KNC Laboratories Co.,Ltd.

The Company’s principal business is providing research, development and production solutions for organic chemicals. It supplies samples and products for customers’ research, development and production activities related to product development and sales, and provides services to resolve various issues in line with each customer’s development stage. The organic chemicals covered are functional chemicals and their intermediates used in fields including pharmaceuticals and information electronics, manufactured from general-purpose chemicals as raw materials. Research and development of chemicals proceeds through a cycle of predicting the chemical structure of a compound with the required functions, actually synthesizing it and evaluating its functions. If the required functions are not obtained, the structure is reconsidered and the process is repeated. Functional evaluation requires proprietary evaluation techniques for each product, such as pharmaceuticals, agrochemicals and dyes. Synthesis itself also involves research, including devising methods for synthesizing the specified compounds and evaluating their purity, yield and cost-effectiveness. Through collaboration between product development companies and the Company, the Company seeks to shorten research and development periods and improve the efficiency of product development. As products progress from research and development to mass production, the Company proposes solutions to manufacturing issues and countermeasures in preparation for mass production after market launch. As customers’ product development progresses from research and development to mass production, the Company provides solutions accordingly. The Company operates in a single business segment: the organic chemical research, development and production solutions business.