Waiver of receivables from a consolidated subsidiary
Wellco Holdings Corporation (resolved to waive and waived the receivables) and its consolidated subsidiary 鈴木出版株式会社 (debtor)
Loans and trade receivables owed by 鈴木出版株式会社
The fact that 鈴木出版 has continued to record operating losses and remains in a state of excess liabilities due to changes in the business environment surrounding the publishing market and other factors
An extraordinary loss of approximately ¥200 million is expected to be recorded in the Company's non-consolidated financial statements. The impact on consolidated results is expected to be minor.
The fiscal year ending October 2026 non-consolidated financial statements
The impact on consolidated results is expected to be minor. The accounting treatment in the consolidated financial statements and the impact on consolidated results are under review, and any matters requiring disclosure will be disclosed promptly.
¥864 million (鈴木出版株式会社)
In the non-consolidated financial statements for the fiscal year ending October 2026, the existing allowance for doubtful accounts and provision for losses on business of affiliated companies are expected to be applied, with an extraordinary loss recorded for the amount exceeding these provisions. The specific amount and the accounting treatment in the consolidated financial statements are under review, and any matters requiring disclosure will be disclosed promptly.
If any matters requiring disclosure arise in the future, the Company will disclose them promptly.
| Item | Details |
|---|---|
| Event name | Waiver of receivables from a consolidated subsidiary |
| Date of occurrence | 15 October 2026 (date the receivables were waived) |
| Subject Entity | Wellco Holdings Corporation (resolved to waive and waived the receivables) and its consolidated subsidiary 鈴木出版株式会社 (debtor) |
| Target Locations / Products | Loans and trade receivables owed by 鈴木出版株式会社 |
| Cause | The fact that 鈴木出版 has continued to record operating losses and remains in a state of excess liabilities due to changes in the business environment surrounding the publishing market and other factors |
| Amount of Impact on Business Performance | An extraordinary loss of approximately ¥200 million is expected to be recorded in the Company's non-consolidated financial statements. The impact on consolidated results is expected to be minor. |
| Accounting period in which recognized | The fiscal year ending October 2026 non-consolidated financial statements |
| Impact on Earnings Forecast | The impact on consolidated results is expected to be minor. The accounting treatment in the consolidated financial statements and the impact on consolidated results are under review, and any matters requiring disclosure will be disclosed promptly. |
| Amount of receivables at risk of non-collection or delayed collection | ¥864 million (鈴木出版株式会社) |
| Outlook | In the non-consolidated financial statements for the fiscal year ending October 2026, the existing allowance for doubtful accounts and provision for losses on business of affiliated companies are expected to be applied, with an extraordinary loss recorded for the amount exceeding these provisions. The specific amount and the accounting treatment in the consolidated financial statements are under review, and any matters requiring disclosure will be disclosed promptly. |
| Planned follow-up disclosure | If any matters requiring disclosure arise in the future, the Company will disclose them promptly. |
Items this document does not state (14)
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.Due to changes in the business environment surrounding the publishing market and other factors, 鈴木出版 has continued to record operating losses and remains in a state of excess liabilities. Based on its financial position, the Company determined that recovery of the receivables would be difficult.