Komehyo Holdings to Launch First Overseas Real Auction for Used Brand-Name Goods for Corporations, "JBA Shanghai Auction," in China

Komehyo Holdings Co., Ltd. (Headquarters: Nagoya, Aichi Prefecture; President and CEO: Takuji Ishihara), the No. 1 company in sales revenue in the brand reuse industry (*1), announced that its overseas subsidiary, Beihama (Shanghai) Trading Co., Ltd. (Headquarters: Shanghai, China), will launch the Komehyo Holdings Group's first overseas BtoB real auction business, "JBA Shanghai Auction" (hereinafter referred to as "JBA Shanghai"), in Shanghai, China, on August 12, 2026 (scheduled).

This business is the Chinese version of the BtoB auction "JBA Brand Auction," which has been operated and led the industry by the Group's K-Brand Off since its establishment in 2007, leveraging its know-how and brand. It will provide a BtoB platform with Japanese quality to the rapidly growing Chinese used brand market, creating new value.

(*1) "Reuse Market Databook 2025" (Researched by Reuse Keizai Shimbun Co., Ltd.)

(*2) Overseas permanent BtoB real auction hosted solely by Komehyo Holdings Group.

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<Key Points of This Release>

- Know-how from one of Japan's leading auctions lands in Shanghai

Leveraging the know-how and brand of "JBA Brand Auction," in which the Group's K-Brand Off has an overwhelming track record in Japan, the group company Beihama (Shanghai) Trading Co., Ltd. will newly launch a BtoB auction business in Shanghai, China.

- Building infrastructure in a rapidly growing used market

In contrast to the shrinking new product market, we are building a secure and safe B2B transaction infrastructure in the Chinese used brand market, which is growing rapidly at +15% to +20% year-on-year.

- Providing a "Sourcing Frontier" for domestic buyers

Utilizing the Komehyo Holdings Group's robust international logistics infrastructure, we are establishing a new route for Japanese buyers to procure rare inventory from China, differentiating them from domestic competitors.

[Background] China's "Used Brand Market" and vast hidden assets are rapidly expanding amidst sluggish consumption

Currently, China's immediate consumption environment shows weakness. According to the National Bureau of Statistics of China, total retail sales of consumer goods from January to April 2026 increased by 1.9% year-on-year, and in April alone, it was only 0.2% higher year-on-year (*3). Amidst this market environment, Bain & Company analyzes that the personal luxury market in mainland China in 2025 decreased by 3-5% year-on-year, marking a second consecutive year of negative growth, while the used luxury market grew by 15-20% (*4). Furthermore, the penetration rate of the Chinese used luxury market remains below 10%, and with limited growth in the new product market, the used brand market is attracting attention as an area with significant future growth potential.

In addition, with the expansion of the used luxury market in China, there is a growing need for liquidity due to asset reviews by owners and inventory turnover by businesses. These movements are leading to an increase in the circulation of used brand-name goods in the market, and the importance of the BtoB auction market for efficiently buying and selling and redistributing products is expected to further increase.

Komehyo Holdings Group views this market turning point as an opportunity and will enter Shanghai, China, with the BtoB auction expertise cultivated in Japan.

(*3) National Bureau of Statistics of China "National Retail Sales Statistics for April and January-April 2026" https://www.stats.gov.cn/english/PressRelease/202605/t20260519_1963757.html

(*4) Bain & Company "The 2025 Chinese Personal Luxury Goods Market" https://www.bain.com/insights/the-2025-chinese-personal-luxury-goods-market/

[Business Opportunity] Further enhancing the reliability of BtoB transactions in China and building a new "BtoB Distribution Route" connecting Japan and China

Against the backdrop of this huge Chinese market, JBA Shanghai will function as a BtoB platform that provides a safe trading environment and new sourcing opportunities for both "local (Shanghai and all of China) buyers" and "Japanese domestic buyers."

In China, while businesses have accumulated abundant inventory due to the rapid market expansion, there has been a demand for further transparency in authenticity and price optimization in inter-company transactions. JBA Shanghai will build a trusted sourcing infrastructure where anyone can trade safely by introducing the strict authenticity standards and clear transaction rules cultivated by Komehyo Holdings Group in Japan to the local market.

