Recognition in consolidated financial results of an extraordinary loss (impairment loss), extraordinary gain (gain on change in equity interest), non-operating income (foreign exchange gain), and adjustment to income taxes
GALA INCORPORATED (filing company), 株式会社ツリーフル, and Treeful Cambodia Co., Ltd.
Assets used in the treehouse business (buildings and structures, tools, fixtures and equipment, construction in progress, etc.)
There had been no significant change in the business environment surrounding the treehouse business or its earnings outlook, and indications of impairment had continued; the Company did not exercise its rights to subscribe for new shares in the rights offering to shareholders; recent fluctuations in foreign exchange rates; and the reversal of deferred tax assets associated with the use of tax loss carryforwards following the generation of taxable income, among other factors.
Impairment loss of ¥23,581 thousand (extraordinary loss, including ¥19,685 thousand recognized in the first quarter); gain on change in equity interest of ¥121,321 thousand (extraordinary gain); foreign exchange gain of ¥57,122 thousand (non-operating income); adjustment to income taxes of ¥79,993 thousand (expense); and residual difference of ¥125,696 thousand related to exclusion from consolidation (increase in retained earnings).
Second quarter of the fiscal year ending December 2026 (interim period, 1 January to 30 June 2026)
For details of this matter, please refer to the “Consolidated Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP]” announced today.
Change in voting rights ownership ratio
The voting rights ownership percentage is the proportion of the voting rights exercisable at a shareholders' meeting held by the shareholder.
24.41％
15.55％
| Item | Details |
|---|---|
| Event name | Recognition in consolidated financial results of an extraordinary loss (impairment loss), extraordinary gain (gain on change in equity interest), non-operating income (foreign exchange gain), and adjustment to income taxes |
| Date of occurrence | End of April 2026 (deemed exclusion date) and recognition in the financial results for the second quarter of the fiscal year ending December 2026 (interim period: 1 January to 30 June 2026) |
| Subject Entity | GALA INCORPORATED (filing company), 株式会社ツリーフル, and Treeful Cambodia Co., Ltd. |
| Target Locations / Products | Assets used in the treehouse business (buildings and structures, tools, fixtures and equipment, construction in progress, etc.) |
| Cause | There had been no significant change in the business environment surrounding the treehouse business or its earnings outlook, and indications of impairment had continued; the Company did not exercise its rights to subscribe for new shares in the rights offering to shareholders; recent fluctuations in foreign exchange rates; and the reversal of deferred tax assets associated with the use of tax loss carryforwards following the generation of taxable income, among other factors. |
| Amount of Impact on Business Performance | Impairment loss of ¥23,581 thousand (extraordinary loss, including ¥19,685 thousand recognized in the first quarter); gain on change in equity interest of ¥121,321 thousand (extraordinary gain); foreign exchange gain of ¥57,122 thousand (non-operating income); adjustment to income taxes of ¥79,993 thousand (expense); and residual difference of ¥125,696 thousand related to exclusion from consolidation (increase in retained earnings). |
| Accounting period in which recognized | Second quarter of the fiscal year ending December 2026 (interim period, 1 January to 30 June 2026) |
| Impact on Earnings Forecast | For details of this matter, please refer to the “Consolidated Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP]” announced today. |
| Voting rights ownership percentage before the change | 24.41％ |
| Voting rights ownership percentage after the change | 15.55％ |
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 impairment loss was recognized because there had been no significant change in the business environment surrounding the treehouse business or its earnings outlook, and indications of impairment had continued. The gain on change in equity interest resulted from the loss of control after the Company did not exercise its rights to subscribe for new shares in 株式会社ツリーフル's rights offering to shareholders. The foreign exchange gain resulted from fluctuations in foreign exchange rates. The adjustment to income taxes resulted from the reversal of deferred tax assets due to the use of tax loss carryforwards following the generation of taxable income, among other factors.