Exhibit 99.1

Sept 14, 2026

To our shareholders

16-11, Nanpeidai-cho, Shibuya-ku, Tokyo 

Lead Real Estate Co., Ltd 

Eiji Nagahara, Representative director

Notice of the 26th Ordinary General Meeting of Shareholders

Dear Sir or Madam, We would like to express our sincere appreciation for your continued support. Notice is hereby given that the 26th Ordinary General Meeting of Shareholders of the Company will be held as follows.

If you are unable to attend the meeting, please review the "Reference Materials for the General Meeting of Shareholders" below, indicate your approval or disapproval of the proposals on the enclosed Exercise of Voting Rights form, affix your seal, and return the form to us.

Yours truly,

Resolutions

An outline of each agenda item is provided in the "Reference Materials for the General Meeting of Shareholders" below.

If no indication of approval or disapproval is provided for any agenda item on the enclosed Exercise of Voting Rights form, it will be treated as an expression of approval.

Please be advised that should it become necessary to amend the information contained in the reference materials for the Shareholders’ Meeting, as well as in the Business Report, Financial Statements, and Consolidated Financial Statements, the amended information will be posted on our website (https://www.lead-real.co.jp/).

(Attachments)

Business Report

From July 1, 2025 

to June 30, 2026

During the consolidated fiscal year under review, the Japanese economy continued on a path of moderate recovery, backed by improvements in the employment and income environments. On the other hand, uncertainty remained in the environment surrounding the real estate industry, due to changes in the interest rate environment, persistently high construction costs, and exchange rate fluctuations, among other factors.

The real estate market in the Tokyo metropolitan area remained solid in terms of both actual and investment demand, and investment demand for lodging facilities also performed steadily against the backdrop of a recovery in inbound tourism demand.

Under these circumstances, the Group worked as one to promote its businesses, centering on the development and operation of luxury hotels (under the ENT TERRACE, JINRYU HOTEL, and GLOBAL DESIGN HOTEL brands), the development and sale of income-producing real estate (such as the Excelsior series), and the detached house and real estate sales business.

In March 2026, we opened 'JINRYU HOTEL ISE,' the first domestic property under the JINRYU brand.

As a result, for the consolidated fiscal year under review, net sales were 18,328 million yen, operating profit was 1,523 million yen, ordinary profit was 809 million yen, and profit attributable to owners of parent was 571 million yen.

In addition, because the Group operates the real estate-related business as a single reportable segment, information by segment has been omitted.

During the consolidated fiscal year under review, the Group raised 18,214 million yen through borrowings from financial institutions to fund the acquisition of land for business use and construction. No funds were raised through the issuance of new shares or bonds. The major lenders and the amounts raised are as follows.

The total amount of capital expenditures implemented by our Group during the current consolidated fiscal year under review totaled 817 million yen. The primary component was expenditures related to the progress of hotel construction works (JINRYU HOTEL ISE, JINRYU HOTEL IZUMO, SHINJUKU 1-CHOME etc: 781 million yen).

(Note) Net income per share is calculated based on the average number of shares outstanding during the period.

(Note) As the Company has prepared consolidated financial statements since the current consolidated fiscal year, the assets and profit and loss of the Group are presented for the current consolidated fiscal year only.

The Company carried out an absorption-type split, effective July 1, 2025, under which its hotel and inn (ryokan) business was transferred to LRE Management Co., Ltd (formerly Sojiya Japan Co., Ltd.; trade name changed on July 1, 2025), a wholly owned subsidiary of the Company.

In addition, the Company established GLOCALY Co., Ltd., as a wholly owned subsidiary on June 18th of 2026. At a meeting of the Board of Directors held on July 16^th, 2026, after the end of the fiscal year, the Company resolved to transfer its DX business to GLOCALY Co., Ltd. through an absorption-type split (effective date: September 1st, 2026) and entered into an absorption-type split agreement on the same day.

Further details are provided in “(11) Other Important Matters Concerning the Current Status of the Group.”

Our Group's future management issues and measures are as follows.

The Group consists of the Company and its six consolidated subsidiaries. As a single segment of real estate-related business, the Group is engaged in the development and sale of detached houses and income-producing real estate (such as the Excelsior series), contracting for construction work, the operation of luxury hotels and inns (ryokan) (under the ENT TERRACE, JINRYU and GLOBAL DESIGN HOTEL brands), and the DX business, real estate management business and others.

Sales offices（as of June 30, 2026）

Subsidiaries

(Note) As the current year marks the first year for the introduction of consolidated financial statements, the year-on-year comparison is not listed.

