Notice Regarding the Acquisition of the Low-Concentration Precious Metal Recovery Business from DPS Inc.

Microwave Chemical Co., Ltd.

Microwave Chemical Co., Ltd. (“MWCC”) hereby announces that it has executed and completed a business transfer agreement with DPS Inc. (“DPS,” headquartered in Nishikyo-ku, Kyoto; Representative Director: Hongzhi Bai) to acquire its low-concentration precious metal recovery business (hereinafter “the Business”).The impact on our business performance is expected to be minor.

１．Strategic Background and Purpose of the Acquisition

【Background and Objective】
MWCC provides microwave technology solutions as an eco-friendly process delivering “energy saving,” “high efficiency,” and “compactness” across a wide range of industries, primarily in manufacturing. We also build a system that supports clients seamlessly from research and development to engineering for scale-up and manufacturing.

As part of our growth strategy, we aim to expand into adjacent fields through M&A, leveraging our business development expertise and technology platform to create new solutions (Figure 1). This acquisition marks the first step in this strategy.

By acquiring and expanding the low-concentration precious metal recovery business, we will establish a new supply source for critical minerals, contribute to economic security through supply chain resilience, and promote the circular economy while reducing environmental impact. Furthermore, we will drive cross-selling to our existing client base and expand into overseas markets, leading to sustainable enhancement of company value.

【Overview of DPS Business】
Founded in 2017, DPS is a venture company specializing in innovative separation and recovery technologies using its proprietary material DualPore™. DualPore™ is inorganic particles derived from special silica monoliths, developed by Professor Kazuki Nakanishi of Nagoya University (Associate Professor at Kyoto University at the time of invention). The materials combine high surface area with efficient liquid and gas flow properties, enabling broad applications as advanced materials.

Using this technology, DPS has successfully recovered low-concentration precious metals, such as palladium at the ppm level, from wastewater generated in processes such as chemical catalyst manufacturing and electronic component manufacturing. The business model (Figure 2) involves installing cartridges in wastewater lines, selling the recovered precious metals to refiners, and sharing the revenue with client companies. The system has already been adopted by multiple clients.

【Future Developments】
Through this acquisition, MWCC will integrate DPS’s expertise with our business development, research, and engineering capabilities to accelerate the provision of new solutions to our customer base and expand globally. This will allow us to address diverse client challenges while strengthening efforts toward the realization of a sustainable society.

Going forward, we will continue to leverage various means, including M&A, to create innovative technologies and businesses in the environment and energy fields.

２．Overview of the Counterparty