Recognition of extraordinary losses (loss on liquidation of an affiliated company and loss from remittance fraud involving an affiliated company)
The filing company, consolidated subsidiary VELTRA Malaysia Sdn. Bhd., and consolidated subsidiary リンクティビティ株式会社
VELTRA Malaysia Sdn. Bhd. (Kuala Lumpur, Malaysia; development and maintenance of a travel booking system) / designated bank account of リンクティビティ株式会社
For VELTRA Malaysia Sdn. Bhd., the reason was to integrate and consolidate its product development functions at the head office in Japan in light of recent changes in the development environment. For リンクティビティ株式会社, the cause was a fraudulent remittance instruction from a third party impersonating its representative.
Extraordinary loss (loss on liquidation of an affiliated company): ¥56.213 million; extraordinary loss (loss from remittance fraud involving an affiliated company): ¥50 million
Cumulative consolidated period for the first quarter of the fiscal year ending December 2026
The losses have already been reflected in the full-year consolidated earnings forecast for the fiscal year ending December 2026, and no revision to the full-year earnings forecast will be made at this time.
Related procedures
Investigation by the relevant authorities
Relevant authorities
Company response
An investigation by the relevant authorities is ongoing. The establishment of a third-party committee, special investigation committee or similar body has not been disclosed.
The Company will continue to strengthen its internal controls and compliance systems, including strict enforcement of multiple-person approval procedures for remittances.
If a difference from the estimated amount arises when the liquidation procedures are finally completed, it will be appropriately accounted for at that time. If some or all of the funds related to the remittance fraud are recovered in the future, the recovery will be appropriately accounted for at that time. The Company will continue to strengthen its internal controls and compliance systems to prevent a recurrence.
| Item | Details |
|---|---|
| Event name | Recognition of extraordinary losses (loss on liquidation of an affiliated company and loss from remittance fraud involving an affiliated company) |
| Date of occurrence | Early January 2026 (remittance fraud incident at リンクティビティ株式会社) / 21 January 2026 (resolution to dissolve and liquidate VELTRA Malaysia Sdn. Bhd.) |
| Subject Entity | The filing company, consolidated subsidiary VELTRA Malaysia Sdn. Bhd., and consolidated subsidiary リンクティビティ株式会社 |
| Target Locations / Products | VELTRA Malaysia Sdn. Bhd. (Kuala Lumpur, Malaysia; development and maintenance of a travel booking system) / designated bank account of リンクティビティ株式会社 |
| Cause | For VELTRA Malaysia Sdn. Bhd., the reason was to integrate and consolidate its product development functions at the head office in Japan in light of recent changes in the development environment. For リンクティビティ株式会社, the cause was a fraudulent remittance instruction from a third party impersonating its representative. |
| Amount of Impact on Business Performance | Extraordinary loss (loss on liquidation of an affiliated company): ¥56.213 million; extraordinary loss (loss from remittance fraud involving an affiliated company): ¥50 million |
| Accounting period in which recognized | Cumulative consolidated period for the first quarter of the fiscal year ending December 2026 |
| Impact on Earnings Forecast | The losses have already been reflected in the full-year consolidated earnings forecast for the fiscal year ending December 2026, and no revision to the full-year earnings forecast will be made at this time. |
| Type of litigation or proceeding | Investigation by the relevant authorities |
| Court or authority | Relevant authorities |
| Investigation structure | An investigation by the relevant authorities is ongoing. The establishment of a third-party committee, special investigation committee or similar body has not been disclosed. |
| Measures to prevent recurrence | The Company will continue to strengthen its internal controls and compliance systems, including strict enforcement of multiple-person approval procedures for remittances. |
| Outlook | If a difference from the estimated amount arises when the liquidation procedures are finally completed, it will be appropriately accounted for at that time. If some or all of the funds related to the remittance fraud are recovered in the future, the recovery will be appropriately accounted for at that time. The Company will continue to strengthen its internal controls and compliance systems to prevent a recurrence. |
Items this document does not state (12)
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 Company resolved to dissolve and liquidate VELTRA Malaysia Sdn. Bhd. in order to integrate and consolidate its product development functions at the head office in Japan in light of changes in the development environment. In the case of リンクティビティ株式会社, funds were transferred based on a fraudulent remittance instruction from a third party impersonating its representative, and the Company determined that the likelihood of recovery was low.