At a meeting of the Board of Directors held on July 16, 2026 (a written resolution pursuant to Article 370 of the Companies Act), the Company resolved to carry out an absorption-type split to transfer the rights and obligations related to the Company’s DX business to GLOCALY Co., Ltd. (capital: 10 million yen), a wholly-owned subsidiary established on June 18, 2026, and entered into an absorption-type split agreement on July 16 of the same year (effective date: September 1, 2026).

This absorption-type split is part of a business reorganization within the Group and is intended to strengthen expertise in the DX business and accelerate decision-making.

(Note) 1. The Company has prepared consolidated financial statements since the current consolidated fiscal year and includes the six companies listed above in the scope of consolidation.

2. The hotel and ryokan management business of LRE Management Co., Ltd. was transferred from the Company through an absorption-type split that took effect on July 1, 2025.

3. GLOCALY Co., Ltd. was established by the Company on June 18, 2026, and its DX business is scheduled to be transferred from the Company through an absorption-type split that will take effect on September 1, 2026.

4. Although the Company does not hold voting rights in LEAD REAL ESTATE Cayman Limited, an officer of the Company serves as the sole director (one director) of that company and the Company controls decisions on its financial and business policies; therefore, it is included in the scope of consolidation.

Note: The Company holds 1,986,100 shares of treasury stock, but these are excluded from the list of major shareholders above. The ownership percentage is calculated as the ratio of the number of shares held to the number of shares remaining after deducting treasury stock from the total number of shares issued (15,628,000 shares), which is 13,641,900 shares.

Not applicable.

Note

The Company's Articles of Incorporation provide that the Company may enter into agreements with Directors who are Audit and Supervisory Committee Members to limit their liability for damages to the Company to a certain extent.Pursuant to the Articles of Incorporation, the Company has entered into liability limitation agreements with Mr. Akiya Ueki, Mr. Hiroyuki Saito and Mr. Ryoma Iida, Directors who are Audit and Supervisory Committee Members. Under these agreements, each such Director's liability for damages under Article 423, Paragraph 1 of the Companies Act is limited to the higher of JPY 1,000,000 or the minimum liability amount stipulated by laws and regulations, provided that the Director has acted in good faith and without gross negligence in performing his duties.

Not applicable.

The Company has entered into a directors and officers liability insurance agreement with an insurance company, under which the Directors of the Company are the insured. The insurance premiums are borne in full by the Company, and the insured bear no actual premium burden. The insurance covers damages that may arise from the insured being held liable in connection with the execution of their duties or from receiving claims pursuing such liability (excluding cases falling under exemption clauses, such as acts committed with knowledge that they were in violation of laws or regulations).

Our basic policy is to have the Board of Directors discuss and decide on the amount of remuneration for each individual Director according to his/her role, position, and rank, within the maximum amount resolved at the General Meeting of Shareholders.　The amount shall be within a range that is reasonable in light of economic conditions and other circumstances, the responsibilities of the position, and the objective of securing excellent human resources.

Directors (Audit and Supervisory Committee Members) shall be paid only the basic remuneration in view of their duties.

The maximum amount of remuneration for Directors (excluding Directors who are Audit and Supervisory Committee Members) was resolved at the 22nd Ordinary General Meeting of Shareholders held on September 29, 2022 to be 300,000 thousand yen per year (excluding the employee salaries of Directors who concurrently serve as employees).

The maximum amount of remuneration for Directors (Audit and Supervisory Committee Members) was resolved at the same General Meeting of Shareholders to be 15,000 thousand yen per year.

The specific amount and timing of payment to each director shall be determined by a resolution of the Board of Directors.

However, the amount of remuneration for each individual director (Audit and Supervisory Committee Member) shall be determined through consultation among the Audit and Supervisory Committee members.

Not applicable.

He is the Managing Representative Partner of Mitsuba Audit Corporation and the Representative of Saito Certified Public Accountant Office, and has no business interests whatsoever with our Company. He attended all 13 Board of Directors meetings and all 13 Audit and Supervisory Committee meetings held during the current fiscal year, and has contributed to ensuring the soundness and appropriateness of the Board’s decision-making by offering his opinions from his professional perspective as a certified public accountant.

He is the company representative of Allegro Law Office and has no business interests whatsoever with our company. He attended 12 out of 13 Board of Directors meetings and 12 out of 13 Audit and Supervisory Committee meetings held during the current fiscal year, and has contributed to ensuring the soundness and appropriateness of the Board’s decision-making by offering his professional perspective as a lawyer.

5.     Status of Accounting Auditor：

6.    Outline of the system to ensure the appropriateness of business operations and the status of operation of such system

With regard to the systems to ensure the appropriateness of business operations (hereinafter in this section referred to as the "internal control system"), the Board of Directors of the Company resolved the "Regulations Concerning the Internal Control System" in June 2022. Under the Organizational Regulations and the Regulations on Segregation of Duties established after that resolution, the department in charge of the internal control system is the Corporate Planning Department, and the outline of the current system is as follows.

