Recognition of a Non-Operating Expense (Equity-Method Investment Loss), an Extraordinary Loss (Impairment Loss), and an Adjustment to Income Taxes
V Technology Co.,Ltd., equity-method affiliate Xianyang CHVT New Display Technology Co., Ltd., and consolidated subsidiary ジャパンクリエイト株式会社
Production equipment of Xianyang CHVT New Display Technology Co., Ltd., and goodwill and assets scheduled for disposal at ジャパンクリエイト株式会社
Xianyang CHVT New Display Technology Co., Ltd. recognized an impairment loss on production equipment; the earnings anticipated under the business plan prepared when ジャパンクリエイト株式会社's shares were acquired could no longer be expected; use of the assets scheduled for disposal is planned to be discontinued; and the recoverability of deferred tax assets was assessed based on current estimates of future taxable income.
Equity-method investment loss of ¥560 million (non-operating expense), impairment loss of ¥352 million (extraordinary loss), and adjustment to income taxes of ¥545 million. In the financial results for the fiscal year ending March 2026, the respective amounts were ¥737 million, ¥364 million, and −¥89 million.
Fourth-quarter consolidated accounting period of the fiscal year ending March 2026 (1 January 2026 to 31 March 2026). Cumulative amounts for the financial results for the fiscal year ending March 2026 are also provided.
These amounts have been reflected in the “Summary of Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)” released today. No revision to the earnings forecast has been disclosed.
| Item | Details |
|---|---|
| Event name | Recognition of a Non-Operating Expense (Equity-Method Investment Loss), an Extraordinary Loss (Impairment Loss), and an Adjustment to Income Taxes |
| Date of occurrence | Consolidated accounting period for the fourth quarter of the fiscal year ending March 2026 (1 January 2026 to 31 March 2026) |
| Subject Entity | V Technology Co.,Ltd., equity-method affiliate Xianyang CHVT New Display Technology Co., Ltd., and consolidated subsidiary ジャパンクリエイト株式会社 |
| Target Locations / Products | Production equipment of Xianyang CHVT New Display Technology Co., Ltd., and goodwill and assets scheduled for disposal at ジャパンクリエイト株式会社 |
| Cause | Xianyang CHVT New Display Technology Co., Ltd. recognized an impairment loss on production equipment; the earnings anticipated under the business plan prepared when ジャパンクリエイト株式会社's shares were acquired could no longer be expected; use of the assets scheduled for disposal is planned to be discontinued; and the recoverability of deferred tax assets was assessed based on current estimates of future taxable income. |
| Amount of Impact on Business Performance | Equity-method investment loss of ¥560 million (non-operating expense), impairment loss of ¥352 million (extraordinary loss), and adjustment to income taxes of ¥545 million. In the financial results for the fiscal year ending March 2026, the respective amounts were ¥737 million, ¥364 million, and −¥89 million. |
| Accounting period in which recognized | Fourth-quarter consolidated accounting period of the fiscal year ending March 2026 (1 January 2026 to 31 March 2026). Cumulative amounts for the financial results for the fiscal year ending March 2026 are also provided. |
| Impact on Earnings Forecast | These amounts have been reflected in the “Summary of Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)” released today. No revision to the earnings forecast has been disclosed. |
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 reasons were an impairment loss on production equipment held by an equity-method affiliate, impairment of goodwill at a consolidated subsidiary because the expected earnings under the business plan prepared when the shares were acquired could no longer be anticipated, impairment of assets scheduled for disposal because their use is scheduled to be discontinued, and an assessment of the recoverability of deferred tax assets based on estimates of future taxable income.