Tokyo Lifestyle Hong Kong Subsidiary Signs ~$0.96M Loan Deal With Principal Executive Office Mei Kanayama To Support Working Capital, Operational Requirements

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%.