#China #Beijing #China Partnership #HuaRun #Japan Products

Introduction

A historic agreement has been forged between our company and China’s leading pharmaceutical wholesaler, HuaRun Pharmaceutical Commercial Group Co., Ltd., aimed at supporting the export of Japanese products to the Chinese market. Using China's innovative medical development plans, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area, we seek to facilitate the export of Japanese pharmaceuticals, medical devices, and other healthcare products to hospitals and pharmacies across China. This partnership aligns with our strategic overseas business goals outlined in our mid-term business plan, Vision2032 Stage 2.

Context of the Partnership

Our company has been working to expand the presence of Japanese over-the-counter medicines, medical devices, cosmetics, and health foods in the Chinese market. By collaborating with a partner with robust international business capabilities, we aim to effectively navigate this complex landscape. HuaRun Pharmaceutical, a significant player within the broader HuaRun Group, operates through over 470 subsidiaries across 28 Chinese provinces. With a vast network of relationships with over 10,000 hospitals, HuaRun facilitates the wholesale distribution, logistics, and supply chain services essential for the entry of medical products into the Chinese market.

In recent years, various medical special zones and special import regulations have been established to promote the introduction of superior medications and medical devices, both domestically and internationally. In November 2023, our collaboration with HuaRun Pharmaceuticals resulted in a formal agreement, reflecting mutual commitment towards exploring diverse opportunities within this innovative framework.

By focusing on the 'Medical and Medical Device Innovation Development Plan', we identified a pivotal program that allows the introduction of locally registered products from Hong Kong or Macao into designated medical facilities across nine cities in Guangdong Province. This program presents a novel pathway for Japanese pharmaceutical companies and medical device manufacturers aiming to penetrate the Chinese market.

Nature of the Partnership

Under this partnership, we will leverage research and insights generated from our ongoing studies and data provided by HuaRun regarding new medical zones and special import regulations. We will offer Japanese pharmaceutical and medical device companies key information about the Chinese market that can facilitate their entry.

HuaRun will continuously supply us with updates on the latest developments in medical special zones and relevant regional insights. Furthermore, we will analyze the local market size and distribution-related aspects of the products we intend to offer. This partnership not only broadens our existing supportive framework for product exports but also establishes a structured scheme utilizing the medical special zones and special import guidelines aimed at accelerating market entry for Japanese companies.

Overview of HuaRun Pharmaceutical

As of October 30, 2025, HuaRun Pharmaceutical is one of China’s top three pharmaceutical wholesalers. By leveraging their extensive infrastructure and market expertise, we plan to create synergies that will lead to the successful integration of Japanese products into the Chinese healthcare sector. The agreement holds promise to enhance corporate contributions significantly in the long term, increasing our group's value and facilitating the international presence of Japanese products.

Future Outlook

Currently, the impact of this partnership on our fiscal performance for the current period ending in March 2026 is expected to be minimal. However, in the medium to long term, we anticipate it will substantially enhance our organization's value. Should any information warrant disclosure regarding this initiative arise, we will communicate this promptly.

Conclusion

Through this strategic partnership with HuaRun Pharmaceutical, we reaffirm our commitment to support the export of Japanese products into the promising Chinese market. This collaboration marks a significant step forward, enabling access to one of the largest healthcare markets in the world and paving the way for enhanced products and services for the health and well-being of the communities we serve.



Left: Mr. Guo Junyu, Deputy General Manager of HuaRun Pharmaceutical Group.
Right: Mr. Fuku Shin Yusuke, Vice President of our Company.