Recognition of impairment losses
NIPPON SEIRO CO.,LTD. (the Company)
Storage tanks that are not expected to be used in the future and are scheduled for dismantling, and company housing scheduled for sale
As part of the shift in the business model away from the heavy-fuel-oil reduction and mass-production wax business model, the Company changed its primary feedstock from distillation feedstocks such as LSWR to materials such as slack wax. This increased small-lot feedstock purchases and reduced utilization of the large-capacity storage tanks. There was no longer a prospect of securing profitability for some of the tanks, and the company housing was slated for sale.
¥218 million (impairment loss, extraordinary loss). The breakdown is ¥213 million for the storage tanks and ¥4 million for the company housing.
Second quarter of the fiscal year ending December 2026 (interim consolidated accounting period)
The storage tanks deemed unlikely to be used in the future and scheduled for dismantling are scheduled to be dismantled. The company housing was slated for sale.
| Item | Details |
|---|---|
| Event name | Recognition of impairment losses |
| Date of occurrence | Recognized during the second quarter of the fiscal year ending December 2026 (interim consolidated accounting period). The specific date is Not disclosed |
| Date recognized / date notice received | During the second quarter of the fiscal year ending December 2026, it became clear that there was no prospect of securing profitability for some of the tanks. The specific date is Not disclosed |
| Subject Entity | NIPPON SEIRO CO.,LTD. (the Company) |
| Target Locations / Products | Storage tanks that are not expected to be used in the future and are scheduled for dismantling, and company housing scheduled for sale |
| Cause | As part of the shift in the business model away from the heavy-fuel-oil reduction and mass-production wax business model, the Company changed its primary feedstock from distillation feedstocks such as LSWR to materials such as slack wax. This increased small-lot feedstock purchases and reduced utilization of the large-capacity storage tanks. There was no longer a prospect of securing profitability for some of the tanks, and the company housing was slated for sale. |
| Amount of Impact on Business Performance | ¥218 million (impairment loss, extraordinary loss). The breakdown is ¥213 million for the storage tanks and ¥4 million for the company housing. |
| Accounting period in which recognized | Second quarter of the fiscal year ending December 2026 (interim consolidated accounting period) |
| Outlook | The storage tanks deemed unlikely to be used in the future and scheduled for dismantling are scheduled to be dismantled. The company housing was slated for sale. |
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.The Company shifted away from a business model based on heavy-fuel-oil reduction and mass production of wax, changing its feedstock to materials such as slack wax. This increased the number of small-lot purchases and reduced utilization of the large-capacity storage tanks. As a result, there was no longer a prospect of securing profitability for some of the tanks, and the company housing was slated for sale.