Sincere Lends Parent Yukaria ¥1.0bn at 6% for an 11-Week Term

Sincere Co (TSE: 7782) will lend ¥1.0bn to its parent company and controlling shareholder, Yukaria Inc (TSE: 286A), at a fixed 6.0% annual interest rate, the company said in a board resolution dated July 14, 2026. The loan carries no collateral, disburses on July 15, 2026, and must be repaid in full by September 30, 2026, a term of roughly eleven weeks.

Yukaria, which controls Sincere and trades on the Tokyo Stock Exchange's Growth market, told its subsidiary the funds will cover short-term financing tied to its factoring business.

Because Yukaria is Sincere's parent and controlling shareholder, the loan falls under Japan's related-party transaction rules, which require boards to show the deal does not disadvantage minority investors. Sincere said no director sits concurrently as an officer or employee of Yukaria, so it judged that no board member had a direct conflict of interest. All directors, including three independent outside directors, took part in the vote, which passed unanimously.

Ahead of the vote, the three independent directors, who Sincere says have no ties to Yukaria, reviewed the loan's necessity, the reasonableness of its terms and the fairness of the decision process. They concluded the rate is consistent with market levels, the contract terms are not unreasonable, and the transaction is not disadvantageous to minority shareholders. Sincere also said it compared the loan against alternatives such as bank deposits and Japanese government bonds before deciding the lending rate offered better returns within an acceptable balance of liquidity and safety.

Sincere expects the loan to have only a minor effect on its consolidated results for the year ending December 2026 and says it will disclose promptly if that changes. The filing does not address Yukaria's broader financial position beyond the stated factoring-related funding need, and repayment depends on Yukaria meeting the September 30 deadline.