Change in Consolidated Subsidiary (ESJ株式会社) and Recognition of an Extraordinary Loss
ARCHITECTS STUDIO JAPAN INC. (transferor), ESJ株式会社 (consolidated subsidiary concerned)
ESJ株式会社 (Shin-Nisseki Building 1F, 3-4-2 Marunouchi, Chiyoda-ku, Tokyo; business: electrical equipment construction)
The company’s performance had deteriorated because the projects initially anticipated did not progress and, due to the nature and scale of its business, it was unable to undertake large-scale construction projects.
A loss on sale of shares in an affiliate of ¥54 million on a consolidated basis and ¥42 million on a non-consolidated basis. The loss is expected to be recognized as an extraordinary loss.
Fiscal year ending February 2027
The recognition of the extraordinary loss will affect net income attributable to owners of the parent, but the impact on financial results is currently being examined. If any matter requiring disclosure arises, the Company will promptly disclose it.
Change in voting rights ownership ratio
The voting rights ownership percentage is the proportion of the voting rights exercisable at a shareholders' meeting held by the shareholder.
5,000 voting rights, representing 100.0% of voting rights (before the share transfer on 1 June 2026)
0 voting rights, representing 0% of voting rights (after the share transfer on 1 June 2026)
ESJ株式会社 is expected to be excluded from the scope of the Company’s consolidation. The Company expects to recognize a loss on sale of shares in an affiliate in the fiscal year ending February 2027 and is examining the impact on financial results.
The Company will promptly announce any matters that require disclosure.
| Item | Details |
|---|---|
| Event name | Change in Consolidated Subsidiary (ESJ株式会社) and Recognition of an Extraordinary Loss |
| Date of occurrence | 1 June 2026 (date of board resolution, contract execution and completion of the share transfer) |
| Date recognized / date notice received | 1 June 2026 (date of the Board of Directors resolution) |
| Subject Entity | ARCHITECTS STUDIO JAPAN INC. (transferor), ESJ株式会社 (consolidated subsidiary concerned) |
| Target Locations / Products | ESJ株式会社 (Shin-Nisseki Building 1F, 3-4-2 Marunouchi, Chiyoda-ku, Tokyo; business: electrical equipment construction) |
| Cause | The company’s performance had deteriorated because the projects initially anticipated did not progress and, due to the nature and scale of its business, it was unable to undertake large-scale construction projects. |
| Amount of Impact on Business Performance | A loss on sale of shares in an affiliate of ¥54 million on a consolidated basis and ¥42 million on a non-consolidated basis. The loss is expected to be recognized as an extraordinary loss. |
| Accounting period in which recognized | Fiscal year ending February 2027 |
| Impact on Earnings Forecast | The recognition of the extraordinary loss will affect net income attributable to owners of the parent, but the impact on financial results is currently being examined. If any matter requiring disclosure arises, the Company will promptly disclose it. |
| Voting rights ownership percentage before the change | 5,000 voting rights, representing 100.0% of voting rights (before the share transfer on 1 June 2026) |
| Voting rights ownership percentage after the change | 0 voting rights, representing 0% of voting rights (after the share transfer on 1 June 2026) |
| Outlook | ESJ株式会社 is expected to be excluded from the scope of the Company’s consolidation. The Company expects to recognize a loss on sale of shares in an affiliate in the fiscal year ending February 2027 and is examining the impact on financial results. |
| Planned follow-up disclosure | The Company will promptly announce any matters that require disclosure. |
Items this document does not state (12)
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.ESJ株式会社’s performance had deteriorated because the projects initially anticipated did not progress and the company was unable to win large-scale construction projects, while the Company is also pursuing a fundamental change in its business strategy.