Progress of the Nepal hydroelectric power business at a consolidated subsidiary and changes to the scheduled monetization timing
NEPAL HYDRO POWER HOLDINGS Co., Ltd. (NHPH), a consolidated subsidiary of kaihan co.,Ltd., and the business being promoted through NHPH
Hydroelectric power businesses in the Federal Democratic Republic of Nepal: Project No. 1, Dupcheshwor Mahadev Hydro Pvt. Ltd. (5.5 MW); Project No. 4, Betrawati Hydro Electric Company Ltd. (13.7 MW); and Project Nos. 2 and 3
Primarily, securing the funds to be borne by the Company for the remaining construction work, grid connection and other requirements necessary before monetization has taken longer than initially expected. Construction progress has also been affected to some extent by unrest in Nepal.
Fiscal year ending March 2027 (the impact on consolidated results is currently being reviewed)
The impact on consolidated results for the fiscal year ending March 2027 is currently under review.
The Company will continue negotiating and considering multiple financing options. Subject to completion of the necessary financing by September 2026, the Company aims to monetize the 5.5 MW project in November 2026, while completion and monetization of the 13.7 MW project are scheduled for February 2027.
The Company will promptly provide an update if the timing or method of financing is determined, if any of the assumptions change, or if any matter requiring disclosure arises.
| Item | Details |
|---|---|
| Event name | Progress of the Nepal hydroelectric power business at a consolidated subsidiary and changes to the scheduled monetization timing |
| Date of occurrence | 14 August 2026 (the change to the scheduled monetization timing was approved at an extraordinary meeting of the Company's Board of Directors) |
| Subject Entity | NEPAL HYDRO POWER HOLDINGS Co., Ltd. (NHPH), a consolidated subsidiary of kaihan co.,Ltd., and the business being promoted through NHPH |
| Target Locations / Products | Hydroelectric power businesses in the Federal Democratic Republic of Nepal: Project No. 1, Dupcheshwor Mahadev Hydro Pvt. Ltd. (5.5 MW); Project No. 4, Betrawati Hydro Electric Company Ltd. (13.7 MW); and Project Nos. 2 and 3 |
| Cause | Primarily, securing the funds to be borne by the Company for the remaining construction work, grid connection and other requirements necessary before monetization has taken longer than initially expected. Construction progress has also been affected to some extent by unrest in Nepal. |
| Accounting period in which recognized | Fiscal year ending March 2027 (the impact on consolidated results is currently being reviewed) |
| Impact on Earnings Forecast | The impact on consolidated results for the fiscal year ending March 2027 is currently under review. |
| Outlook | The Company will continue negotiating and considering multiple financing options. Subject to completion of the necessary financing by September 2026, the Company aims to monetize the 5.5 MW project in November 2026, while completion and monetization of the 13.7 MW project are scheduled for February 2027. |
| Planned follow-up disclosure | The Company will promptly provide an update if the timing or method of financing is determined, if any of the assumptions change, or if any matter requiring disclosure arises. |
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 primary reason is that securing the funds to be borne by the Company for the remaining construction work, grid connection and related requirements has taken longer than expected. Other factors cited include the share price remaining below the level assumed in the initial plan, the issuance of an adverse or disclaimer-of-opinion audit report and other reports, and construction delays caused by past unrest in Nepal.