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Occurring Fact4772SM ENTERTAINMENT JAPAN Co.,Ltd.Information and Communications, Services and Others

Update on Previously Disclosed Matter: Notice Regarding Recognition by Our Subsidiary of a Gain on Sale of Investment Securities (Extraordinary Gain) (Transactions with Controlling Shareholder, etc.)

The transfer price and total transfer amount for the shares of DearU Co., Ltd. held by the subsidiary have been finalized, and the subsidiary is scheduled to recognize a gain on the sale of approximately ¥827 million as extraordinary income in the third quarter of the fiscal year ending December 2026.

Worth reading
47Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
827
¥ million (gain on sale of investment securities; extraordinary gain)
Wording
Conditional
How definitive the wording is.

Notice Regarding the Recognition of a Gain on the Sale of Investment Securities (Extraordinary Income) by a Subsidiary (Transaction with a Controlling Shareholder, etc.)

Subject Entity

株式会社エブリシングジャパン (a consolidated subsidiary of the filing company)

Target Locations / Products

Shares of DearU Co., Ltd. (DU)

Occurrence27 July 2026 (the date on which the transfer price was finalized and the transaction was completed)
Same day
Awareness or receipt of notice27 July 2026 (the date on which the company became aware that the transfer price had been finalized)
This disclosure07/27/2026
Cause

Completion of the transaction

Amount of Impact on Business Performance

Approximately ¥827 million, representing a gain on the sale of investment securities (extraordinary income)

Accounting period in which recognized

Consolidated financial results for the third quarter of the fiscal year ending December 2026

Impact on Earnings Forecast

The impact on the full-year consolidated earnings forecast for the fiscal year ending December 2026 is currently under review. If it is determined that a revision to the earnings forecast is necessary, the company will announce it promptly.

Outlook

The company plans to recognize approximately ¥827 million in its third-quarter consolidated financial results for the fiscal year ending December 2026. If it is determined that a revision to the full-year consolidated earnings forecast is necessary, the company will announce it promptly.

Planned follow-up disclosure

If it is determined that a revision to the earnings forecast is necessary, the company will announce it promptly.

Event that occurred
ItemDetails
Event nameNotice Regarding the Recognition of a Gain on the Sale of Investment Securities (Extraordinary Income) by a Subsidiary (Transaction with a Controlling Shareholder, etc.)
Date of occurrence27 July 2026 (the date on which the transfer price was finalized and the transaction was completed)
Date recognized / date notice received27 July 2026 (the date on which the company became aware that the transfer price had been finalized)
Subject Entity株式会社エブリシングジャパン (a consolidated subsidiary of the filing company)
Target Locations / ProductsShares of DearU Co., Ltd. (DU)
CauseCompletion of the transaction
Amount of Impact on Business PerformanceApproximately ¥827 million, representing a gain on the sale of investment securities (extraordinary income)
Accounting period in which recognizedConsolidated financial results for the third quarter of the fiscal year ending December 2026
Impact on Earnings ForecastThe impact on the full-year consolidated earnings forecast for the fiscal year ending December 2026 is currently under review. If it is determined that a revision to the earnings forecast is necessary, the company will announce it promptly.
OutlookThe company plans to recognize approximately ¥827 million in its third-quarter consolidated financial results for the fiscal year ending December 2026. If it is determined that a revision to the full-year consolidated earnings forecast is necessary, the company will announce it promptly.
Planned follow-up disclosureIf it is determined that a revision to the earnings forecast is necessary, the company will announce it promptly.
Items this document does not state (14)
Type 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 change

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.

Upon completion of the transaction, the company plans to recognize a gain on the sale of investment securities. The transfer price was determined based on the market closing price of DearU shares on the Korea Exchange on 27 July 2026, at fair market value without a discount.

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.
Update on Previously Disclosed Matter: Notice Regarding Recognition by Our Subsidiary of a Gain on Sale of Investment Securities (Extraordinary Gain) (Transactions with Controlling Shareholder, etc.) | SM ENTERTAINMENT JAPAN Co.,Ltd. (4772) timely disclosure | Komori