Mr. Mei Kanayama, Representative Director and Principal Executive Officer of Tokyo Lifestyle, entered into a five-year HKD 7.5 million (approximately US$0.96 million) loan agreement with the companyaEUR(TM)s wholly-owned Hong Kong subsidiary, Tokyo Lifestyle Limited, to support the subsidiaryaEUR(TM)s working capital and operational needs.

Tokyo Lifestyle Co., Ltd. ("Tokyo Lifestyle" or the "Company") (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia, today announced that Mr. Mei Kanayama, its Representative Director and Principal Executive Officer, entered into a five-year loan agreement for HKD 7.5 million (approximately US$0.96 million) (the "Loan Agreement") with its wholly-owned Hong Kong subsidiary, Tokyo Lifestyle Limited ("TLS"), on February 19, 2026, to support TLS's working capital and operational needs.

Pursuant to the Loan Agreement, TLS will receive the loan from Mr. Mei Kanayama on February 28, 2026, with a term running from February 1, 2026 to January 31, 2031. Repayment will follow a schedule mutually agreed upon by both parties. TLS will pay interest on each annual repayment date until all principal and accrued interest are fully repaid. Any outstanding principal and remaining interest will be settled in a lump sum on the final repayment date. The annual interest rate is 4.35%, which is favorable compared to prevailing commercial lending rates in the current high-interest-rate environment.

The Hong Kong retail market is returning to a steady recovery trajectory. According to a recent report by Deloitte China, Hong Kong's retail sales are expected to increase by nearly 8% year-on-year, reaching HK$410 billion (approximately US$52.41 billion) in 2026, following a notable rebound in the second half of 2025. Within this total, the pharmaceuticals and cosmetics sector is projected to grow by 11%.

Against this backdrop, TLS anticipates that the funding from Mr. Mei Kanayama will replenish its operating capital, enabling the continued execution of its strategic initiatives and expansion plans. This is expected to further strengthen its market presence and sales network, which extend into surrounding markets such as Macau and Mainland China.

Mr. Mei Kanayama commented: "As a core shareholder and executive of Tokyo Lifestyle, I am committed not only to leading the Company's daily operations but also to demonstrating my commitment to TLS's continued growth through concrete actions. This loan to TLS reflects my confidence in the Company's future prospects, business model, and financial position.

"As macroeconomic conditions show signs of improvement and local markets begin to recover, TLS's solid operational capabilities and extensive retail network position it well for further growth. Alongside the warming external environment, spending by both local consumers and returning tourists may gradually increase. This trend is particularly supported by the strengthening RMB, which could potentially support sales of beauty and health products. Under such macroeconomic tailwinds, TLS's existing business positioning is poised to pursue sustainable growth and further expansion.

"Although the positive impact of macroeconomic improvements on the retail sector tends to emerge gradually, it is essential to prepare in advance, particularly in terms of capital. This preparation allows TLS to seize market opportunities and remain aligned with broader market momentum through well-planned marketing initiatives and effective execution.

"Moreover, TLS's ongoing efforts to enhance omnichannel integration, optimize its store network, and elevate the overall shopping experience all require sustained and stable financial support to ensure continued progress and long-term competitiveness.

"I believe this personal funding will strengthen TLS's financial position and support its ability to pursue strategic initiatives and capture potential opportunities as market conditions evolve. This commitment underscores my belief in TLS's fundamentals and long-term growth potential, and I look forward to achieving new milestones together with our team."

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COMTEX_478472905/2227/2026-05-03T21:18:19