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.

The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Other Electronic Provision Measures Matters upon

Notice of Convocation for the 50th Ordinary General Meeting of Shareholders

(Matters Omitting the Delivery of Documents)

Consolidated Statements of Changes in Equity

Basis of Preparing Consolidated Financial Statements and Other Notes

Statements of Changes in Equity

Significant Accounting Policies and Other Notes

For the 50th Fiscal Year (from April 1, 2022 to March 31, 2023)

Of the matters to be provided electronically, the above items are not included in the documents to be delivered to shareholders who have requested delivery of written documents in accordance with the provisions of laws and regulations and Article 14, Paragraph 2 of the Articles of Incorporation.

Consolidated Statements of Changes in Equity

(from April 1, 2022 to March 31, 2023)

(Thousands of yen)

Shareholders' equity

Retained

Total

Share capital

Capital surplus

Treasury shares

shareholders'

earnings

equity

Balance as of April 1, 2022

1,985,666

2,024,597

27,212,010

(1,355,446)

29,866,827

Changes in the current period

Dividends of surplus

(680,703)

(680,703)

Profit attributable to owners

1,922,822

1,922,822

of parent

Acquisition of treasury

(185)

(185)

shares

Changes in items other than

shareholders' equity, net

Total changes in the current

－

－

1,242,119

(185)

1,241,933

period

Balance as of March 31, 2023

1,985,666

2,024,597

28,454,129

(1,355,632)

31,108,761

Total accumulated other comprehensive income

Valuation

Foreign

Remeasure

Total

Non-

Total net

difference on

accumulated

controlling

currency

ments of

assets

available-

other

interests

translation

defined

for-sale

comprehensive

adjustment

benefit plans

securities

income

Balance as of April 1, 2022

88,637

796,769

41,960

927,367

253,516

31,047,712

Changes in the current period

Dividends of surplus

(680,703)

Profit attributable to owners

1,922,822

of parent

Acquisition of treasury

(185)

shares

Changes in items other than

30,215

247,097

(36,180)

241,132

55,519

296,652

shareholders' equity, net

Total changes in the current

30,215

247,097

(36,180)

241,132

55,519

1,538,586

period

Balance as of March 31, 2023

118,852

1,043,867

5,780

1,168,500

309,036

32,586,298

- 1 -

1. Basis of Preparing Consolidated Financial Statements

(1) Scope of consolidation

All 13 subsidiaries of the Company, provided below, fall within the scope of consolidation.

List of Subsidiaries

YUSHIN AMERICA, INC.

YUSHIN KOREA CO., LTD.

YUSHIN PRECISION EQUIPMENT SDN. BHD.

YUSHIN PRECISION EQUIPMENT (TAIWAN) CO., LTD.

YUSHIN PRECISION EQUIPMENT (THAILAND) CO., LTD.

YUSHIN AUTOMATION, LTD.

YUSHIN PRECISION EQUIPMENT TRADING (SHENZHEN) CO., LTD.

YUSHIN PRECISION EQUIPMENT TRADING (SHANGHAI) CO., LTD.

YUSHIN PRECISION EQUIPMENT (INDIA) PVT. LTD.

GUANGZHOU YUSHIN PRECISION EQUIPMENT CO., LTD.

PT. YUSHIN PRECISION EQUIPMENT INDONESIA

YUSHIN PRECISION EQUIPMENT (VIETNAM) CO., LTD.

YUSHIN EUROPE GMBH

(2) Application of the equity method

There is no non-consolidated subsidiary or affiliate company.

  1. Accounting policies
  1. Valuation of important assets i) Securities
    Available-for-sale securities classified as other securities
    • Securities with available fair market values

(Unrealized gains or losses, net of applicable taxes, reported in a separate component of equity. The cost of securities sold is principally determined by the moving average method)

  1. Inventories
    • Merchandise and finished goods, Work-in-process
      Principally carried at cost determined by the identified cost method (the carrying value on the balance sheet is written down to reflect the effect of lower profit margins)
    • Raw materials
      Principally carried at cost determined by the periodic average method (the carrying value on the balance sheet is written down to reflect the effect of lower profit margins)
    • Supplies
      Carried by the last purchase price method
  1. Depreciation
  1. Property, plant and equipment (excluding leased assets): Principally computed by the declining balance method
    The range of useful lives for major assets is as follows:

