POLA ORBIS HOLDINGS INC. hereby announces that it has resolved, at a meeting of the Board of Directors held on November 20, 2023, to establish a subsidiary that will supervise its regional operations in the Chinese market. In addition, POLA INC. ("POLA") and ORBIS Inc. ("ORBIS"), which are wholly-owned subsidiaries of the Company, each resolved at their respective Board of Directors meetings, held on November 20, 2023, to distribute to the Company as dividends in kind all equity interests of Shanghai POLA Trading Co. Ltd. ("POLA Shanghai"), which are held by POLA, and all equity interests of Orbis Beijing Inc. (ORBIS Beijing), which are held by ORBIS.

As a result, the Company will directly hold all equity interests of POLA Shanghai and ORBIS Beijing, and there will be a transfer of the Company's sub-subsidiaries. Reasons for establishment of subsidiary and distribution of dividends in kind (transfer of sub-subsidiaries) From 2024 onward, they aim to further accelerate the Group's continuing global expansion by using local leadership to directly grasp market changes in each business region. This will enable them to fully apply the strengths of the Group's multi-brand portfolio, quickly implementing optimal regional strategies while aligning with market and customer changes.

They will transition to a locally-led Groupwide structure, an organizational system that will maximize business performance in each region. As part of this effort, they will establish a regional headquarter in China and reorganize operating structure to make POLA Shanghai and ORBIS Beijing, which currently carry out business as local subsidiaries in China, into wholly-owned subsidiaries of the Company. While building a locally-led strategy across brands and enhancing regional marketing, they will consolidate common operations at existing local subsidiaries in China with the aim of upgrading and optimizing operations.

They will accelerate efforts to maximize growth potential and establish a revenue base in the Chinese market, which is most important market drives the Group's overseas expansion. Details regarding establishment of subsidiary: Company Name: POLA ORBIS (Shanghai) Enterprise Management CO., LTD. Address: Shanghai, People's Republic of China. Name and Title of Representative: Seiichi Takaya, Representative Director and President.

Description of Business: Business management, supervision and support for business strategy formulation, etc. of local subsidiaries in China. Amount of Capital: USD 7,000,000.

Date of Establishment is January 2024. Major Shareholder and Shareholding Ratio: POLA ORBIS HOLDINGS INC. 100%. Schedule: Date of Resolution by the Board of Directors: November 20, 2023.

Date of Company Establishment: January 2024 (planned). Date of Commencement of Business: January 2024 (planned).