Tokyo Lifestyle to Transfer App Ownership to HK Artemis for $1.5mln Payment

• Tokyo Lifestyle Co. enters cooperation agreement with HK Artemis Limited. • Jointly drives online sales through shopping mall app in Hong Kong. • Tokyo Lifestyle to transfer app ownership to HK Artemis by Jan 1, 2026. • HK Artemis to make installment payments over three years. • Tokyo Lifestyle grants HK Artemis non-exclusive license to use app. • Companies aim to increase online sales in Hong Kong market.

Tokyo Lifestyle Co., Ltd. (Nasdaq: TKLF), a leading retailer and wholesaler of Japanese beauty and health products, has entered into a strategic partnership with HK Artemis Limited to enhance its online sales in Hong Kong. The collaboration, announced on October 20, 2025, involves a cooperation agreement and supplementary agreement between Tokyo Lifestyle’s Hong Kong subsidiary and HK Artemis, a private company based in Hong Kong.

Under the terms of the agreement, Tokyo Lifestyle will transfer ownership of its shopping mall app to HK Artemis by January 1, 2026. HK Artemis will make installment payments over a period of three years to complete the transfer. Additionally, Tokyo Lifestyle has granted HK Artemis a non-exclusive, three-year license to use the “TokyoLifestyle” trademark and related brand identifiers for the app and its associated online business activities. The license is subject to HK Artemis meeting specified minimum sales targets and investment commitments.

The primary goal of this partnership is to leverage HK Artemis’ extensive experience in online operations to improve Tokyo Lifestyle’s online sales, expand its market reach, and unlock long-term growth opportunities in Hong Kong. By enhancing the relevance of offerings to individual users, the partnership aims to improve conversion rates, strengthen customer engagement, and drive overall sales and revenue growth in Hong Kong’s dynamic market.

Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented, “We are delighted to partner with HK Artemis to further expand our App-based sales in Hong Kong. The Hong Kong market has long been one of our core markets, where we have built an extensive multi-channel sales network of directly-operated and franchise stores. As consumer behavior evolves, digitalization and online channels have become integral to our long-term growth strategy. Leveraging HK Artemis’ expertise in e-commerce apps and strengths in online sales, together with our strong branding and diverse product portfolio, we believe this collaboration will accelerate sales growth, enhance brand recognition, and drive market expansion. Looking ahead, we are optimistic about extending our cooperation with HK Artemis further to create lasting value for both companies.”

The agreement hinges on HK Artemis meeting the agreed minimum sales targets and investment commitments. Failure to meet these conditions could limit the license benefits and delay or reduce payments. The staged payment timetable and performance conditions concentrate operational and collection risk into the contract terms rather than immediate cash realization. Investors and stakeholders should closely monitor the actual payment schedule, explicit minimum sales targets, and any public confirmation of achieved milestones through 2026-2028.