Recognition of an Extraordinary Gain and Provision for Doubtful Accounts in Connection with the Transfer of Shares in a Consolidated Subsidiary
Environment Friendly Holdings Corp. and consolidated subsidiary アイレス株式会社
The transfer of all shares in アイレス株式会社 on 1 January 2026. With respect to receivables from an affiliated company, the provision was recognized after comprehensively considering their recoverability and other factors.
A ¥35.132 million gain on the sale of shares in an affiliated company was recognized as an extraordinary gain, and a ¥13.5 million provision for doubtful accounts was recognized as a non-operating expense.
The first quarter of the fiscal year ending December 2026
The consolidated earnings forecast for the fiscal year ending December 2026 is currently undecided because the Company is in the process of restructuring its business portfolio and launching new businesses, making a reasonable estimate difficult at this time.
¥13.5 million (provision for doubtful accounts relating to receivables from an affiliated company)
The extraordinary gain and provision for doubtful accounts described above are reflected in the consolidated financial results summary for the first quarter of the fiscal year ending December 2026 released today. The consolidated earnings forecast for the fiscal year ending December 2026 is currently undecided.
| Item | Details |
|---|---|
| Event name | Recognition of an Extraordinary Gain and Provision for Doubtful Accounts in Connection with the Transfer of Shares in a Consolidated Subsidiary |
| Date of occurrence | 1 January 2026 |
| Subject Entity | Environment Friendly Holdings Corp. and consolidated subsidiary アイレス株式会社 |
| Cause | The transfer of all shares in アイレス株式会社 on 1 January 2026. With respect to receivables from an affiliated company, the provision was recognized after comprehensively considering their recoverability and other factors. |
| Amount of Impact on Business Performance | A ¥35.132 million gain on the sale of shares in an affiliated company was recognized as an extraordinary gain, and a ¥13.5 million provision for doubtful accounts was recognized as a non-operating expense. |
| Accounting period in which recognized | The first quarter of the fiscal year ending December 2026 |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending December 2026 is currently undecided because the Company is in the process of restructuring its business portfolio and launching new businesses, making a reasonable estimate difficult at this time. |
| Amount of receivables at risk of non-collection or delayed collection | ¥13.5 million (provision for doubtful accounts relating to receivables from an affiliated company) |
| Outlook | The extraordinary gain and provision for doubtful accounts described above are reflected in the consolidated financial results summary for the first quarter of the fiscal year ending December 2026 released today. The consolidated earnings forecast for the fiscal year ending December 2026 is currently undecided. |
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 Company recognized a gain on the sale of shares in an affiliated company in connection with the transfer of all shares in アイレス株式会社. In addition, after comprehensively considering the recoverability and other factors relating to receivables from an affiliated company associated with the share transfer, the Company recognized a provision for doubtful accounts.