00a0
\n \u00a08,200\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Meeting
\n fees\u00a0
\n \u00a0915\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Retirement
\n benefit costs\u00a0
\n \u00a012,587\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Miscellaneous
\n expenses\u00a0
\n \u00a0672\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Amortization
\n of long-term prepaid expenses\u00a0
\n \u00a0194\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Provision
\n for bad debts\u00a0
\n \u00a0113,190\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Performance
\n variance\u00a0
\n \u00a05,048\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
Total
\n Selling, General and Administrative Expenses\u00a0
\n \u00a02,313,464\u00a0\u00a0
\n \u00a0\u00a0\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Washington, D.C. 20549 Tokyo Lifestyle Co., Ltd. Indicate by check mark whether the registrant files or will file…\n","protected":false},"author":2,"featured_media":39879,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[29262,29257,29258,29261,16291,29255,8,22134,29259,29256,29260,29254,52,29253],"class_list":["post-39878","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tokyo","tag-6-k-filing","tag-29257","tag-862-thousand-yen","tag-board-of-corporate-auditors","tag-dividend","tag-fiscal-2026-results","tag-japan","tag-japanese-retail","tag-jpy-1-890-per-share","tag-net-sales-38","tag-sakurazaka-audit-corporation","tag-tklf","tag-tokyo","tag-tokyo-lifestyle"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/39878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=39878"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/39878\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/39879"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=39878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=39878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=39878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}