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Revision of earnings forecasts4446Link-U Group Inc.Information and Communications, Services and Others

Notice Regarding Recognition of an Impairment Loss and Differences Between Full-Year Consolidated Earnings Forecasts and Actual Results

Actual results for the fiscal year ended July 2026 fell below the full-year consolidated earnings forecast announced in March 2026. The recognition of a ¥745 million impairment loss on goodwill related to consolidated subsidiary Romanz resulted in operating loss and a net loss attributable to owners of the parent.

Worth reading
68In focus
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Direction
Deterioration
Direction inferred from the company’s description.
Scale
745
¥ million
Wording
Definitive
How definitive the wording is.

Revised forecast

Fiscal year ending July 2026 · Full yearPrevious forecast published 16 March 2026
Net Sales—→4,800million
—
Operating profit—→—million
—
Profit attributable to owners of the parent—→—million
—
Net income per share—→—yen and sen
—

The bar length represents the relative magnitude of change, based on the item that changed the most in this document.

Reason for the revision

Operating profit and profit attributable to owners of the parent fell below the previously announced forecasts, mainly due to recognition of a ¥745 million impairment loss on goodwill. The impairment resulted from the inability to secure the earnings projected at the time of the acquisition, due in part to a decline in transactions with major customers in Romanz's marketing business, and the subsequent review of the business plan.

Details and amount of extraordinary loss

Impairment loss on goodwill: ¥745 million

Previous-period resultsRevenue ¥4,835 million, operating profit ¥326 million, profit before tax ¥308 million, profit attributable to owners of the parent ¥147 million, basic earnings per share ¥10.44
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales4,900~5,100 → ¥4,800 million(△5.9%~△2.0%)
Operating profit320~400 → △383(△219.7%~△195.8%)
Profit attributable to owners of the parent150~200 → △555(△470.0%~△377.5%)
Net income per share10.58~14.11 → △39.18
Fiscal Period CoveredFiscal year ending July 2026
Period CoveredFull year
Publication date of previous forecast16 March 2026
Previous-period resultsRevenue ¥4,835 million, operating profit ¥326 million, profit before tax ¥308 million, profit attributable to owners of the parent ¥147 million, basic earnings per share ¥10.44
Reason for the revisionOperating profit and profit attributable to owners of the parent fell below the previously announced forecasts, mainly due to recognition of a ¥745 million impairment loss on goodwill. The impairment resulted from the inability to secure the earnings projected at the time of the acquisition, due in part to a decline in transactions with major customers in Romanz's marketing business, and the subsequent review of the business plan.
Details and amount of extraordinary lossImpairment loss on goodwill: ¥745 million
Consolidated / non-consolidatedConsolidated
Items this document does not state (2)
Ordinary incomeDividend forecast revision

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.

Transactions with major customers in the marketing business of consolidated subsidiary Romanz declined, and the company was unable to secure the earnings projected at the time of the acquisition. As a result of reviewing the business plan, it recognized a ¥745 million impairment loss on goodwill.

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Notice Regarding Recognition of an Impairment Loss and Differences Between Full-Year Consolidated Earnings Forecasts and Actual Results | Link-U Group Inc. (4446) timely disclosure | Komori