Recognition of Loss on the Transfer of Shares in an Affiliate (Non-consolidated), Equity-Method Investment Loss (Consolidated), and Revision of Full-Year Earnings Forecast
JN Group Inc., its consolidated subsidiaries 株式会社Zaif and JNソフト, and its equity-method affiliate companies CAICA DIGITAL and FISCO Ltd.
Crypto-asset and blockchain business, solutions business, and FISCO shares
Weak crypto-asset market conditions, valuation losses on crypto-assets held by the Company, orders falling short of target in the partner business, periods of inactivity for mid-career hires, delays in securing external resources, and the recent business performance and share-price trends of CAICA DIGITAL and FISCO
A ¥162 million loss on the transfer of shares in an affiliate was recorded as an extraordinary loss in the non-consolidated accounts. A ¥50 million loss on the transfer of investment securities was recorded as an extraordinary loss in the consolidated accounts. An equity-method investment loss of ¥996 million was recorded as a non-operating expense, with ¥1.058 billion expected to be recorded for the full year.
The third-quarter accounting period and nine-month cumulative period of the fiscal year ending November 2026, and the full fiscal year ending November 2026
The consolidated full-year earnings forecast for the fiscal year ending November 2026 was revised. Revenue was revised from ¥4,383 million to ¥3,373 million, operating profit from ¥103 million to an operating loss of ¥792 million, ordinary profit from an ordinary loss of ¥184 million to an ordinary loss of ¥1,891 million, and net income attributable to owners of the parent from ¥111 million to a net loss of ¥1,931 million.
For the full fiscal year ending November 2026, the Company expects to report an ordinary loss and a net loss attributable to owners of the parent. Actual results may differ from the forecast figures due to various factors.
| Item | Details |
|---|---|
| Event name | Recognition of Loss on the Transfer of Shares in an Affiliate (Non-consolidated), Equity-Method Investment Loss (Consolidated), and Revision of Full-Year Earnings Forecast |
| Date of occurrence | 14 October 2026 (the date on which the revision of the full-year earnings forecast was decided; the date of the FISCO share sale was not disclosed) |
| Subject Entity | JN Group Inc., its consolidated subsidiaries 株式会社Zaif and JNソフト, and its equity-method affiliate companies CAICA DIGITAL and FISCO Ltd. |
| Target Locations / Products | Crypto-asset and blockchain business, solutions business, and FISCO shares |
| Cause | Weak crypto-asset market conditions, valuation losses on crypto-assets held by the Company, orders falling short of target in the partner business, periods of inactivity for mid-career hires, delays in securing external resources, and the recent business performance and share-price trends of CAICA DIGITAL and FISCO |
| Amount of Impact on Business Performance | A ¥162 million loss on the transfer of shares in an affiliate was recorded as an extraordinary loss in the non-consolidated accounts. A ¥50 million loss on the transfer of investment securities was recorded as an extraordinary loss in the consolidated accounts. An equity-method investment loss of ¥996 million was recorded as a non-operating expense, with ¥1.058 billion expected to be recorded for the full year. |
| Accounting period in which recognized | The third-quarter accounting period and nine-month cumulative period of the fiscal year ending November 2026, and the full fiscal year ending November 2026 |
| Impact on Earnings Forecast | The consolidated full-year earnings forecast for the fiscal year ending November 2026 was revised. Revenue was revised from ¥4,383 million to ¥3,373 million, operating profit from ¥103 million to an operating loss of ¥792 million, ordinary profit from an ordinary loss of ¥184 million to an ordinary loss of ¥1,891 million, and net income attributable to owners of the parent from ¥111 million to a net loss of ¥1,931 million. |
| Outlook | For the full fiscal year ending November 2026, the Company expects to report an ordinary loss and a net loss attributable to owners of the parent. Actual results may differ from the forecast figures due to various factors. |
Items this document does not state (16)
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 reasons cited are weak crypto-asset market conditions, valuation losses on crypto-assets held by the Company, orders falling short of target in the partner business, periods of inactivity for mid-career hires, delays in securing external resources, the recent business performance and share-price trends of CAICA DIGITAL and FISCO, and the sale of FISCO shares.