Recognition of an Extraordinary Loss on the Sale of Investment Securities and Expected Recognition of an Extraordinary Gain (Gain on Receipt of Donated Assets)
TRADE WORKS Co.,Ltd. (entity selling and acquiring the assets), target company (name undisclosed)
Next-generation insurance management platform; insurance master database
In light of changes in the capital structure of the target company, including moves by a third party to acquire shares in that company, the Company determined that securing the business value as a technology platform and data assets, rather than as shares, was appropriate.
Loss on sale of investment securities: ¥54.583 million (extraordinary loss; confirmed amount). The specific amount of the extraordinary gain (gain on receipt of donated assets) has not yet been determined.
The loss on sale of investment securities will be recognized in the second quarter of the fiscal year ending December 2026. The extraordinary gain (gain on receipt of donated assets) will be recognized during the fiscal year ending December 2026, upon completion of the mutual confirmation of the delivery of the acquired assets and the completion of the deliverables.
The Company will not revise its earnings forecasts at this time. If a revision becomes necessary after the amount and timing of recognition of the gain on receipt of donated assets have been determined, the Company will disclose the information promptly once confirmed.
The Company will continue its cooperative relationship with the target company under the business partnership after the sale of the shares. It aims to monetize its insurance-related business and enhance corporate value over the medium to long term by utilizing the acquired assets.
The confirmed amount and timing of recognition are scheduled to be disclosed again in the financial results for the second quarter of the fiscal year ending December 2026 or thereafter, depending on the status of receipt of the acquired assets. If a revision to the earnings forecasts becomes necessary, the Company will disclose the information promptly once confirmed.
| Item | Details |
|---|---|
| Event name | Recognition of an Extraordinary Loss on the Sale of Investment Securities and Expected Recognition of an Extraordinary Gain (Gain on Receipt of Donated Assets) |
| Date of occurrence | 5 June 2026 (date of sale of investment securities) |
| Subject Entity | TRADE WORKS Co.,Ltd. (entity selling and acquiring the assets), target company (name undisclosed) |
| Target Locations / Products | Next-generation insurance management platform; insurance master database |
| Cause | In light of changes in the capital structure of the target company, including moves by a third party to acquire shares in that company, the Company determined that securing the business value as a technology platform and data assets, rather than as shares, was appropriate. |
| Amount of Impact on Business Performance | Loss on sale of investment securities: ¥54.583 million (extraordinary loss; confirmed amount). The specific amount of the extraordinary gain (gain on receipt of donated assets) has not yet been determined. |
| Accounting period in which recognized | The loss on sale of investment securities will be recognized in the second quarter of the fiscal year ending December 2026. The extraordinary gain (gain on receipt of donated assets) will be recognized during the fiscal year ending December 2026, upon completion of the mutual confirmation of the delivery of the acquired assets and the completion of the deliverables. |
| Impact on Earnings Forecast | The Company will not revise its earnings forecasts at this time. If a revision becomes necessary after the amount and timing of recognition of the gain on receipt of donated assets have been determined, the Company will disclose the information promptly once confirmed. |
| Outlook | The Company will continue its cooperative relationship with the target company under the business partnership after the sale of the shares. It aims to monetize its insurance-related business and enhance corporate value over the medium to long term by utilizing the acquired assets. |
| Planned follow-up disclosure | The confirmed amount and timing of recognition are scheduled to be disclosed again in the financial results for the second quarter of the fiscal year ending December 2026 or thereafter, depending on the status of receipt of the acquired assets. If a revision to the earnings forecasts becomes necessary, the Company will disclose the information promptly once confirmed. |
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 light of changes in the capital structure of the target company, including moves by a third party to acquire shares in that company, the Company determined that securing the business value envisaged at the time of the partnership in a form that could be directly utilized as a technology platform and data assets, rather than continuing to hold the shares, would contribute to the continuation and development of its insurance-related business.