Notice Regarding Change in Specified Subsidiary
May 15, 2026
SMS Co., Ltd. (the "Company") hereby announce that there has been a change in a specified subsidiary of the Company, as described below. We deeply apologize for the delay in disclosing this information.
1. Reason for the Change
Medilabs Co., Ltd., a consolidated subsidiary of the Company, conducted a capital increase of USD 500,000 for its subsidiary, MIMS Career (Shanghai) Co. Ltd. (hereinafter referred to as "MIMS Career (Shanghai)"). As the capital of MIMS Career (Shanghai) after this capital increase is equivalent to 10% or more of the Company's capital, MIMS Career (Shanghai) has become a specified subsidiary of the Company.
2. Overview of the Subsidiary with Increased Capital
| (1) Name | MIMS Career (Shanghai) Co. Ltd. | |||
|---|---|---|---|---|
| (2) Location | Room 2202-05C, No. 1486 West Nanjing Road, Jing'an District, Shanghai | |||
| (3) Title and Name of Representative | Legal Representative / Executive Director, Tatsuya Koike | |||
| (4) Description of Business | Provision of recruitment support services for healthcare professionals and business operators | |||
| (5) Capital (after capital increase) | USD 2,040,000 | |||
| (6) Date of Establishment | January 28, 2019 | |||
| (7) Major Shareholder and Shareholding Ratio | Medilabs Co., Ltd. 100% | |||
| (8) Relationship between the Listed Company and the Subsidiary | Capital relationship | The Company indirectly holds shares of the subsidiary. In addition, it became a specified subsidiary of the Company due to this capital increase. | ||
| Personnel relationship | Employees are seconded from the Company. | |||
| Business relationship | There is no business relationship to be stated between the Company and the subsidiary. | |||
| (9) Operating results and financial position of the subsidiary for the last three years | Fiscal Year End | FY ended Dec 2023 | FY ended Dec 2024 | FY ended Dec 2025 |
| Net assets | RMB 800,011 | RMB 2,294,129 | RMB 3,954,230 | |
| Total assets | RMB 963,882 | RMB 2,482,776 | RMB 4,232,272 | |
| Net sales | RMB 95,313 | RMB 412,374 | RMB 471,306 | |
| Operating profit | RMB (1,816,255) | RMB (1,814,571) | RMB (1,905,540) | |
| Profit attributable to owners of parent | RMB (1,770,896) | RMB (1,883,649) | RMB (1,906,670) | |
3. Date of Change
October 16, 2025
4. Outlook
This change will have no impact on the Company's business performance.