Recognition of Extraordinary Income and Extraordinary Loss Associated with Subsidy Income
ARAKAWA CHEMICAL INDUSTRIES,LTD. (filing company)
Newly installed production equipment at the Mizushima Plant (Kurashiki, Okayama Prefecture) in the Fine Electronics business
Receipt of the final notification from the Ministry of Economy, Trade and Industry regarding the Subsidy Program for Promoting Domestic Investment to Strengthen Supply Chains. The Company will apply accounting treatment that directly reduces the acquisition cost of fixed assets by the amount of the subsidy income.
Extraordinary income of ¥934 million (subsidy income); extraordinary loss of ¥775 million (loss on reduction of fixed asset acquisition cost)
The consolidated accounting period for the second quarter of the fiscal year ending March 2027
Already incorporated into the consolidated earnings forecast for the fiscal year ending March 2027 announced on 14 May 2026
Related procedures
Receipt of the final notification regarding the subsidy grant application
Ministry of Economy, Trade and Industry
The new production equipment at the Mizushima Plant is scheduled to begin operations in the second half of fiscal 2026. The Company will promptly disclose any matters requiring disclosure.
If any matters requiring disclosure arise, the Company will disclose them promptly.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Income and Extraordinary Loss Associated with Subsidy Income |
| Date of occurrence | 10 September 2026 (the date the final notification of the subsidy was received from the Ministry of Economy, Trade and Industry) |
| Date recognized / date notice received | 10 September 2026 |
| Subject Entity | ARAKAWA CHEMICAL INDUSTRIES,LTD. (filing company) |
| Target Locations / Products | Newly installed production equipment at the Mizushima Plant (Kurashiki, Okayama Prefecture) in the Fine Electronics business |
| Cause | Receipt of the final notification from the Ministry of Economy, Trade and Industry regarding the Subsidy Program for Promoting Domestic Investment to Strengthen Supply Chains. The Company will apply accounting treatment that directly reduces the acquisition cost of fixed assets by the amount of the subsidy income. |
| Amount of Impact on Business Performance | Extraordinary income of ¥934 million (subsidy income); extraordinary loss of ¥775 million (loss on reduction of fixed asset acquisition cost) |
| Accounting period in which recognized | The consolidated accounting period for the second quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | Already incorporated into the consolidated earnings forecast for the fiscal year ending March 2027 announced on 14 May 2026 |
| Type of litigation or proceeding | Receipt of the final notification regarding the subsidy grant application |
| Court or authority | Ministry of Economy, Trade and Industry |
| Outlook | The new production equipment at the Mizushima Plant is scheduled to begin operations in the second half of fiscal 2026. The Company will promptly disclose any matters requiring disclosure. |
| Planned follow-up disclosure | If any matters requiring disclosure arise, the Company will disclose them promptly. |
Items this document does not state (12)
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.Because the Company received the final notification from the Ministry of Economy, Trade and Industry regarding the Subsidy Program for Promoting Domestic Investment to Strengthen Supply Chains. The Company will also apply accounting treatment that directly reduces the acquisition cost of fixed assets by the amount of the subsidy income.