[Amended] Material event report (spin-off)

A later amendment corrects this filing, so the terms on this page may be out of date. See the latest version (2026-10-12) →

What happened

Material Event Report (Decision on Company Spin-off) 6.1 Kumyang Co., Ltd. Correction Report (Notice) October 1, 2026

1. Disclosure document subject to correction: Decision on Company Spin-off 2. Initial filing date of the disclosure document subject to correction: 2026-09-09

3. Matters corrected Item: 1. Spin-off method (correction of content per attached spin-off plan) Before correction: [Details of company spin-off] (b) Newly incorporated spin-off company: Company name: KYDC Co., Ltd.; Business divisions: ① production and sale of materials recovered from metals ② manufacture and sale of non-ferrous metal products ③ environmental industry ④ waste battery recycling business After correction: [Details of company spin-off] (b) Newly incorporated spin-off company: Company name: KYDC Co., Ltd.; Business divisions: ① data center power supply and energy management business ② ESS and energy storage device-related business ③ data center thermal management business ④ data center facility and equipment maintenance business ⑤ data center security business ⑥ AI platform and AI service business ⑦ production and sale of materials recovered from metals ⑧ manufacture and sale of non-ferrous metal products ⑨ environmental industry ⑩ waste battery recycling business

Item: 2. Purpose of the spin-off (correction of content per attached spin-off plan) Before correction: (1) Among the businesses operated by the spun-off company, the company will carry out a simple physical (vertical) spin-off of the business division engaged in ① production and sale of materials recovered from metals, ② manufacture and sale of non-ferrous metal products, ③ environmental industry, and ④ waste battery recycling business, and will pursue the data center business, which can become a new source of cash generation and an important growth axis for corporate value. After correction: (1) Among the businesses operated by the spun-off company, the company will carry out a simple physical (vertical) spin-off of the business division engaged in ① data center power supply and energy management business, ② ESS and energy storage device-related business, ③ data center thermal management business, ④ data center facility and equipment maintenance business, ⑤ data center security business, ⑥ AI platform and AI service business, ⑦ production and sale of materials recovered from metals, ⑧ manufacture and sale of non-ferrous metal products, ⑨ environmental industry, and ⑩ waste battery recycling business, and will pursue the data center business, which can become a new source of cash generation and an important growth axis for corporate value.

Item: 7. Newly incorporated spin-off company - financial details at incorporation (KRW) (correction of content per attached spin-off plan) Before correction: Total assets: 475,170,415,240; Total liabilities: not applicable; Total equity: 475,170,415,240; Capital stock: 10,000,000 After correction: Total assets: 504,554,948,568; Total liabilities: not applicable; Total equity: 504,554,948,568; Capital stock: 10,000,000

Material Event Report / Matter subject to mandatory exchange reporting To: Financial Services Commission / Korea Exchange September 9, 2026 Company name: Kumyang Co., Ltd. CEO: Ryu Gwang-ji Head office location: 77 Nakdong-daero 960beon-gil, Sasang-gu, Busan (Tel) 051-316-5881 (Website) http://www.kyc.co.kr Preparer: (Title) Executive Director (Name) Jang Ho-cheol (Tel) 051-310-5851

Decision on Company Spin-off

1. Spin-off method (1) Pursuant to Articles 530-2 through 530-12 of the Commercial Act and as set forth in this spin-off plan, the spun-off company, Kumyang Co., Ltd., will spin off the business division subject to spin-off among the business divisions it operates to incorporate a newly established spin-off company, by way of a simple physical (vertical) spin-off in which the surviving spin-off company continues to exist and is allotted 100% of the shares issued by the newly established company. [Details of company spin-off] (a) Surviving spin-off company: Company name: Kumyang Co., Ltd.; Business divisions: all businesses except the business divisions transferred to the newly established spin-off company (b) Newly incorporated spin-off company: Company name: KYDC Co., Ltd.; Business divisions: ① data center power supply and energy management business ② ESS and energy storage device-related business ③ data center thermal management business ④ data center facility and equipment maintenance business ⑤ data center security business ⑥ AI platform and AI service business ⑦ production and sale of materials recovered from metals ⑧ manufacture and sale of non-ferrous metal products ⑨ environmental industry ⑩ waste battery recycling business (Note: the trade name of the newly established spin-off company may be changed at its inaugural general meeting.)

