JAPAN PURE CHEMICAL CO., LTD.
4973・Prime Market・Chemicals
Governance
The company transitioned from a company with a board of corporate auditors to a company with an audit and supervisory committee in June 2025. The Board of Directors consists of 10 members (including 7 outside directors), with an outside director ratio of 70%, a high level. It has voluntarily established a Nomination and Compensation Advisory Committee and a Sustainability Committee, promoting the strengthening of corporate governance.
Risk Management
The company appoints a director in charge of risk management, and the Sustainability Committee (integrated with the former Risk Management Committee) oversees risk management, strategy, and metrics through its E, S, X, and G subcommittees. It has established a Compliance Officer system, an Internal Audit Office, and a whistleblower system, and has built a collaborative framework for the three-way audit system (statutory auditors, internal audit, and accounting audit).
Shareholder Returns
In addition to a DOE floor of 5%, progress in the sale of policy-held shares has been factored in, resulting in a substantial dividend increase to ¥200 per share annually (interim ¥63, year-end ¥137) for FY2026 (ending March 2026). The payout ratio is 64.1%. A further increase of ¥30 to ¥230 per share annually is planned for FY2027 (ending March 2027).
Dividend Policy
In addition to the payout ratio, the company has adopted a dividend policy with a floor of 5% for DOE (dividend on equity). The basic policy is to pay dividends twice a year, an interim dividend and a year-end dividend, with decisions on dividends of surplus etc. made by resolution of the Board of Directors. For FY2026 (ending March 2026), reflecting progress in the sale of policy-held shares, the year-end dividend was increased by ¥74, resulting in an annual dividend of ¥200 (interim ¥63, year-end ¥137), with a payout ratio of 64.1% and a dividend on net assets ratio of 7.4%. For FY2027 (ending March 2027), a further increase of ¥30 is planned, bringing the annual dividend to ¥230 (interim ¥115, year-end ¥115). Internal reserves are to be allocated to growth investments (such as R&D for plating chemicals for new materials and battery materials, etc.).
ESG
Based on TCFD recommendations, the company has set targets of carbon neutrality for Scope 1 and 2 emissions by 2030 and a 20% reduction in energy usage (versus FY2022). In human capital, it prioritizes the recruitment and development of "proactive, self-directed personnel," while advancing sustainability management across environmental, social, and governance areas through measures such as conflict minerals response (confirmation of LBMA certification) and human rights due diligence.
Last updated: June 17, 2026