Announcement of Establishment and Business Commencement of Taiwan Local Subsidiary "Taiei Electronics Co., Ltd."

Sakae Denshi Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President and Representative Director: Momoko Tsuda; hereinafter "the Company") is pleased to announce the formal establishment of "Taiei Electronics Co., Ltd." in Taiwan and the commencement of its business operations from May 2026, following the announcement of its local subsidiary establishment in Taiwan on December 5, 2025.

**■ Purpose of Establishment**
The Company positions its Taiwan local subsidiary as the most critical hub for promoting its growth strategy in Asia, aiming to strengthen the following systems:

1. **Creation of New Business**
We will strive to create new business opportunities by building, closely engaging with, and deepening relationships with local partners.

2. **Platform Construction**
We will promote the creation of a platform as a sales and procurement network hub for the Asian region.

3. **Acceleration of Business Growth**
By establishing an overseas business structure, we will achieve faster speed in local engagement (immediacy of business negotiations and technical support), thereby accelerating the overall business growth of the Sakae Denshi Group.

**■ Future Key Initiatives**
The new company will primarily focus on the import and export sales of electronic components such as power supplies and connectors, electronic devices, and mechanical parts, with a particular emphasis on the following areas:

* **Introduction of Japanese Manufacturers**
Supporting the overseas expansion of excellent products through the introduction of Japanese manufacturers that do not have overseas bases.

* **Development of Taiwanese Manufacturers**
Building a stable supply system for the domestic market by developing Taiwanese manufacturers that do not have Japanese bases.

**■ Overview of the New Company**
(1) Name: Taiei Electronics Co., Ltd.
(2) Location: 2F., No.150, Sec. 2, Nanjing E. Rd., Zhongshan Dist., Taipei City 10489
(3) Chairman: Masafumi Okubo
(4) Capital: 5,000,000 NTD
(5) Investment Ratio: 100% by the Company (Sakae Denshi)
(6) Business Commencement: May 2026
(7) Business Content: Import/export sales of electronic components, electronic devices, mechanical parts.
(8) Key Areas: Introduction of Japanese manufacturers without overseas bases, development of Taiwanese manufacturers without Japanese bases.

**■ Future Outlook**
While the direct impact of this matter on the Company's consolidated results for the fiscal year ending March 2027 is expected to be minor, we believe that in the medium to long term, the establishment of a sales base in Asia will significantly contribute to the overall business growth and enhancement of corporate value for the entire Group. Should any material impact on business performance be identified in the future, we will promptly disclose it.

**Company Profile**
URL: https://sakae-denshi.com/
Trade Name: Sakae Denshi Co., Ltd. (TSE Standard, Securities Code: 7567)
Head Office: 2-9-10 Sotokanda, Chiyoda-ku, Tokyo 101-0021
TEL: 03-6385-7240 (main)
Established: April 1971
Capital: 500 million yen
Representative Director and President: Momoko Tsuda
Business Content: Comprehensive electronic component trading company.