Buildings:

3 - 40 years

Structures:

7 - 20 years

Machinery and equipment:

5 - 12 years

Tools, furniture and fixtures:

2 - 20 years

  1. Intangible assets (excluding leased assets): Straight-line method
    • In-housesoftware is figured out based on expected service life
  3. Leased assets: For leased assets under non-ownership transfer finance lease transactions, the Company applies a straight-line method with the lease period as useful life and the residual value as zero (0.)
    • 2 -

[3] Estimation on important allowance and reserves

  1. Allowance for doubtful accounts:
    To provide for possible bad debt losses, the amount deemed unrecoverable is accounted using the loan loss ratio based on past experience for general claims and by examining the possibility of recovery on an individual basis for specific claims with default possibility.
  2. Provision for bonuses:
    In order to allocate the payment of employees' bonuses, the Company provides the amount subject to the fiscal year under review among the total estimated amount to be paid as employees' bonuses.
  3. Provision for bonuses for directors:
    The Company provides the projected payment amount to be allocated for the payment of bonuses to Directors and Corporate Auditors.
  4. Provision for product warranties:
    To provide for expenses incurred for free repairs related to product sales, an amount is accounted based on historical experience.

[4] Basis for recording Revenues and Expenses

Set out below are the major performance obligations in products and services related to revenues from contracts with customers of the Company and its consolidated subsidiaries, and the normal time at which such obligations are satisfied (the normal time at which revenues are recognized.)

For products and installation services, sales to customers will be made in accordance with the terms and conditions set forth in contracts and purchase orders concluded with customers. For take- out robots and custom-ordered equipment, installation work is included in most contracts and orders, the revenue is recognized when the installation work is completed at the client plant and the customer completes acceptance because the performance obligation is determined to be satisfied as the customer obtains control over the products. For certain contracts and orders that do not include an installation work, the revenue is recognized when the products are delivered to the customer because the performance obligation is determined to be satisfied as the customer obtains control over the products.

For Parts, the revenue is recognized when the products are delivered to the customer because the performance obligation is determined to be satisfied as the customer obtains control over the products. For sales of parts in Japan, the revenue is recognized at the time of shipment because the period between the time of shipment of the products and the time when the control of the products is transferred to the customer is short within reasonable.

For maintenance services, the revenue is recognized when the service is completed at the customer plant and the customer completes the acceptance because the performance obligation is determined to be satisfied.

  1. Other significant matter for the preparation of Consolidated Financial Statements Accounting for Retirement benefit assets and liabilities:
    To provide for employees' retirement benefits, based on the projected benefit obligations at year-end and the pension asset balance, the amount of pension assets surplus to projected benefit obligations is recorded.
    The net actuarial loss or gain is subject to amortization from the next fiscal year of the recognition thereof onward in an amount pro-rated by the straight-line method based on the average remaining employee service period (10 to 16 years) at the time of the recognition of net actuarial loss or gain in each fiscal year.
    Unrecognized actuarial differences is recorded in "Remeasurements of defined benefit plans" under "Total accumulated other comprehensive income" in Net assets after adjusting for tax effects.

- 3 -

2. Notes to Consolidated Balance Sheet

  1. Set forth below are the balance of receivables in Notes and accounts receivable - trade occurred from the contracts with customers.

Notes receivable - trade

1,422,392 thousand yen

Accounts receivable - trade

4,048,695 thousand yen

(2) Accumulated depreciation of property, plant and equipment

7,584,762 thousand yen

3. Notes to Consolidated Statement of Changes in Equity

(1) Total number of issued shares

Class of shares

Number of shares at

Number of increased

Number of decreased

Number of shares at

the beginning of

shares of current FY

shares of current FY

the end of current FY

current FY

Common stock

35,638,066

-

-

35,638,066

(2) Number of treasury shares

Number of shares at

Number of increased

Number of decreased

Number of shares at

Class of shares

the beginning of

shares of current FY

shares of current FY

the end of current FY

current FY

Common stock

1,602,804

272

-

1,603,076

Notes: The 272 increase in treasury shares is due to the purchase of shares of less than one unit.

- 4 -

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Yushin Precision Equipment Co. Ltd. published this content on 26 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2023 04:44:33 UTC.