Quantum Solutions Co., Ltd. concludes a joint venture agreement with FOMM Co., Ltd. and decides to establish a joint venture company

Quantum Solutions Co., Ltd. has a capital and business alliance with FOMM Co., Ltd. (hereinafter referred to as "FOMM Co., Ltd.") in the "Notice Concerning Capital and Business Alliance with FOMM Co., Ltd." disclosed on July 12, 2021. This capital and business alliance ”.) In addition to this, on August 24, 2021, it was decided to conclude a joint venture agreement with FOMM and establish a joint venture. We are pleased to inform you that we have done so. 1. Purpose of establishing a joint venture In this capital and business alliance, the Group plans to invest in FOMM, but as a result of discussions with FOMM, in addition to that, the EV (electric vehicle) production system in China In order to build and maintain the sales system more quickly, the Group and FOMM have agreed to establish a joint venture in Hong Kong (trade name: Quantum FOMM Limited, hereinafter referred to as "new company"). , We have decided to build and improve the EV production system and sales system in China, centering on the new company. The investment in the new company will be made directly by Asia TeleTech Investment Limited (hereinafter referred to as "ATT"), which is a wholly owned subsidiary of the Company, and from the FOMM side, it will be made by FOMM itself. is. 2. Purpose and strategy of this capital and business alliance (1) Short-term (12 months) measures FOMM's vehicle, which is a slightly improved version of the existing "FOMM ONE model" currently produced by FOMM, will be released in China as soon as possible. Consider mass production. In doing so, we will leverage China's efficient supply chain to reduce production costs as much as possible. We plan to reduce the selling price by reducing production costs, which is expected to significantly improve the sales and profits of the new company and FOMM in a relatively short period of time (within the target period of 12 months). (2) Medium-term (12 to 24 months) measures Aiming to launch a new EV that is more premium and has human-car interaction using the Internet, first of all, small cities and rural towns in China with a large population We will launch the new EV in the Chinese market as the center. "Providing a person-to-car interaction" is a combination of actions similar to human-to-human dialogue, language, gestures, and line-of-sight interaction, which are used for interaction with the car at the same time. Means what you do. The driver can intuitively select the desired operation mode according to the situation and background, and the vehicle side can reliably detect (driver's) voice instructions, gestures, and gaze directions, and these are combined to make sense. It will automatically determine what to do. FOMM produces small EVs (new EVs will also be small EVs), which are suitable for small cities and rural towns in China with a large population. Roads in small cities and rural towns are narrow, and there are problems such as difficulty in passing by ordinary cars and difficulty in handling cars, so large demand for small EVs is expected. Based on our intentions regarding (1) and (2) above, we are currently in earnest discussions with FOMM. 3. Overview of the joint venture 4. Outlook for the performance of the joint venture The new company plans to establish a subsidiary in mainland China (planned for Shanghai) to build and improve the EV production system and sales system. , The outlook for business results is currently under scrutiny and will be disclosed as soon as the outlook is available. 5. Outline of the business alliance partner 6. Outline of ATT 7. Schedule * Establish a new company with an ATT equity ratio of 100% before concluding the joint venture agreement, and invest in the new company from FOMM after concluding the agreement. Will be a joint venture. 8. Future outlook The impact of this matter on business results is currently under scrutiny. If disclosure is required after the scrutiny is completed, we will promptly disclose it. [Company Profile of Quantum Solutions Co., Ltd.] Trade name: Quantum Solutions Co., Ltd. (TSE Second Section Code No. 2338) Location: 1-10-9 Kudankita, Chiyoda-ku, Tokyo Representative: Representative Director Business: Content development and distribution software contract development company URL: https://www.quantum-s.co.jp/Quantum Solutions Co., Ltd. Establishes Joint Venture with FOMM Company Limited (23 August 2021) According to the announcement dated 12 July 2021 in respect of “Notice of Capital and Business Alliance with FOMM Limited”, Quantum Solutions (hereinafter referred to as the “Company”) has agreed to form a capital and business alliance (hereinafter referred to as the “Capital and Business”) Alliance ”) with FOMM Limited (hereinafter referred to as“ FOMM ”) and a joint venture agreement was signed today.1.Purpose of setting up the joint venturePursuant to the Capital and Business Alliance, the Group has agreed to invest in FOMM. After discussion, the two parties agreed to set up a joint venture in Hong Kong, namely Quantum FOMM Limited (hereinafter referred to as the “New Company”), to manufacture and distribute electric vehicles in China, in other words to serve the two companies as a vehicle to tap the China market. Asia TeleTech Investment Limited (hereinafter referred to as “ATT”), a wholly-owned subsidiary of the Company, will contribute capital direct to the New Company FOMM will contribute capital as well.2.Purpose and strategy of the Capital and Business Alliance (1) Short term plan (12 months) The New Company plans to start mass production in China as soon as possible after making minor adjustments to the FOMM's existing vehicle model – “FOMM ONE”. The two parties expect production costs to be significantly reduced by leveraging the highly efficient supply chain in China.With production cost lowered, selling price will follow, and correspondingly significant increase in sales volume is projected. Therefore, FOMM and the New Company can expect to see sales volume climb markedly within a short period of time (within 12 months). (2) Medium-term plan (12-24 months) To launch a new type of EV that allow s people-vehicle interaction via the Internet, it will first be launched in the China market, mainly in small cities and rural areas with large populations in the country.As an independent Japanese mini-electric vehicle brand, FOMM is going to target small towns The major product of FOMM is mini electric vehicle, which is suitable for use in small towns and rural areas of China, where the population is large while the roads are narrow for conventional vehicles to navigate. Therefore, mini electric vehicles should have huge demand in those towns and areas.3.Joint Venture Companies Information 4. The financial results of joint ventureThe New Company will set up a subsidiary in China (tentatively in Shanghai) to produce and distribute electric vehicles. Related financial results will be disclosed once they are available. 5. Overview of business partners6. Overview of ATT7. Schedule It is expected that the New Company will be established with 100% of ATT's shares. After signing a joint venture contract, FOMM will contribute capital to the new company after which the joint venture will be deemed set up.8. Future valuationThe impact of this performance is being evaluated and [Quantum Solutions Co., Ltd. Company Summary] Company name: Quantum Solutions Co., Ltd. (Second section of the Tokyo Stock Exchange Stock code: 2338) Address: 1-10-9 Kudan Kita, Chiyoda-ku, Tokyo JapanRepresentative: Chairman of the board SHAO YUNCapital: 2,559 million yenBusinesses: Content development and distribution Software developmentCompany URL: https://www.quantum-s.co.jp/