Announcement concerning transfer of subsidiary’s business

We have decided to transfer the business of our consolidated subsidiary KH Neochem Singapore Pte. Ltd. to our head office (Chuo Ward, Tokyo) and develop it as follows:

1.Outline of subsidiary of business transfer origin

(1) Name         KH Neochem Singapore Pte. Ltd.

(2) Location    Singapore

(3) Details of Business      Sales of chemicals sold by KH Neochem Co., Ltd. to South East Asia, South Asia, Middle East etc.

(4) Ownership ratio        100%

 

2.Business will transfer to:

KH Neochem Corporation Business Headquarters, Chemical Sales & Marketing Division

 

3.Purpose of business transfer

Our aim is to efficiently allocate management resources of the Group and to optimize the group as a whole in the  Asian market of our product sales structure.

 

4.Schedule of business transfer

March 1, 2017: Opening operations at our Chemical Sales & Marketing Division in Tokyo.

April 1, 2017: Closure of the Singapore office.

2018: Establishment of KH Neochem Singapore Pte.Ltd. as a dormant company (planned).

 

5.Impact on business performance and financial situation

The impact of this transfer on the consolidated and individual results and financial condition will be minor.