Recognition of Non-Operating Income (Foreign Exchange Gain)
TECMIRA HOLDINGS INC. (transactions involving the consolidated manufacturing subsidiary in China in the consolidated financial statements)
IoT & Devices segment, consolidated manufacturing subsidiary in China
While procurement costs are fixed through foreign exchange forwards matched to customer transactions denominated in yen, renminbi-denominated transactions of the consolidated manufacturing subsidiary in China are translated into yen at the average exchange rate for the period for consolidated financial reporting, resulting in a difference between the two rates. In addition, the yen depreciated and the Chinese yuan appreciated during the period.
Foreign exchange gain of ¥69 million (non-operating income)
The second-quarter consolidated accounting period of the fiscal year ending February 2027 (1 June 2026–31 August 2026)
Please see the “Summary of Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending February 2027 [Japanese GAAP] (Consolidated)” released today.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Income (Foreign Exchange Gain) |
| Date of occurrence | 1 June 2026–31 August 2026 (the second-quarter consolidated accounting period of the fiscal year ending February 2027) |
| Subject Entity | TECMIRA HOLDINGS INC. (transactions involving the consolidated manufacturing subsidiary in China in the consolidated financial statements) |
| Target Locations / Products | IoT & Devices segment, consolidated manufacturing subsidiary in China |
| Cause | While procurement costs are fixed through foreign exchange forwards matched to customer transactions denominated in yen, renminbi-denominated transactions of the consolidated manufacturing subsidiary in China are translated into yen at the average exchange rate for the period for consolidated financial reporting, resulting in a difference between the two rates. In addition, the yen depreciated and the Chinese yuan appreciated during the period. |
| Amount of Impact on Business Performance | Foreign exchange gain of ¥69 million (non-operating income) |
| Accounting period in which recognized | The second-quarter consolidated accounting period of the fiscal year ending February 2027 (1 June 2026–31 August 2026) |
| Impact on Earnings Forecast | Please see the “Summary of Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending February 2027 [Japanese GAAP] (Consolidated)” released today. |
Items this document does not state (17)
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.This was because the yen depreciated and the Chinese yuan appreciated, resulting in a difference between the average exchange rate for the period used to translate the consolidated subsidiary's renminbi-denominated transactions and the foreign exchange forward rate.