Handling of Certain Shipments of Solar Panels Exported to the United States
Vietnam Sunergy Joint Stock Company (VSUN, a consolidated subsidiary)
Certain shipments of solar panels manufactured by VSUN and exported to the United States
As a result of CBP's review, sufficient evidence to qualify for an exception under the Uyghur Forced Labor Prevention Act (UFLPA) was not confirmed
Company response
The shipments have been detained from import into the United States, preventing the Company from recognizing sales to the United States
Domestic sales in the United States will be possible if the shipments pass CBP's review, but the specific resumption date is Not disclosed
VSUN is working through U.S. counsel to demonstrate to CBP that no violation has occurred, while the Company and VSUN are coordinating with external specialists, including U.S. counsel
Estimated loss of approximately ¥3.0–5.0 billion in consolidated results for the fiscal year ending March 2026. The amount of damages, including logistics, storage and re-export costs, is currently being assessed, and the accounting classification is Not disclosed
Consolidated results for the fiscal year ending March 2026
Related procedures
CBP review under the UFLPA and the resulting denial of importation into the United States
U.S. Customs and Border Protection (CBP)
The Company will take the necessary actions in accordance with CBP's instructions, including re-exporting the shipments. If the shipments pass CBP's review, they will be sold in the United States; if they do not, the Company will proceed with resale in regions outside the United States
The loss amount is expected to be finalized around mid-May 2026, and the Company will promptly provide an update once the matter is in a position to be disclosed
| Item | Details |
|---|---|
| Event name | Handling of Certain Shipments of Solar Panels Exported to the United States |
| Date of occurrence | 11 January 2026 (the date the handling decision was made) |
| Date recognized / date notice received | VSUN received the notice on 21 January 2026, and the reporting company received it through VSUN on 18 March 2026 |
| Subject Entity | Vietnam Sunergy Joint Stock Company (VSUN, a consolidated subsidiary) |
| Target Locations / Products | Certain shipments of solar panels manufactured by VSUN and exported to the United States |
| Cause | As a result of CBP's review, sufficient evidence to qualify for an exception under the Uyghur Forced Labor Prevention Act (UFLPA) was not confirmed |
| Amount of Impact on Business Performance | Estimated loss of approximately ¥3.0–5.0 billion in consolidated results for the fiscal year ending March 2026. The amount of damages, including logistics, storage and re-export costs, is currently being assessed, and the accounting classification is Not disclosed |
| Accounting period in which recognized | Consolidated results for the fiscal year ending March 2026 |
| Type of litigation or proceeding | CBP review under the UFLPA and the resulting denial of importation into the United States |
| Court or authority | U.S. Customs and Border Protection (CBP) |
| Date of filing / date of action | 11 January 2026 (the date the handling decision was made) |
| Suspended operations | The shipments have been detained from import into the United States, preventing the Company from recognizing sales to the United States |
| Scheduled resumption date | Domestic sales in the United States will be possible if the shipments pass CBP's review, but the specific resumption date is Not disclosed |
| Investigation structure | VSUN is working through U.S. counsel to demonstrate to CBP that no violation has occurred, while the Company and VSUN are coordinating with external specialists, including U.S. counsel |
| Outlook | The Company will take the necessary actions in accordance with CBP's instructions, including re-exporting the shipments. If the shipments pass CBP's review, they will be sold in the United States; if they do not, the Company will proceed with resale in regions outside the United States |
| Planned follow-up disclosure | The loss amount is expected to be finalized around mid-May 2026, and the Company will promptly provide an update once the matter is in a position to be disclosed |
Items this document does not state (9)
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.CBP's review did not confirm sufficient evidence to qualify for an import exception under the UFLPA. As a result, the Company cannot recognize sales to the United States and will incur demurrage, return, logistics, storage and re-export costs. It has also explained that resale outside the United States would result in lower selling prices and margins.