(2) The spin-off effective date shall be December 5, 2026. However, the spin-off effective date may be changed by resolution of the board of directors of the spun-off company or by decision of the CEO under delegation from the board of directors. (3) The spin-off is carried out by special resolution of the general shareholders' meeting pursuant to Article 530-3, Paragraphs 1 and 2 of the Commercial Act, and the allocation of assets and rights/obligations arising from the spin-off shall be determined based on their relevance to the business division subject to spin-off and the cause of their occurrence. In particular, debts, liability for damages, litigation liability, contractual liability, contingent liabilities, and all other liabilities arising from acts or facts occurring before the spin-off effective date shall, in principle, be borne by the surviving spin-off company, Kumyang Co., Ltd. (4) The business and property transferred as a result of the spin-off shall be the assets and rights/obligations, etc. necessary to operate the business division subject to spin-off, and the specific scope, details, and value thereof shall be determined in the future in consideration of relevant laws and accounting standards, etc. (5) Among the assets and rights/obligations belonging to the business division subject to spin-off, the assets, contractual rights/obligations, permits and licenses, intellectual property rights, trade secrets, and other related rights/obligations within the scope necessary for the newly established spin-off company to conduct its business shall be transferred to the newly established spin-off company. However, liabilities arising from acts or facts occurring before the spin-off effective date, and debts accompanying such liabilities, shall, in principle, be borne by the surviving spin-off company, Kumyang Co., Ltd. (6) Debts or claims, and other rights/obligations and all liabilities accompanying them, that arise or become fixed after the spin-off effective date due to acts or facts occurring before the spin-off effective date, shall, in principle, belong to the surviving spin-off company, Kumyang Co., Ltd., regardless of the time of occurrence or determination. This includes contingent liabilities, liability for damages, tax-related liability, litigation liability, and other legal liability arising from acts or facts occurring before the spin-off effective date. (7) Liabilities and disputes arising from acts or facts occurring before the spin-off effective date, among contracts and litigation to which the spun-off company is a party prior to the spin-off effective date, shall, in principle, be borne by the surviving spin-off company, Kumyang Co., Ltd. However, contractual rights/obligations, etc. necessary for the newly established spin-off company to continue operating the business division subject to spin-off after the spin-off effective date shall be transferred to the newly established spin-off company. (8) Employees working in the business division subject to spin-off shall be succeeded to by the newly established spin-off company pursuant to relevant laws, and employees working in divisions other than the business division subject to spin-off shall maintain their employment relationship with the surviving spin-off company. However, liabilities and obligations relating to the employment relationship arising before the spin-off effective date shall, in principle, be borne by the surviving spin-off company, Kumyang Co., Ltd. (9) The surviving spin-off company shall take the necessary measures so that, simultaneously with the incorporation of the newly established spin-off company, the newly established spin-off company can continue to operate the business in the business division subject to spin-off. (10) The specific details and value of the assets/liabilities transferred by the spin-off, the scope of succession of rights/obligations, and other details shall be determined in the future in accordance with relevant laws.

