Revenues from overseas franchise expansion consist of the following two points:

①Sales of battery stands and mobile batteries

The timing of these sales depends on the franchise operator’s business circumstances, and our company does not have full control over this timing. Historical sales data suggests an increase towards the end of the year, but we attribute this to fluctuations in the operator’s business conditions rather than seasonality.

②Royalty income

We receive a portion of the sales from each area as royalties. The conditions are negotiated with the franchisee, and these revenues tend to increase as their business expands.

(As these details are based on individual contracts, we are unable to provide further specifics.)