Suspension of Business Activities by a Consolidated Subsidiary and Expected Recognition of an Extraordinary Loss
JJ FUEL SUPPLY SDN.BHD. (a consolidated subsidiary of NISSIN SHOJI CO.,LTD.)
The sale and export of biomass power generation fuel in Malaysia, primarily PKS (Palm Kernel Shell) used for biomass power plants in Japan
The Company recognized that it would take some time for the operating environment for domestic biomass power plants to reach a stable footing. Most transactions were spot transactions based primarily on bidding, making it difficult to plan procurement and sales and secure profits. Capital efficiency had also deteriorated due to advance payments for procurement funds and other factors.
¥367 million (extraordinary loss expected to be recognized in the consolidated financial statements for the fiscal year ending March 2026)
Fiscal year ending March 2026
The consolidated earnings forecast for the fiscal year ending March 2026 is currently under review. The Company will promptly announce any matters requiring disclosure that arise in the future.
Related procedures
Dissolution proceedings following the suspension of business activities
Company response
JJ FUEL SUPPLY SDN.BHD. will suspend its business activities in Malaysia, including the sale and export of biomass power generation fuel, at the end of May 2026 (予定).
Following the suspension of business activities at the end of May 2026 (予定), the Company will promptly initiate dissolution proceedings. The Company will continue working to enhance corporate value.
The Company will promptly announce any matters requiring disclosure that arise in the future.
| Item | Details |
|---|---|
| Event name | Suspension of Business Activities by a Consolidated Subsidiary and Expected Recognition of an Extraordinary Loss |
| Date of occurrence | 30 March 2026 (date of resolution to suspend business activities) |
| Subject Entity | JJ FUEL SUPPLY SDN.BHD. (a consolidated subsidiary of NISSIN SHOJI CO.,LTD.) |
| Target Locations / Products | The sale and export of biomass power generation fuel in Malaysia, primarily PKS (Palm Kernel Shell) used for biomass power plants in Japan |
| Cause | The Company recognized that it would take some time for the operating environment for domestic biomass power plants to reach a stable footing. Most transactions were spot transactions based primarily on bidding, making it difficult to plan procurement and sales and secure profits. Capital efficiency had also deteriorated due to advance payments for procurement funds and other factors. |
| Amount of Impact on Business Performance | ¥367 million (extraordinary loss expected to be recognized in the consolidated financial statements for the fiscal year ending March 2026) |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending March 2026 is currently under review. The Company will promptly announce any matters requiring disclosure that arise in the future. |
| Type of litigation or proceeding | Dissolution proceedings following the suspension of business activities |
| Suspended operations | JJ FUEL SUPPLY SDN.BHD. will suspend its business activities in Malaysia, including the sale and export of biomass power generation fuel, at the end of May 2026 (予定). |
| Outlook | Following the suspension of business activities at the end of May 2026 (予定), the Company will promptly initiate dissolution proceedings. The Company will continue working to enhance corporate value. |
| Planned follow-up disclosure | The Company will promptly announce any matters requiring disclosure that arise in the future. |
Items this document does not state (13)
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 recognized that it would take some time for the operating environment for domestic biomass power plants to reach a stable footing. In addition, most transactions were spot transactions based primarily on bidding, making it difficult to plan procurement and sales and secure profits. The efficiency of capital utilization had also deteriorated due to advance payments for procurement funds and other factors.