2. Purpose of the spin-off (1) Among the businesses operated by the spun-off company, the company will carry out a simple physical (vertical) spin-off of the business division engaged in ① data center power supply and energy management business, ② ESS and energy storage device-related business, ③ data center thermal management business, ④ data center facility and equipment maintenance business, ⑤ data center security business, ⑥ AI platform and AI service business, ⑦ production and sale of materials recovered from metals, ⑧ manufacture and sale of non-ferrous metal products, ⑨ environmental industry, and ⑩ waste battery recycling business, and will pursue the data center business, which can become a new source of cash generation and an important growth axis for corporate value. (2) Through this spin-off, the company aims to strengthen competitiveness by allowing the spun-off company to concentrate investment on its core business, and to pursue the sale of equity in the newly established company, thereby promoting strengthened competitiveness and improved financial structure for both the spun-off company and the newly established company. (3) By concentrating and managing, in the newly established spin-off company, the land, buildings and related facilities within the Gijang plant that are directly used for the development, investment, and operation of the data center business, the power receiving / 154kV substation and three 100MW-class transformers and related power supply infrastructure, and data center infrastructure such as cooling, water supply, HVAC, communications, and security, together with other related assets, the company aims to enhance the specialization and operational efficiency of the related business, and to maximize the utilization value of assets by actively using the existing established business sites and infrastructure for the data center business. In addition, by establishing a basis for attracting the investment capital necessary for the company, the company aims to secure the funding necessary to pursue the business, and to promote normalization of the surviving spin-off company and the growth and strengthened competitiveness of the newly established spin-off company.

3. Material impact and effects of the spin-off This spin-off is carried out by way of a simple physical (vertical) spin-off pursuant to Articles 530-2 through 530-12 of the Commercial Act. Accordingly, there is no change in the shares owned or equity ratio of the largest shareholder of the spun-off company before and after this spin-off. In addition, since this spin-off is carried out by way of a simple physical (vertical) spin-off, the spin-off itself has no impact on the consolidated financial statements.

4. Spin-off ratio Since this is a simple physical (vertical) spin-off in which the spun-off company acquires the entire number of shares issued by the newly established spin-off company, a spin-off ratio is not calculated.

5. Details of the business and property to be transferred by the spin-off As of the date of preparation of this disclosure, the specific details and value of the assets and liabilities to be transferred by the spin-off have not been finally determined, and will be finally determined and reflected in the spin-off plan after going through related procedures such as approval of the spin-off plan at an extraordinary general shareholders' meeting.

6. Surviving company after the spin-off Company name: Kumyang Co., Ltd. Financial details after the spin-off (KRW): Total assets: 1,174,899,466,779; Total liabilities: 759,117,349,987; Total equity: 415,782,116,792; Capital stock: 31,983,598,000 Revenue of the surviving business division for the most recent fiscal year as of March 31, 2026 (KRW): 5,395,445,571 Main business: secondary batteries, resource development (mining), foaming agents, etc. Whether listing is maintained after the spin-off: Yes

7. Newly incorporated spin-off company Company name: KYDC Co., Ltd. Financial details at incorporation (KRW): Total assets: 504,554,948,568; Total liabilities: not applicable; Total equity: 504,554,948,568; Capital stock: 10,000,000 Revenue of the newly established business division for the most recent fiscal year as of March 31, 2026 (KRW): not applicable Main business: data center construction and infrastructure operation, leasing business, data center power supply and energy management business, production and sale of materials recovered from metals, manufacture and sale of non-ferrous metal products, environmental industry, waste battery recycling business, etc. Whether a re-listing application will be filed: No

8. Matters concerning capital reduction Capital reduction ratio (%): not applicable Old share certificate submission period: start date: not applicable; end date: not applicable Expected trading suspension period: start date: not applicable; end date: not applicable New share allotment terms: not applicable Whether proportional to shareholders' share count, and reason: not applicable New share allotment record date: not applicable Expected date of delivery of new share certificates: not applicable Expected listing date of new shares: not applicable

9. Spin-off schedule Board of directors' resolution date: September 9, 2026 - Attendance of independent (outside) directors*: Present: 1; Absent: 1 - Attendance of the auditor (an audit committee member who is not an independent (outside) director*): Present Record date for determining shareholders: September 28, 2026 Shareholder register closure period: start date: not applicable; end date: not applicable Period for receiving notices of objection to the spin-off: start date October 2, 2026; end date October 18, 2026 Expected date of general shareholders' meeting: October 19, 2026 Appraisal right exercise period: start date October 20, 2026; end date November 8, 2026 Creditor objection submission period: start date November 2, 2026; end date December 3, 2026 Spin-off effective date: December 5, 2026 Date of spin-off completion report meeting: December 11, 2026 Expected spin-off registration date: December 11, 2026

