Securities Report - 82nd Fiscal Period (2025/04/01 - 2026/03/31)

Yashu Electric Co., Ltd. Securities Report - 82nd Fiscal Period (2025/04/01 - 2026/03/31)

We hereby submit the Securities Report for the 82nd fiscal period (April 1, 2025 to March 31, 2026). This report is prepared in accordance with the Financial Instruments and Exchange Act to accurately and timely inform shareholders and investors of our management status, financial condition, and future outlook.

The company primarily engages in the design, manufacturing, and sales of industrial electrical equipment, providing advanced power control systems and automation solutions to manufacturing clients both domestically and internationally. In recent years, we have advanced the development of smart factory-compatible products leveraging IoT and AI technologies, while also expanding our digital transformation (DX) support services.

Regarding the business environment for the 82nd fiscal period, key challenges include global supply chain restructuring, fluctuating energy prices, and tightening environmental regulations. On the other hand, increasing demand for automation and energy efficiency in manufacturing, expansion of renewable energy infrastructure, and progress in Industry 4.0 present significant growth opportunities.

Financially, sales revenue is projected to increase by 5.2% year-on-year, with operating profit margin improving by 0.8 percentage points compared to the previous year. However, net profit is expected to be somewhat constrained due to rising raw material costs and foreign exchange fluctuations. This fiscal year, we aim to enhance profitability through improved production efficiency and optimized cost structures.

Furthermore, the company positions ESG management as a critical strategic priority and has established a roadmap toward achieving carbon neutrality by 2030. Initiatives include adopting renewable energy within our operations, designing energy-efficient products, and reducing CO2 emissions across the entire supply chain. Starting in the 2025 fiscal year, environmental impact assessments will be mandatory for all new products.

In human resources, we are promoting the development of young engineers and the advancement of female managers, with a target to increase the proportion of women in managerial positions to over 25% by the 2026 fiscal year. To strengthen overseas operations, we are also expanding global talent recruitment and international training programs.

Going forward, we will continue to pursue the integration of technological innovation and sustainability, striving to maximize customer value and enhance shareholder returns.