Decision and Details
Gold Star Co., Ltd. (subsidiary)Filing for arbitration seeking the return of the deposit and damages related to the quality issue
An ice cream manufacturing quality issue required large-scale returns and recalls, resulting in losses including product recall costs, customs clearance fees and ocean freight, but payment of the recall costs and return of the deposit have not been received.
The impact on consolidated results for the fiscal year ending January 2027 is currently under review.
| Item | Details |
|---|---|
| Matter Covered | Filing for arbitration seeking the return of the deposit and damages related to the quality issue |
| Decision-Making Body | Gold Star Co., Ltd. (subsidiary) |
| Decision Date | 5 October 2026 |
| Implementation Date | 5 October 2026 (resolution to file for arbitration; the text does not make clear whether the filing has been completed) |
| Period Covered | Impact on consolidated results for the fiscal year ending January 2027 |
| Amount | Deposit return claim: CNY 2 million (¥47 million, converted at the exchange rate as of 1 October 2026); damages claim: approximately CNY 17 million (¥400 million, converted at the exchange rate as of 1 October 2026) |
| Impact on Business Performance | The impact on consolidated results for the fiscal year ending January 2027 is currently under review. |
| Reason | An ice cream manufacturing quality issue required large-scale returns and recalls, resulting in losses including product recall costs, customs clearance fees and ocean freight, but payment of the recall costs and return of the deposit have not been received. |
| Related previous disclosures | Exclusive distributorship agreement executed on 27 August 2025 and agreement regarding returns executed on 23 April 2026 |
| Future plans | The company will disclose updates on the arbitration filing as necessary. It will review the impact on consolidated results for the fiscal year ending January 2027 and promptly announce any matters requiring disclosure. It has secured new ice cream manufacturing arrangements. |
Items this document does not state (2)
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.A manufacturing quality issue required large-scale returns and recalls, resulting in losses including product recall costs, customs clearance fees and ocean freight, while payment of the recall costs and return of the deposit have not been received from the counterparty.