10. Matters concerning appraisal (stock purchase) rights Exercise requirements: (1) Pursuant to Articles 530-2 through 530-12 of the Commercial Act and Article 165-5 of the Financial Investment Services and Capital Markets Act (hereinafter the "Capital Markets Act") and Article 176-7, Paragraph 1, Item 2 of the Enforcement Decree of the same Act, a shareholder recorded in the shareholder register as of the record date for determining shareholders, who objects to the board of directors' resolution concerning the spin-off and notifies the company in writing of such objection by the day before the resolution date of the general shareholders' meeting, may request the company to purchase shares by submitting, within 20 days from the resolution date of the general shareholders' meeting, a written document stating the type and number of shares, and may request purchase of a portion of the shares held. (2) However, shares eligible for the purchase request are limited to shares that the dissenting shareholder can prove were acquired before the board of directors' resolution was disclosed, and shares acquired after the board of directors' resolution was disclosed but only where it can be proven that, by the day after the date the board of directors' resolution was disclosed, (i) a sale and purchase contract for such shares was concluded, (ii) a loan-for-consumption agreement for such shares was terminated, or (iii) a legal act concerning such shares occurred. (3) Meanwhile, appraisal rights are granted only to shareholders who continue to hold their shares until the date of exercise of the appraisal right, and the appraisal right is forfeited for shares sold and reacquired within that period; once the appraisal right has been exercised, it cannot be withdrawn. In addition, a shareholder who notified in writing in advance of objection to the board of directors' resolution on the spin-off but then voted in favor of the spin-off at the general shareholders' meeting may not exercise the appraisal right. (4) The spun-off company is a company listed on the KOSPI market, and must purchase the relevant shares within one month from the date the share purchase request period ends. Expected purchase price: 9,900 Exercise procedure, method, period, location: (1) Exercise procedure: A shareholder recorded in the spun-off company's shareholder register as of the record date for determining shareholders (under Article 165-5 of the Capital Markets Act, the appraisal right is granted only to a shareholder who can prove having concluded a share acquisition contract by the date the board resolution was disclosed, or who can prove that, by the next business day after the date the board resolution was disclosed, (i) a sale and purchase contract for the shares was concluded, (ii) a loan-for-consumption agreement for the shares was terminated, or (iii) a legal act concerning the shares occurred, and who continues to hold the shares until the date of exercise of the appraisal right) must notify the company in writing of its objection to the board of directors' resolution concerning this spin-off by the day before the general shareholders' meeting. A shareholder whose shares are electronically registered in a customer account book must apply to the account management institution (e.g., the securities company where the customer account is opened) to express its objection by the third business day before the end date of the objection notice period, and the account management institution, etc. must compile the expressions of objection and apply to the Korea Securities Depository by the second business day before the end date of the objection notice period, attaching a statement listing each shareholder's intent and number of shares held, using the Korea Securities Depository's prescribed objection notice application form; the Korea Securities Depository must, upon receiving such application, notify the company of the objection by shareholder name by the end date of the objection notice period. (2) Exercise of appraisal right: Pursuant to Article 165-5 of the Capital Markets Act, a shareholder who has given the above notice of objection may request the spun-off company to purchase the shares it owns by submitting, within 20 days from the resolution date of the general shareholders' meeting, a written