Notice Regarding Entry into EV Battery Business in Indonesia and Conclusion of Basic Agreement with Two Major Chinese Manufacturers

Ikuyo Co., Ltd. (hereinafter "the Company") will enter into the electric vehicle (EV) battery system business by utilizing the idle space of its Indonesian subsidiary, "PT Ikuyo Indonesia." Furthermore, the Company will conclude a "Basic Cooperation Agreement" aimed at business alliances, including capital and organizational cooperation, with two major Chinese companies in the EV battery field: PT Unified Advanced Battery System Indonesia (hereinafter "UABS") and CONEXAL (Suzhou) Automotive Technology Co., Ltd. (hereinafter "CONEXAL").

1. Background and Purpose of the Alliance: Execution of Growth Strategy

In its "Future Growth Strategy" formulated in July 2025, the Company has set forth "Challenging New Business Areas" and "Enhancing Global Market Presence through Strategic Alliances (Business and Capital Partnerships)" as key policies, in addition to strengthening the competitiveness of its existing automotive parts business.

This initiative is a crucial first step in materializing this growth strategy. By building a strong alliance with UABS and CONEXAL, two companies possessing world-class EV battery technology, in the Southeast Asian and Japanese markets where the EV shift is rapidly progressing, we aim to achieve sustainable corporate value enhancement for the Company.

2. Key Points of the Alliance

(1) Minimization of Initial Investment Risk

We will effectively utilize the idle space and personnel base within the PT Ikuyo Indonesia factory. Additionally, the investment in equipment required for the production line will be borne by the two Chinese battery companies, allowing us to incorporate cutting-edge technology while minimizing our financial risk.

(2) Maintenance of Solid Governance

The Company will consider a capital alliance with PT Ikuyo Indonesia, but will maintain management leadership and its status as a consolidated subsidiary.

(3) Three-Stage Market Development

We are considering a phased market expansion: 1 Indonesian domestic market → 2 ASEAN and emerging markets → 3 Supply to Japanese finished vehicle manufacturers.

3. Overview of the Basic Agreement

(1) Signing Date: July 1, 2026 (scheduled)

(2) Alliance Details: Local design, POC (Proof of Concept), manufacturing, and sales of EV battery systems, as well as consideration of capital and organizational alliances.

(3) Validity Period: One year from the signing date (with an automatic extension clause).

4. Future Outlook

We are currently scrutinizing the impact of this matter on the Company's performance. Should any matters requiring disclosure arise, we will promptly announce them.

[Overview of Partner Companies]

PT Unified Advanced Battery System Indonesia (UABS): A joint venture between major automobile manufacturer SAIC (Shanghai Automotive Industry Corporation) and one of the world's largest battery manufacturers, CATL (Contemporary Amperex Technology Co. Limited). It develops and manufactures EV battery systems.

CONEXAL (Suzhou) Automotive Technology Co., Ltd.: A technology-oriented company boasting a high R&D ratio. It operates globally in the manufacturing of battery pack casings and lightweight aluminum alloy parts.

[Our Company]

Company Name: Ikuyo Co., Ltd.

Representative: Sun Feng, President and Representative Director

Head Office: 2F Shinto Akasaka Bldg., 4-9-25 Akasaka, Minato-ku, Tokyo

URL: https://www.ikuyo194.co.jp/