Sincere Provides Loan to Parent Company

TOKYO, Jul 14 (Pulse News Wire) – Sincere Co.,LTD. (7782.T) announced that at a board meeting held on July 14, 2026, the company decided to lend funds to its parent company, Yukaria Co., Ltd.

(286A.T). The loan amount is ¥1 billion. The funds will be used for Yukaria's factoring business and will be disbursed on July 15, 2026. The repayment deadline is set for September 30, 2026. The interest rate on the loan is fixed at 6.0% per annum, with no collateral provided.

The decision was made based on the company’s cash flow forecast and ensuring sufficient funding for operations. The transaction will not affect the company’s financial health and is expected to enhance capital efficiency. To ensure fairness and avoid conflicts of interest, the company conducted a thorough review comparing alternative investment options such as bank deposits and government bonds. Independent outside directors also reviewed the necessity and fairness of the transaction, concluding that the conditions are reasonable and do not harm minority shareholders' interests. Regarding the impact on performance, the company expects the effect on the consolidated results for the fiscal year ending December 2026 to be minor.

Any significant developments will be promptly disclosed.