Tokyo Lifestyle Secures HKD 10 Million Investment for Store Expansion in Hong Kong and Australia

Tokyo Lifestyle announced that its Hong Kong subsidiary, Tokyo Lifestyle Limited, entered into an investment and operational target agreement on November 18, with a Hong Kong-based private investor to expand and develop the Company's directly-operated store network in Hong Kong and Australia. The collaboration is expected to strengthen Tokyo Lifestyle's strategic presence in Hong Kong and Australia, accelerate the rollout of new directly operated stores, and enhance the Company's regional operational capabilities. Pursuant to the Agreement, the Investor will commit HKD 10 million by December 31, 2025, to fund the expansion and operations of TKLF HK's physical retail stores in Hong Kong and Australia. The investment will be primarily allocated to store leasing, fit-out, inventory procurement, staffing, marketing and other related operating expenses. The Investor will oversee strategic planning, site selection, store build-out, team recruitment, fund supervision and periodic board reporting. As consideration for the Initial Investment, TKLF HK agrees to appoint the Investor as a director of TKLF HK for a two-year term commencing on the Agreement's effective date. In addition, the Investor has agreed to consider providing additional funding should the Company require further investment following the completion of the Initial Investment, with the amount and timing to be determined through mutual negotiation. The Agreement sets an operational target of opening no fewer than 15 directly operated stores across Hong Kong and Australia within two years. If the target cannot be met due to force majeure or major business adjustments, the parties will negotiate an appropriate extension or modification.