Notice Regarding the Termination of the Capital and Business Alliance

Marvelous Inc. has formally resolved to terminate its capital and business alliance with Image Frame Investment (HK) Limited, a subsidiary of Tencent Holdings Limited, effective July 31, 2026. This decision follows a strategic review of investment portfolios and capital allocation policies by the Tencent group, which prompted the divestment of its shareholding in the company. While the overarching alliance agreement is dissolved, existing license agreements, including the mobile game development rights for the Story of Seasons intellectual property, remain in effect.

The termination of this partnership has triggered several organizational and structural shifts. Specifically, the Tencent group has opted to discontinue a specific mobile game project under development, citing business environment and profitability considerations. Furthermore, an outside director affiliated with the Tencent group has resigned from the board. These changes coincide with a broader capital restructuring, as Marvelous Inc. plans to execute a treasury share acquisition alongside share purchases by SBI Securities and other domestic operating companies to manage the supply-demand balance and ensure long-term shareholder stability.

As a result of these transactions, Image Frame Investment will cease to be the company’s largest major shareholder and an affiliated company. Hayao Nakayama is expected to become the largest major shareholder, followed by Amuse Capital Investment Co., Ltd. The company anticipates that these developments will have a negligible impact on its consolidated financial results for the fiscal year ending March 31, 2027. The transition is scheduled to be finalized by August 3, 2026, following the completion of the planned share acquisitions.