document stating the type and number of shares. A shareholder whose share certificates are deposited with a securities company (financial investment business entity) may apply to that securities company, which shall apply to the Korea Securities Depository by the business day before the end date of the appraisal right exercise period, and the Korea Securities Depository shall, on behalf of the shareholder, make the share purchase request to the relevant company in writing on the end date of the appraisal right exercise period. A shareholder who wishes to exercise the appraisal right directly against the company shall notify the company in writing by the close of business on the end date of the appraisal right exercise period. Once the appraisal right has been exercised, the share purchase request cannot be cancelled or withdrawn. (3) Exercise period: A shareholder who notified the company in writing before the general shareholders' meeting of its objection to the board of directors' resolution concerning the spin-off may make the share purchase request within 20 days from the resolution date of the general shareholders' meeting. (4) Exercise location: for general shareholders (beneficial shareholders): the relevant securities company through which the transaction was made. Expected payment timing and method: to be paid within one month from the date the share purchase request period ends, by cash payment or transfer to the shareholder's registered account. Matters concerning restrictions on appraisal rights: there are no cases in which the appraisal right is restricted if the "requirements for exercise of appraisal rights" stated above are satisfied. Effect on the contract: (1) This spin-off is a simple physical (vertical) spin-off under Articles 530-2 through 530-12 of the Commercial Act, and the appraisal right of dissenting shareholders is recognized pursuant to Article 165-5 of the Capital Markets Act. Regarding matters concerning the appraisal right, where agreement on the share purchase price between the shareholder exercising the appraisal right and the spun-off company is not reached as provided in Article 165-5, Paragraph 3 of the Capital Markets Act, the purchase price shall be the arithmetic mean (rounded up to the nearest won) of the prices calculated by the following methods set forth in Article 176-7, Paragraph 3, Item 1 of the Enforcement Decree of the Capital Markets Act: - The weighted arithmetic mean price, weighted by the trading volume of actual transactions, of the daily closing prices published on the securities market during the 2 months preceding the day before the board of directors' resolution date (or, where there is an adjustment to the base trading price due to ex-dividend or ex-rights during that period and the period from the ex-dividend or ex-rights date to the day before the board resolution date is 7 days or more, that period instead); - The weighted arithmetic mean price, weighted by the trading volume of actual transactions, of the daily closing prices published on the securities market during the 1 month preceding the day before the board of directors' resolution date (subject to the same adjustment as above); - The weighted arithmetic mean price, weighted by the trading volume of actual transactions, of the daily closing prices published on the securities market during the 1 week preceding the day before the board of directors' resolution date. (2) If the total share purchase amount for shares for which the appraisal right is exercised in objection to this spin-off exceeds KRW 100,000,000,000 (KRW 100 billion) as of the expiration of the appraisal right exercise period (including cases where, even if the purchase price has not been agreed with shareholders, the total amount including the expected purchase amounts is reasonably expected to exceed KRW 100,000,000,000 (KRW 100 billion)), the spun-off company may, by board of directors' resolution, suspend the progress of this spin-off and withdraw the decision on this spin-off. If a board of directors' resolution to withdraw the spin-off decision is adopted, the procedures relating to the exercise of appraisal rights shall also be discontinued, and the spun-off company shall not bear an obligation to pay the share purchase price arising from the exercise of appraisal rights.

