In the rapidly expanding China market, SHI has been actively developing its business activities through such efforts as the opening of a new plant in Tangshan and the strengthening of existing operations. As the Group's production and sales operations in China become more active, the demand for capital investment and funds are anticipated to grow. For this reason, SHI has decided to establish an Investment Firm in China to support the funding needs of the local entities. At the same time, the new firm will be tasked to carry out adjustments to balance funding between locally domiciled Group companies in China, and will thus be managing funds on a consolidated basis. Currently, SHI has 16 Group companies within China, and of these entities, a greater emphasis will be put on enhancing the production capabilities for the Group's construction machinery and speed reducers in the future.

Since April of this year, the Group has been working to integrate the local China operations into a Holding Company format, with the aim to establish a framework to strengthen overall management capabilities and increase the speed of decision-making in the country. The establishment of the new firm will further strengthen the Group's operating platform in the high-growth China market, and will promote expansion in the future.

Further information on the name of the new company and representative person will be disclosed once decisions on such matters have been made.