Recognition of an Extraordinary Loss (Impairment Loss) and an Extraordinary Gain (Gain on Sale of Investment Securities)
C.E.Management Integrated Laboratory Co.Ltd (reporting company)
The industrial-use site at the west exit of Shinonoi Station in Nagano City, Nagano Prefecture, where the new head office building was scheduled to be constructed; construction in progress, including basic design fees; and 1 listed security held by the Company
The construction in progress is no longer expected to be used or to generate future cash flows following the cancellation of the new head office building construction plan. The substantive reasons for cancelling the plan were changes in the business environment, including rising construction material prices and labor costs and changes in the interest-rate environment. The investment securities were sold to stabilize earnings for each period and strengthen the financial base.
Impairment loss: ¥58 million (extraordinary loss); gain on sale of investment securities: ¥64 million (extraordinary gain, expected to be recognized)
Impairment loss: the consolidated accounting period for the second quarter (interim period) of the fiscal year ending December 2026. Gain on sale of investment securities: the consolidated accounting period for the third quarter of the fiscal year ending December 2026.
The impact on the earnings forecast for the fiscal year ending December 2026, including the above extraordinary loss and extraordinary gain as well as other factors, is currently under review. If the Company determines that a revision to the earnings forecast is necessary, it will promptly disclose the information.
The Company will review the impact on the earnings forecast for the fiscal year ending December 2026 and promptly disclose any revision if it determines that one is necessary. The sale of investment securities is ongoing, and the Company may recognize additional gains on sales in the future. Once the amounts are finalized, the Company will promptly disclose them as necessary.
If the Company determines that a revision to the earnings forecast is necessary, and once the amount of any additional gain on sale is finalized, it will promptly disclose the information as necessary.
| Item | Details |
|---|---|
| Event name | Recognition of an Extraordinary Loss (Impairment Loss) and an Extraordinary Gain (Gain on Sale of Investment Securities) |
| Date of occurrence | Date of the Board of Directors' resolution concerning the impairment loss: 15 July 2026. Contract date for the sale of investment securities: 16 July 2026. The impairment loss was reflected in the asset valuation as of 30 June 2026. |
| Subject Entity | C.E.Management Integrated Laboratory Co.Ltd (reporting company) |
| Target Locations / Products | The industrial-use site at the west exit of Shinonoi Station in Nagano City, Nagano Prefecture, where the new head office building was scheduled to be constructed; construction in progress, including basic design fees; and 1 listed security held by the Company |
| Cause | The construction in progress is no longer expected to be used or to generate future cash flows following the cancellation of the new head office building construction plan. The substantive reasons for cancelling the plan were changes in the business environment, including rising construction material prices and labor costs and changes in the interest-rate environment. The investment securities were sold to stabilize earnings for each period and strengthen the financial base. |
| Amount of Impact on Business Performance | Impairment loss: ¥58 million (extraordinary loss); gain on sale of investment securities: ¥64 million (extraordinary gain, expected to be recognized) |
| Accounting period in which recognized | Impairment loss: the consolidated accounting period for the second quarter (interim period) of the fiscal year ending December 2026. Gain on sale of investment securities: the consolidated accounting period for the third quarter of the fiscal year ending December 2026. |
| Impact on Earnings Forecast | The impact on the earnings forecast for the fiscal year ending December 2026, including the above extraordinary loss and extraordinary gain as well as other factors, is currently under review. If the Company determines that a revision to the earnings forecast is necessary, it will promptly disclose the information. |
| Outlook | The Company will review the impact on the earnings forecast for the fiscal year ending December 2026 and promptly disclose any revision if it determines that one is necessary. The sale of investment securities is ongoing, and the Company may recognize additional gains on sales in the future. Once the amounts are finalized, the Company will promptly disclose them as necessary. |
| Planned follow-up disclosure | If the Company determines that a revision to the earnings forecast is necessary, and once the amount of any additional gain on sale is finalized, it will promptly disclose the information as necessary. |
Items this document does not state (15)
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.The impairment loss was recognized because the construction in progress will no longer be used following the cancellation of the new head office building construction plan and is no longer expected to generate future cash flows. The Company cited rising construction material prices and labor costs, changes in the interest-rate environment, and other factors as the substantive reasons for cancelling the plan. The investment securities were sold to stabilize earnings for each period and strengthen the financial base.