Suspected improper transactions at a consolidated subsidiary
株式会社エム (the company's consolidated subsidiary)
エム社's freight forwarding business and transactions with multiple business partners
Suspected involvement of a former director of エム社 and preparation of activity reports that did not reflect actual operations
The fiscal year ending December 2026 and prior fiscal years (the amount of the impact and other details have not been determined)
The impact has not been reflected in the earnings release published today. If it is determined that a correction is necessary, the company will disclose the matter promptly.
Company response
Preparations are under way to establish a Special Investigation Committee comprising Audit and Supervisory Committee members (independent outside directors) and external professionals (attorneys and certified public accountants).
The parent company will continue investigating the facts, the existence of the transactions, and the appropriateness of the revenue recognition. It will proceed with preparations to establish a Special Investigation Committee and consultations with the audit firm, and will disclose the matter promptly if it determines that a correction is necessary.
The company will provide prompt notification once the amount of the impact and other details become clear.
| Item | Details |
|---|---|
| Event name | Suspected improper transactions at a consolidated subsidiary |
| Date recognized / date notice received | 20 April 2026 (the date information was received from an external source); from 24 April 2026 onward (the period during which the parent company recognized the suspicion as a result of its investigation) |
| Subject Entity | 株式会社エム (the company's consolidated subsidiary) |
| Target Locations / Products | エム社's freight forwarding business and transactions with multiple business partners |
| Cause | Suspected involvement of a former director of エム社 and preparation of activity reports that did not reflect actual operations |
| Accounting period in which recognized | The fiscal year ending December 2026 and prior fiscal years (the amount of the impact and other details have not been determined) |
| Impact on Earnings Forecast | The impact has not been reflected in the earnings release published today. If it is determined that a correction is necessary, the company will disclose the matter promptly. |
| Investigation structure | Preparations are under way to establish a Special Investigation Committee comprising Audit and Supervisory Committee members (independent outside directors) and external professionals (attorneys and certified public accountants). |
| Outlook | The parent company will continue investigating the facts, the existence of the transactions, and the appropriateness of the revenue recognition. It will proceed with preparations to establish a Special Investigation Committee and consultations with the audit firm, and will disclose the matter promptly if it determines that a correction is necessary. |
| Planned follow-up disclosure | The company will provide prompt notification once the amount of the impact and other details become clear. |
Items this document does not state (15)
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 company explained that a former director of エム社 may have been involved and that activity reports not reflecting actual operations may have been prepared in connection with transactions with multiple business partners. The company also stated that it had received information from an external source regarding the possibility of unclear flows of funds.