SBC Medical Group Co., Ltd. Sells Two Subsidiaries

On December 17, 2024, SBC Medical Group Holdings Incorporated (“SBC Medical”, or the “Company”), announced that its subsidiary, SBC Medical Group Co., Ltd. (hereinafter referred to as "SBCMG"), has decided to sell all shares of its subsidiaries, SBC Kijimadaira Resort Co., Ltd. (hereinafter referred to as "Kijimadaira") and Skynet Academy Co., Ltd. (hereinafter referred to as "SNA"), as outlined below. The decision to sell these subsidiaries was made to concentrate SBCMG's management resources on its core medical services business, in line with its strategy of prioritizing and focusing on key business areas.

The subsidiaries being sold operate in the following industries:

• Kijimadaira: Ski resort operations
• SNA: Flight training operations

The shares will be sold to a company wholly owned by Yoshiyuki Aikawa, the CEO of the Company. Since this transaction constitutes a related party transaction, it was deliberated and approved by the Company’s Board of Directors and Audit Committee. To ensure the fairness of the transaction, an independent third-party organization conducted a valuation. The results are as follows:

1. The valuation of Kijimadaira shares reflects its negative equity, resulting in a nominal sale price.
2. The valuation of SNA shares was determined based on the discounted cash flow (DCF) method. However, the transaction amount is not material in terms of financial reporting.

The impact of this transaction on the Company’s consolidated financial statements is expected to be minimal, with no significant changes to its financial position anticipated.

The transaction is expected to close by the end of December 2024, subject to standard closing conditions. SBC Medical remains committed to advancing its growth strategy centered on the medical services sector.

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