On June 29, 2023, Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that at the Ordinary General Meeting of Shareholders held on June 27, 2023, the Company passed a resolution on the matters to be resolved, and Strategic Capital, Inc's proposals have been rejected by the shareholder vote. Therefore, the following Activist Proposals: 1. Set dividend payout ratio to be 100% or DOE to be 8% whichever is greater, 2. Grant stock price-linked compensation to directors, 3. Disclose the calculation method of bonuses paid to President Tatsuya Nunohara, 4. Grant stock price-linked bonuses to employees, and 5. Sell cross-shareholdings and distribute proceeds as a dividend have not been approved.