Publication of the Special Investigation Committee's Investigation Report
J.E.T.Co.,LTD.
Multiple semiconductor cleaning systems manufactured and sold by the Company, including systems a-d for customers in China and systems e-g for Company X, among other principal transactions
Delays in revising the sales management rules; insufficiently specific documentation and training concerning the ramp-up reporting criteria; issues involving the finance department's checking function, internal audit and governance; and the application of operating practices that prioritized sales plans and performance targets
Company response
The Special Investigation Committee was established on 9 February 2026. The chair was Miyake Hideki (三宅英貴), and the members were Fujita Daisuke (藤田大介) and Onishi Ryohei (大西良平). All were external experts with no conflicts of interest with the Company
Establishing a management structure led by senior management with accounting literacy, integrity and other requisite qualities; considering whether to revise the definition of "ramp-up completed" in the ramp-up reporting criteria; developing and rigorously applying revenue recognition criteria; institutionalizing finance department approval for revenue recognition; appointing a director dedicated to the administrative division; conducting internal audits based on anticipated fraud risks; and strengthening governance for addressing accounting fraud risks
The fiscal years ended December 2022 through December 2024
Related procedures
Investigation by the Special Investigation Committee
Based on the investigation findings, the Company will proceed with its financial closing and audit procedures, assess the impact on the consolidated financial statements, and implement measures to prevent recurrence
| Item | Details |
|---|---|
| Event name | Publication of the Special Investigation Committee's Investigation Report |
| Date of occurrence | 30 April 2026 (the date on which the Special Investigation Committee submitted its investigation report) and 1 May 2026 (the publication date) |
| Date recognized / date notice received | 30 April 2026 (the date on which the Company received the investigation report from the Special Investigation Committee) |
| Subject Entity | J.E.T.Co.,LTD. |
| Target Locations / Products | Multiple semiconductor cleaning systems manufactured and sold by the Company, including systems a-d for customers in China and systems e-g for Company X, among other principal transactions |
| Cause | Delays in revising the sales management rules; insufficiently specific documentation and training concerning the ramp-up reporting criteria; issues involving the finance department's checking function, internal audit and governance; and the application of operating practices that prioritized sales plans and performance targets |
| Accounting period in which recognized | The fiscal years ended December 2022 through December 2024 |
| Type of litigation or proceeding | Investigation by the Special Investigation Committee |
| Investigation structure | The Special Investigation Committee was established on 9 February 2026. The chair was Miyake Hideki (三宅英貴), and the members were Fujita Daisuke (藤田大介) and Onishi Ryohei (大西良平). All were external experts with no conflicts of interest with the Company |
| Measures to prevent recurrence | Establishing a management structure led by senior management with accounting literacy, integrity and other requisite qualities; considering whether to revise the definition of "ramp-up completed" in the ramp-up reporting criteria; developing and rigorously applying revenue recognition criteria; institutionalizing finance department approval for revenue recognition; appointing a director dedicated to the administrative division; conducting internal audits based on anticipated fraud risks; and strengthening governance for addressing accounting fraud risks |
| Outlook | Based on the investigation findings, the Company will proceed with its financial closing and audit procedures, assess the impact on the consolidated financial statements, and implement measures to prevent recurrence |
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.The publicly released version of the investigation report had been partially redacted to protect individual privacy, personal information, and confidential information concerning business partners and products. The report was published because this work has been completed. The investigation itself was conducted to examine concerns regarding the timing of revenue recognition in prior fiscal years, similar cases, the impact on the consolidated financial statements, and measures to prevent recurrence.