Komori
Occurring Fact7359Tokyo Communications Group,Inc.Information and Communications, Services and Others

Notice Regarding the Waiver of Receivables from a Consolidated Subsidiary

The Company has resolved to waive receivables of ¥30,340,274 for loans to and interest from its consolidated subsidiary, TT TECH COMPANY LIMITED. Following the waiver, the Company will proceed with TT TECH’s dissolution and liquidation, and expects to record ¥5 million in non-operating expenses in its standalone financial statements.

Worth reading
51Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
30340274
¥ (amount of receivables waived)
Wording
Conditional
How definitive the wording is.

Waiver of receivables from a consolidated subsidiary

Subject Entity

TT TECH COMPANY LIMITED (a consolidated subsidiary of the filing company; the Company’s ownership interest: 100%)

Target Locations / Products

Planning and development of applications. Location: Lot A2.6c, 2nd floor, Tower A, Golden Palace Building, Me Tri Street, Tu Liem Ward, Hanoi City, Vietnam

Occurrence29 September 2026 (date of the resolution to waive the receivables; scheduled implementation date: 8 October 2026)
Same day
Awareness or receipt of notice29 September 2026 (date on which the Company resolved at its executive committee meeting to waive the receivables)
This disclosure09/29/2026
Cause

As development technologies and environments, including AI, continue to evolve rapidly, the Company reviewed the Group’s development structure and determined that TT TECH had fulfilled its original role within the Group to a certain extent.

Amount of Impact on Business Performance

Receivables waived: ¥30,340,274. A ¥25 million allowance for doubtful accounts was recorded in prior fiscal years, and the Company plans to record ¥5 million in non-operating expenses in its standalone financial statements for the current fiscal year. There will be no impact on the consolidated financial statements.

Accounting period in which recognized

The third quarter of the fiscal year ending December 2026

Impact on Earnings Forecast

The impact on the standalone financial results for the current fiscal year will be immaterial. There will be no impact on consolidated results.

Related procedures

Type

TT TECH’s dissolution and liquidation procedures (scheduled for the future)

Outlook

The receivables are scheduled to be waived on 8 October 2026. The Company will proceed with TT TECH’s dissolution and liquidation procedures.

Event that occurred
ItemDetails
Event nameWaiver of receivables from a consolidated subsidiary
Date of occurrence29 September 2026 (date of the resolution to waive the receivables; scheduled implementation date: 8 October 2026)
Date recognized / date notice received29 September 2026 (date on which the Company resolved at its executive committee meeting to waive the receivables)
Subject EntityTT TECH COMPANY LIMITED (a consolidated subsidiary of the filing company; the Company’s ownership interest: 100%)
Target Locations / ProductsPlanning and development of applications. Location: Lot A2.6c, 2nd floor, Tower A, Golden Palace Building, Me Tri Street, Tu Liem Ward, Hanoi City, Vietnam
CauseAs development technologies and environments, including AI, continue to evolve rapidly, the Company reviewed the Group’s development structure and determined that TT TECH had fulfilled its original role within the Group to a certain extent.
Amount of Impact on Business PerformanceReceivables waived: ¥30,340,274. A ¥25 million allowance for doubtful accounts was recorded in prior fiscal years, and the Company plans to record ¥5 million in non-operating expenses in its standalone financial statements for the current fiscal year. There will be no impact on the consolidated financial statements.
Accounting period in which recognizedThe third quarter of the fiscal year ending December 2026
Impact on Earnings ForecastThe impact on the standalone financial results for the current fiscal year will be immaterial. There will be no impact on consolidated results.
Type of litigation or proceedingTT TECH’s dissolution and liquidation procedures (scheduled for the future)
OutlookThe receivables are scheduled to be waived on 8 October 2026. The Company will proceed with TT TECH’s dissolution and liquidation procedures.
Items this document does not state (14)
Court or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changePlanned follow-up disclosure

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 a review of the development structure in light of the rapid evolution of development technologies and environments, including AI, the Company determined that TT TECH had fulfilled its original role within the Group to a certain extent. The waiver of the receivables will put the company’s financial position in order and facilitate its dissolution and liquidation procedures.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Waiver of Receivables from a Consolidated Subsidiary | Tokyo Communications Group,Inc. (7359) timely disclosure | Komori