On April 25, 2023, Strategic Capital, Inc. announced that on April 24, 2023 notified to Kyokuto Kaihatsu Kogyo Co., Ltd.. its execution of the shareholders’ right to make proposals about: 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. According to the point of view of the activist, despite its excellent business, the Company’s poor capital policy has resulted in a shareholders’ equity ratio of approx.

70% and a low ROE and as a result, a stock price that has been below dissolution value for more than 10 years. Strategic Capital stated that President Nunohara was appointed to his current position in April 2020 "0.57x PBR" and announced the current MTBP in May 2022 "0.49x PBR", but the stock price remains depressed. So, Strategic Capital has submitted its shareholder proposals to help remedy the Corporate Governance deficiencies and other factors causing the slump in the share price.