11. Whether a put option or similar contract has been concluded: No - Contract details: not applicable

12. Whether this is subject to securities registration statement filing: No - Reason for exemption, if applicable: simple physical (vertical) spin-off * For listed companies, this refers to independent directors; for unlisted companies, to outside directors.

13. Plans for future corporate restructuring Through this business restructuring, the company intends to enhance the specialization and management efficiency of its existing businesses and to establish an independent growth foundation for each business division. This spin-off will proceed by way of a physical (vertical) spin-off in which the surviving spin-off company, Kumyang Co., Ltd., spins off and transfers the business of production and sale of materials recovered from metals, manufacture and sale of non-ferrous metal products, the environmental industry, and the waste battery recycling business to the newly established spin-off company, KYDC Co., Ltd. Through this spin-off, the company plans to separate the business division subject to spin-off into a separate company, thereby enabling specialized management and business administration for that business division, and to enhance decision-making and operational efficiency suited to the characteristics of the business. The surviving spin-off company, Kumyang Co., Ltd., will continue to operate its existing businesses other than the business division subject to spin-off even after this spin-off, and plans to continue to review business restructuring for strengthening business competitiveness and enhancing corporate value, comprehensively considering its future financial structure and management conditions. In particular, the surviving spin-off company's basic direction is to continue pursuing its battery-related business and mining-related business, while adjusting the pace of investment and business expansion in stages considering the company's financial condition and management conditions, and pursuing business normalization and strengthened competitiveness. In addition, the company plans to pursue the data center business by actively utilizing the land and buildings within the Gijang plant subject to conversion to a data center, which will be transferred to the newly established spin-off company, the power receiving / 154kV substation and three 100MW-class transformers and related power supply infrastructure, and infrastructure directly used for the data center business such as cooling, water supply, HVAC, communications, and security. Through this, the company plans to enhance the utilization of the existing established business sites and infrastructure, and to increase operational efficiency and maximize the utilization value of assets by professionally carrying out the development, investment, and operation of the data center business in a separate business area. In addition, by establishing a basis for attracting external investors and investment capital suited to the characteristics of the data center business, the company plans to secure the funding necessary to pursue the business, ease the financial burden on the surviving spin-off company from large-scale investment, and promote the growth and strengthened competitiveness of the newly established spin-off company. In the future process of attracting external investment and pursuing the business, the company plans to comprehensively review various investment and funding methods, considering the growth potential of the business and investment conditions. The company plans to continuously review its business portfolio by comprehensively considering the characteristics and growth potential, financial structure, and investment conditions of each business, and to review additional business restructuring as necessary, thereby enhancing the company's corporate value and shareholder value.

14. In the case of a physical (vertical) spin-off, review of the physical spin-off The company has decided to pursue a physical (vertical) spin-off method in which it establishes the newly incorporated spin-off company, KYDC Co., Ltd., with the surviving spin-off company, Kumyang Co., Ltd., holding 100% of the shares issued by the newly established spin-off company. In the case of a physical spin-off, the company considered that, while legally separating the business division subject to spin-off into an independent company, the surviving spin-off company will hold 100% of the equity of the newly established spin-off company, thereby maintaining the control relationship of the company before and after the spin-off while enabling independent management and business administration of the business division subject to spin-off. In addition, the company judged that, by independently managing the business and management of the business division subject to spin-off through the physical spin-off, it would be possible to strengthen accountable management by business division and to establish decision-making and operating systems suited to the characteristics of the business, thereby enhancing management efficiency. In particular, the newly established spin-off company will concentrate and manage related businesses and assets centered on the land and buildings within the Gijang plant that can be directly used for the development, investment, and operation of the data center business, the power receiving / 154kV transformation and supply-related infrastructure, transformers and transmission/distribution facilities, cooling and HVAC facilities, and communications/security-related infrastructure. Through this, the company judged that it would be possible to increase the utilization of the existing established business sites and infrastructure, and to enhance the utilization value of assets and business efficiency by establishing a professional development and operating system specialized for the data center business. In addition, the company judged that, by separating the data center business into a separate legal entity, it would be possible to establish an investment structure suited to the characteristics of the business, and to establish a basis for attracting the capital necessary for the business from various external investors, including domestic and overseas investors, in the future. Through this, the company judged that it would be possible to more efficiently secure the investment funds necessary for the development and operation of the data center business, ease the financial burden on the surviving spin-off company from large-scale investment, and at the same time promote the growth and strengthened competitiveness of the newly established spin-off company. The company judges that, through this physical spin-off, it will be able to enhance the specialization and management efficiency of the business division subject to spin-off, while the surviving spin-off company maintains control over the newly established spin-off company, thereby continuing to enjoy the growth opportunities and corporate value generated in that business division even after the spin-off. As a result, the company's goal is to establish a virtuous cycle structure of: improvement of Kumyang's existing financial structure → establishment of KYDC's clean infrastructure → attraction of global investors → AIDC development → generation of stable leasing/operating revenue. Meanwhile, this physical spin-off is intended to separate the business division subject to spin-off into a legal entity distinct from the surviving spin-off company in order to enhance the specialization and efficiency of the business, and is not intended for external sale or business withdrawal through the spin-off itself. Going forward, the company plans to strengthen the competitiveness of each business and promote enhancement of corporate value through independent management and business administration suited to the business characteristics of the surviving spin-off company and the newly established spin-off company. Having comprehensively reviewed the foregoing, the company determined that, at this time, the physical spin-off method is appropriate from the standpoints of establishing a specialized management system for the business division subject to spin-off, enhancing business efficiency, efficiently utilizing existing business sites and infrastructure, securing investment funds for the data center business and establishing a basis for attracting external investment, and maintaining control and business continuity of the surviving spin-off company, and accordingly decided to pursue this physical spin-off.

