Notice Regarding Extraordinary Loss (Impairment Loss on Fixed Assets) and Revisions to Earnings Forecast
Sansha Electric Manufacturing Co.,Ltd., its consolidated subsidiaries SanRex Corporation (United States) and SanRex Limited. (Hong Kong), and equity-method affiliates
The Company's semiconductor business and power equipment business, the fixed assets of SanRex Corporation (United States) and SanRex Limited. (Hong Kong), and investments in equity-method affiliates
For the semiconductor business, the causes are changes in the business environment, profitability and the outlook. For the consolidated subsidiaries, the cause is a change in the operating environment. For the equity-method affiliates, the cause is a conservative reassessment of their business plans. The revision to the earnings forecasts reflects weak sales in China, weak demand for small embedded power supplies, the ability to emphasize added value in specific transactions, and expense reductions.
Impairment of the Company's fixed assets: ¥172 million (extraordinary loss); impairment of fixed assets related to SanRex Corporation and SanRex Limited.: ¥72 million (extraordinary loss); equity-method investment loss: ¥250 million (non-operating expense)
Consolidated financial results for the fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The earnings forecasts have been revised. Net sales have been revised from ¥27,700 million to ¥26,651 million, operating income from ¥1,200 million to ¥1,386 million, ordinary income from ¥1,200 million to ¥1,137 million, and net income attributable to owners of the parent from ¥840 million to ¥381 million. The respective changes are a decrease of ¥1,048 million, an increase of ¥186 million, a decrease of ¥62 million, and a decrease of ¥458 million. The dividend forecast remains unchanged.
The dividend forecast will remain unchanged. The earnings forecasts above were calculated based on information available at this time, and actual results may vary due to a range of factors.
| Item | Details |
|---|---|
| Event name | Notice Regarding Extraordinary Loss (Impairment Loss on Fixed Assets) and Revisions to Earnings Forecast |
| Subject Entity | Sansha Electric Manufacturing Co.,Ltd., its consolidated subsidiaries SanRex Corporation (United States) and SanRex Limited. (Hong Kong), and equity-method affiliates |
| Target Locations / Products | The Company's semiconductor business and power equipment business, the fixed assets of SanRex Corporation (United States) and SanRex Limited. (Hong Kong), and investments in equity-method affiliates |
| Cause | For the semiconductor business, the causes are changes in the business environment, profitability and the outlook. For the consolidated subsidiaries, the cause is a change in the operating environment. For the equity-method affiliates, the cause is a conservative reassessment of their business plans. The revision to the earnings forecasts reflects weak sales in China, weak demand for small embedded power supplies, the ability to emphasize added value in specific transactions, and expense reductions. |
| Amount of Impact on Business Performance | Impairment of the Company's fixed assets: ¥172 million (extraordinary loss); impairment of fixed assets related to SanRex Corporation and SanRex Limited.: ¥72 million (extraordinary loss); equity-method investment loss: ¥250 million (non-operating expense) |
| Accounting period in which recognized | Consolidated financial results for the fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The earnings forecasts have been revised. Net sales have been revised from ¥27,700 million to ¥26,651 million, operating income from ¥1,200 million to ¥1,386 million, ordinary income from ¥1,200 million to ¥1,137 million, and net income attributable to owners of the parent from ¥840 million to ¥381 million. The respective changes are a decrease of ¥1,048 million, an increase of ¥186 million, a decrease of ¥62 million, and a decrease of ¥458 million. The dividend forecast remains unchanged. |
| Outlook | The dividend forecast will remain unchanged. The earnings forecasts above were calculated based on information available at this time, and actual results may vary due to a range of factors. |
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.Sales are expected to decline because semiconductor sales in China did not grow over the year and demand for small embedded power supplies in the power equipment business has remained weak. Operating income is expected to increase as a result of specific transactions in which the Company was able to emphasize added value and through expense reductions. However, ordinary income and net income attributable to owners of the parent are expected to decline because the Company will recognize an equity-method investment loss and an impairment loss on fixed assets.