The Representative Director is responsible for overseeing the establishment and operation of the internal control system, while the Corporate Planning Department serves as the department in charge of these operations. The system covers the Company’s subsidiaries as well as other companies within the Group that are specifically designated by the Company as significant to its consolidated business operations. Our basic policy for establishing this system is to build a framework that enhances corporate value by improving the efficiency, effectiveness, and profitability of business activities; ensuring the propriety and accuracy of financial statement preparation; upholding compliance with laws, regulations, and social norms while maintaining sound corporate governance; safeguarding company assets; and establishing and operating an effective internal control system.

The following systems shall be established to build an internal control system.

All officers and employees shall comply with the Compliance Regulations as a code of conduct in the execution of their duties.

In order to establish, develop, and maintain a compliance system, the Company shall establish an Internal Audit Office, which shall periodically monitor the status of internal operations and investigate the status of compliance with laws, the Articles of Incorporation, and internal regulations in the execution of business operations.

The Internal Audit Office shall notify the departments concerned of the results of its investigations, request improvements, and report to the Board of Directors and the Audit and Supervisory Committee as appropriate.

The Company shall appropriately store and manage information such as minutes of the General Meeting of Shareholders, minutes of the Board of Directors meetings, etc., and maintain a management system that enables prompt response to requests for inspection by relevant parties.

The Board of Directors shall hold a regular meeting once a month, as well as flexible extraordinary meetings as necessary, to facilitate prompt management decision-making and to ensure communication among directors.

In addition, the Company has introduced an executive officer system under which each executive officer is delegated authority to execute operations under the direction and supervision of the Board of Directors in order to improve management efficiency.

The Company shall implement corporate governance for the Company group as a whole and develop a compliance system, risk management system, and internal control system.

In addition, the Company shall dispatch officers to subsidiaries, and the director in charge of each subsidiary shall report on the operations of the subsidiary and the status of execution of duties by directors and others at important meetings such as the Company's Board of Directors meetings.

When requested by Audit and Supervisory Committee members to assign employees to assist them in their duties, the Company will assign staff as necessary, after consulting with Audit and Supervisory Committee members. Personnel transfers and evaluations of such staff members shall be determined with the prior consent of full-time Audit and Supervisory Committee Members, thereby ensuring their independence from Directors.

In principle, such staff members shall be full-time employees and shall not receive instructions or orders from directors or other employees.

Directors shall regularly report on the status of the execution of their duties and other matters at meetings of the Board of Directors and other important meetings attended by Audit and Supervisory Committee members. In addition, directors and employees of the Company and its subsidiaries shall promptly report to the Audit and Supervisory Committee members any occurrence or threat of occurrence of material matters affecting the operations and business performance of the Company and its subsidiaries.

The Audit and Supervisory Committee members may request reports from the directors, employees, etc. of the Company and its subsidiaries regarding the aforementioned matters reported and the status of business execution. Any disadvantageous treatment of a person who makes such a report shall be prohibited.

Furthermore, the Audit and Supervisory Committee members shall maintain cooperation with the accounting auditors or the hotline contact as necessary to exchange information and opinions as appropriate and to enhance their audits.

In the event that an Audit and Supervisory Committee member requests payment of expenses incurred in the performance of his/her duties, the Company will promptly pay such expenses unless such expenses are clearly deemed not necessary for the performance of his/her duties.

We do not have any business relationships with antisocial forces or groups that threaten the order and safety of society, and if we receive any unreasonable demands from antisocial forces, the entire organization will take a resolute stance in dealing with them.

(2)   Overview of the status of operation of the systems to ensure the appropriateness of business operations

The development of the internal control system, including that of subsidiaries, remains insufficient.

In the next fiscal year, the Company aims to promptly develop the internal control system and operate it appropriately.

During the current fiscal year, to strengthen risk management, the Risk and Compliance Management Committee continued to hold deliberations every three months (five meetings during the year, including one extraordinary meeting).

With regard to compliance activities, four training sessions were conducted for officers and employees during the year (refresher training on harassment, training on customer harassment, training on the Act on Prevention of Transfer of Criminal Proceeds, and training on contracting agreements). In addition, the Internal Audit Office continues to conduct audits of the compliance of each department's operations with laws, regulations, internal rules, etc., and the results of internal audits are reported to the Representative Director and President and the Audit and Supervisory Committee.

During the current fiscal period, delays have occurred in the preparation and retention of certain important information including meeting minutes. Going forward, we will ensure that minutes of board meetings and other relevant documents are prepared and retained without delay.

