IR News

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
 
 Regarding the World Innovation Center (WIC) project, which our group is promoting in Shenzhen, China, there are some concerns that fluctuations in crude oil prices due to the situation in the Middle East may affect material procurement.
 
 Since major construction materials do not directly use crude oil as a raw material, we believe that fluctuations in crude oil prices do not have a significant impact on the material costs of the WIC project at this time. Crude oil prices may affect transportation costs and petrochemical materials such as waterproofing materials, paints, and piping, but the scope of this impact is considered limited.
 
 Furthermore, reinforcing steel and concrete, which generally account for a large portion of the material costs of skyscraper construction, are currently trading at levels approximately 40-60% lower than their peak in the latter half of 2021.
 Even considering these trends, current material prices remain stable, and there will be no disruption to the project's progress.
 
 We shall continue to monitor international affairs and material market conditions and proceed with the WIC project as planned.
 
END