【Kitahama Capital Partners】Transfer of Consolidated Subsidiary Shares and Future Outlook ｜ July 2026

Transfer of Shares of the Consolidated Subsidiary

Kitahama Capital Partners transferred its shares of Santech Co., Ltd. on July 31, 2026, and excluded it from the scope of consolidation. The transfer value was 1 yen, and Santech is in a virtually dormant state. As of the fiscal year ending March 2025, it was in deficit, and no positive value is recognized for its shares. The background for this transfer involves focusing management resources and reducing internal group burdens. Going forward, the company plans to organize Santech's business resources to enhance corporate value. It is scheduled to record a gain/loss on the sale of affiliated company shares of 2,772 thousand yen as a special profit in the fiscal year ending March 2027.

Future Outlook and Impact on Business Performance

This share transfer is expected to impact the consolidated business results for the fiscal year ending March 2027, and revisions to the earnings guidance may be necessary. Along with recording the gains or losses from the transfer, the company will proceed with organizing Santech's assets and liabilities to optimize management resources within the group. Regarding future outlook, detailed earnings forecasts are currently under review, and will be promptly disclosed once finalized.