The Regulations Concerning the Internal Control System, the Information Management Regulations, the Credit Management Regulations, the Seal Management Regulations, the Regulations for the Exclusion of Antisocial Forces, the Insider Trading Prevention Regulations, the Document Management Regulations, the Regulations on the Management of Regulations and other regulations continue to require a review of their contents to enhance their effectiveness, in light of changes in social and legal requirements and changes in the Company's operational realities and organizational structure (including the change of the department in charge of the internal control system).

Going forward, the Company will promptly update and revise each regulation while ensuring thorough awareness among officers and employees through training and other measures.

Regular meetings of the Board of Directors were held once a month, and extraordinary meetings of the Board of Directors were held, and written resolutions were adopted flexibly as necessary.

With regard to the operations of subsidiaries and the status of execution of duties by their directors, etc., reports, communications and consultations are made to the Representative Director and President of the Company as appropriate; however, reporting to the Board of Directors of the Company is not sufficient.

Going forward, the Company will establish Group-wide rules on corporate governance and require subsidiaries to report regularly to the Board of Directors of the Company.

The Audit and Supervisory Committee made no such request during the fiscal year.

Should such a request be made, the Company will respond in accordance with the matters decided in (1) ② above.

An appropriate environment has been secured for the Audit and Supervisory Committee Members to receive reports from officers and employees, as well as opportunities for necessary exchange of information with the Accounting Auditor or the person in charge of the whistleblowing hotline.

The Audit and Supervisory Committee made no such request during the fiscal year.

Should such a request be made, the Company will respond in accordance with the matters decided in (1) ② above.

During the current fiscal year, checks for antisocial forces were conducted using Internet-based information services; however, operation based on the Regulations for the Exclusion of Antisocial Forces has not yet been achieved.

Going forward, the Company aims to promptly develop the system and operate it appropriately.

(Note) The amounts stated in this business report are rounded down to the nearest unit.

Consolidated Balance Sheet

(As of June 30, 2026)

(Unit: Thousands of yen)

(Note) Amounts are rounded down to the nearest thousand yen.

Consolidated Statement of Income

(From July 1, 2025 to June 30, 2026)

(Unit: Thousands of yen)

(Note) Amounts are rounded down to the nearest thousand yen.

Consolidated Statement of Changes in Equity

(From July 1, 2025 to June 30, 2026)

(Unit: Thousands of yen)

Shareholders' equity

Accumulated other comprehensive income / Total net assets

(Note) Amounts are rounded down to the nearest thousand yen.

Notes to Consolidated Financial Statements

Notes on significant matters forming the basis of preparing consolidated financial statements

(1) Matters concerning the scope of consolidation

①  Status of consolidated subsidiaries

Number of consolidated subsidiaries: 6 

Names of consolidated subsidiaries:
Real Vision Co., Ltd
LRE Management Co., Ltd
GLOCALY Co., Ltd
LEAD REAL ESTATE GLOBAL Co., LTD
LEAD REAL ESTATE HK Co., LIMITED

Although the Company does not hold voting rights in LEAD REAL ESTATE Cayman Limited, the Company substantially controls decisions on its financial and business policies through the dispatch of officers; therefore, it is treated as a subsidiary and included in the scope of consolidation.

②  Status of non-consolidated subsidiaries

Name of non-consolidated subsidiary       JP Syuhan Co., Ltd

Although the Company does not hold voting rights in the above non-consolidated subsidiary, the Company substantially controls decisions on its financial and business policies through the dispatch of officers, etc., and therefore treats it as a subsidiary. The subsidiary is small in scale, and its total assets, net sales, profit or loss (the amount corresponding to the Company's equity interest) and retained earnings (the amount corresponding to the Company's equity interest) have no material effect on the consolidated financial statements; therefore, it is excluded from the scope of consolidation.

(2) Matters concerning application of the equity method

There are no non-consolidated subsidiaries or associates accounted for by the equity method. The non-consolidated subsidiary JP Syuhan Co., Ltd is excluded from the scope of application of the equity method because, in terms of its profit or loss (the amount corresponding to the Company's equity interest) and retained earnings (the amount corresponding to the Company's equity interest), its exclusion from the equity method has an immaterial effect on the consolidated financial statements and it is not material as a whole.

(3) Matters concerning the fiscal years of consolidated subsidiaries

The fiscal year-end of the consolidated subsidiaries coincides with the consolidated fiscal year-end.

(4) Notes on matters concerning significant accounting policies Valuation standards and methods for assets

Securities other than shares, etc. without market prices: Stated at fair value based on market prices, etc. at the fiscal year-end (valuation differences are recorded directly in net assets and the cost of securities sold is calculated by the moving-average method).

