Notice Regarding the Recognition of Cost of Sales (Inventory Valuation Loss), Decrease in Retirement Benefit Expense, Reversal of Deferred Tax Assets, and Differences between Full-Year Consolidated Earnings Forecasts and Actual Results
Origin Company,Limited (the Company)
Certain products in the Electronics Business and Mechatronics Business, and certain semiconductor products in the Other Business (Semiconductor Device Business)
Divergence from demand forecasts due to the stalled adoption of EVs, restrained capital investment by semiconductor manufacturers and other factors; the end of production and sales of certain semiconductor products; changes in the discount rate and investment gains on pension assets and other factors; and a prudent assessment of the recoverability of deferred tax assets based on recent business performance
An inventory valuation loss of ¥905 million was recognized in cost of sales. Retirement benefit expense was recorded as a negative amount of ¥783 million. Deferred tax assets were reversed, and ¥923 million was recorded under income taxes—deferred. Differences from the previous forecast were an increase of ¥377 million in net sales, a ¥456 million improvement in operating loss, a ¥715 million improvement in ordinary loss, and a ¥240 million deterioration in net loss attributable to owners of the parent.
Full fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The difference between the full-year consolidated earnings forecast announced on 27 November 2025 and actual results was disclosed. Net sales exceeded the previous forecast, and operating and ordinary losses improved, but net loss attributable to owners of the parent was worse than the previous forecast. Regarding revisions to the earnings forecast: Not disclosed
Company response
Production and sales of certain semiconductor products ended
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of Cost of Sales (Inventory Valuation Loss), Decrease in Retirement Benefit Expense, Reversal of Deferred Tax Assets, and Differences between Full-Year Consolidated Earnings Forecasts and Actual Results |
| Subject Entity | Origin Company,Limited (the Company) |
| Target Locations / Products | Certain products in the Electronics Business and Mechatronics Business, and certain semiconductor products in the Other Business (Semiconductor Device Business) |
| Cause | Divergence from demand forecasts due to the stalled adoption of EVs, restrained capital investment by semiconductor manufacturers and other factors; the end of production and sales of certain semiconductor products; changes in the discount rate and investment gains on pension assets and other factors; and a prudent assessment of the recoverability of deferred tax assets based on recent business performance |
| Amount of Impact on Business Performance | An inventory valuation loss of ¥905 million was recognized in cost of sales. Retirement benefit expense was recorded as a negative amount of ¥783 million. Deferred tax assets were reversed, and ¥923 million was recorded under income taxes—deferred. Differences from the previous forecast were an increase of ¥377 million in net sales, a ¥456 million improvement in operating loss, a ¥715 million improvement in ordinary loss, and a ¥240 million deterioration in net loss attributable to owners of the parent. |
| Accounting period in which recognized | Full fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The difference between the full-year consolidated earnings forecast announced on 27 November 2025 and actual results was disclosed. Net sales exceeded the previous forecast, and operating and ordinary losses improved, but net loss attributable to owners of the parent was worse than the previous forecast. Regarding revisions to the earnings forecast: Not disclosed |
| Suspended operations | Production and sales of certain semiconductor products ended |
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.The inventory valuation loss resulted from certain products selling substantially below plan because demand diverged from forecasts due to the stalled adoption of EVs, restrained capital investment by semiconductor manufacturers and other factors, as well as lower profitability following the end of production and sales of certain semiconductor products. The decrease in retirement benefit expense was due to actuarial differences arising from changes in the discount rate, investment gains on pension assets and other factors. The reversal of deferred tax assets resulted from a prudent assessment of their recoverability based on recent business performance.