TOKYO, May 25 (Pulse News Wire) – J-pharma CO.,LTD. (520A.T) announced yesterday that its board of directors resolved to propose reducing capital and surplus reserves, along with disposing of surplus funds, at its upcoming annual shareholders' meeting scheduled for June 26, 2026.
The move stems from a deficit of ¥2.466 billion reported at the end of March 2026. To address this shortfall and improve financial health, the company plans to decrease its capital stock and reserve fund balances, transferring these amounts to other capital surplus reserves. Specifically, the reduction includes ¥1.953 billion from the capital stock amounting to ¥2.033 billion and ¥513.7 million from the reserve fund totaling ¥4.499 billion.
Additionally, the company will shift ¥2.466 billion from other capital surplus reserves to retained earnings, resulting in a post-transfer balance of ¥0 for carried-forward profit reserves. Key dates for the process include the creditor objection notice publication on June 29, 2026, the final deadline for creditor objections on July 29, 2026, and the effective date set for August 11, 2026. This adjustment involves merely reallocating accounting items within equity without altering the company's net assets or outstanding share count, thus having no impact on shareholder holdings or per-share net asset value.
The company expects no significant effect on its operations or performance due to this internal restructuring.
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