Shares, etc. without market prices: Stated at cost determined by the moving-average method.

Stated at fair value.

Real estate for sale: Stated at cost determined by the specific identification method (the amount on the balance sheet is calculated by writing down the book value to reflect declines in profitability).

Costs on uncompleted construction contracts: Stated at cost determined by the specific identification method (the amount on the balance sheet is calculated by writing down the book value to reflect declines in profitability).

Merchandise and supplies: Stated at cost determined by the moving-average method (the amount on the balance sheet is calculated by writing down the book value to reflect declines in profitability).

Depreciation and amortization methods for significant non-current assets

The declining-balance method is applied. However, the straight-line method is applied to buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998, and to facilities attached to buildings and structures acquired on or after April 1, 2016.

The principal useful lives are as follows:

The straight-line method is applied. Software for internal use is amortized by the straight-line method over the estimated internal useful life (5 years).

The straight-line method is applied, with the lease term as the useful life and a residual value of zero.

Accounting standards for provisions

To provide for losses from bad debts, the Company records an estimated uncollectible amount based on the historical bad debt ratio for general receivables and on an assessment of collectability for specific receivables such as doubtful accounts.

To provide for the payment of retirement benefits to directors, the Company records the amount required to be paid at the fiscal year-end in accordance with the Regulations on Retirement Benefits for Officers.

To provide for expenses such as defect warranties on completed construction, the Company records the estimated future expenditures based on the actual ratios for the current and past fiscal years.

To provide for losses relating to rent guarantees, the Company records the estimated future expenditures based on the historical ratios.

Accounting standards for significant revenues and expenses

The real estate sales business mainly sells land, detached houses, offices and condominiums. Revenue is recognized at the point in time when the customer (buyer) obtains control of the real estate, etc., through the fulfillment of the delivery obligation stipulated in the sales contract for the real estate, etc.

In the construction business, the Company enters into construction contracts with customers for detached houses, rental housing, hotels, etc., and assumes the performance obligation to carry out construction work based on such contracts. The Company has determined that the performance obligations under these contracts are satisfied over a period of time, and recognizes revenue based on the progress toward satisfaction of the performance obligation, except for construction that is of small amount or completed within a short period.

The progress toward satisfaction of the performance obligation is estimated based on the ratio of actual construction output to the total contracted construction output (output method).

Where the progress of a contract cannot be reasonably estimated, revenue reflecting the status of satisfaction of the performance obligation cannot be recognized appropriately; in such cases, the cost recovery method is applied and revenue is not recognized until recovery of the costs incurred is confirmed.

Other significant matters forming the basis of preparing consolidated financial statements

Monetary receivables and payables denominated in foreign currencies are translated into yen at the spot exchange rate on the fiscal year-end date, and translation differences are recognized as profit or loss. The assets and liabilities of foreign subsidiaries are translated into yen at the spot exchange rate on the consolidated fiscal year-end date, and their revenues and expenses are translated at the average exchange rate for the period; translation differences are included in foreign currency translation adjustment under net assets.

Notes on significant accounting estimates

①  Construction revenue recognized over a period of time

Construction revenue recognized over a period of time under the output method is recorded based on reasonably estimated total construction revenue, total construction costs and the progress toward satisfaction of the performance obligation at the fiscal year-end. As such estimates involve a certain degree of uncertainty, if a revision of the estimates becomes necessary, construction revenue may change and affect the results of operations in subsequent consolidated fiscal years.

Notes to the consolidated balance sheet

①  Assets pledged as collateral and secured liabilities

* Assets pledged as collateral are stated at acquisition cost.

②  Accumulated depreciation of property, plant and equipment

Notes to the consolidated statement of changes in equity

①  Class and number of shares issued as of the end of the current consolidated fiscal year

②  Matters concerning dividends

A proposal for the distribution of surplus was resolved at the Ordinary General Meeting of Shareholders held on September 29, 2025.

The following matters concerning dividends on common shares are proposed as an agenda item for the Ordinary General Meeting of Shareholders to be held on September 29, 2026.

Notes on financial instruments

①  Matters concerning the status of financial instruments

The Company limits the investment of funds to short-term deposits, etc. Necessary funds are raised through indirect financing by bank borrowings. Investment of funds is limited to deposits, etc. in order to secure liquidity and safety of funds.

Investment securities held by the Company are mainly shares of investee companies and are exposed to the credit risk of the issuers and the risk of fluctuations in market prices; in addition, unlisted shares have low liquidity.

(a) Management of issuers' credit risk: The Company monitors the management status of investees as needed and on a regular basis, and endeavors to identify at an early stage any deterioration in financial condition or delays in business plans.

