Nishikawa Rubber to cancel 7.5% of outstanding shares

Nishikawa Rubber Co., Ltd. announced on October 15, 2025, a resolution by its board of directors to cancel 2,990,774 shares of its common stock, representing 7.48% of the total outstanding shares. The cancellation is scheduled for October 31, 2025. This action is intended to reduce the total number of treasury shares, targeting approximately 2% of the total outstanding shares.

In conjunction with the share cancellation, Nishikawa Rubber will also reclassify a voluntary reserve. A total of JPY 10,000,000,000 from the voluntary reserve will be decreased, with the same amount being transferred to retained earnings. This internal accounting adjustment is a direct response to the treasury share cancellation.

The company stated that this reclassification is an accounting transfer within the equity section and will not affect the total amount of net assets or have any impact on profit or loss. As of September 30, 2025, Nishikawa Rubber held 3,735,735 treasury shares, with 39,990,774 total outstanding shares including treasury shares. Following the cancellation, the number of outstanding shares will be 37,000,000.