Supplementary explanation regarding the recognition of an extraordinary loss associated with the disposal of fixed assets and future actions
TANAKA SEIMITSU KOGYO CO.,LTD. (the Company)
Fixed assets held in connection with a major customer's electric vehicle development plan for North America
The cancellation by a major customer of its electric vehicle development plan for North America meant that the fixed assets in question were no longer expected to be used.
¥778 million (loss on disposal of fixed assets, extraordinary loss)
Consolidated fiscal year ending March 2026
The expected recovery has not been reflected in the consolidated earnings forecast for the fiscal year ending March 2027, and there is no new revision to the earnings forecast requiring disclosure.
The Company will continue discussions with the customer regarding the contractual terms and other matters arising from the cancellation of the development plan. If an event with a material impact on earnings occurs as a result of progress in the discussions or otherwise, the Company will disclose it promptly.
If an event with a material impact on earnings occurs, the Company will disclose it promptly.
| Item | Details |
|---|---|
| Event name | Supplementary explanation regarding the recognition of an extraordinary loss associated with the disposal of fixed assets and future actions |
| Subject Entity | TANAKA SEIMITSU KOGYO CO.,LTD. (the Company) |
| Target Locations / Products | Fixed assets held in connection with a major customer's electric vehicle development plan for North America |
| Cause | The cancellation by a major customer of its electric vehicle development plan for North America meant that the fixed assets in question were no longer expected to be used. |
| Amount of Impact on Business Performance | ¥778 million (loss on disposal of fixed assets, extraordinary loss) |
| Accounting period in which recognized | Consolidated fiscal year ending March 2026 |
| Impact on Earnings Forecast | The expected recovery has not been reflected in the consolidated earnings forecast for the fiscal year ending March 2027, and there is no new revision to the earnings forecast requiring disclosure. |
| Outlook | The Company will continue discussions with the customer regarding the contractual terms and other matters arising from the cancellation of the development plan. If an event with a material impact on earnings occurs as a result of progress in the discussions or otherwise, the Company will disclose it promptly. |
| Planned follow-up disclosure | If an event with a material impact on earnings occurs, the Company will disclose it promptly. |
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.Following the cancellation by a major customer of its electric vehicle development plan for North America, the related fixed assets held by the Company were no longer expected to be used.