Recognition of an extraordinary loss
eMnet Japan.co.ltd. (filing company)
The Company's cash and deposits, receivables from its former executive managing director and CFO, and some of the investment securities held by the Company
Personal misappropriation of cash and deposits by the former executive managing director and CFO; expenses incurred in connection with the third-party committee's investigation, assistance with preparing disclosure documents, audits and other related matters; and a significant decline in the substantial value of investment securities based on the business plans and recent performance trends of the investee companies
¥298.274 million in provision for doubtful accounts, ¥156.890 million in provision for correction-related expenses, and ¥187.257 million in impairment loss on investment securities. All were recognized as extraordinary losses.
Fiscal year ending December 2025 (1 January 2025 to 31 December 2025)
¥460 million (long-term accounts receivable from the former executive managing director and CFO; the expected uncollectible amount itself was not disclosed)
Related procedures
Investigation by a third-party committee
Company response
The Company received the investigation report from the third-party committee. The name of the committee chair and the establishment date are Not disclosed.
| Item | Details |
|---|---|
| Event name | Recognition of an extraordinary loss |
| Date of occurrence | 31 December 2025 (fiscal year-end for the fiscal year ending December 2025) |
| Subject Entity | eMnet Japan.co.ltd. (filing company) |
| Target Locations / Products | The Company's cash and deposits, receivables from its former executive managing director and CFO, and some of the investment securities held by the Company |
| Cause | Personal misappropriation of cash and deposits by the former executive managing director and CFO; expenses incurred in connection with the third-party committee's investigation, assistance with preparing disclosure documents, audits and other related matters; and a significant decline in the substantial value of investment securities based on the business plans and recent performance trends of the investee companies |
| Amount of Impact on Business Performance | ¥298.274 million in provision for doubtful accounts, ¥156.890 million in provision for correction-related expenses, and ¥187.257 million in impairment loss on investment securities. All were recognized as extraordinary losses. |
| Accounting period in which recognized | Fiscal year ending December 2025 (1 January 2025 to 31 December 2025) |
| Type of litigation or proceeding | Investigation by a third-party committee |
| Amount of receivables at risk of non-collection or delayed collection | ¥460 million (long-term accounts receivable from the former executive managing director and CFO; the expected uncollectible amount itself was not disclosed) |
| Investigation structure | The Company received the investigation report from the third-party committee. The name of the committee chair and the establishment date are Not disclosed. |
Items this document does not state (15)
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 personal misappropriation of cash and deposits by the former executive managing director and CFO resulted in damages and an expected uncollectible amount; expenses were incurred for the investigation by the third-party committee, assistance with preparing disclosure documents, audit fees and other related costs; and, following a detailed review of the business plans and recent performance of the investee companies, the substantial value of some of the investment securities held by the Company had declined significantly.