(b) Management of market risk: For listed companies among investment securities, the Company continuously monitors fair values and the management status of the issuers.

(c) Management of liquidity risk related to financing: The Company manages liquidity risk by monitoring cash receipts and payments and regularly preparing cash flow plans.

②  Matters concerning fair values, etc. of financial instruments

Of the financial instruments as of June 30, 2026, financial instruments other than long-term borrowings are considered immaterial in amount or are settled in a short period of time so that their fair values approximate their book values; therefore, information on fair values, etc. is omitted.

The balance sheet amount, fair value and difference of long-term borrowings are as follows.

(Unit: Thousands of yen)

Notes on per share information

Notes on revenue recognition

As described in "Accounting standards for significant revenues and expenses" under "Notes on matters concerning significant accounting policies."

Additional information

Change in the purpose of holding assets

During the current consolidated fiscal year, in connection with a review of its business policy, the Company changed the purpose of holding a portion of its hotel real estate to holding for sale. As a result, 825,043 thousand yen was transferred to real estate for sale and costs on uncompleted construction contracts.

Independent Auditor s Report

Non-consolidated Balance Sheet

(As of June 30, 2026)

(Unit: Thousands of yen)

(Note) Amounts are rounded down to the nearest thousand yen.

Non-consolidated Statement of Income

(From July 1, 2025 to June 30, 2026)

(Unit: Thousands of yen)

(Note) Amounts are rounded down to the nearest thousand yen.

Non-consolidated Statement of Changes in Equity 

(From July 1, 2025 to June 30, 2026)

(Unit: Thousands of yen)

Shareholders' equity (1)

Shareholders' equity (2)

Valuation and translation adjustments / Total net assets

(Note) Amounts are rounded down to the nearest thousand yen.

Notes to Non-consolidated Financial Statements

Notes on matters concerning significant accounting policies

Valuation standards and methods for assets

Securities other than shares, etc. without market prices: Stated at fair value based on market prices, etc. at the fiscal year-end (valuation differences are recorded directly in net assets and the cost of securities sold is calculated by the moving-average method).

Shares, etc. without market prices: Stated at cost determined by the moving-average method.

Stated at fair value.

Real estate for sale: Stated at cost determined by the specific identification method (the amount on the balance sheet is calculated by writing down the book value to reflect declines in profitability).

Costs on uncompleted construction contracts: Stated at cost determined by the specific identification method (the amount on the balance sheet is calculated by writing down the book value to reflect declines in profitability).

Merchandise and supplies: Stated at cost determined by the moving-average method (the amount on the balance sheet is calculated by writing down the book value to reflect declines in profitability).

Depreciation and amortization methods for non-current assets

The declining-balance method is applied. However, the straight-line method is applied to buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998, and to facilities attached to buildings and structures acquired on or after April 1, 2016.

The principal useful lives are as follows:

The straight-line method is applied. Software for internal use is amortized by the straight-line method over the estimated internal useful life (5 years).

The straight-line method is applied, with the lease term as the useful life and a residual value of zero.

Accounting standards for provisions

To provide for losses from bad debts, the Company records an estimated uncollectible amount based on the historical bad debt ratio for general receivables and on an assessment of collectability for specific receivables such as doubtful accounts.

To provide for the payment of retirement benefits to directors, the Company records the amount required to be paid at the fiscal year-end in accordance with the Regulations on Retirement Benefits for Officers.

To provide for expenses such as defect warranties on completed construction, the Company records the estimated future expenditures based on the actual ratios for the current and past fiscal years.

To provide for losses relating to rent guarantees, the Company records the estimated future expenditures based on the historical ratios.

Accounting standards for revenues and expenses

The real estate sales business mainly sells land, detached houses, offices and condominiums. Revenue is recognized at the point in time when the customer (buyer) obtains control of the real estate, etc., through the fulfillment of the delivery obligation stipulated in the sales contract for the real estate, etc.

In the construction business, the Company enters into construction contracts with customers for detached houses, rental housing, hotels, etc., and assumes the performance obligation to carry out construction work based on such contracts. The Company has determined that the performance obligations under these contracts are satisfied over a period of time, and recognizes revenue based on the progress toward satisfaction of the performance obligation, except for construction that is of small amount or completed within a short period.

The progress toward satisfaction of the performance obligation is estimated based on the ratio of actual construction output to the total contracted construction output (output method).

Where the progress of a contract cannot be reasonably estimated, revenue reflecting the status of satisfaction of the performance obligation cannot be recognized appropriately; in such cases, the cost recovery method is applied and revenue is not recognized until recovery of the costs incurred is confirmed.