15. In the case of a physical (vertical) spin-off, shareholder protection measures This physical spin-off is pursued with the principal aims of efficiently restructuring the company's business structure, enhancing the specialization and management efficiency of each business division, while also restoring the company's normal management foundation and protecting shareholder value. The company plans to pursue this physical spin-off not merely as a procedure for transferring a specific business division to a separate legal entity, but as part of a management strategy to enhance the corporate value of the company as a whole by establishing a management and investment system suited to the characteristics of each business. In the process of transferring the business division subject to spin-off to the newly established spin-off company, KYDC Co., Ltd., the value of the assets and liabilities to be transferred will be appropriately calculated in accordance with relevant laws and accounting standards, and the fairness and appropriateness of the spin-off will be ensured by comprehensively reviewing the financial condition of the surviving spin-off company and the newly established spin-off company before and after the spin-off. In addition, the company will faithfully implement disclosure and shareholder protection procedures in accordance with relevant laws and capital market regulations to ensure that the rights and interests of existing shareholders are not unduly infringed in the course of the physical spin-off. In particular, the company will faithfully disclose matters relating to the convening of the general shareholders' meeting and the spin-off plan, the main content of the spin-off, and future business plans, and will faithfully comply with shareholder protection systems such as appraisal rights as provided under relevant laws. In addition, in the event that matters arise in the future course of the newly established spin-off company, KYDC Co., Ltd.'s business that could materially affect capital raising such as attracting external investment or listing, or its governance structure, the company will carefully review the procedures and requirements under relevant laws and exchange regulations, and will pursue such matters after comprehensively considering their impact on the rights and interests of existing shareholders and on shareholder value. Even when pursuing external investment or listing of the newly established spin-off company in the future, the company will fully consider the relevant regulations and the purpose of shareholder protection systems, and will endeavor to minimize the possibility of impairment of shareholder value by transparently disclosing major decisions through appropriate procedures and disclosure where necessary.

16. Other material matters relevant to investment decisions (1) The specific content and schedule of this spin-off may change depending on the results of review and approval by relevant laws and authorities and resolution of the general shareholders' meeting, and if a change to the spin-off plan is necessary, it may be changed in accordance with relevant laws and procedures. (2) As a result of this spin-off, the assets, liabilities, and profit/loss structure of the surviving spin-off company and the newly established spin-off company may change, and the management performance of each company after the spin-off may be affected by domestic and overseas economic conditions, market conditions, raw material prices, competitive environment, and investment conditions, etc. (3) As of now, there are no specific confirmed matters regarding future attraction of external investment, capital raising, changes to the equity structure, or listing, etc. of the newly established spin-off company, KYDC Co., Ltd., which could affect the company's governance structure; such matters will be reviewed and pursued in the future in accordance with relevant laws and regulations. (4) If shareholders arise who exercise appraisal rights in connection with this spin-off, cash outflow may occur due to payment of the share purchase price, and the actual financial impact may vary depending on the results of the exercise of appraisal rights. (5) If material matters relating to this spin-off arise or change in the future, the company will disclose them in accordance with relevant laws and regulations. (6) The financial details of "6. Surviving company after the spin-off" and "7. Newly incorporated spin-off company" in the main text above were prepared based on financial information for which the accounting firm's audit and review opinion was declined (disclaimed), and may change in the future and may differ from the actual financial condition and management performance. ※ Related disclosures: none.