On May 21, 2024, Japan Pure Chemical Co., Ltd announced in its press release that it had received shareholder proposals from Hibiki Path Value Fund for its 53rd Annual General Meeting of Shareholders. The proposals are as follows, i) Partial amendment to the Articles of Incorporation (Decision-making body for the distribution of surplus funds, etc.), ii) Acquisition of treasury shares. The company has opposed the proposals for the following reasons, i) At the 48th Annual General Meeting of Shareholders in June 2019, the Company amended its Articles of Association to make the Board of Directors the decision-making body for the distribution of surplus.

Since the amendment to the Articles of Association, the Company has implemented flexible shareholder returns, such as an additional commemorative dividend for the year-end dividend for the year ended 31 March 2022, a share buyback of up to JPY 360 million in October 2022, and, from the year-end dividend for the year ending 31 March 2024. In view of this track record, the Board of Directors recognises that no special circumstances have arisen at this point in time that warrant an amendment to the current Articles of Association, ii) The Company believes that if this Shareholder Proposal is passed, the mobility and management flexibility of future growth investment based on the Company's revised Medium-Term Management Plan will be impaired, with the result that the Board of Directors of the Company will be prevented from achieving its goal of management with awareness of the cost of capital and share price.