Recognition of Non-operating Income and Special Loss
The filing company and its consolidated subsidiaries, including 永旺幻想（中国）児童遊乐有限公司.
Stores associated with unprofitable stores and store closures, and loans to affiliates. Specific store and product names are Not disclosed.
Fluctuations in foreign exchange rates; unprofitable stores and store closures; and declines in the performance of consolidated subsidiaries.
Foreign exchange gain: ¥399.012 million from the domestic business, ¥308.731 million from the overseas business, and ¥707.743 million in total on a consolidated basis (non-operating income). Impairment loss: ¥58.070 million from the domestic business, ¥370.910 million from the overseas business, and ¥428.980 million in total on a consolidated basis (extraordinary loss). Provision for doubtful accounts related to loans to affiliates: ¥1,326.090 million on a standalone basis (extraordinary loss; eliminated in the consolidated financial statements).
Interim period of the fiscal year ending February 2027 (1 March 2026 to 31 August 2026)
Reflected in the “Summary of Financial Results for the Second Quarter of the Fiscal Year Ending February 2027 (Interim Period) [Japanese GAAP] (Consolidated),” released today.
¥1,326.090 million (loans to affiliates, including 永旺幻想（中国）児童遊乐有限公司)
| Item | Details |
|---|---|
| Event name | Recognition of Non-operating Income and Special Loss |
| Subject Entity | The filing company and its consolidated subsidiaries, including 永旺幻想（中国）児童遊乐有限公司. |
| Target Locations / Products | Stores associated with unprofitable stores and store closures, and loans to affiliates. Specific store and product names are Not disclosed. |
| Cause | Fluctuations in foreign exchange rates; unprofitable stores and store closures; and declines in the performance of consolidated subsidiaries. |
| Amount of Impact on Business Performance | Foreign exchange gain: ¥399.012 million from the domestic business, ¥308.731 million from the overseas business, and ¥707.743 million in total on a consolidated basis (non-operating income). Impairment loss: ¥58.070 million from the domestic business, ¥370.910 million from the overseas business, and ¥428.980 million in total on a consolidated basis (extraordinary loss). Provision for doubtful accounts related to loans to affiliates: ¥1,326.090 million on a standalone basis (extraordinary loss; eliminated in the consolidated financial statements). |
| Accounting period in which recognized | Interim period of the fiscal year ending February 2027 (1 March 2026 to 31 August 2026) |
| Impact on Earnings Forecast | Reflected in the “Summary of Financial Results for the Second Quarter of the Fiscal Year Ending February 2027 (Interim Period) [Japanese GAAP] (Consolidated),” released today. |
| Amount of receivables at risk of non-collection or delayed collection | ¥1,326.090 million (loans to affiliates, including 永旺幻想（中国）児童遊乐有限公司) |
Items this document does not state (17)
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.Because fluctuations in foreign exchange rates resulted in a foreign exchange gain. Because impairment losses were recorded for unprofitable stores and stores associated with store closures. In light of the decline in the performance of consolidated subsidiaries, it was determined that a provision for doubtful accounts related to loans to affiliates was necessary.