TOKYO, Mar 17 (Pulse News Wire) – Sanbio Company Limited (4592.T) announced today that its board of directors resolved , to reduce capital and transfer surplus reserves to address a deficit carryforward loss of ¥3.409 billion. The company plans to decrease its capital stock by ¥1.704 billion and its reserve fund by ¥1.704 billion, transferring these amounts to additional paid-in capital.
Subsequently, pursuant to the Companies Act, the increased additional paid-in capital will be transferred to retained earnings to cover the deficit. The reduction in capital and reserve funds will take effect on June 5, 2026. Shareholders' equity and per-share net assets will remain unchanged. The special shareholders meeting to approve this resolution is scheduled for April 22, 2026, with the final creditor objection deadline set for May 29, 2026.
This move aims to alleviate tax burdens, enhance financial health, and ensure flexibility in future capital policies, including dividend distributions and share buybacks. According to the plan, the amount of additional paid-in capital being reallocated is ¥3.409 billion, which will increase retained earnings by ¥3.409 billion. Post-allocation, the adjusted retained earnings balance will stand at ¥0. The company expects no impact on its operational performance due to this restructuring.
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