Loan of Funds to EUCALIA Inc., the Parent Company
Sincere Co.,LTD. (lender and filing company), EUCALIA Inc. (borrower, parent company and controlling shareholder)
Short-term funds related to the factoring business
EUCALIA Inc., the parent company, had a funding need. Sincere Co.,LTD. had a certain amount of cash on hand and was considering how to use it effectively.
The quantitative impact on results has not been disclosed. The impact on consolidated results for the fiscal year ending December 2026 is expected to be minor. The loan amount is ¥1,000 million. The accounting classification is Not disclosed.
Fiscal year ending December 2026
The impact on consolidated results for the fiscal year ending December 2026 is expected to be minor. Whether the earnings forecast will be revised and the revised figures are Not disclosed.
Company response
A third-party committee, special investigation committee and external experts are Not disclosed. Opinions on the transaction were obtained from 3 independent outside directors.
The loan will be made on 15 July 2026, with repayment due on 30 September 2026. Any matters requiring disclosure will be announced promptly.
| Item | Details |
|---|---|
| Event name | Loan of Funds to EUCALIA Inc., the Parent Company |
| Date of occurrence | 14 July 2026 (date of the Board of Directors' resolution; loan date: 15 July 2026) |
| Subject Entity | Sincere Co.,LTD. (lender and filing company), EUCALIA Inc. (borrower, parent company and controlling shareholder) |
| Target Locations / Products | Short-term funds related to the factoring business |
| Cause | EUCALIA Inc., the parent company, had a funding need. Sincere Co.,LTD. had a certain amount of cash on hand and was considering how to use it effectively. |
| Amount of Impact on Business Performance | The quantitative impact on results has not been disclosed. The impact on consolidated results for the fiscal year ending December 2026 is expected to be minor. The loan amount is ¥1,000 million. The accounting classification is Not disclosed. |
| Accounting period in which recognized | Fiscal year ending December 2026 |
| Impact on Earnings Forecast | The impact on consolidated results for the fiscal year ending December 2026 is expected to be minor. Whether the earnings forecast will be revised and the revised figures are Not disclosed. |
| Investigation structure | A third-party committee, special investigation committee and external experts are Not disclosed. Opinions on the transaction were obtained from 3 independent outside directors. |
| Outlook | The loan will be made on 15 July 2026, with repayment due on 30 September 2026. Any matters requiring disclosure will be announced promptly. |
| Planned follow-up disclosure | Any matters requiring disclosure will be announced promptly. |
Items this document does not state (14)
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.Sincere Co.,LTD. had a certain amount of cash on hand, while EUCALIA Inc. had a funding need. The purpose was to use funds efficiently within the group and secure investment income.