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Occurring Fact4992HOKKO CHEMICAL INDUSTRY CO.,LTD.Materials and Chemicals

Regarding the Discharge of Wastewater Containing Benzene and Other Substances from Our Okayama Plant (Initial Report)

It was discovered that wastewater containing benzene, toluene and other substances had been discharged from the Okayama Plant into an area near the coast. The Company has suspended operations at the 2 related plants and stopped using all wastewater pits at the plant.

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Discharge of wastewater containing benzene and other substances from the Company's Okayama Plant

Subject Entity

HOKKO CHEMICAL INDUSTRY CO.,LTD.

Target Locations / Products

Synthesis Plant No. 6 and Synthesis Plant No. 7 at the Okayama Plant. Other plants at the Okayama Plant are also under investigation.

OccurrenceAround 16:15 on 14 July 2026
Same day
Awareness or receipt of noticeAt around 16:15 on 14 July 2026, the Company received a notification from Tamano City regarding the reported discharge. At around 22:00 on 17 July 2026, the Company confirmed the discharge of wastewater containing chemical substances.
This disclosure07/21/2026
Cause

The cause of the discharge is still under investigation, but it is believed that wastewater leaked through cracks in the resin coating of a wastewater pit at the plant.

Related procedures

Type

Response under the directions and guidance of administrative authorities

Court or authority

Administrative authorities, including Okayama Prefecture and Tamano City

Company response

Suspended operations

Operations at Synthesis Plant No. 6 and Synthesis Plant No. 7, which primarily handle the chemical substances detected, have been suspended. Use of all wastewater pits at the Okayama Plant has been discontinued.

Measures to prevent recurrence

The Company will work to prevent a recurrence.

Impact on Earnings Forecast

The Company will promptly announce any impact of this matter on its consolidated results once it is determined.

Outlook

The Company will expedite its investigation into the cause and work to prevent a recurrence under the directions and guidance of administrative authorities, including Okayama Prefecture and Tamano City.

Planned follow-up disclosure

The Company will promptly announce the impact of this matter on its consolidated results once it is determined.

Event that occurred
ItemDetails
Event nameDischarge of wastewater containing benzene and other substances from the Company's Okayama Plant
Date of occurrenceAround 16:15 on 14 July 2026
Date recognized / date notice receivedAt around 16:15 on 14 July 2026, the Company received a notification from Tamano City regarding the reported discharge. At around 22:00 on 17 July 2026, the Company confirmed the discharge of wastewater containing chemical substances.
Subject EntityHOKKO CHEMICAL INDUSTRY CO.,LTD.
Target Locations / ProductsSynthesis Plant No. 6 and Synthesis Plant No. 7 at the Okayama Plant. Other plants at the Okayama Plant are also under investigation.
CauseThe cause of the discharge is still under investigation, but it is believed that wastewater leaked through cracks in the resin coating of a wastewater pit at the plant.
Impact on Earnings ForecastThe Company will promptly announce any impact of this matter on its consolidated results once it is determined.
Type of litigation or proceedingResponse under the directions and guidance of administrative authorities
Court or authorityAdministrative authorities, including Okayama Prefecture and Tamano City
Suspended operationsOperations at Synthesis Plant No. 6 and Synthesis Plant No. 7, which primarily handle the chemical substances detected, have been suspended. Use of all wastewater pits at the Okayama Plant has been discontinued.
Measures to prevent recurrenceThe Company will work to prevent a recurrence.
OutlookThe Company will expedite its investigation into the cause and work to prevent a recurrence under the directions and guidance of administrative authorities, including Okayama Prefecture and Tamano City.
Planned follow-up disclosureThe Company will promptly announce the impact of this matter on its consolidated results once it is determined.
Items this document does not state (12)
Amount of Impact on Business PerformanceAccounting period in which recognizedPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionScheduled resumption dateInvestigation structureDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the change

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The cause of the discharge is still under investigation, but the Company believes that wastewater leaked through cracks in the resin coating of a wastewater pit at the plant.

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Regarding the Discharge of Wastewater Containing Benzene and Other Substances from Our Okayama Plant (Initial Report) | HOKKO CHEMICAL INDUSTRY CO.,LTD. (4992) timely disclosure | Komori