Notice Regarding the Recognition of an Extraordinary Loss (Impairment Loss) and Revisions to Full-Year Consolidated Earnings Forecast
HIRAKAWA HEWTECH CORP. and its consolidated subsidiary HEWTECH PHILIPPINES ELECTRONICS CORP.
HEWTECH PHILIPPINES ELECTRONICS CORP.'s automotive cable business
The subsidiary's standalone performance fell short of the initial plan due to delays in operations caused by the impact of COVID-19 and the postponement of the launch of planned mass-production projects, among other factors. Performance trends over the past several years and uncertainty regarding the future outlook were also given significant consideration.
¥2,471 million (impairment loss on fixed assets; extraordinary loss)
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The full-year consolidated earnings forecast has been revised. Net sales are projected at ¥38,420 million, operating income at ¥4,410 million, ordinary income at ¥4,630 million, and net income attributable to owners of the parent at ¥1,640 million. The year-end dividend forecast remains unchanged from the previously announced figure.
The Company expects the business to achieve medium- to long-term growth and believes that its assets will be recoverable in the future. The forecast announced this time is based on an exchange rate of ¥151 per US dollar and a copper price basis of US$10,800 per tonne.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of an Extraordinary Loss (Impairment Loss) and Revisions to Full-Year Consolidated Earnings Forecast |
| Subject Entity | HIRAKAWA HEWTECH CORP. and its consolidated subsidiary HEWTECH PHILIPPINES ELECTRONICS CORP. |
| Target Locations / Products | HEWTECH PHILIPPINES ELECTRONICS CORP.'s automotive cable business |
| Cause | The subsidiary's standalone performance fell short of the initial plan due to delays in operations caused by the impact of COVID-19 and the postponement of the launch of planned mass-production projects, among other factors. Performance trends over the past several years and uncertainty regarding the future outlook were also given significant consideration. |
| Amount of Impact on Business Performance | ¥2,471 million (impairment loss on fixed assets; extraordinary loss) |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The full-year consolidated earnings forecast has been revised. Net sales are projected at ¥38,420 million, operating income at ¥4,410 million, ordinary income at ¥4,630 million, and net income attributable to owners of the parent at ¥1,640 million. The year-end dividend forecast remains unchanged from the previously announced figure. |
| Outlook | The Company expects the business to achieve medium- to long-term growth and believes that its assets will be recoverable in the future. The forecast announced this time is based on an exchange rate of ¥151 per US dollar and a copper price basis of US$10,800 per tonne. |
Items this document does not state (17)
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.At HEWTECH PHILIPPINES ELECTRONICS CORP., performance fell short of the initial plan due to delays in operations caused by the impact of COVID-19 and the postponement of the launch of planned mass-production projects, among other factors. The impairment loss was recognized because, from an audit perspective, particular weight was placed on performance trends over the past several years and uncertainty regarding the future outlook. Regarding the revision to the earnings forecast, strong cable sales for utility-scale solar projects in North America, the ramp-up of new products and a recovery in some factory automation demand boosted operating income and ordinary income, while the impairment loss reduced net income.