INSIDE INFORMATIONANNUAL SECURITIES REPORT OFTHE CONTROLLING SHAREHOLDER,TSUGAMI CORPORATIONFOR THE YEAR ENDED 31 MARCH 2024

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.Precision Tsugami (China) Corporation Limited 津上精密机床（中国）有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock code: 1651) INSIDE INFORMATION ANNUAL SECURITIES REPORT OF THE CONTROLLING SHAREHOLDER TSUGAMI CORPORATION FOR THE YEAR ENDED 31 MARCH 2024 This announcement is issued by Precision Tsugami (China) Corporation Limited (the “Company”) pursuant to Part XIVA of the Securities and Futures Ordinance and Rule 13.09(2)(a) of the RulesGoverning the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ListingRules”).Reference is made to the announcement made by the Company on 14 May 2024 in relation to the financial results of the Company’s controlling shareholder Tsugami Japan for the year ended 31 March 2024 (the “Announcement”). Capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement unless otherwise defined.According to the Announcement Tsugami Japan will file the Tsugami Japan’s Annual Securities Report on 19 June 2024. The Board wishes to update the shareholders and potential investors of the Company that following Tsugami Japan’s adoption of IFRS as its accounting standard certain additional financial information and/or related information relating to the Group will be included in Tsugami Japan’s Annual Securities Report.Although Tsugami Japan adopts the same accounting standard as the Group adopted for the preparation and presentation of its consolidated financial results and related financial information the difference in entities comprising Tsugami Japan’s consolidation and the Group’s consolidation makes the financial results and related information set forth in Tsugami Japan’s Annual Securities Report not directly comparable to the financial results and related financial information that the Company discloses. For example any inter-company transactions between Tsugami Japan and the Group would be eliminated for Tsugami Japan’s Annual Securities Report but remain recorded for the Group’s financial results.Set out below is the disclosure in relation to the financial performance and/or business of the Group as extracted from Tsugami Japan’s Annual Securities Report: 1Extracted and translated from Tsugami Japan’s Annual Securities Report – Released by Tsugami Japan and prepared under IFRS 4. Situations of affiliates Ownership Capital or of voting Name Address investments Major business rights (%) Relations Precision Tsugami (China) Zhejiang China 517 million yuan Manufacturing and 100 (100) Manufactures and sells products of Corporation (Note 1 2 3) sales of machine the Company.tools in China There are interlocking officers.Precision Tsugami (China) The Cayman 380 million Holding Company 71.5 Holds all shares in Precision Corporation Limited Islands Hong Kong dollar Tsugami (Hong Kong) Limited.(Note 1) There are interlocking officers.Precision Tsugami (Hong Hong Kong 767 million Holding Company 100 (100) Holds all shares in Precision Kong) Limited (Note 1 3) China Hong Kong dollar Tsugami (China) Corporation.Shinagawa Precision Zhejiang China 35 million yuan Manufacturing and 100 (100) Manufactures and sells of machine Machinery (Zhejiang) sales of machine tool castings for products of the Co. Ltd (Note 3) tool castings in Company.China There are interlocking officers.Precision Tsugami (Anhui) Anhui China 150 million yuan Manufacturing and 100 (100) Manufactures and sells mainly Corporation (Note 1 3) sales of machine the products of the Company tools castings in and castings for products of the China Company.There are interlocking officers.Precision Nakatsu (China) Zhejiang China 223 million yuan Manufacturing and 100 (100) Plans to manufacture and sell the Corporation (Note 1 3) sales of machine products of the Company.tools in China There are interlocking officers.(Note) 1. The Company is classified as a specified subsidiary. 2. The ratio of the net sales of Precision Tsugami (China) Corporation (excluding intra-Group sales among consolidated companies) to consolidated net sales exceeded 10%.Information on major profit and other items (1) Revenue ?63208 million (2) Profit before tax ?14147 million (3) Profit ?10801 million (4) Total equity ?48043 million (5) Total assets ?69933 million 3. The figure in the parenthesis is the indirect ownership of voting rights. 25. Employees (1) Group employees As of March 31 2024 Business segment Number of employees China 2131 (-) (Note) 1. The number of employees is the number of people employed by the Group. The figure in parentheses is the annual average of temporary employees and is not included in the number of employees. 4 Analysis of financial position operating results and cash flows by management (1) Overview of operating results etc. * Financial position and operating results (Operating results) (Operating results by business segment) b. In China revenue was ?63395 million down by 21.1% year over year. Segment profit was ?12606 million down by 18.1% year over year.* Production orders received and sales a. Production performance The table below shows production performance by segment for the fiscal year under review.Consolidated fiscal year under review (from April 1 2023 Business segment to March 31 2024) Year on year (%) China (Million yen) 31081 67.9 (Note) 1. The amounts above are amounts before intra-Group transfers based on standard invoice prices. 2. The amounts above do not include consumption taxes. 