Disclaimer of opinions in audit reports and disclaimers of conclusions in quarterly review reports and interim review reports on securities reports for prior fiscal years
Abalance株式会社 and its overseas subsidiaries
The wafer manufacturing process within the solar panel manufacturing operations of the overseas subsidiaries
Sufficient and appropriate audit evidence could not be obtained regarding the accuracy and completeness of the correction entries because the improvement plan for the internal management systems and other measures and the measures to prevent recurrence have not been fully implemented, the specific measures remain under verification, internal controls over transactions involving materials supplied for consideration have not been established across the Group, and the transactions cannot be comprehensively identified due to the complex capital structure and transaction structures involving multiple subsidiaries.
Company response
An independent committee of external experts was established on 2 September 2025, and its investigation report was received and published on 17 December 2025. A verification committee of external experts was established on 8 January 2026, and its verification report was received and published on 20 February 2026.
Strengthening management oversight functions, rebuilding Group governance, strengthening the internal control system, raising compliance awareness, and improving the appropriateness of the financial reporting process
Securities reports for fiscal years 22 through 26 (the fiscal years ended June 2021 through March 2025), quarterly review reports from the first quarter of the fiscal year ended June 2021 through the first quarter of the fiscal year ended March 2025, and interim review reports for the first quarter and interim period of the fiscal year ended March 2025 and the interim period of the fiscal year ending March 2026
Related procedures
Disclaimer of opinions and disclaimers of conclusions in audit reports, quarterly review reports and interim review reports
The Company will continue to monitor progress under the improvement plan and work to improve its internal management systems and thoroughly prevent recurrence. It will continue discussions with the auditor and work to resolve the matters identified and improve the effectiveness of its remedial measures. The Company will steadily execute its business and funding plans to stabilize its financial base and enhance corporate value.
The Company will promptly disclose any matters that arise requiring disclosure.
| Item | Details |
|---|---|
| Event name | Disclaimer of opinions in audit reports and disclaimers of conclusions in quarterly review reports and interim review reports on securities reports for prior fiscal years |
| Date of occurrence | 18 August 2026 (the date on which the audit reports and other documents were received from the independent auditor) |
| Date recognized / date notice received | 18 August 2026 |
| Subject Entity | Abalance株式会社 and its overseas subsidiaries |
| Target Locations / Products | The wafer manufacturing process within the solar panel manufacturing operations of the overseas subsidiaries |
| Cause | Sufficient and appropriate audit evidence could not be obtained regarding the accuracy and completeness of the correction entries because the improvement plan for the internal management systems and other measures and the measures to prevent recurrence have not been fully implemented, the specific measures remain under verification, internal controls over transactions involving materials supplied for consideration have not been established across the Group, and the transactions cannot be comprehensively identified due to the complex capital structure and transaction structures involving multiple subsidiaries. |
| Accounting period in which recognized | Securities reports for fiscal years 22 through 26 (the fiscal years ended June 2021 through March 2025), quarterly review reports from the first quarter of the fiscal year ended June 2021 through the first quarter of the fiscal year ended March 2025, and interim review reports for the first quarter and interim period of the fiscal year ended March 2025 and the interim period of the fiscal year ending March 2026 |
| Type of litigation or proceeding | Disclaimer of opinions and disclaimers of conclusions in audit reports, quarterly review reports and interim review reports |
| Investigation structure | An independent committee of external experts was established on 2 September 2025, and its investigation report was received and published on 17 December 2025. A verification committee of external experts was established on 8 January 2026, and its verification report was received and published on 20 February 2026. |
| Measures to prevent recurrence | Strengthening management oversight functions, rebuilding Group governance, strengthening the internal control system, raising compliance awareness, and improving the appropriateness of the financial reporting process |
| Outlook | The Company will continue to monitor progress under the improvement plan and work to improve its internal management systems and thoroughly prevent recurrence. It will continue discussions with the auditor and work to resolve the matters identified and improve the effectiveness of its remedial measures. The Company will steadily execute its business and funding plans to stabilize its financial base and enhance corporate value. |
| Planned follow-up disclosure | The Company will promptly disclose any matters that arise requiring disclosure. |
Items this document does not state (13)
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.Sufficient and appropriate audit evidence could not be obtained regarding the accuracy and completeness of the correction entries because the improvement plan for the internal management systems and other measures and the measures to prevent recurrence have not been fully implemented, the specific measures remain under verification, internal controls over transactions involving materials supplied for consideration have not been established across the Group, and the transactions cannot be comprehensively identified due to the complex capital structure and transaction structures involving multiple subsidiaries.