Change in Equity-Method Affiliate (Share Transfer and Dissolution of Joint Venture) and Recognition of Extraordinary Loss
New Japan Chemical Co.,Ltd.; Edenor Oleochemicals Rika (M) Sdn. Bhd. (EOR, the Company's equity-method affiliate)
Manufacture and sale of natural higher alcohols at EOR in Malaysia, and production and supply of products for the Company
On 20 May 2026, petitions for judicial management orders were filed against 7 group companies, including Edenor Technology Sdn. Bhd., EOM's parent company, and EOR. On 22 July, judicial management orders were issued and judicial managers were appointed by the High Court of Malaysia. As a result, it became difficult to continue producing and supplying products for the Company through EOR.
The Company expects to recognize an impairment loss on shares of an affiliated company of ¥651 million in its standalone financial statements and approximately ¥800 million as an extraordinary loss in its consolidated financial statements.
Financial results for the second quarter of the fiscal year ending March 2027
In light of the recognition of this extraordinary loss, the Company revised its full-year consolidated earnings forecast for the fiscal year ending March 2027. See the separately announced Notice Regarding Revisions to the Consolidated Earnings Forecast for the Fiscal Year Ending March 2027, issued today.
Change in voting rights ownership ratio
The voting rights ownership percentage is the proportion of the voting rights exercisable at a shareholders' meeting held by the shareholder.
27,343,750 shares, 25.0% (record date: Not disclosed)
0 shares, 0.0% (record date: Not disclosed)
Related procedures
Petition for and issuance of judicial management orders
High Court of Malaysia
The share transfer is scheduled to be completed around October to November 2026. It will be completed once approval is obtained from the High Court of Malaysia, and EOR will be excluded from the Company's equity-method affiliates.
| Item | Details |
|---|---|
| Event name | Change in Equity-Method Affiliate (Share Transfer and Dissolution of Joint Venture) and Recognition of Extraordinary Loss |
| Date of occurrence | 7 August 2026 (date of board resolution and contract execution) |
| Subject Entity | New Japan Chemical Co.,Ltd.; Edenor Oleochemicals Rika (M) Sdn. Bhd. (EOR, the Company's equity-method affiliate) |
| Target Locations / Products | Manufacture and sale of natural higher alcohols at EOR in Malaysia, and production and supply of products for the Company |
| Cause | On 20 May 2026, petitions for judicial management orders were filed against 7 group companies, including Edenor Technology Sdn. Bhd., EOM's parent company, and EOR. On 22 July, judicial management orders were issued and judicial managers were appointed by the High Court of Malaysia. As a result, it became difficult to continue producing and supplying products for the Company through EOR. |
| Amount of Impact on Business Performance | The Company expects to recognize an impairment loss on shares of an affiliated company of ¥651 million in its standalone financial statements and approximately ¥800 million as an extraordinary loss in its consolidated financial statements. |
| Accounting period in which recognized | Financial results for the second quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | In light of the recognition of this extraordinary loss, the Company revised its full-year consolidated earnings forecast for the fiscal year ending March 2027. See the separately announced Notice Regarding Revisions to the Consolidated Earnings Forecast for the Fiscal Year Ending March 2027, issued today. |
| Type of litigation or proceeding | Petition for and issuance of judicial management orders |
| Court or authority | High Court of Malaysia |
| Date of filing / date of action | 20 May 2026 (petition for judicial management order); 22 July 2026 (issuance of judicial management order) |
| Voting rights ownership percentage before the change | 27,343,750 shares, 25.0% (record date: Not disclosed) |
| Voting rights ownership percentage after the change | 0 shares, 0.0% (record date: Not disclosed) |
| Outlook | The share transfer is scheduled to be completed around October to November 2026. It will be completed once approval is obtained from the High Court of Malaysia, and EOR will be excluded from the Company's equity-method affiliates. |
Items this document does not state (11)
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.Judicial management orders were petitioned for against a group of 7 companies, including EOM's parent company, and the issuance of the orders and appointment of judicial managers made it difficult to continue producing and supplying products for the Company through EOR. The Company determined that it would be difficult to continue the joint venture and stated that it seeks to maintain financial soundness and minimize the impact of future risks.