3c. Sales performance The table below shows sales performance by business segment for the fiscal year under review.Consolidated fiscal year under review (from April 1 2023 Business segment to March 31 2024) Year on year (%) China (Million yen) 53876 86.7 (Note) 1. Transactions between the segments were canceled out. (2) Analysis and consideration of operating results etc. from the perspective of management * The recognition analysis and consideration of operating results etc.a. Analysis of operating results for the consolidated fiscal year under review (Revenue) Breakdown by region of overseas net sales in the consolidated fiscal year under review are as follows: China I Overseas revenue (Million yen) 53848 III Ratio of overseas revenue to consolidated revenue (%) 64.2 (Note) 1. National or regional classifications are based on geographic proximity. 3. Overseas revenue refers to revenue achieved by the Company and its consolidated subsidiaries in countries or regions other than Japan. 4(Segment) c. Information on analysis/consideration of cash flows source of capital and liquidity of funds The Group plans to make capital expenditures including the extension and structural alteration of the new factory in Zhejiang China and the construction of a new factory in India with cash provided by operatingactivities etc. as stated in “Section 3. Facilities 3. Equipment introductionand retirement plans.” Section 3. Facilities 1. Overview of capital investment Capital expenditures in China were ?1854 million which was allocated primarily to production facilities at Precision Tsugami (China) Corporation and Precision Tsugami (Anhui) Corporation and Precision Nakatsu (China) Corporation. 2. Major facilities The table below shows major facilities of the Group. (2) Overseas subsidiary As of March 31 2024 Book value (Million yen) Machinery Number Factory Business and Land Right of- of Corporate name (location) segment Facilities Buildings equipment (m2) Other use assets Total employees Precision Tsugami China factory China Equipment for 2473 1575 – 117 536 4702 1915 (-) (China) (Zhejiang producing Corporation China) machine tools Precision Tsugami China factory China Equipment for 3012 1534 – 49 195 4791 151 (-) (Anhui) (Anhui producing Corporation China) machine tools Shinagawa China factory China Equipment for 261 86 – 22 56 426 65 (-) Precision (Zhejiang producing Machinery China) machine tools (Zhejiang) Co.Ltd Precision Nakatsu China factory China Equipment for 762 61 – 0 596 1420 – (China) (Zhejiang producing Corporation China) machine tools (Note) 1. The book value in the “Other” column is a total value of tools and equipment and fixtures and does not include construction in progress. 2. The number in parentheses in the number of employee’s column is the number of temporary employees. 53. Equipment introduction and retirement plans The table below shows plans for the introduction of important equipment as of the end of the fiscal year under review.Planned investments Planned start and completion date Corporate name Business Total Amount paid Financing factory Location segment Facilities (Million yen) (Million yen) method Start Completion Precision Nakatsu Zhejiang (China) Corporation China China Buildings 2510 1519 Self-financing March 2023 June 2024 Notes to Consolidated Financial Statements 6. Segment information (2). Segment revenues and operating results The accounting policies for the reportable segments are the same as the Group’s accounting policies stated in Note “3. Significant accounting policies.” The amount of paid-for parts and materials transactions with subsidiaries is included in inter-segment revenue.Inter-segment revenues are based on market prices.Revenues and operating results of the Group’s reportable segments are as follows.Previous consolidated fiscal year (from April 1 2022 to March 31 2023) (Million yen) Reportable segment China Revenue External 62140 Inter-segment 18206 Total 80346 Segment profit 15395 Other items Depreciation and amortization 1230 Impairment losses － Segment assets 68231 Capital expenditure 1022 (Note) 1. Segment profit is calculated by deducting cost of sales and selling general and administrative expenses from sales revenue. 6Consolidated fiscal year under review (from April 1 2023 to March 31 2024) (Million yen) Reportable segment China Revenue External 53876 Inter-segment 9518 Total 63395 Segment profit 12606 Other items Depreciation and amortization 1188 Impairment losses － Segment assets 76539 Capital expenditure 1932 (Note) 1. Segment profit is calculated by deducting cost of sales and selling general and administrative expenses from sales revenue. (4) Regional information The breakdown of revenues and non-current assets by region is as follows.Revenue from external customers (Million yen) Previous Consolidated consolidated fiscal year under fiscal year (From review (From April 1 2022 to April 1 2023 to March 31 2023) March 31 2024) China 62048 53848 (Note) Revenues are classified by country or region based on the customer’s location. 7Non-current assets (Million yen) Previous Consolidated consolidated fiscal year fiscal year under review (March 31 2023) (March 31 2024) China 11908 13458 (Note) Non-current assets are classified based on their location and do not include financial instruments deferred tax assets and assets related to retirement benefits. 