Japan Kyosei Group Co. Ltd. has issued a supplemental announcement regarding the bankruptcy and liquidation of one of its subsidiaries. The company acknowledges that its previous Inside Information Announcements did not meet the standards required by the Hong Kong Listing Rules due to a lack of clear policies and timelines for reporting legal proceedings. The local management at the subsidiary level initially considered the bankruptcy applications as routine matters and only recognized their significance under the Listing Rules after the cases concluded in late 2024. Upon formal notification in early 2025, the Group's management sought legal counsel to ensure compliance. Japan Kyosei Group reaffirms its commitment to high standards of corporate governance and regulatory compliance, and advises shareholders and potential investors to exercise caution when dealing with the company's shares. Dr. Hiroshi Kaneko, Executive Director and CEO, has reiterated the Group's dedication to restoring stakeholder confidence and fostering a culture of compliance.