Waiver of receivables from a consolidated subsidiary
Creadits Co., Ltd. (our consolidated subsidiary)
Creadits has already ceased business activities and, being in a state of insolvency, has no source of funds with which to repay the liability in question.
A ¥142 million loss on the waiver of the receivable will be recorded as an extraordinary loss in the standalone financial statements. In the consolidated financial statements, the loss on the waiver of the receivable, which is an intercompany transaction, will be offset and eliminated. Accordingly, there will be no impact on our consolidated results.
As no impact on our consolidated results is expected from this matter, no revision will be made to the consolidated earnings forecast for the fiscal year ending December 2026.
¥142 million (Creadits Co., Ltd.)
Related procedures
Liquidation proceedings
Company response
Business activities of Creadits Co., Ltd.
Upon execution of the waiver of the receivable, Creadits' liquidation proceedings are expected to be completed by the end of 2026. Upon completion of the liquidation, Creadits will be excluded from the scope of consolidation.
The timing of completion of the liquidation will be announced promptly once it has been determined.
| Item | Details |
|---|---|
| Event name | Waiver of receivables from a consolidated subsidiary |
| Date of occurrence | 31 August 2026 |
| Subject Entity | Creadits Co., Ltd. (our consolidated subsidiary) |
| Cause | Creadits has already ceased business activities and, being in a state of insolvency, has no source of funds with which to repay the liability in question. |
| Amount of Impact on Business Performance | A ¥142 million loss on the waiver of the receivable will be recorded as an extraordinary loss in the standalone financial statements. In the consolidated financial statements, the loss on the waiver of the receivable, which is an intercompany transaction, will be offset and eliminated. Accordingly, there will be no impact on our consolidated results. |
| Impact on Earnings Forecast | As no impact on our consolidated results is expected from this matter, no revision will be made to the consolidated earnings forecast for the fiscal year ending December 2026. |
| Type of litigation or proceeding | Liquidation proceedings |
| Amount of receivables at risk of non-collection or delayed collection | ¥142 million (Creadits Co., Ltd.) |
| Suspended operations | Business activities of Creadits Co., Ltd. |
| Outlook | Upon execution of the waiver of the receivable, Creadits' liquidation proceedings are expected to be completed by the end of 2026. Upon completion of the liquidation, Creadits will be excluded from the scope of consolidation. |
| Planned follow-up disclosure | The timing of completion of the liquidation will be announced promptly once it has been determined. |
Items this document does not state (14)
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.Creadits has ceased business activities and, being in a state of insolvency, has no source of funds with which to repay its liabilities. The liquidation proceedings cannot be completed while the receivable remains outstanding.