25. Revenue (1) Disaggregation of revenue The relationship between the disaggregation of revenue based on major product lines and reportable segments is as follows.Previous consolidated fiscal year (from April 1 2022 to March 31 2023) (Million yen) Reportable segment China Major product lines Automatic lathes 52417 Grinding machines 3018 Machining centers Rolling machines and Specialized machines 4995 Other 1708 Total 62140 (Note) “Other” in main product lines include components and services. 8Consolidated fiscal year under review (from April 1 2023 to March 31 2024) (Million yen) Reportable segment China Major product lines Automatic lathes 46087 Grinding machines 2778 Machining centers Rolling machines and Specialized machines 3494 Other 1516 Total 53876 (Note) “Other” in main product lines include components and services. 27. Other income and expenses The breakdown of other income is as follows.(Million yen) Previous Consolidated consolidated fiscal year under fiscal year (From review (From April 1 2022 to April 1 2023 to March 31 2023) March 31 2024) Government subsidy 1082 1101 (Note) 1. The subsidy income is mainly the government subsidy received by the Chinese subsidiary. 934. Significant subsidiaries (2) Consolidated subsidiaries with significant non-controlling interests The condensed consolidated financial information of consolidated subsidiaries for which the Company recognizes significant non-controlling interests is as follows.The condensed financial information shows amounts before eliminating intra-group transactions.Precision Tsugami (China) Corporation Limited (this company and its subsidiaries) * Percentage interest owned by non-controlling interests Previous Consolidated consolidated fiscal year under fiscal year (As of review (As of March 31 2023) March 31 2024) Percentage interest owned by non-controlling interests (%) 29.1 28.5 * Condensed consolidated financial information (i) Condensed consolidated statement of financial position (Million yen) Previous Consolidated consolidated fiscal fiscal year under year (As of review (As of March 31 2023) March 31 2024) Current assets 55743 61749 Non-current assets 12408 13950 Current liabilities 16942 16801 Non-current liabilities 2098 2597 Equity 49111 56301 Accumulated amount of non-controlling interests 13899 15681 Major items of current assets are “cash and cash equivalents” “trade andother receivables” and “inventories” while the major item of non-current assets is “property plant and equipment” and the major item of current liabilities is “trade and other payables”. 10(ii) Condensed Consolidated Statements of Income and Comprehensive Income (Million yen) Previous Consolidated consolidated fiscal year under fiscal year (From review (From April 1 2022 to April 1 2023 to March 31 2023) March 31 2024) Revenue 79926 62861 Profit 11438 9671 Other comprehensive income – – Comprehensive income 11438 9671 Profit allocated to non-controlling interests 3127 2807 Dividends paid to non-controlling interests 1580 1684 (iii) Condensed Consolidated Statements of Cash Flows (Million yen) Previous Consolidated consolidated fiscal year under fiscal year (From review (From April 1 2022 to April 1 2023 to March 31 2023) March 31 2024) Cash flows from operating activities 15077 10192 Cash flows from investing activities -7569 -3118 Cash flows from financing activities -5865 -6278 Net increase (decrease) in cash and cash equivalents 1641 794 11(3) Changes in parent company’s ownership interests in subsidiaries not resulting in a loss of control Previous consolidated fiscal year (From April 1 2022 to March 31 2023) No corresponding item exists.Consolidated fiscal year under review (From April 1 2023 to March 31 2024) Precision Tsugami (China) Corporation Limited which is a consolidated subsidiary of the Company acquired its own shares as treasury stock. As a result the Group’s ownership interest in Precision Tsugami (China) Corporation Limited increased from 70.9% to 71.5%. An outline of transactions with non-controlling interests associated with this transaction is described below.(Million yen) Amount Consideration paid 580 Amount of decrease in non-controlling interests -538 Amount of increase in other components of equity 63 Amount of decrease in capital surplus -105 Tsugami Japan’s Disclosures contain forward-looking information. Tsugami Japan has full and independent discretion as to the determination of such forward-looking information by considering factors which Tsugami Japan considers appropriate and relevant for its reporting and disclosure purposes. Forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and accordingly the Company’s results may differ from those expressed in any forward-looking statements made by Tsugami Japan including the Tsugami Japan’s Disclosures. In light of the risks and uncertainties the forward-looking information in the Tsugami Japan’s Disclosures should not be regarded as representations by the Board or the Company or that the plans and objectives will be achieved by the Company. The Company’s shareholders and potential investors are advised not to place undue reliance on the contents of Tsugami Japan’s Disclosures and to exercise caution in dealing in the securities of the Company.By Order of the Board Precision Tsugami (China) Corporation Limited Dr. Tang Donglei Chairman Chief Executive Officer and Executive Director Hong Kong 19 June 2024 As at the date of this announcement the executive directors of the Company are Dr. Tang Donglei and Dr. Li Zequn; the non-executive directors of the Company are Mr. Takao Nishijima Ms. Mami Matsushita and Mr. Kenji Yoneyama; and the independent non-executive directors of the Company are Dr. Satoshi Iwabuchi Dr. Huang Ping and Mr. Tam Kin Bor. 12