Other significant matters forming the basis of preparing financial statements

Monetary receivables and payables denominated in foreign currencies are translated into yen at the spot exchange rate on the fiscal year-end date, and translation differences are recognized as profit or loss.

Notes on accounting estimates

Notes to the balance sheet

* Assets pledged as collateral are stated at acquisition cost.

Notes to the statement of income

Selling, general and administrative expenses 13,693 thousand yen

Transactions other than operating transactions 1,634 thousand yen

Notes to the statement of changes in equity

Notes on tax effect accounting

Breakdown of deferred tax assets and deferred tax liabilities by major cause

(Unit: Thousands of yen)

Notes on per share information

Notes on revenue recognition

As described in “Accounting standards for revenues and expenses” under “Notes on matters concerning significant accounting policies.”

Additional information

Change in the purpose of holding assets

During the current fiscal year, in connection with a review of its business policy, the Company changed the purpose of holding a portion of its hotel real estate to holding for sale. As a result, 825,043 thousand yen was transferred to real estate for sale and costs on uncompleted construction contracts.

Notes on significant subsequent events

Transactions under common control

Effective September 1, 2026, the Company carried out a company split (the “Company Split”) under which its DX business was succeeded by GLOCALY Co., Ltd., a wholly owned subsidiary of the Company. The Company Split is based on the absorption-type split agreement entered into between the Company and GLOCALY Co., Ltd. on July 16, 2026. GLOCALY Co., Ltd. was newly established as a wholly owned subsidiary of the Company on June 18, 2026.

(1) Prompt entry into new business areas

(2) Improvement in the speed of decision-making

(3) Limitation of risks

(1) Details of the business split off: DX business

(2) Items and amounts of assets and liabilities split off: Assets split off: Software 2,988 thousand yen; Liabilities split off: None

(3) Effective date of the absorption-type split: September 1, 2026

(4) Method of the Company Split: A simplified absorption-type split with the Company as the splitting company and GLOCALY Co., Ltd. as the succeeding company

(5) Amount and type of consideration: No consideration was delivered in connection with the Company Split.

The transaction was accounted for as a transaction under common control in accordance with the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013) and the “Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, January 16, 2019).

Copy of the Audit Report of the Audit and Supervisory Committee

Reference Documents for the General Meeting of Shareholders

Proposal 1: Appropriation of surplus

The appropriation of retained earnings is proposed as follows.

Matters related to year-end dividends

The Company regards the return of profits to shareholders as an important management issue, and its basic policy is to pay stable and continuous dividends.

Based on the above policy, the Company proposes the year-end dividend for the 26^th fiscal year as follows in order to strengthen returns to shareholders.

Cash

10 yen per share of common stock

Total amount of dividends　　　　　　　　　　　　136,419,000 yen

Proposal 2: Election of three directors (excluding directors who are members of the Audit and Supervisory Committee)

Three directors (excluding directors who are members of the Audit and Supervisory Committee; the same applies throughout this proposal) will complete their terms upon the conclusion of this General Meeting. Therefore, we request the election of three directors as follows. The candidates for directors are as follows.

Note 1: There are no special conflicts of interest between any of the candidates and the Company.

Note 2: The Company has entered into a directors’ and officers’ liability insurance policy with an insurance company, with the directors as the insured parties. If the appointments of Mr. Eiji Nagahara, Mr. Hidekazu Hamagishi, and Mr. Kenichi Honma as directors are approved, each candidate will be included as an insured party under said insurance policy.

Proposal 3: Amendment to the Regulations on Retirement Allowance for Officers

Regarding our Company’s Regulations on Retirement Allowances for Officers, in light of a comment received during the audit conducted by our accounting auditor that the criteria for determining the upper limit of monthly compensation—which serves as the basis for calculating retirement allowances—were unclear, we have: (1) clarified the upper limit for calculating retirement allowances; (2) clarified the criteria for determining monthly compensation and job titles; (3) to revise the regulations to align them with the current organizational structure and operational practices. Accordingly, the Board of Directors, at its meeting held on June 25, 2026, resolved to partially amend the regulations. The amended regulations stipulate that any amendment or repeal of the regulations must be approved by a resolution of the General Meeting of Shareholders, and we hereby request your approval of this amendment. The amended regulations will take effect on September 30, 2026, subject to approval at this General Meeting.

The summary of the amendments is as follows.

The full text of the revised Regulations on Retirement Gratuities for Officers is attached.

End

Regulations on Retirement Allowance for Officers (Draft)

(Purpose)

Article 1. These Regulations shall prescribe the determination procedures, base amounts, and other relevant matters for officers' retirement benefits to be paid upon the retirement of Directors (including Directors who are Audit and Supervisory Committee Members; hereinafter referred to as "Officers").

