Recognition of non-operating income and extraordinary losses, differences between consolidated earnings forecasts and actual results, and differences between individual actual results and the previous year's results
The filing company, SANKO SANGYO CO.,LTD., and its consolidated subsidiaries アクシストラス社 and サンコウサンギョウ（バンコク）
Investment securities (1 listed stock), the tender offer by 株式会社バロン for the Company's shares, and loans to affiliates アクシストラス社 and サンコウサンギョウ（バンコク）
Fluctuations in foreign exchange rates, translation of foreign-currency-denominated assets and liabilities at the fiscal year-end, a significant decline in the market value of investment securities, advisory fees, legal fees and other costs associated with the tender offer by 株式会社バロン, and the current business conditions of the affiliates. The differences in results were attributable to growth in order volumes in the domestic business, improved production efficiency from the consolidation and closure of factories, the effect of cost reductions, and the foreign exchange gain.
The Company recognized a foreign exchange gain of ¥84 million as non-operating income, and an impairment loss on investment securities of ¥32 million and tender offer-related expenses of ¥40 million as extraordinary losses. On an individual basis, the Company recognized provisions for doubtful accounts relating to affiliates of ¥34 million for アクシストラス社 and ¥40 million for サンコウサンギョウ（バンコク）. These provisions are eliminated in the consolidated accounts and have no impact on consolidated results.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
There was a difference between the consolidated earnings forecast announced on 3 February 2026 and the actual results. Consolidated actual results were net sales of ¥10,328 million, operating income of ¥217 million, ordinary income of ¥316 million, and net income attributable to owners of the parent of ¥114 million. Compared with the previous forecast, net sales were ¥407 million higher, operating income was ¥22 million higher, ordinary income was ¥91 million higher, and net income attributable to owners of the parent was ¥89 million lower. Individual actual results were net sales of ¥8,221 million, operating income of ¥240 million, ordinary income of ¥345 million, and net income of ¥85 million.
Related procedures
Tender offer (MBO)
| Item | Details |
|---|---|
| Event name | Recognition of non-operating income and extraordinary losses, differences between consolidated earnings forecasts and actual results, and differences between individual actual results and the previous year's results |
| Subject Entity | The filing company, SANKO SANGYO CO.,LTD., and its consolidated subsidiaries アクシストラス社 and サンコウサンギョウ（バンコク） |
| Target Locations / Products | Investment securities (1 listed stock), the tender offer by 株式会社バロン for the Company's shares, and loans to affiliates アクシストラス社 and サンコウサンギョウ（バンコク） |
| Cause | Fluctuations in foreign exchange rates, translation of foreign-currency-denominated assets and liabilities at the fiscal year-end, a significant decline in the market value of investment securities, advisory fees, legal fees and other costs associated with the tender offer by 株式会社バロン, and the current business conditions of the affiliates. The differences in results were attributable to growth in order volumes in the domestic business, improved production efficiency from the consolidation and closure of factories, the effect of cost reductions, and the foreign exchange gain. |
| Amount of Impact on Business Performance | The Company recognized a foreign exchange gain of ¥84 million as non-operating income, and an impairment loss on investment securities of ¥32 million and tender offer-related expenses of ¥40 million as extraordinary losses. On an individual basis, the Company recognized provisions for doubtful accounts relating to affiliates of ¥34 million for アクシストラス社 and ¥40 million for サンコウサンギョウ（バンコク）. These provisions are eliminated in the consolidated accounts and have no impact on consolidated results. |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | There was a difference between the consolidated earnings forecast announced on 3 February 2026 and the actual results. Consolidated actual results were net sales of ¥10,328 million, operating income of ¥217 million, ordinary income of ¥316 million, and net income attributable to owners of the parent of ¥114 million. Compared with the previous forecast, net sales were ¥407 million higher, operating income was ¥22 million higher, ordinary income was ¥91 million higher, and net income attributable to owners of the parent was ¥89 million lower. Individual actual results were net sales of ¥8,221 million, operating income of ¥240 million, ordinary income of ¥345 million, and net income of ¥85 million. |
| Type of litigation or proceeding | Tender offer (MBO) |
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 foreign exchange gain resulted from translating foreign-currency-denominated assets and liabilities at the fiscal year-end exchange rates due to fluctuations in foreign exchange rates. The impairment loss on investment securities resulted from a significant decline in the market value of 1 listed stock held by the Company compared with its acquisition cost. The tender offer-related expenses comprised advisory fees, legal fees and other costs associated with the tender offer for the Company's shares by 株式会社バロン. The provision for doubtful accounts relating to affiliates resulted from the current business conditions of the affiliates. The reasons given for results exceeding forecasts included growth in order volumes in the domestic business, improved production efficiency from the consolidation and closure of factories, and the effect of cost reductions.