Misconduct by an employee of a consolidated subsidiary
台湾三國股份有限公司 (the Company's consolidated subsidiary)
台湾三國股份有限公司
Insufficient checks and balances in accounting procedures, the prolonged assignment of the same personnel under a small-staff structure, and the concentration of duties in specific individuals
The impact on consolidated results was ¥487 million. The amount attributable to the fiscal year ended March 2020 and earlier will be deducted from retained earnings at the beginning of the fiscal year ending March 2021, while the amounts attributable to each fiscal year from the fiscal year ending March 2021 through the fiscal year ending March 2026 will be recorded as extraordinary losses related to the misconduct. An extraordinary loss of ¥29 million was recorded for the fiscal year ending March 2026.
Each fiscal year from the fiscal year ending March 2021 through the fiscal year ending March 2026. The amount attributable to the fiscal year ended March 2020 and earlier will be deducted from retained earnings at the beginning of the fiscal year ending March 2021.
Related procedures
Criminal proceedings against the former employee
Not disclosed
The former employee in question
Company response
The internal investigation team of 株式会社ミクニ. The team was led by Fujimori Satoshi (藤森聰), Senior Managing Executive Officer and Director. The team received advice and review from external experts, including law firms and certified public accounting firms in Japan and Taiwan.
(1) Re-examination of the internal control system, focusing on accounting procedures, and stricter operation thereof; (2) review of the staffing structure and operating model; and (3) enhancement of compliance training
The Company will fully cooperate with the criminal proceedings and seek to recover the amount of the loss. It will also steadily implement the measures to prevent recurrence and work to restore trust.
| Item | Details |
|---|---|
| Event name | Misconduct by an employee of a consolidated subsidiary |
| Date of occurrence | From August 2010 to December 2025 |
| Date recognized / date notice received | 27 April 2026 (the date on which the discovery of the misconduct was announced) and 29 May 2026 (the date on which the investigation report was received from the internal investigation team) |
| Subject Entity | 台湾三國股份有限公司 (the Company's consolidated subsidiary) |
| Target Locations / Products | 台湾三國股份有限公司 |
| Cause | Insufficient checks and balances in accounting procedures, the prolonged assignment of the same personnel under a small-staff structure, and the concentration of duties in specific individuals |
| Amount of Impact on Business Performance | The impact on consolidated results was ¥487 million. The amount attributable to the fiscal year ended March 2020 and earlier will be deducted from retained earnings at the beginning of the fiscal year ending March 2021, while the amounts attributable to each fiscal year from the fiscal year ending March 2021 through the fiscal year ending March 2026 will be recorded as extraordinary losses related to the misconduct. An extraordinary loss of ¥29 million was recorded for the fiscal year ending March 2026. |
| Accounting period in which recognized | Each fiscal year from the fiscal year ending March 2021 through the fiscal year ending March 2026. The amount attributable to the fiscal year ended March 2020 and earlier will be deducted from retained earnings at the beginning of the fiscal year ending March 2021. |
| Type of litigation or proceeding | Criminal proceedings against the former employee |
| Defendant | The former employee in question |
| Investigation structure | The internal investigation team of 株式会社ミクニ. The team was led by Fujimori Satoshi (藤森聰), Senior Managing Executive Officer and Director. The team received advice and review from external experts, including law firms and certified public accounting firms in Japan and Taiwan. |
| Measures to prevent recurrence | (1) Re-examination of the internal control system, focusing on accounting procedures, and stricter operation thereof; (2) review of the staffing structure and operating model; and (3) enhancement of compliance training |
| Outlook | The Company will fully cooperate with the criminal proceedings and seek to recover the amount of the loss. It will also steadily implement the measures to prevent recurrence and work to restore trust. |
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 analyzed the contributing factors as insufficient checks and balances in accounting procedures, the prolonged assignment of the same personnel under a small-staff structure, and the concentration of duties in specific individuals.