Powercom Co., Ltd. Announces Implementation Status of Q1 2026 Excessive Lending Improvement Plan

1. Date of occurrence of the event: 2026/05/08 2. Company name: Powercom Co., Ltd. 3. Relationship with the company (please enter 'our company' or 'subsidiary'): Our company 4. Mutual shareholding ratio: Not applicable 5. Reason for occurrence: In accordance with Financial Supervisory Commission letter No. 1040017407 and No. 10600340561, announcing the company's improvement status for exceeding loan limits: (1) Due to losses in previous years, the company's net worth significantly decreased, causing the outstanding loans to exceed the limit. (2) The company is actively working to improve its operating conditions through business diversification and market expansion efforts to enhance overall profitability and increase net worth. (3) The excessive loan by the subsidiary to Powercom Yuraku PTE LTD is currently undergoing legal proceedings. (4) The company's loan to Powercom Yuraku S.A.LTD will proceed in parallel with the litigation progress mentioned in (3). 6. Countermeasures: None. 7. Other matters that should be specified (If the subject of the event or resolution is a public offering company or above, this material information also complies with Article 7, Paragraph 9 of the Enforcement Rules of the Securities Exchange Act, which stipulates matters that have a significant impact on shareholder equity or securities prices): Before the improvement plan is completed, the implementation status will be announced quarterly and reported quarterly to the board of directors for control, and the implementation status will be reported at the next shareholders' meeting.