Tokyo, Japan, April 07, 2022 (GLOBE NEWSWIRE) -- Yoshitsu Co., Ltd (“Yoshitsu” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, as well as other products in Japan, today announced that it has signed a further supplement to a service agreement, as previously supplemented (collectively, the “Agreement”) on February 25, 2022 with two cross-border E-commence, warehousing and logistics companies, Hainan Lion Cross Border E-Commerce Company Limited (“Hainan Lion”) and Lion (Hong Kong) Limited (“LHK”) (collectively, the “Lion Group”), further modifying and amending the original service agreement entered into on March 25, 2021, between the Company and Hainan Lion, to optimize international warehouse operations for expanding the Company’s business presence in China.
Pursuant to the Agreement, the Company has agreed to authorize the Lion Group as agents in relation to the Company’s cross-border business in China. Specifically regarding storage upgrade services under the Agreement, the Company agreed to (i) entrust the Lion Group to act as an agent for third-party e-commerce consolidated services, bonded warehousing services, warehousing upgrading and expansion, including subcontracting and warehousing management and logistics, improving the supply chain system, and introducing smart shelves; (ii) the Lion Group agreed to reformulate the preferential price after the storage upgrade and charge the service fee in accordance with the new quotation table to protect the rights and interests of the Company with effect from March 1, 2022; and (iii) the Company agreed to pay, among other things, the Lion Group a construction fund in advance to upgrade the relevant services. The Agreement is effective from March 1, 2022, to February 28, 2025, and may be renewed annually thereafter upon mutual agreement of all parties thereto.
Mr. Mei Kanayama, Principal Executive Officer of Yoshitsu Co., Ltd, commented, “As a provider of high-quality Japanese products, Yoshitsu is always committed to promoting its products to the global market. Therefore, optimizing international warehouse facilities is the key to expanding our global business presence. Customers today look for more efficient and flexible ways of delivery for their orders, and we expect our partnership with the Lion Group to address the growing demand of the customers. Their operation capacities providing bonded warehousing bases in China enable us to deliver a large variety of products directly to customers in China by using an intelligent warehousing system. With the partnership, we expect to greatly reduce our international logistics costs and lower our warehouse service fees by JPY1 billion (approximately US$8.14 million) over the initial three-year term of the Agreement, as estimated by the Company, while improving product delivery efficiency in China.”
About Yoshitsu Co., Ltd
Headquartered in Tokyo, Japan, Yoshitsu Co., Ltd is a retailer and wholesaler of Japanese beauty and health products, as well as other products. The Company offers various beauty products (including cosmetics, skin care, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), and other products (including home goods, food, and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company’s website at https://www.ystbek.co.jp/irystbek/.
Forward-Looking Statements
All statements other than statements of historical fact in this press release are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the SEC.
For more information, please contact:
Yoshitsu Co., Ltd
Investor Relations Department
Email: ir@ystbek.co.jp
Ascent Investors Relations LLC
Tina Xiao
President
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