The abundant inventory accumulated locally will also serve as an attractive sourcing frontier for buyers struggling with intensifying competition in the Japanese reuse market, differentiating them from domestic competitors if language, customs, and authenticity risks are resolved. With the launch of JBA Shanghai, Japanese buyers will be able to safely and seamlessly procure merchandise from the new procurement route of "local Chinese inventory."

[Strengths to Leverage] JBA operational know-how, 18 years of overseas operational experience, and the Group's international logistics infrastructure

The launch of JBA Shanghai is supported by three accumulated assets that Komehyo Holdings Group has built over approximately 19 years (since the establishment of JBA Brand Auction) and approximately 18 years (since its overseas expansion).

First, the operational know-how and brand power of "JBA Brand Auction," cultivated in Japan since its establishment in 2007 by K-Brand Off. Leveraging the expertise of this industry-leading platform, we will build a BtoB transaction base with Japanese quality in the Chinese market.

Second, the track record of local business operations accumulated in multiple countries and regions such as Shanghai, Hong Kong, and Taiwan since its overseas expansion in 2008. Experience and networks gained from actually developing businesses locally will form a significant foundation for the launch of JBA Shanghai.

Third, collaboration with the international logistics and trade infrastructure built through the Group's existing businesses. This will create an environment where Japanese buyers can smoothly procure local Chinese inventory by leveraging expertise in customs and logistics.

By organically combining these three accumulated assets, JBA Shanghai will establish a solid position in the Chinese market as a highly reliable BtoB platform that competitors cannot easily imitate in a short period.

JBA Shanghai Event Overview and Membership Information

First Auction Date: August 12, 2026 (scheduled) *Scheduled to be held on the 12th of every month thereafter.

Merchandise: Bags only

Format: Live auction (flat format)

Location: Rooms 18-20, 2nd Floor, Block 2, Link Central Walk, No. 202 Hubin Road, Shanghai

<Contact Information (Membership and Inquiries)>

Please feel free to contact us via WeChat or LINE below. Inquiries and membership applications are accepted at both channels.

- Official WeChat "BRAND OFF 竞卖会咨询官" (JBA Shanghai Auction Consultation Desk)

- Official LINE "JBA Kanazawa" (Inquiries for JBA Shanghai Auction also accepted) https://lin.ee/70QdT9B

Group Company Overview

[Overseas Operating Company] - Beihama (Shanghai) Trading Co., Ltd. Company Overview

We aim to promote the global distribution of luxury brand products and create stores that are familiar and loved by people in each country and region. Our mission is to propose a "high-end lifestyle" filled with satisfaction and excitement to our customers in China.

Company Name: Beihama (Shanghai) Trading Co., Ltd.

Representative: Chairman Seiji Ishihara

Head Office Location: Shanghai, People's Republic of China

Business Activities: Retail, purchase, and wholesale of luxury brand bags, watches, jewelry, precious metals, and apparel; domestic and international mail-order business; auction business for used goods dealers.

[Domestic Related Companies] - K-Brand Off Co., Ltd. Company Overview

K-Brand Off Co., Ltd. has been actively expanding its business both domestically and internationally since the founding of its predecessor company in 1993. Headquartered in Kanazawa City, Ishikawa Prefecture, as a wholly-owned subsidiary of Komehyo Holdings Co., Ltd., the No. 1 company in brand reuse share, it operates "BRAND OFF," which handles retail, purchase, and wholesale of luxury brand bags, watches, jewelry, precious metals, and apparel, and "JBA," an auction business for used goods dealers. "BRAND OFF" has stores not only in Japan but also in Hong Kong, Taiwan, and Shanghai through local subsidiaries.

Company Name: K-Brand Off Co., Ltd.

Representative: President and CEO Yuya Yamauchi

Head Office Location: 2-5-17 Shin-Kanda, Kanazawa City, Ishikawa Prefecture

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

Business Activities: Retail, purchase, and wholesale of luxury brand bags, watches, jewelry, precious metals, and apparel; domestic and international mail-order business; auction business for used goods dealers; pawnbroking.

- Komehyo Holdings Co., Ltd. Company Overview

Company Name: Komehyo Holdings Co., Ltd.

Representative: President and CEO Takuji Ishihara

Head Office Location: 3-25-31 Osu, Naka-ku, Nagoya, Aichi Prefecture URL: https://komehyohds.com/

Establishment Date: May 1979

Business Activities: Group-wide management planning, administration, marketing, and real estate business.