Precision Tsugami China : INSIDE INFORMATION FINANCIAL RESULTS OF THE CONTROLLING SHAREHOLDER, TSUGAMI CORPORATION FOR THE YEAR ENDED 31 MARCH 2021

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 機 床（ 中 國 ）有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1651)

INSIDE INFORMATION

FINANCIAL RESULTS OF THE CONTROLLING SHAREHOLDER,

TSUGAMI CORPORATION

FOR THE YEAR ENDED 31 MARCH 2021

This announcement is issued pursuant to Part XIVA of the Securities and Futures Ordinance and Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

On 13 May 2021 (at 12:00 p.m. Hong Kong time), the Company's controlling shareholder, Tsugami Japan will announce and file its financial results for the year ended 31 March 2021.

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 Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The Company's controlling shareholder, Tsugami Corporation ("Tsugami Japan"), is a company listed on the Tokyo Stock Exchange. As at the date of this announcement, Tsugami Japan beneficially owns approximately 70.90% of the issued shares in the capital of the Company.

Tsugami Japan publishes quarterly and annual financial results announcements (hereinafter collectively referred to as "Tsugami Japan's Disclosures") with financial information on, among other things, sales of its China segment, comprising those contributed by operations of the Company and its subsidiaries (hereinafter collectively referred to as the "Group"). Tsugami Japan's Disclosures include periodic financial results and explanatory statements on final accounts released by Tsugami Japan pursuant to the requirements under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended). Tsugami Japan's financial reports are available in the public domain.

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Tsugami Japan will announce and file its financial results for the year ended 31 March 2021 ("Tsugami Japan's Annual Financial Results") on 13 May 2021 (at 12:00 p.m. Hong Kong time). Due to COVID-19 pandemic situation in Japan, Tsugami Japan will not hold FY2020 Financial Results Briefing for Analysts/ Institutional Investors this year, but the material for the results briefing ("Tsugami Japan's Results Briefing") will be published on its website on the same day. In addition, Tsugami Japan will publish the business report for the year ended 31 March 2021 ("Tsugami Japan's Business Report") on 16 June 2021 and file the annual securities report for the year ended 31 March 2021 ("Tsugami Japan's Annual Securities Report") on 16 June 2021. If you wish to review Tsugami Japan's Annual Financial Results, Tsugami Japan's Results Briefing, Tsugami Japan's Business Report and Tsugami Japan's Annual Securities Report prepared by Tsugami Japan, please visit the following websites:

Tsugami Japan's Annual Financial Results (in Japanese):

https://www.tsugami.co.jp/ir/earnings/

Tsugami Japan's Results Briefing (in Japanese):

https://www.tsugami.co.jp/ir/presentation/

Tsugami Japan's Business Report (in Japanese):

https://www.tsugami.co.jp/ir/business-report/

Tsugami Japan's Annual Securities Report (in Japanese):

https://www.tsugami.co.jp/ir/security-report/

You can find the English translation of the documents above at:

https://www.tsugami.co.jp/eng/ir/

The financial results of Tsugami Japan and its subsidiaries, including those contained in Tsugami Japan's Annual Financial Results, Tsugami Japan's Results Briefing, Tsugami Japan's Business Report and Tsugami Japan's Annual Securities Report, have been prepared in accordance with the International Financial Reporting Standards ("IFRS"). 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 Financial Results and 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 Financial Results but remain recorded for the Group's financial results.

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Translated from Tsugami Japan's Annual Financial Results

- Released by Tsugami Japan and prepared under IFRS

1. Overview of operating results under review

1. Overview of the fiscal year under review

• In China, revenue was ¥49,184 million, up 60.9% year over year. Segment profit was ¥8,585 million, up 163.9% year over year.

(Segment information)

1. Segment revenues and operating results Inter-segment sales 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, 2019 to March 31, 2020)

	(Million yen)
	Reportable
	segment
	China
Revenue
External	22,888
Inter-segment	7,689
Total	30,577
Segment profit	3,253
Other items
Depreciation and amortization	758
Segment assets	29,234
Capital expenditure	2,057

(Note)

1. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from sales revenue.

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Consolidated fiscal year under review (from April 1, 2020 to March 31, 2021)

	(Million yen)
	Reportable
	segment
	China
Revenue
External	43,172
Inter-segment	6,012
Total	49,184
Segment profit	8,585
Other items
Depreciation and amortization	758
Segment assets	45,303
Capital expenditure	1,982

(Note)

1. 1. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from sales revenue.

2. Regional information
   The breakdown of non-current assets by region is as follows.

			(Million yen)
	Previous		Consolidated
	consolidated		fiscal year
	fiscal year		under review
	(March 31, 2020)		(March 31, 2021)
China	7,288	9,354

(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.

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4. Supplementary Information

1. Overseas revenue

				(Million yen)
		Previous	Consolidated
		consolidated	fiscal year
		fiscal year	under review
	(From April 1, 2019	(From April 1, 2020
		to March 31, 2020)	to March 31, 2021)
China	23,005		42,393

(Note) Revenues are classified by country or region based on the customer's location.

1. Revenue by machinery category
   The relationship between the breakdown of revenue by major product line and the reportable segments is as follows.
   Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)

	(Million yen)
	Reportable
	segment
	China
Major product lines
Automatic lathes	19,236
Grinding machines	1,110
Machining centers, Rolling machines and Specialized machines	1,871
Other	669
Total	22,888

(Note) Other in the major product lines includes parts and services.

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