Sanwa Holdings <5929> announced on the 26th that at the board of directors meeting held on September 26, 2024, it resolved to cancel its own shares based on Article 178 of the Companies Act, and also decided to liquidate the separate reserve fund based on the provisions of Article 459, paragraph 1 of the same Act.

The type of shares to be cancelled is common stock of the company, with a total of 2,000,000 shares (0.87% of the issued shares before cancellation), and the scheduled cancellation date is October 18, 2024.

The liquidation of the separate reserve fund includes a decrease in the item of surplus of 20,000,000,000 yen, and an increase in the item of surplus from retained earnings of 20,000,000,000 yen. The purpose of the implementation is to enable a flexible capital policy to respond to the cancellation of own shares and changes in the future management environment. The effective date is September 26, 2024.

This matter involves the transfer processing of the account in the net assets section, so there is no change in the net asset amount, and there is no impact on profit or loss.