1, About the Sunrise Myanmar

This matter was reported to us in October 2023 and we have already gave you the answers below.

...this incident was a violation of our CSR terms.

The selection of the factory is Company A's decision, and Company A is responsible for using the factory.

Based on that, we would like to respond to the following four points.

1. We will stop doing business with Company A until they improve their ability to audit CSR guidelines.
2. Our company was using the factory without being aware that such an incident occurred.
3. Production has already ended at the factory and there are no plans for future use.
4. Even the case additional production has required, we are not going to use the factory as we confirmed that such an incident occurred.

2, About the Handa (Yangon) Myanmar

...if the incidents reported is true, Handa Factory has violated CSR terms we agreed.

So, we checked with the factory if these incidents are true or not.

As a result, we received a response that the information reported is not true from Handa factory.

・Ventilation equipment at the sewing factory

・Time attendance management sheet

・Vacation application form

・Payroll statement

・Medical prescription management sheet

We received management documents from Handa Factory, and after reviewing it, everything seems OK...

We have also been informed that under the management of a third-party organization, labor union members known as the WCC are selected through an internal election,and that meetings are held once a month to consolidate and organize employee requests and consider solutions.

[The full response is attached]