Recognition of provisions for doubtful accounts and losses on guarantees of affiliates’ liabilities in standalone financial statements
GMB CORPORATION (the filing company). The entity concerned is its consolidated subsidiary, GMB NORTH AMERICA INC.
The deterioration in GMB NORTH AMERICA INC.’s operating performance and financial position. The provision for potential future losses is being recognized in light of the company’s financial position and other factors.
A ¥3,059 million provision for doubtful accounts and a ¥682 million provision for losses on guarantees of an affiliate’s liabilities. Both amounts will be recognized as extraordinary losses in the standalone financial statements and eliminated in the consolidated financial statements.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
There will be no impact on consolidated results. No revision to the earnings forecast was stated.
The two provisions will be recognized as extraordinary losses in the standalone financial statements for the fiscal year ending March 2026. They will be eliminated in the consolidated financial statements and will have no impact on consolidated results.
| Item | Details |
|---|---|
| Event name | Recognition of provisions for doubtful accounts and losses on guarantees of affiliates’ liabilities in standalone financial statements |
| Date of occurrence | 18 May 2026 (the date on which recognition was decided and announced; the period subject to recognition is the fiscal year ending March 2026) |
| Subject Entity | GMB CORPORATION (the filing company). The entity concerned is its consolidated subsidiary, GMB NORTH AMERICA INC. |
| Cause | The deterioration in GMB NORTH AMERICA INC.’s operating performance and financial position. The provision for potential future losses is being recognized in light of the company’s financial position and other factors. |
| Amount of Impact on Business Performance | A ¥3,059 million provision for doubtful accounts and a ¥682 million provision for losses on guarantees of an affiliate’s liabilities. Both amounts will be recognized as extraordinary losses in the standalone financial statements and eliminated in the consolidated financial statements. |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | There will be no impact on consolidated results. No revision to the earnings forecast was stated. |
| Outlook | The two provisions will be recognized as extraordinary losses in the standalone financial statements for the fiscal year ending March 2026. They will be eliminated in the consolidated financial statements and will have no impact on consolidated results. |
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.The provision for doubtful accounts is being recognized in preparation for potential bad debt due to the deterioration in GMB NORTH AMERICA INC.’s operating performance and financial position. In addition, in light of the company’s financial position and other factors, a provision is being recognized for potential future losses on guarantees of its liabilities.