Expected Recognition of a Gain on the Sale of Investment Securities (Extraordinary Gain) by a Subsidiary
株式会社エブリシングジャパン (ESJ, our consolidated subsidiary)
360,000 common shares of DearU Co., Ltd. (1.52% ownership interest)
ESJ has effectively ceased its business activities and is scheduled to be liquidated in the future, resulting in the loss of the purpose for holding the DearU shares. In addition, DearU's share price has been in a downward trend over the past year, and the sale is intended to avoid price volatility and the risk of a further decline.
Approximately ¥747 million (gain on sale of investment securities, recorded as an extraordinary gain; estimate based on the latest market share price and exchange rate)
Consolidated financial results for the fiscal year ending December 2026
Company response
ESJ has currently ceased its business activities in substance. Its business of developing a karaoke app with DearU has already ended.
An opinion letter was obtained from all independent outside officers (Outside Director Kim Kihyuk (金紀彦), Outside Corporate Auditor Ueda Hiroyuki (上田浩之), and Outside Corporate Auditor Kataoka Tomoyuki (片岡朋行)).
The transfer price is scheduled to be finalized based on the closing market price on 27 July 2026, with the sale to be executed on the same day. The sale proceeds are scheduled to be returned to us through the distribution of residual assets and other means as part of ESJ's liquidation procedures, and used for reinvestment in our core domestic businesses and strengthening our financial base.
Following confirmation of the closing market price on 27 July 2026, we plan to promptly disclose the transfer price and the specific amount of the extraordinary gain.
| Item | Details |
|---|---|
| Event name | Expected Recognition of a Gain on the Sale of Investment Securities (Extraordinary Gain) by a Subsidiary |
| Date of occurrence | 25 June 2026 (date the transaction was approved) |
| Subject Entity | 株式会社エブリシングジャパン (ESJ, our consolidated subsidiary) |
| Target Locations / Products | 360,000 common shares of DearU Co., Ltd. (1.52% ownership interest) |
| Cause | ESJ has effectively ceased its business activities and is scheduled to be liquidated in the future, resulting in the loss of the purpose for holding the DearU shares. In addition, DearU's share price has been in a downward trend over the past year, and the sale is intended to avoid price volatility and the risk of a further decline. |
| Amount of Impact on Business Performance | Approximately ¥747 million (gain on sale of investment securities, recorded as an extraordinary gain; estimate based on the latest market share price and exchange rate) |
| Accounting period in which recognized | Consolidated financial results for the fiscal year ending December 2026 |
| Suspended operations | ESJ has currently ceased its business activities in substance. Its business of developing a karaoke app with DearU has already ended. |
| Investigation structure | An opinion letter was obtained from all independent outside officers (Outside Director Kim Kihyuk (金紀彦), Outside Corporate Auditor Ueda Hiroyuki (上田浩之), and Outside Corporate Auditor Kataoka Tomoyuki (片岡朋行)). |
| Outlook | The transfer price is scheduled to be finalized based on the closing market price on 27 July 2026, with the sale to be executed on the same day. The sale proceeds are scheduled to be returned to us through the distribution of residual assets and other means as part of ESJ's liquidation procedures, and used for reinvestment in our core domestic businesses and strengthening our financial base. |
| Planned follow-up disclosure | Following confirmation of the closing market price on 27 July 2026, we plan to promptly disclose the transfer price and the specific amount of the extraordinary gain. |
Items this document does not state (14)
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.ESJ has effectively ceased its business activities and is scheduled to be liquidated in the future. Accordingly, the DearU shares have lost their investment purpose, and their sale is intended to improve the efficiency of asset management. In addition, as DearU's share price is on a downward trend, the sale is intended to avoid the risk of a further decline and secure the recoverable value.