Notice Concerning the Recognition of an Extraordinary Loss from the Transfer of Fixed Assets, the Revision of the Full-Year Earnings Forecast for the Fiscal Year Ending March 2026, and the Reduction of Executive Compensation
SHINTO PAINT COMPANY,LIMITED (the filing company)
Land at 1-chome 9-1 Midorigaoka, Yachiyo, Chiba Prefecture (3,559.82 sq. m) and a building (total floor area: 4,672.17 sq. m), currently used as the Company's employee welfare facility
To improve the efficiency of business operations
The Company expects to recognize an impairment loss of approximately ¥550 million as an extraordinary loss. Net income attributable to owners of the parent is expected to decrease by ¥700 million, from ¥100 million to a loss of ¥600 million.
Full fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The earnings forecast will be revised to net sales of ¥21,400 million, operating profit of ¥250 million, ordinary profit of ¥350 million, net income attributable to owners of the parent of a loss of ¥600 million, and loss per share of ¥17.63.
Company response
Monthly compensation will be reduced by 10% to 20%, depending on position. The reduction will apply for one year, from April 2026 through March 2027.
The contract is expected to be signed on 28 April 2026, and the property is scheduled to be delivered on 18 December 2026. Executive compensation will be reduced from April 2026 through March 2027.
| Item | Details |
|---|---|
| Event name | Notice Concerning the Recognition of an Extraordinary Loss from the Transfer of Fixed Assets, the Revision of the Full-Year Earnings Forecast for the Fiscal Year Ending March 2026, and the Reduction of Executive Compensation |
| Date of occurrence | 22 April 2026 (date of the Board of Directors' resolution) |
| Subject Entity | SHINTO PAINT COMPANY,LIMITED (the filing company) |
| Target Locations / Products | Land at 1-chome 9-1 Midorigaoka, Yachiyo, Chiba Prefecture (3,559.82 sq. m) and a building (total floor area: 4,672.17 sq. m), currently used as the Company's employee welfare facility |
| Cause | To improve the efficiency of business operations |
| Amount of Impact on Business Performance | The Company expects to recognize an impairment loss of approximately ¥550 million as an extraordinary loss. Net income attributable to owners of the parent is expected to decrease by ¥700 million, from ¥100 million to a loss of ¥600 million. |
| Accounting period in which recognized | Full fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The earnings forecast will be revised to net sales of ¥21,400 million, operating profit of ¥250 million, ordinary profit of ¥350 million, net income attributable to owners of the parent of a loss of ¥600 million, and loss per share of ¥17.63. |
| Directors' and officers' liability | Monthly compensation will be reduced by 10% to 20%, depending on position. The reduction will apply for one year, from April 2026 through March 2027. |
| Outlook | The contract is expected to be signed on 28 April 2026, and the property is scheduled to be delivered on 18 December 2026. Executive compensation will be reduced from April 2026 through March 2027. |
Items this document does not state (15)
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 fixed assets will be transferred to improve the efficiency of business operations. The earnings forecast is being revised due to the steady progress of construction sales at a subsidiary, higher sales, fixed-cost reductions, recognition of non-operating expenses, the extraordinary loss from the transfer of fixed assets, lower-than-expected standalone results, and an increase in profit attributable to non-controlling interests. Executive compensation will be reduced to clarify management's responsibility following the revision of the full-year earnings forecast.