On November 6, 2014, Nissha Printing Co., Ltd. (hereinafter referred to as “Nissha”) has reached an agreement to establish a strategic, collaborative partnership with Inhon Group (Taiwan) regarding in-mold decoration film business, which belongs to our Industrial Material business segment. The details are as follows;

In-mold decoration film, which belongs to Nissha’s Industrial Material business segment, is being widely adopted in the global market for automobiles, notebook PCs, smartphones, and home appliances due to its core feature of high-resolution printing technology. Inhon Group operates in manufacturing / distributing housings and decorative films used for notebook PCs and smartphones, private brand notebook PCs and smartphones. It intends to expand its business size in Chinese and Taiwanese market in the future. The technologies and knowledge possessed by Nissha and Inhon Group’s ability to execute its business in Chinese and Taiwanese market would complement each other, and therefore both parties have reached an agreement to establish a strategic, collaborative partnership in the said regions.

Mainly for the in-mold decoration film business area for notebook PCs, Nissha will transfer its production facility that is located in the Tsu Plant possessed by Nitec Industries, Inc., a production affiliate company of Nissha’s to HK Inhon Film Technology Company Limited (hereinafter to be referred to as “Inhon Film”), which is a member of Inhon Group, and will also provide the licenses for the relevant unique technologies and knowhow to Inhon Film as well. Inhon Film will utilize these production facilities, technologies, and knowhow to start producing in-mold decoration films at the new plant Inhon Group is planning to establish in China in the future. On the other hand, as for the sales activities, Nissha will support Inhon Group, which has a stronger basis in Chinese and Taiwanese, in expanding its business target area.

The Taiwan-based business group that consists mainly of the following three companies;

●Inhon Technologies Holdings

●Inhon International Co., Ltd
●HK Inhon Film Technology Company Limited.(the said company)

Due to the transfer of the production facilities to the Inhon Group, Nissha has posted an extraordinary loss for the amount of 581 million yen for the impairment loss of the fixed asset for the consolidated financial settlement for the second quarter of the fiscal year ending in March 2015. Please be informed that the impact expected for the consolidated business performance for the third quarter of the business year ending in March 2015 and beyond will be minor. We will inform you in case of any changes in financial impact.
Nissha and Inhon Group are having continuous discussions regarding the possibility of further collaboration .We will inform you when we reach further agreements regarding new collaborations.