Felix Corporation Completes "Tokoname Factory" in Tokoname City, Aichi Prefecture — The Era of "Factory-Built" Wooden Houses Begins —

Felix Corporation (Headquarters: JP Tower Nagoya 15F, 1-1-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture; Representative Director: Hidenori Mizuno) completed its "Tokoname Factory" in 3 Yamakata-cho, Tokoname City, Aichi Prefecture, on Friday, May 1, 2026. This factory is positioned as a mother factory to spread our uniquely developed "FELIX Construction Method 7.0 (Seven Zero)" nationwide, becoming a new core base for industrialized wooden construction. ▲ Mother factory to spread "FELIX Construction Method 7.0 (Seven Zero)" nationwide What is "FELIX Construction Method 7.0 (Seven Zero)"? ▲ Wall panel produced with "FELIX Construction Method 7.0 (Seven Zero)" (Image) "FELIX Construction Method 7.0 (Seven Zero)" is our proprietary "industrialized wooden construction" technology. It involves manufacturing all major components in the factory, including wall and floor panels (with sashes, fittings, exterior siding, insulation, plasterboard, and electrical conduits), stair units, veranda drainage, and suspended ceilings, and then transporting them to the construction site in a single batch. By completing approximately 70% of the housing construction process in the factory, on-site work is significantly simplified, leading to shorter construction periods, standardized quality, reduced reliance on skilled workers, decreased construction noise, and reduced logistics burden. This is expected to solve structural challenges faced by the construction industry, such as "construction delays," "labor shortages," "construction noise problems," and "increased logistics costs." Furthermore, in December 2025, we acquired a patent for "Construction method using framed wall construction." We are currently working on developing a dedicated CAD system and plan to evolve to "FELIX Construction Method 7.5" or "FELIX Construction Method 8.0" in the future, aiming to establish a new standard for industrialized wooden construction. Our mission is to "make industrialized wooden construction a global standard." We will collaborate with builders and trading companies to promote the widespread adoption of this construction method throughout Japan and overseas. ◆ Owned Patents Patent No.: 7783674 "Construction method using framed wall construction" / Registered December 2025 Patent No.: 7599763 "Hanging device and method for hanging objects using hanging device" / Registered December 2024 ◆ Pending / Patent Granted Framed wall panel compression method: Patent granted 2x4 continuous column method: Pending Framed wall top connection panel: Pending Scaffolding fixed rain protection: Pending Background of Completion — What is happening in the construction industry now? Severe labor shortage and aging workforce The number of workers in the construction industry decreased from a peak of 6.85 million in 1997 to approximately 4.79 million in 2024, representing a loss of about 30% of the workforce. While those aged 55 and over account for approximately 37% of the total, those aged 29 and under account for only about 12%. According to estimates by the Ministry of Land, Infrastructure, Transport and Tourism, a labor shortage of approximately 900,000 people is expected in the construction industry by 2025. In the first half of 2025, the number of bankruptcies in the construction industry reached 986, the highest in the past 10 years. Human-dependent sites, unstable quality, and increased costs Many processes in the construction industry are still human-dependent, and quality tends to be influenced by the skill of workers, weather, and on-site conditions. The annual working hours in the construction industry in 2024 were 1,943 hours, exceeding the average for all industries by approximately 230 hours, making work style reform an urgent issue. Tailwinds for industrialized construction (prefabricated methods) As a solution to these challenges, industrialized construction (prefabricated methods) using factory production is rapidly gaining attention. The Japanese prefabricated building market size reached 17.4 billion USD (approximately 270 billion JPY*) in 2025. We predict that the market size will reach 30 billion USD (approximately 465 billion JPY*) by 2034, growing at a compound annual growth rate (CAGR) of 6.24% from 2026 to 2034. Industrialized wooden construction is now moving towards becoming the new normal in the industry. We believe that "FELIX Construction Method 7.0 (Seven Zero)" will be of great help in solving the above challenges, and we position the Tokoname Factory as its starting point. *Calculated at 1 USD = 155 JPY Overview of Tokoname Factory ▲ Tokoname Factory Entrance Completion Date: May 1, 2026 (Friday) Location: 3-6-1 Yamakata-cho, Tokoname City, Aichi Prefecture Overall Factory: Site area 7,327.18㎡ (2216.47 tsubo) ・Factory 1: Steel frame, single story Building area: 1,450.00㎡ (438.62 tsubo), Total floor area: 1,500.00㎡ (453.75 tsubo) ・Factory 2: Steel frame, single story Building area: 1,026.58㎡ (310.54 tsubo), Total floor area: 980.00㎡ (296.45 tsubo) ・Factory 3: Steel frame, two stories Building area: 886.5㎡