Notice Regarding the Risk of Inability or Delay in Collecting Receivables and Recognition of a Bad-Debt Expense
VIXTON corporation (filing company)
Wood biomass power generation facility; necessary components, including samarium-cobalt magnets
The necessary components could not be procured due to geopolitical issues, including China's restrictions on exports of rare earths to Japan, making it difficult to meet the scheduled delivery date and leaving the delivery date undetermined. The contract was therefore mutually terminated. We were informed that repayment of the remaining balance on the due date would be difficult.
¥234.055 million (the full amount will be recognized as an allowance for doubtful accounts in the second quarter of the fiscal year ending March 2027; the body of the disclosure does not specify whether it will be classified as a non-operating expense, extraordinary loss or otherwise)
Second quarter of the fiscal year ending March 2027
As stated in the disclosure announced today, “Notice Regarding Recognition of Non-Operating Expenses and Extraordinary Losses and Revision of Full-Year Earnings Forecast”
Other receivables of ¥234.055 million (the name of the customer has not been disclosed)
Related procedures
An appropriate response, including legal action, is under consideration. No formal insolvency proceedings or dishonored bills have occurred.
We will continue to consider an appropriate response, including legal action, and make every effort to recover the amount.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Risk of Inability or Delay in Collecting Receivables and Recognition of a Bad-Debt Expense |
| Subject Entity | VIXTON corporation (filing company) |
| Target Locations / Products | Wood biomass power generation facility; necessary components, including samarium-cobalt magnets |
| Cause | The necessary components could not be procured due to geopolitical issues, including China's restrictions on exports of rare earths to Japan, making it difficult to meet the scheduled delivery date and leaving the delivery date undetermined. The contract was therefore mutually terminated. We were informed that repayment of the remaining balance on the due date would be difficult. |
| Amount of Impact on Business Performance | ¥234.055 million (the full amount will be recognized as an allowance for doubtful accounts in the second quarter of the fiscal year ending March 2027; the body of the disclosure does not specify whether it will be classified as a non-operating expense, extraordinary loss or otherwise) |
| Accounting period in which recognized | Second quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | As stated in the disclosure announced today, “Notice Regarding Recognition of Non-Operating Expenses and Extraordinary Losses and Revision of Full-Year Earnings Forecast” |
| Type of litigation or proceeding | An appropriate response, including legal action, is under consideration. No formal insolvency proceedings or dishonored bills have occurred. |
| Amount of receivables at risk of non-collection or delayed collection | Other receivables of ¥234.055 million (the name of the customer has not been disclosed) |
| Outlook | We will continue to consider an appropriate response, including legal action, and make every effort to recover the amount. |
Items this document does not state (15)
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.In the manufacture of a wood biomass power generation facility, the necessary components could not be procured due to geopolitical issues, including China's restrictions on exports of rare earths to Japan, leaving the delivery date undetermined. The contract was therefore mutually terminated. Although part of the advance payment was refunded, we were informed that repayment of the remaining balance on the due date would be difficult.