J Frontier to Reduce Capital Reserve and Distribute Surplus Reserves

TOKYO, Jul 27 (Pulse News Wire) – J Frontier Co.,Ltd. (2934.T) announced today that its board of directors resolved to propose reducing capital reserves and distributing surplus reserves at its upcoming 18th Ordinary General Meeting of Shareholders scheduled for August 26, 2026.

The reduction in capital reserve aims to eliminate deficits in carried-forward profits and improve financial health while preparing for flexible future capital policies and shareholder returns. Under the Companies Act, the company plans to decrease its capital reserve amount of ¥665.6 million by ¥665.6 million (the entire amount) and transfer it to additional paid-in capital. Following this, part of the transferred additional paid-in capital totaling ¥2.709 billion will be shifted to carried-forward profit reserves contingent upon the effectiveness of the capital reserve reduction. Key dates include the board resolution, and the shareholders' meeting set for August 26, 2026.

A creditors' objection notice is planned for September 5, 2026, with the final deadline for objections on October 6, 2026. The effective date is anticipated to be October 08, 2026. In terms of impact, the company stated that this transaction involves a reallocation within the equity section without altering total equity or affecting performance. Approval at the general meeting on August 26, 2026, remains conditional for implementation.