Recognition of Extraordinary Losses (Consolidated and Non-Consolidated Financial Statements)
MEIDENSHA CORPORATION and its consolidated subsidiary, MEIDEN(HANGZHOU)DRIVE TECHNOLOGY CO., LTD.
Production and sales site for EV drive units in Hangzhou, China, and fixed assets held by the subsidiary
Consolidated financial statements: Indications of impairment due to declining profitability. Non-consolidated financial statements: Decline in the net asset value of the subsidiary's shares and deterioration in the subsidiary's performance.
Consolidated financial statements: An impairment loss of ¥3,303 million will be recognized as an extraordinary loss. Non-consolidated financial statements: A ¥4,249 million loss on the valuation of shares in an affiliated company, a ¥1,690 million provision for doubtful accounts, and a ¥1,984 million provision for losses on debt guarantees will be recognized as extraordinary losses. The 3 items in the non-consolidated financial statements will be eliminated in the consolidated financial statements and will have no impact on consolidated results.
Fiscal year ending March 2026
The stated extraordinary losses will be recognized in the consolidated and non-consolidated financial statements for the fiscal year ending March 2026.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Losses (Consolidated and Non-Consolidated Financial Statements) |
| Subject Entity | MEIDENSHA CORPORATION and its consolidated subsidiary, MEIDEN(HANGZHOU)DRIVE TECHNOLOGY CO., LTD. |
| Target Locations / Products | Production and sales site for EV drive units in Hangzhou, China, and fixed assets held by the subsidiary |
| Cause | Consolidated financial statements: Indications of impairment due to declining profitability. Non-consolidated financial statements: Decline in the net asset value of the subsidiary's shares and deterioration in the subsidiary's performance. |
| Amount of Impact on Business Performance | Consolidated financial statements: An impairment loss of ¥3,303 million will be recognized as an extraordinary loss. Non-consolidated financial statements: A ¥4,249 million loss on the valuation of shares in an affiliated company, a ¥1,690 million provision for doubtful accounts, and a ¥1,984 million provision for losses on debt guarantees will be recognized as extraordinary losses. The 3 items in the non-consolidated financial statements will be eliminated in the consolidated financial statements and will have no impact on consolidated results. |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Outlook | The stated extraordinary losses will be recognized in the consolidated and non-consolidated financial statements for the fiscal year ending March 2026. |
Items this document does not state (18)
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.In the consolidated financial statements, the profitability of fixed assets held by MEIDEN(HANGZHOU)DRIVE TECHNOLOGY CO., LTD. declined, and indications of impairment were identified. In the non-consolidated financial statements, the net asset value of the subsidiary's shares declined and the subsidiary's performance deteriorated.