Recognition of an Extraordinary Loss and Revisions to the Full-Year Earnings Forecast and Dividend Forecast for the Fiscal Year Ending March 2026
The Company's consolidated subsidiary (name Not disclosed)
At the Company's consolidated subsidiary, losses arose from past transactions but had not been recognized as expenses in prior fiscal years. The reasons stated for revising the earnings forecast primarily include production adjustments and other factors resulting from a change in customers' sales strategies in the EMS business, as well as costs incurred in responding to proxy solicitation at the ordinary general meeting of shareholders held in June 2025.
Approximately ¥222 million (a series of costs associated with the investigation of this matter and additional audit procedures, recognized as an extraordinary loss)
Consolidated fiscal year ended March 2026 (1 April 2025 to 31 March 2026)
Revised. The revised forecast is consolidated net sales of ¥75,600 million, consolidated operating profit of ¥1,500 million, consolidated ordinary profit of ¥1,000 million, profit attributable to owners of the parent of ¥200 million, and consolidated earnings per share of ¥10.42.
Company response
A special investigation committee was established. This was disclosed in the notice titled “(Progress of Disclosure) Notice Regarding the Establishment of a Special Investigation Committee” dated 23 January 2026. The committee chair's name and the establishment date are Not disclosed.
Consideration of measures to prevent recurrence
Related procedures
Investigation by a special investigation committee and additional audit procedures. Litigation and administrative proceedings: Not disclosed.
The Company will work toward an early recovery in earnings and higher dividend payments following the resumption of dividends. It will promptly announce any material changes that are expected.
The Company states that it will promptly announce any material changes that are expected. The timing of any specific follow-up report is Not disclosed.
| Item | Details |
|---|---|
| Event name | Recognition of an Extraordinary Loss and Revisions to the Full-Year Earnings Forecast and Dividend Forecast for the Fiscal Year Ending March 2026 |
| Date of occurrence | 19 March 2026 (date of board resolution) |
| Subject Entity | The Company's consolidated subsidiary (name Not disclosed) |
| Cause | At the Company's consolidated subsidiary, losses arose from past transactions but had not been recognized as expenses in prior fiscal years. The reasons stated for revising the earnings forecast primarily include production adjustments and other factors resulting from a change in customers' sales strategies in the EMS business, as well as costs incurred in responding to proxy solicitation at the ordinary general meeting of shareholders held in June 2025. |
| Amount of Impact on Business Performance | Approximately ¥222 million (a series of costs associated with the investigation of this matter and additional audit procedures, recognized as an extraordinary loss) |
| Accounting period in which recognized | Consolidated fiscal year ended March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | Revised. The revised forecast is consolidated net sales of ¥75,600 million, consolidated operating profit of ¥1,500 million, consolidated ordinary profit of ¥1,000 million, profit attributable to owners of the parent of ¥200 million, and consolidated earnings per share of ¥10.42. |
| Type of litigation or proceeding | Investigation by a special investigation committee and additional audit procedures. Litigation and administrative proceedings: Not disclosed. |
| Investigation structure | A special investigation committee was established. This was disclosed in the notice titled “(Progress of Disclosure) Notice Regarding the Establishment of a Special Investigation Committee” dated 23 January 2026. The committee chair's name and the establishment date are Not disclosed. |
| Measures to prevent recurrence | Consideration of measures to prevent recurrence |
| Outlook | The Company will work toward an early recovery in earnings and higher dividend payments following the resumption of dividends. It will promptly announce any material changes that are expected. |
| Planned follow-up disclosure | The Company states that it will promptly announce any material changes that are expected. The timing of any specific follow-up report is Not disclosed. |
Items this document does not state (13)
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.Costs will be incurred for an investigation and additional audit procedures concerning a matter in which losses arising from past transactions at a consolidated subsidiary were not recognized as expenses in prior fiscal years. The Company cited production adjustments and other factors resulting from a change in a customer's sales strategy in the EMS business, costs incurred in responding to proxy solicitation, and its full-year earnings outlook as the reasons for revising its earnings and dividend forecasts.