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Occurring Fact4414FLECT Co.,Ltd.Information and Communications, Services and Others

Notice Regarding the Recognition of Provisions for Contract Loss

Because costs for certain ongoing projects were expected to exceed plan, the company recorded ¥98 million in provision for contract loss expense in cost of sales for the second quarter of the fiscal year ending March 2027. The earnings forecast remains unchanged.

Worth reading
67In focus
Scored from 4 of 5 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
98
¥ million
Wording
Conditional
How definitive the wording is.

Recording Provisions for Loss-Making Orders

Subject Entity

FLECT Co.,Ltd. (the filing company)

Target Locations / Products

Certain ongoing projects

This disclosure11/12/2026
Cause

Because the company prioritized measures relating to quality and project progress, costs were expected to exceed plan

Amount of Impact on Business Performance

¥98 million (provision for contract loss expense, cost of sales)

Accounting period in which recognized

The accounting period comprising the second quarter of the fiscal year ending March 2027

Impact on Earnings Forecast

No changes have been made to the earnings outlook

Outlook

Measures relating to the project are scheduled to be completed during the fiscal year ending March 2027

Event that occurred
ItemDetails
Event nameRecording Provisions for Loss-Making Orders
Subject EntityFLECT Co.,Ltd. (the filing company)
Target Locations / ProductsCertain ongoing projects
CauseBecause the company prioritized measures relating to quality and project progress, costs were expected to exceed plan
Amount of Impact on Business Performance¥98 million (provision for contract loss expense, cost of sales)
Accounting period in which recognizedThe accounting period comprising the second quarter of the fiscal year ending March 2027
Impact on Earnings ForecastNo changes have been made to the earnings outlook
OutlookMeasures relating to the project are scheduled to be completed during the fiscal year ending March 2027
Items this document does not state (17)
Date of occurrenceDate recognized / date notice receivedType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changePlanned follow-up disclosure

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 the company prioritized measures relating to quality and project progress, costs were expected to exceed plan.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Recognition of Provisions for Contract Loss | FLECT Co.,Ltd. (4414) timely disclosure | Komori