Recognition of Non-Operating Expenses (Derivative Loss and Derivative Valuation Loss)
NIPPON SHINDO CO.,LTD. (the filing company)
Copper and zinc (major raw materials)
Market prices for raw materials rose from April to September 2026. The company engages in derivative transactions to avoid or mitigate the risk of fluctuations in the commodity prices of inventory caused by declines in raw material prices.
Derivative loss of ¥641 million and derivative valuation loss of ¥251 million (non-operating expenses)
Cumulative second quarter of the fiscal year ending March 2027 (from 1 April 2026 to September 2026)
For the earnings forecast for the fiscal year ending March 2027, see the Notice Concerning Revision of Earnings Forecasts released today.
The above non-operating expenses are reflected in the earnings report for the second quarter of the fiscal year ending March 2027 released today. Derivative valuation gains and losses will fluctuate depending on future conditions in raw material markets.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Expenses (Derivative Loss and Derivative Valuation Loss) |
| Date of occurrence | Cumulative second quarter of the fiscal year ending March 2027 (from April to September 2026) |
| Subject Entity | NIPPON SHINDO CO.,LTD. (the filing company) |
| Target Locations / Products | Copper and zinc (major raw materials) |
| Cause | Market prices for raw materials rose from April to September 2026. The company engages in derivative transactions to avoid or mitigate the risk of fluctuations in the commodity prices of inventory caused by declines in raw material prices. |
| Amount of Impact on Business Performance | Derivative loss of ¥641 million and derivative valuation loss of ¥251 million (non-operating expenses) |
| Accounting period in which recognized | Cumulative second quarter of the fiscal year ending March 2027 (from 1 April 2026 to September 2026) |
| Impact on Earnings Forecast | For the earnings forecast for the fiscal year ending March 2027, see the Notice Concerning Revision of Earnings Forecasts released today. |
| Outlook | The above non-operating expenses are reflected in the earnings report for the second quarter of the fiscal year ending March 2027 released today. Derivative valuation gains and losses will fluctuate depending on future conditions in raw material markets. |
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.Because market prices for raw materials such as copper and zinc rose from April to September 2026. The company explains that it engages in derivative transactions to avoid or mitigate the risk of fluctuations in the commodity prices of inventory caused by declines in raw material prices.