Notice Regarding the Recognition of an Extraordinary Loss and Revisions to Earnings Forecasts
MEDIA LINKS CO.,LTD. (reporting company)
Fixed assets and inventories of older-model products (no product or location names disclosed)
For fixed assets, the impairment loss resulted from an examination of their future recoverability. For inventories, it resulted from the decision to discontinue sales of older-model products following a model change and the independent auditor's指摘 that inventory levels were excessive relative to expected sales volumes.
The Company recognized an impairment loss of ¥32 million on fixed assets and an inventory valuation loss of ¥503 million as extraordinary losses. The forecast net loss attributable to owners of the parent has deteriorated by ¥604 million, from ¥850 million to ¥1,454 million.
Consolidated fiscal year ended March 2026 (1 April 2025 to 31 March 2026)
The Company revised its full-year consolidated earnings forecasts for the fiscal year ending March 2026. The revised forecasts are consolidated net sales of ¥2,337 million, consolidated operating loss of ¥877 million, consolidated ordinary loss of ¥894 million, net loss attributable to owners of the parent of ¥1,454 million, and basic earnings per share of negative ¥21.57.
Company response
Sales of older-model products (decision made to discontinue sales)
The Company has decided to discontinue sales of older-model products. Actual results may differ from the forecast figures due to various factors.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of an Extraordinary Loss and Revisions to Earnings Forecasts |
| Subject Entity | MEDIA LINKS CO.,LTD. (reporting company) |
| Target Locations / Products | Fixed assets and inventories of older-model products (no product or location names disclosed) |
| Cause | For fixed assets, the impairment loss resulted from an examination of their future recoverability. For inventories, it resulted from the decision to discontinue sales of older-model products following a model change and the independent auditor's指摘 that inventory levels were excessive relative to expected sales volumes. |
| Amount of Impact on Business Performance | The Company recognized an impairment loss of ¥32 million on fixed assets and an inventory valuation loss of ¥503 million as extraordinary losses. The forecast net loss attributable to owners of the parent has deteriorated by ¥604 million, from ¥850 million to ¥1,454 million. |
| Accounting period in which recognized | Consolidated fiscal year ended March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The Company revised its full-year consolidated earnings forecasts for the fiscal year ending March 2026. The revised forecasts are consolidated net sales of ¥2,337 million, consolidated operating loss of ¥877 million, consolidated ordinary loss of ¥894 million, net loss attributable to owners of the parent of ¥1,454 million, and basic earnings per share of negative ¥21.57. |
| Suspended operations | Sales of older-model products (decision made to discontinue sales) |
| Outlook | The Company has decided to discontinue sales of older-model products. 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.With respect to fixed assets, the Company determined that it was necessary to recognize an impairment loss after examining their future recoverability. With respect to inventories, the Company decided to discontinue sales of older-model products following a model change, and, after its independent auditor pointed out that inventory levels were excessive relative to expected future sales volumes, determined that it was appropriate to recognize a valuation loss on the excess inventory.