Withdrawal from the Business of Consolidated Subsidiaries and Dissolution of the Consolidated Subsidiaries
神栄キャパシタ株式会社 and Shinyei Kaisha Electronics (M) SDN. BHD. (consolidated subsidiaries)
Capacitor business; 2 locations in Japan (Nagano) and Malaysia
Declining profitability in consumer applications, repeated postponements of the start-up of mass production for automotive applications due to major changes in the electric vehicle market, aging equipment, difficulties securing personnel, and losses recorded over many years
In the consolidated financial results for the fiscal year ended March 2026, the Company expects to recognize a ¥233 million loss on business restructuring as an extraordinary loss. In the non-consolidated financial results for the fiscal year ended March 2026, the Company expects to additionally recognize ¥306 million in provision for doubtful accounts related to an affiliated company as an extraordinary loss. Short-term loans and other receivables totaling ¥951 million from 神栄キャパシタ株式会社 are expected to become uncollectible and are expected to increase further. The amount equivalent to any additional shortfall in provisions is expected to be recognized as an extraordinary loss in the non-consolidated financial results for the fiscal year ending March 2027 and thereafter.
Fiscal year ended March 2026. Any amount equivalent to a shortfall in provisions resulting from future increases in receivables will be recognized in the fiscal year ending March 2027 and thereafter.
The full-year consolidated earnings forecast for the fiscal year ended March 2026 has been revised to net sales of ¥43,267 million, operating income of ¥1,645 million, ordinary income of ¥1,725 million, net income attributable to owners of the parent of ¥1,346 million, and basic earnings per share of ¥343.95. The consolidated earnings forecast for the fiscal year ending March 2027 is currently being reviewed, including the impact of this matter, and, if it can be calculated, is scheduled to be disclosed in the earnings release for the fiscal year ended March 2026, which is scheduled to be published on 14 May 2026. The Company is also publishing its full-year non-consolidated earnings forecast.
Short-term loans and other receivables totaling ¥951 million (as of 31 March 2026; counterparty: 神栄キャパシタ株式会社)
The withdrawal from this business is scheduled to be completed by the end of October 2026, and both companies are scheduled to be dissolved by the end of March 2027. The Company expects to recognize a loss on business restructuring on a consolidated basis and a provision for doubtful accounts related to an affiliated company on a non-consolidated basis for the fiscal year ended March 2026. Although net sales are expected to decline after the withdrawal is completed, the Company believes that this will contribute to an improvement in profitability.
The consolidated earnings forecast for the fiscal year ending March 2027 is scheduled to be disclosed, if it can be calculated, in the earnings release for the fiscal year ended March 2026, which is scheduled to be published on 14 May 2026.
| Item | Details |
|---|---|
| Event name | Withdrawal from the Business of Consolidated Subsidiaries and Dissolution of the Consolidated Subsidiaries |
| Date of occurrence | 28 April 2026 (date of the Board of Directors' resolution) |
| Subject Entity | 神栄キャパシタ株式会社 and Shinyei Kaisha Electronics (M) SDN. BHD. (consolidated subsidiaries) |
| Target Locations / Products | Capacitor business; 2 locations in Japan (Nagano) and Malaysia |
| Cause | Declining profitability in consumer applications, repeated postponements of the start-up of mass production for automotive applications due to major changes in the electric vehicle market, aging equipment, difficulties securing personnel, and losses recorded over many years |
| Amount of Impact on Business Performance | In the consolidated financial results for the fiscal year ended March 2026, the Company expects to recognize a ¥233 million loss on business restructuring as an extraordinary loss. In the non-consolidated financial results for the fiscal year ended March 2026, the Company expects to additionally recognize ¥306 million in provision for doubtful accounts related to an affiliated company as an extraordinary loss. Short-term loans and other receivables totaling ¥951 million from 神栄キャパシタ株式会社 are expected to become uncollectible and are expected to increase further. The amount equivalent to any additional shortfall in provisions is expected to be recognized as an extraordinary loss in the non-consolidated financial results for the fiscal year ending March 2027 and thereafter. |
| Accounting period in which recognized | Fiscal year ended March 2026. Any amount equivalent to a shortfall in provisions resulting from future increases in receivables will be recognized in the fiscal year ending March 2027 and thereafter. |
| Impact on Earnings Forecast | The full-year consolidated earnings forecast for the fiscal year ended March 2026 has been revised to net sales of ¥43,267 million, operating income of ¥1,645 million, ordinary income of ¥1,725 million, net income attributable to owners of the parent of ¥1,346 million, and basic earnings per share of ¥343.95. The consolidated earnings forecast for the fiscal year ending March 2027 is currently being reviewed, including the impact of this matter, and, if it can be calculated, is scheduled to be disclosed in the earnings release for the fiscal year ended March 2026, which is scheduled to be published on 14 May 2026. The Company is also publishing its full-year non-consolidated earnings forecast. |
| Amount of receivables at risk of non-collection or delayed collection | Short-term loans and other receivables totaling ¥951 million (as of 31 March 2026; counterparty: 神栄キャパシタ株式会社) |
| Outlook | The withdrawal from this business is scheduled to be completed by the end of October 2026, and both companies are scheduled to be dissolved by the end of March 2027. The Company expects to recognize a loss on business restructuring on a consolidated basis and a provision for doubtful accounts related to an affiliated company on a non-consolidated basis for the fiscal year ended March 2026. Although net sales are expected to decline after the withdrawal is completed, the Company believes that this will contribute to an improvement in profitability. |
| Planned follow-up disclosure | The consolidated earnings forecast for the fiscal year ending March 2027 is scheduled to be disclosed, if it can be calculated, in the earnings release for the fiscal year ended March 2026, which is scheduled to be published on 14 May 2026. |
Items this document does not state (14)
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 determined that it would be difficult to continue the business due to declining profitability in consumer applications, repeated postponements and the uncertain outlook for the start-up of mass production for automotive applications amid major changes in the electric vehicle market, aging equipment, difficulties securing personnel, and losses recorded over many years.