Notice of Disposal of Treasury Shares Based on Restricted Stock Compensation System

Overview of Disposal

Shinko Kogyo will execute the disposal of restricted stock as part of its executive compensation system. The disposal will be carried out on July 22, 2026, involving a total of 46,800 shares for a total of 58,078,800 yen. The disposal price per share is 1,241 yen, determined based on the market stock price. The対象 are four directors and executive officers, with restrictions on transfer and collateralization, and a transfer restriction period of three years. The purpose of the disposal is to incentivize executives and enhance corporate value.

Future Outlook and Impact

This disposal of treasury shares aims to motivate executives and enhance long-term corporate value. Detailed regulations govern the handling of shares if an executive resigns during the transfer restriction period and procedures during organizational restructuring, ensuring transparency and proper management. The fundraising is part of the executive compensation system and contributes to strengthening corporate governance and increasing shareholder value.