Recognition of extraordinary losses (impairment losses on investment securities and shares of affiliated companies)
SmartDrive inc. (filing company), SMARTDRIVE SDN. BHD. (consolidated subsidiary), and 57CODEBOX SDN. BHD. (equity-method affiliate of SMARTDRIVE SDN. BHD.)
Convertible bonds issued by SMARTDRIVE SDN. BHD. (Malaysia) and 57CODEBOX SDN. BHD., and shares of SMARTDRIVE SDN. BHD.
The company determined, based on its assessment of the recoverability of the convertible bonds in light of the financial condition and other factors relating to 57CODEBOX SDN. BHD., that their fair value had declined significantly and was unlikely to recover. SMARTDRIVE SDN. BHD. continued to record losses, resulting in a deterioration in its financial condition and a significant decline in the real value of its shares.
Consolidated: ¥19 million impairment loss on investment securities (extraordinary loss). The ¥66 million impairment loss on shares of affiliated companies was eliminated in the consolidated financial statements. Nonconsolidated: ¥19 million impairment loss on investment securities and ¥66 million impairment loss on shares of affiliated companies, for a total of ¥85 million
Fiscal year ending September 2026 (1 October 2025 to 30 September 2026)
There is no change to the consolidated earnings forecast for the fiscal year ending September 2026.
These are estimated amounts based on financial figures and other data as of the end of August 2026. The final figures will be disclosed in the financial results summary for the fiscal year ending September 2026, scheduled for publication on 13 November 2026. The company will not change its business policy in Malaysia and will continue working to improve the profitability of its operations there. If any change requiring disclosure of the amount or any other matter requiring public disclosure arises, the company will disclose it promptly.
| Item | Details |
|---|---|
| Event name | Recognition of extraordinary losses (impairment losses on investment securities and shares of affiliated companies) |
| Subject Entity | SmartDrive inc. (filing company), SMARTDRIVE SDN. BHD. (consolidated subsidiary), and 57CODEBOX SDN. BHD. (equity-method affiliate of SMARTDRIVE SDN. BHD.) |
| Target Locations / Products | Convertible bonds issued by SMARTDRIVE SDN. BHD. (Malaysia) and 57CODEBOX SDN. BHD., and shares of SMARTDRIVE SDN. BHD. |
| Cause | The company determined, based on its assessment of the recoverability of the convertible bonds in light of the financial condition and other factors relating to 57CODEBOX SDN. BHD., that their fair value had declined significantly and was unlikely to recover. SMARTDRIVE SDN. BHD. continued to record losses, resulting in a deterioration in its financial condition and a significant decline in the real value of its shares. |
| Amount of Impact on Business Performance | Consolidated: ¥19 million impairment loss on investment securities (extraordinary loss). The ¥66 million impairment loss on shares of affiliated companies was eliminated in the consolidated financial statements. Nonconsolidated: ¥19 million impairment loss on investment securities and ¥66 million impairment loss on shares of affiliated companies, for a total of ¥85 million |
| Accounting period in which recognized | Fiscal year ending September 2026 (1 October 2025 to 30 September 2026) |
| Impact on Earnings Forecast | There is no change to the consolidated earnings forecast for the fiscal year ending September 2026. |
| Outlook | These are estimated amounts based on financial figures and other data as of the end of August 2026. The final figures will be disclosed in the financial results summary for the fiscal year ending September 2026, scheduled for publication on 13 November 2026. The company will not change its business policy in Malaysia and will continue working to improve the profitability of its operations there. If any change requiring disclosure of the amount or any other matter requiring public disclosure arises, the company will disclose it promptly. |
| Planned follow-up disclosure | The final figures will be disclosed in the financial results summary for the fiscal year ending September 2026, scheduled for publication on 13 November 2026. |
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.Based on the financial condition and other factors relating to 57CODEBOX SDN. BHD., the company determined that the fair value of the convertible bonds it holds had declined substantially and was unlikely to recover. In addition, SMARTDRIVE SDN. BHD. continued to record losses, resulting in a deterioration in its financial condition and a substantial decline in the real value of its shares.