Notice on Progress of Recurrence Prevention Measures

Overview and Progress of Recurrence Prevention Measures

In response to quality issues related to red yeast rice products, Kobayashi Pharmaceutical resolved recurrence prevention measures in September 2024, promoting them based on pillars including awareness reform on quality and safety, strengthening quality assurance systems, enhancing management structures, corporate governance reform, establishment of crisis management systems, reinforcement of risk and compliance frameworks, improved external communication, and business operations prioritizing quality. These initiatives have been steadily implemented and introduced since 2025, such as conducting quality education, increasing the number of outside directors, formulating hygiene management standards, strengthening product inspections, and revamping personnel evaluation systems across multiple fronts.

Organizational Reform and Future System Strengthening

An organizational culture reform project has been launched, aiming to cultivate a new organizational culture that values diversity through dialogues involving all employees and formulation of behavioral codes. In January 2026, the personnel evaluation system will be renewed to include activities contributing to quality and safety as evaluation targets. Furthermore, the company plans to transition to a company with an audit and supervisory committee to further strengthen corporate governance. On the business front, withdrawal from unprofitable businesses and significant SKU reductions are progressing to establish a management foundation focused on quality and safety.