Kraftia Details Ties to Kyushu Electric Power, Stresses Operational Independence

Kyudenko Corporation ( (JP:1959) ) has provided an update.

Kraftia Corporation has disclosed its relationship with controlling shareholder Kyushu Electric Power Co., Inc., which holds 22.75% of its voting rights, confirming its status as an equity-method affiliate within the Kyushu Electric Power Group. Although contracts with Kyushu Electric Power and related entities accounted for 13.0% of Kraftia’s completed work in the latest fiscal year and include personnel secondments, the company emphasizes that its distinct facilities construction business and independent decision-making structure support a certain degree of operational autonomy for stakeholders.

The company detailed its key transactions with Kyushu Electric Power, including approximately ¥947 million in contracted construction work and electricity sales during the fiscal year, with terms set through price negotiations based on standard market conditions. By clarifying that its construction pricing reflects market rates and that electricity selling prices are influenced by Japan’s feed-in tariff scheme, Kraftia aims to reassure investors and regulators that dealings with its controlling shareholder are conducted on an arm’s-length basis, mitigating concerns about governance and related-party transactions.

More about Kyudenko Corporation

Kraftia Corporation is a Japan-based construction company specializing in facilities and power-related construction work. As an equity-method affiliate of Kyushu Electric Power Co., Inc., it focuses on projects involving power transmission and distribution infrastructure within the Kyushu Electric Power Group, while maintaining its own management policies and operational independence.

Average Trading Volume: 235,599

Technical Sentiment Signal: Buy

Current Market Cap: Yen673.5B

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