Announcement on Business and Capital Alliance with MC Fashion Co., Ltd.

In June 2025, CFCL Inc. (hereinafter referred to as “CFCL”) concluded a business and capital alliance agreement (hereinafter referred to as “this business and capital alliance”) with MC Fashion Co., Ltd. (Address: Minato-ku, Tokyo, hereinafter referred to as “MCF”), through a third-party allotment of shares.

As part of this Alliance, MCF will invest approximately 250 million yen to acquire a 3.0% stake in CFCL. The purpose of this partnership is to facilitate a smooth and continuous collaboration based on shared values and mutual respect. CFCL will continue to maintain its independence and autonomous decision-making structure.

To accelerate its future growth, CFCL has entered this Alliance with the following three core objectives:

・Expansion of its overseas businesses

・Establishment of a sustainable production framework and contribution to the knitting industry

・Early realization of a sustainable working environment

MCF, a group company of World Co., Ltd., possesses deep expertise in supply chain development and overseas business support, centered on its OEM operation in apparel, lifestyle goods, and footwear.

In pursuit of the above objectives, CFCL and MCF will collaborate in the following areas:

・Support for Expansion of Overseas Businesses 

　・Placement of personnel and business development support for CFCL France in Paris 

・Knowledge Sharing for Building Production Systems 

　・Provision of personnel and know-how for expanding or establishing CFCL’s own production facilities

　・Sharing of expertise for effective collaboration with domestic production partners

・Support for corporate functions

　・Personnel support to enable flexible responses to various life events of CFCL employees

　・Provision of practical know-how and system infrastructure required for business growth, including support for project implementation

CFCL remains committed to evolving as an independent, Japan-based global brand through strategic collaborations with both domestic and international partners. The company will continue to advance its dedication to sustainable growth and the creation of products that deliver enduring value.