Recording of extraordinary losses
Asahi Diamond Industrial Co.,Ltd. (non-consolidated financial results) and its European subsidiary
European subsidiary; machinery and equipment with no expected future use following the transfer of manufacturing operations to an affiliate, among other factors
Impairment accounting is planned for the European subsidiary during the current consolidated fiscal year, and the subsidiary is expected to become balance-sheet insolvent. In addition, the machinery and equipment is not expected to be used following the transfer of manufacturing operations to an affiliate, among other factors.
The company expects to record a ¥500 million valuation loss on shares, a ¥1.7 billion provision for doubtful accounts, and a ¥120 million impairment loss on machinery and equipment as extraordinary losses in its non-consolidated financial results. The ¥500 million valuation loss on shares and ¥1.7 billion provision for doubtful accounts will not be recorded in the consolidated financial results because they will be eliminated as intercompany transactions.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The company will announce the results for the non-consolidated fiscal year ending March 2026 (1 April 2025 to 31 March 2026) in its earnings announcement on 15 May 2026.
Earnings announcement on 15 May 2026
| Item | Details |
|---|---|
| Event name | Recording of extraordinary losses |
| Subject Entity | Asahi Diamond Industrial Co.,Ltd. (non-consolidated financial results) and its European subsidiary |
| Target Locations / Products | European subsidiary; machinery and equipment with no expected future use following the transfer of manufacturing operations to an affiliate, among other factors |
| Cause | Impairment accounting is planned for the European subsidiary during the current consolidated fiscal year, and the subsidiary is expected to become balance-sheet insolvent. In addition, the machinery and equipment is not expected to be used following the transfer of manufacturing operations to an affiliate, among other factors. |
| Amount of Impact on Business Performance | The company expects to record a ¥500 million valuation loss on shares, a ¥1.7 billion provision for doubtful accounts, and a ¥120 million impairment loss on machinery and equipment as extraordinary losses in its non-consolidated financial results. The ¥500 million valuation loss on shares and ¥1.7 billion provision for doubtful accounts will not be recorded in the consolidated financial results because they will be eliminated as intercompany transactions. |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Outlook | The company will announce the results for the non-consolidated fiscal year ending March 2026 (1 April 2025 to 31 March 2026) in its earnings announcement on 15 May 2026. |
| Planned follow-up disclosure | Earnings announcement on 15 May 2026 |
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.As impairment accounting is planned for a European subsidiary and the subsidiary is expected to become balance-sheet insolvent, the company expects to record a valuation loss on shares and a provision for doubtful accounts in accordance with the Accounting Standard for Financial Instruments. In addition, the company expects to record an impairment loss because the machinery and equipment is not expected to be used following the transfer of manufacturing operations to an affiliate, among other factors.