KPF Decides on Cash and Stock Dividends Through Reduction Dividend Method

KPF announced through a disclosure on February 26 that it will conduct both cash and stock dividends for common shares.

This dividend is part of the shareholder return policy announced in October last year, and the company will fully implement the promised 20% cash payout ratio as well as a stock dividend of one share for every 31 shares held.

In October last year, KPF introduced a mid- to long-term shareholder return policy, outlining its plans to enhance shareholder value through stable cash dividends and the use of treasury shares. Subsequently, in November last year, the company executed the cancellation of treasury shares and bonds.

This dividend will be executed in the form of a "reduction dividend" based on the transfer of capital surplus to retained earnings, as resolved at the extraordinary general meeting of shareholders in December last year. Although the disclosed market dividend yield is stated as 11.0%, the company explained that, since dividend income tax is not withheld, the effective yield is equivalent to about 13% based on a standard cash dividend.

KPF also announced that it will hold its annual general meeting of shareholders on March 25, during which it plans to newly appoint three outside directors and establish an audit committee.

A KPF representative stated, "We are executing the shareholder return policy announced last year as planned and will continue to enhance corporate value over the mid- to long-term by simultaneously pursuing dividend, treasury share policies, and improvements in corporate governance."

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