2. "Retirement" under these Regulations shall not include the death of an Officer.

(Determination Procedures)

Article 2. As a general rule, when an Officer retires, the Board of Directors shall determine a concrete proposal for the payment of the Officer's retirement benefit on a case-by-case basis pursuant to these Regulations and shall pay it upon obtaining approval at the General Meeting of Shareholders.

2. Notwithstanding the preceding paragraph, if the concrete calculation method is described in these Regulations which have already been approved by the General Meeting of Shareholders, the benefit may be paid by a resolution of the Board of Directors, provided that approval is obtained at the General Meeting of Shareholders to "pay the Officer's retirement benefit to said Officer in accordance with these Regulations" and to "delegate the determination of the concrete amount and other matters to the Board of Directors." In this case, if approval is obtained at the General Meeting of Shareholders to "delegate the determination of the concrete amount and other matters to the President instead of the Board of Directors," this shall not preclude payment based on the President's decision.

3. In paying the Officer's retirement benefit, if the annual remuneration amount for the Officer, including the payment amount of said retirement benefit, exceeds the separately established annual remuneration limit, approval for a change to the remuneration limit must be obtained at the General Meeting of Shareholders.

(Involvement of the Audit and Supervisory Committee, etc.)

Article 3. In any of the cases set forth in the preceding Article, the consent of the Audit and Supervisory Committee must be obtained regarding the details of the Officer's retirement benefit payment to an Officer who is an Audit and Supervisory Committee Member, or the details of the change to the annual remuneration limit. Each Audit and Supervisory Committee Member may state their opinion at the General Meeting of Shareholders.

2. The Audit and Supervisory Committee shall determine its opinion regarding proposals for the payment of Officers' retirement benefits to Officers who are not Audit and Supervisory Committee Members. This opinion may be stated at the General Meeting of Shareholders by an Audit and Supervisory Committee Member selected by the Committee.

(Calculation of the Base Amount for Officers' Retirement Benefit Payments)

Article 4. The base amount for the Officer's retirement benefit payment (hereinafter referred to as the "Base Payment Amount") shall be calculated as follows:

Base Payment Amount = Basic Calculation Amount (Monthly Remuneration × Coefficient) × Years of Service

<Table> Table of Categories for Calculating Standard Benefit Amounts

①  The monthly compensation amount shall be the highest monthly compensation amount paid continuously for one year or more during the term of office, excluding executive bonuses, lump-sum payments, other one-time payments, and the salary portion for individuals serving in dual roles as employees.

②  “Position” means the highest position to which a person has been continuously appointed for one year or more during their term of office.

③  The term of office shall be calculated by dividing the number of months—counted from the month in which the director assumed office to the month in which the director stepped down—by 12, and rounding up any decimal portion.

④  When calculating the standard payment amount, the amount may not exceed the following two types of upper limits, which are set for each position.

(1) Upper limit on the calculation base amount (monthly remuneration × coefficient)

(2) Upper limit on the standard payment amount (monthly increment × years of service)

(Increases and decreases)

Article 5: Where there are reasonable grounds, the standard payment amount calculated pursuant to the preceding Article may be increased or reduced to determine the final payment amount. However, in the case of an increase, approval must be obtained individually from the General Meeting of Shareholders in accordance with the principle set forth in Article 2, Paragraph 1.

(Timing and Method of Payment)

Article 6: Retirement benefits for officers shall, in principle, be paid within two months after they are determined.

2. In the event of the Company’s financial circumstances or other unavoidable circumstances, payment may be made in installments or by other methods after consultation with the relevant officer.

(Relationship with Insurance Policies Held by the Company)

Article 7: All insurance proceeds, surrender values, and other benefits arising from life insurance policies or other similar insurance contracts in which the Company is the policyholder shall belong entirely to the Company, regardless of whether they are used as a source of funds for the payment of retirement benefits for officers.

2. Officers shall have no rights whatsoever to insurance proceeds, surrender values, or any other benefits under the insurance contracts referred to in the preceding paragraph.

(Amendment and Repeal of These Regulations)

Article 8: Any amendment or repeal of these Regulations shall be decided by resolution of the General Meeting of Shareholders. However, when establishing, amending, or repealing provisions concerning officers who are members of the Audit and Supervisory Committee, the consent of the Audit and Supervisory Committee must be obtained prior to the decision on the agenda item at the General Meeting of Shareholders.

<Supplementary Provisions>

1. These regulations shall take effect on December 1, 2014.

2. Certain provisions of these regulations shall be amended and take effect on January 22, 2021.

3. Certain provisions of these regulations shall be amended and take effect on September 30, 2026.