Recognition of Extraordinary Gains and Losses and Revisions to the Full-Year Earnings Forecast
The filing company (Chugai Ro Co.,Ltd.) and the Group's Chinese local subsidiaries (names not disclosed)
The Chinese local subsidiaries and Chinese market; the listed securities held by the company; heat-treatment equipment for functional materials related to semiconductors and data centers
Review of policy-held shares and improvement of capital efficiency; continued weakness in sales and deteriorating profitability at the Chinese local subsidiaries; growing demand for heat-treatment equipment for functional materials related to semiconductors and data centers
Expected gain on the sale of investment securities of ¥700 million (extraordinary gain); ¥350 million in provision for business-structure improvement (extraordinary loss); net income attributable to owners of the parent increased from ¥2,516 million to ¥2,787 million, an increase of ¥271 million
The gain on the sale of investment securities: October–December 2026. The ¥350 million provision for business-structure improvement: the second-quarter consolidated accounting period of the fiscal year ending March 2027.
The full-year consolidated earnings forecast was revised. Orders received increased from ¥38,700 million to ¥40,500 million, an upward revision of ¥1,800 million, and net income attributable to owners of the parent increased from ¥2,516 million to ¥2,787 million, an upward revision of ¥271 million. There were no changes to net sales, operating income or ordinary income.
The company will sell shares as part of its target of reducing the ratio of policy-held shares to net assets to below 20% as of the end of March 2027. It will optimize the scale of its business in the Chinese market and seek to restore profitability across the Group.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Gains and Losses and Revisions to the Full-Year Earnings Forecast |
| Date of occurrence | October–December 2026 (period in which the gain on the sale of investment securities is expected to arise); the second-quarter consolidated accounting period of the fiscal year ending March 2027 (period in which the extraordinary loss will be recorded) |
| Subject Entity | The filing company (Chugai Ro Co.,Ltd.) and the Group's Chinese local subsidiaries (names not disclosed) |
| Target Locations / Products | The Chinese local subsidiaries and Chinese market; the listed securities held by the company; heat-treatment equipment for functional materials related to semiconductors and data centers |
| Cause | Review of policy-held shares and improvement of capital efficiency; continued weakness in sales and deteriorating profitability at the Chinese local subsidiaries; growing demand for heat-treatment equipment for functional materials related to semiconductors and data centers |
| Amount of Impact on Business Performance | Expected gain on the sale of investment securities of ¥700 million (extraordinary gain); ¥350 million in provision for business-structure improvement (extraordinary loss); net income attributable to owners of the parent increased from ¥2,516 million to ¥2,787 million, an increase of ¥271 million |
| Accounting period in which recognized | The gain on the sale of investment securities: October–December 2026. The ¥350 million provision for business-structure improvement: the second-quarter consolidated accounting period of the fiscal year ending March 2027. |
| Impact on Earnings Forecast | The full-year consolidated earnings forecast was revised. Orders received increased from ¥38,700 million to ¥40,500 million, an upward revision of ¥1,800 million, and net income attributable to owners of the parent increased from ¥2,516 million to ¥2,787 million, an upward revision of ¥271 million. There were no changes to net sales, operating income or ordinary income. |
| Outlook | The company will sell shares as part of its target of reducing the ratio of policy-held shares to net assets to below 20% as of the end of March 2027. It will optimize the scale of its business in the Chinese market and seek to restore profitability across the Group. |
Items this document does not state (16)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The investment securities are being sold to review policy-held shares and improve capital efficiency. The extraordinary loss will be recorded to implement business-structure improvements in light of the continued weakness in sales and deteriorating profitability at the Chinese local subsidiary. The upward revision to the forecast for orders received reflects growing demand for heat-treatment equipment for functional materials related to semiconductors and data centers.