Name of the reporting entity: TOYA S.A. (hereinafter referred to as the “Company”)

Legal form of the entity: Joint-stock company

Entity’s registered office address: ul. Sołtysowicka 13/15, 51-168 Wrocław

Entity’s headquarters: Wrocław

Country of registration: Poland

Primary location of entity’s operations: Poland

The Company is a successor of the civil law partnership “TOYA IMPORT-EKSPORT” with its registered office in Wrocław,

for Wrocław-Fabryczna, 6

of Entrepreneurs under entry No. KRS 0000066712.

As at 31 December 2025, TOYA S.A. operates one branch – in Nadarzyn.

The Company’s Statistical Identification Number (REGON) is 932093253, the Nadarzyn Branch has been assigned the

Statistical Identification Number (REGON): 932093253-00031.

Description of the nature and basic scope of Company’s activities

The core business activities of TOYA S.A. include import and distribution of industrial goods, including primarily hand and

power tools for professional and DIY use. The Company distributes goods manufactured and supplied mainly by

founded, with its registered office in Baibu Town, China, which main business is also distribution of tools and power tools.

The major part of the activities of Yato Tools (Shanghai) and Yato Tools (Jiaxing) is supply chain management to companies

in Poland and Romania.

Duration of the Company is unlimited.

Toya S.A. is the parent company of the TOYA S.A. Capital Group.

Any subsequent expenditure on replacement of parts of items of property, plant and equipment is capitalised if it can be

Repair and maintenance costs are charged to profit or loss as incurred.

Except for land and tangible non-current assets under construction, all items of property, plant and equipment are

depreciated over their estimated useful lives using the straight-line method, taking into account the residual value, if

material. The following groups are depreciated using the following depreciation rates:

by the Company on an annual basis. Any changes are presented as changes in accounting estimates and their effect is

taken to profit or loss in the period when the estimate changes and in subsequent periods.

Significant components of property, plant and equipment are depreciated based on their estimated useful lives.

Any gains or losses on the disposal or liquidation of items of property, plant and equipment are determined as the

difference between the revenue from the sale and the carrying amount of the items, and recognised in profit or loss.

Tangible fixed assets under construction are stated at cost or at the amount of the aggregate expenses directly associated

with their production, less impairment. The cost of borrowings contracted to finance tangible fixed assets under

construction increases their value.

Intangible assets are stated at acquisition or production cost less accumulated amortisation and impairment.

The amortisation rates applied to intangible assets are as follows:

• trademarks

• licences and software

is available for use). Right-of-use assets are measured at cost, less total depreciation and impairment losses, adjusted for

any revaluation of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial

direct costs incurred and any lease payments paid on or before the lease start date, less any incentives received. Unless

the Company is sufficiently certain that it will obtain the ownership title to the leased asset at the end of the lease period,

the recognized right-of-use assets are amortized using the straight-line method, over the shorter of the two periods:

estimated useful life of the leased asset or lease period. Right-of-use assets are subject to impairment assessment.

Right-of-use assets are presented in the statement of financial position as a separate line item.

At the lease commencement date, the Company measures the lease liabilities at the amount of the current value of the

When calculating the current value of future lease payments, the Company uses the lessee's marginal interest rate

determined on the day the lease starts. After the start date, the amount of the lease liability is increased to reflect interest

and reduced by the lease payments made. In addition, the carrying amount of lease liabilities is remeasured in the event

of a change in the lease period or a change in the principal fixed lease payments.

The Company applies the exemption from recognizing short-term leases to its short-term lease contracts (i.e. contracts

for which lease period is 12 months or less from the commencement date and does not contain purchase option). The

Company also applies an exemption regarding the recognition of leases of low-value assets in relation to its low-value

leases. Lease payments for short-term leases and leases of low-value assets are recognized as costs, using the straight-

asset or cash-generating unit to which the asset belongs.

The recoverable amount of an asset or cash-generating unit (“CGU”) is equal to the higher of the asset’s or cash-

generating unit’s fair value less costs to dispose or its value in use. The recoverable amount is determined for individual

assets unless a given asset does not generate separate cash inflows largely independent from those generated by other

assets or asset groups. If the carrying amount of an asset is higher than its recoverable amount, the asset is impaired and

an impairment loss is recognised up to the established recoverable amount. The impairment loss is allocated in the

following order: first, the carrying amount of goodwill is reduced, and then the carrying amounts of other assets of the

Impairment losses related to assets are disclosed under the cost categories corresponding to the function of the asset

with respect to which impairment has been identified.

As at the end of each reporting period, the Company assesses whether there is evidence that any impairment loss

recognised in the previous periods with respect to a given asset or cash-generating unit is no longer necessary or should

the exception of financial assets at fair value through profit or loss in the case of which the transaction costs are charged

to profit or loss. Purchases and sales of financial instruments are recognised as at the date of the transaction. A trade

receivable without a significant financing component is initially measured at the transaction price at the time it arises.

Financial assets are derecognised when the rights to receive cash flows from these assets have expired or have been

transferred and substantially all risks and rewards incidental to ownership of such assets have been transferred. If there

has been no transfer of substantially all the risks and rewards of the asset, the asset is derecognised when the Company

loses control over the asset.

The Company classifies its financial assets to the following categories:

a) measured at amortized cost;

As at 31 December 2025 and 2024, the Company did not held any assets qualified within the remaining two categories,

The amount of an impairment loss is calculated based on rotation of individual items of goods for resale and it depends

exceeds sales expected for the 2-years period are written off. Inventory impairment is recognised in relation to goods

which are in the permanent offer of the Company due to the need to obtain reliable historical data in terms of actual

data over a longer period of time. New products are excluded from the calculation of impairment loss, due to the period

required to place the new product on the market and lack of sufficient historical data for further analysis.

The particular categories of equity are:

Other liabilities include liabilities arising from returns of goods from customers (in accordance with the right provided to

note 01). Value of these liabilities is estimated based on historical data, including ratio of returns from customers to

revenue from sales for the period of last 3 years. At the same time, the Company recognizes in inventories the asset for

goods which the customers are expected to return, with the offsetting entry to cost of goods sold (see note 03).

According to the regulations of European Parliament and other laws in force, i.e. EU Waste Electrical and Electronic

of assets and liabilities.