On May 10, 2024, Yotai Refractories Co., Ltd. reported in its press release that it had received a shareholder proposal from Capital Gallery Co., Ltd. for its 126th Ordinary General Meeting of Shareholders. The proposal is as follows, i) Appropriation of Surplus. The company has opposed the proposal for the following reason, i) If the year-end dividend is 125 yen per share as requested by the proposing shareholder, the annual dividend, including the interim dividend of 25 yen per share, would be 150 yen per share, for a payout ratio of 72.0%.

Combined with the share buyback already conducted by the Company during the fiscal year ending March 31, 2024, the total return ratio would be 110.7%. The proposal sought by the proposing shareholder is not in line with the Company's policy of enhancing corporate value while balancing the above financial situation and sustainable growth.