Incident involving the discharge of wastewater containing benzene and other substances from our Okayama Plant
HOKKO CHEMICAL INDUSTRY CO.,LTD.
Okayama Plant
Approximately ¥300 million, including the recognition of a provision for countermeasures, is expected to be recorded as an extraordinary loss in the consolidated financial statements for the fiscal year ending November 2026. Capital expenditures associated with improving and relocating the wastewater system are expected to total approximately ¥500 million and will be recorded as fixed assets from the next fiscal year onward; they are not included in the amount of this extraordinary loss.
Consolidated financial statements for the fiscal year ending November 2026
There is no change to the consolidated earnings forecast for the fiscal year ending November 2026. If it becomes necessary to revise the earnings forecast, the company will promptly make an announcement.
Company response
The company plans to systematically improve and relocate the wastewater system at its Okayama Plant over approximately the next 2 years.
The company will systematically improve and relocate the wastewater system over approximately the next 2 years. The capital expenditures will be recorded as fixed assets from the next fiscal year onward. If it becomes necessary to revise the earnings forecast, the company will promptly make an announcement.
| Item | Details |
|---|---|
| Event name | Incident involving the discharge of wastewater containing benzene and other substances from our Okayama Plant |
| Subject Entity | HOKKO CHEMICAL INDUSTRY CO.,LTD. |
| Target Locations / Products | Okayama Plant |
| Amount of Impact on Business Performance | Approximately ¥300 million, including the recognition of a provision for countermeasures, is expected to be recorded as an extraordinary loss in the consolidated financial statements for the fiscal year ending November 2026. Capital expenditures associated with improving and relocating the wastewater system are expected to total approximately ¥500 million and will be recorded as fixed assets from the next fiscal year onward; they are not included in the amount of this extraordinary loss. |
| Accounting period in which recognized | Consolidated financial statements for the fiscal year ending November 2026 |
| Impact on Earnings Forecast | There is no change to the consolidated earnings forecast for the fiscal year ending November 2026. If it becomes necessary to revise the earnings forecast, the company will promptly make an announcement. |
| Measures to prevent recurrence | The company plans to systematically improve and relocate the wastewater system at its Okayama Plant over approximately the next 2 years. |
| Outlook | The company will systematically improve and relocate the wastewater system over approximately the next 2 years. The capital expenditures will be recorded as fixed assets from the next fiscal year onward. If it becomes necessary to revise the earnings forecast, the company will promptly make an announcement. |
| Planned follow-up disclosure | If it becomes necessary to revise the earnings forecast, the company will promptly make an announcement. |
Items this document does not state (16)
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.These costs comprise repairs to the wastewater facilities, soil and water quality investigation and analysis costs related to the incident, measures to prevent the spread of groundwater contamination, and the recognition of a provision for countermeasures. As a reason for not revising its full-year earnings forecast, the company cited, among other factors, the recognition of a ¥237 million gain on the sale of investment securities as extraordinary income during the nine months ended November 2026.