#KobayashiPharmaceutical

Net sales for the interim period were ¥70,749 million, up 2.5% year over year. Operating income was ¥2,162 million, down 67.5% YoY. Ordinary income was ¥3,006 million, down 58.5% YoY. Net income attributable to owners of the parent was ¥1,136 million, down 64.1% YoY. Full-year guidance unchanged. Proposed dividends: an interim dividend of ¥45 per share at the end of...

Transfer of all shares of Jiangsu Kobayashi Pharmaceutical Co., Ltd. to Wantianwan Techan Pharmaceutical (Xiamen) Co., Ltd. The share ownership before and after transfer will be 100% → 0%, with the closing date planned for the end of October 2026. There is a possibility of recognizing extraordinary losses in the fiscal year ending December 2026.

Kobayashi Pharmaceutical's Q1 2026 recorded sales of ¥33.6 billion (YoY +3.2%), with net profit decreasing to approximately ¥1.0 billion. Healthcare and daily用品 are showing signs of recovery, but profits have declined. Continued attention to business performance is warranted.

Kobayashi Pharmaceutical Co., Ltd. recognizes that reducing the investment unit is an effective measure to expand the investor base and revitalize the stock market, and has indicated a policy to consider this appropriately based on future market trends.

At the 108th Annual General Meeting of Shareholders scheduled for March 27, 2026, the shareholder proposal to elect one auditor was withdrawn, and the Company’s Board of Directors consented to this withdrawal.

Kobayashi Pharmaceutical Co., Ltd. plans to propose amendments to its articles of incorporation at the 108th Annual General Meeting of Shareholders scheduled for March 27, 2026, to transition to a company with an audit and supervisory committee, aiming to strengthen the board of directors' supervisory functions and improve management agility.

The year-end dividend for the fiscal year ending December 2025 is 60 yen per share, with a total dividend amount of 4,460 million yen. A transfer of 8,300 million yen from special reserves to retained earnings will be made, effective March 9, 2026.

For the fiscal year ending December 2025, consolidated net sales were JPY 165,742 million (up 0.1% YoY), operating income was JPY 14,923 million (down 40.0% YoY), and net income attributable to owners of the parent was JPY 3,656 million (down 63.7% YoY).

The sales target for the fiscal year ending December 2028 is 188 billion yen (CAGR +4.3%), operating income 22 billion yen (CAGR +13.8%), and ROE 10%, aiming for 30 consecutive years of dividend increases.

Kobayashi Pharmaceutical provides a detailed report on the progress of recurrence prevention measures for quality issues related to red yeast rice products, promoting strengthening of a quality and safety-first system and organizational culture reform.

Kobayashi Pharmaceutical Co., Ltd. will transition from a company with a board of auditors to a company with an audit and supervisory committee, subject to approval at the Annual General Meeting of Shareholders on March 27, 2026, to strengthen its corporate governance framework.

Subject to approval at the Annual General Meeting of Shareholders on March 27, 2026, the company will transition from a company with a board of auditors to a company with an Audit and Supervisory Committee and has decided on new executive candidates.