Notice Regarding Recognition of an Impairment Loss, Revision to the Full-Year Consolidated Earnings Forecast, and Voluntary Partial Forfeiture of Executive Compensation
NIHON KAGAKU SANGYO CO.,LTD. (the filing company)
Fixed assets related to contract manufacturing of lithium-ion battery cathode materials (contract manufacturing business)
Termination of contract manufacturing of lithium-ion battery cathode materials (contract manufacturing business)
¥431 million (expected to be recognized as an extraordinary loss)
Fiscal year ending March 2026
The Company has revised its full-year consolidated earnings forecast for the fiscal year ending March 2026. Net sales are ¥27,890 million, operating income is ¥3,340 million, ordinary income is ¥3,760 million, and net income attributable to owners of the parent is ¥2,180 million. Compared with the previous forecast, net sales are up ¥1,690 million, operating income is up ¥660 million, ordinary income is up ¥660 million, and net income attributable to owners of the parent is down ¥40 million.
Company response
Termination of contract manufacturing of lithium-ion battery cathode materials (contract manufacturing business)
Representative Director and President Kakutani Hiroki (角谷博樹): 10% of monthly compensation; Chairman of the Board Yanagisawa Eiji (柳澤英二): 10% of monthly compensation; Director Ota Takeyuki (太田武之): 5% of monthly compensation; and Director Yamamoto Akira (山本晃): 5% of monthly compensation, voluntarily forfeited for the 3-month period from April through June 2026
The Company will continue reviewing the impact of the termination of the contract manufacturing business for lithium-ion battery cathode materials on consolidated earnings from the fiscal year ending March 2027 onward, and plans to provide an update around May 2026.
The Company plans to provide an update around May 2026.
| Item | Details |
|---|---|
| Event name | Notice Regarding Recognition of an Impairment Loss, Revision to the Full-Year Consolidated Earnings Forecast, and Voluntary Partial Forfeiture of Executive Compensation |
| Date of occurrence | 24 March 2026 (date of the Board of Directors' resolution) |
| Subject Entity | NIHON KAGAKU SANGYO CO.,LTD. (the filing company) |
| Target Locations / Products | Fixed assets related to contract manufacturing of lithium-ion battery cathode materials (contract manufacturing business) |
| Cause | Termination of contract manufacturing of lithium-ion battery cathode materials (contract manufacturing business) |
| Amount of Impact on Business Performance | ¥431 million (expected to be recognized as an extraordinary loss) |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Impact on Earnings Forecast | The Company has revised its full-year consolidated earnings forecast for the fiscal year ending March 2026. Net sales are ¥27,890 million, operating income is ¥3,340 million, ordinary income is ¥3,760 million, and net income attributable to owners of the parent is ¥2,180 million. Compared with the previous forecast, net sales are up ¥1,690 million, operating income is up ¥660 million, ordinary income is up ¥660 million, and net income attributable to owners of the parent is down ¥40 million. |
| Suspended operations | Termination of contract manufacturing of lithium-ion battery cathode materials (contract manufacturing business) |
| Directors' and officers' liability | Representative Director and President Kakutani Hiroki (角谷博樹): 10% of monthly compensation; Chairman of the Board Yanagisawa Eiji (柳澤英二): 10% of monthly compensation; Director Ota Takeyuki (太田武之): 5% of monthly compensation; and Director Yamamoto Akira (山本晃): 5% of monthly compensation, voluntarily forfeited for the 3-month period from April through June 2026 |
| Outlook | The Company will continue reviewing the impact of the termination of the contract manufacturing business for lithium-ion battery cathode materials on consolidated earnings from the fiscal year ending March 2027 onward, and plans to provide an update around May 2026. |
| Planned follow-up disclosure | The Company plans to provide an update around May 2026. |
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.The impairment loss will be recognized because the contract manufacturing business for lithium-ion battery cathode materials is being terminated. The upward revisions to net sales, operating income and ordinary income reflect increased sales volumes and higher non-ferrous metal prices, while the downward revision to net income attributable to owners of the parent reflects the expected recognition of the impairment loss. The executive officers decided to voluntarily forgo part of their compensation because they take seriously the substantial burden imposed on employees by the termination of the business and the occurrence of the impairment loss.