Securities Report – 122nd Fiscal Period (2025/04/01 – 2026/03/31)

Hinowa Sangyo Co., Ltd. Securities Report – 122nd Fiscal Period (2025/04/01 – 2026/03/31)

This report is a Securities Report submitted by Hinowa Sangyo Co., Ltd. in accordance with the Financial Instruments and Exchange Act, disclosing business results, financial condition, management policies, risk factors, and other significant business information for the 122nd fiscal period (from April 1, 2025 to March 31, 2026).

Since its founding in 1903, the Company has played a vital role in supporting Japan's manufacturing industry through industrial chemicals and precision materials. Today, the Company is strategically focusing on the development of environmentally friendly products and global market expansion, aiming to achieve sustainable growth.

For the 122nd fiscal period, key management priorities include continuous expansion of R&D investment, improvement of production efficiency, and strengthening of the supply chain. The Company is particularly intensifying efforts in emerging business areas such as lithium-ion battery materials and biomass plastics to expand its medium- to long-term revenue base.

Regarding financial condition, the Company maintains stable operating cash flows and is strengthening its financial foundation through prudent management of interest-bearing debt. Additionally, the Company is actively advancing ESG (Environmental, Social, and Governance) initiatives, integrating climate change response, diversity promotion, and compliance as core elements of its management strategy.

Going forward, the Company will continue transparent and timely disclosure of information, strengthen trust with stakeholders, and promote corporate activities that contribute to societal sustainability.