Recognition of an extraordinary loss (impairment loss) resulting from the decision on the policy for disposal of fixed assets
The Group (which holds the fixed assets through a fund)
Smart Agri Project (plant factory; lettuce produced in a fully enclosed facility)
Although the current plant factory secured a certain level of production and customers, it failed to achieve the investment profitability expected by the Company
¥560 million (expected to be recognized as an extraordinary loss (impairment loss) in the consolidated financial statements; under the previous consolidation standards, expected to be recognized in consolidated operating costs)
Second quarter of the fiscal year ending March 2027
The Company does not issue earnings forecasts. The “forecast figure under the previous consolidation standards” for the fiscal year ending March 2027, announced on 15 May 2026, is currently under review, and the Company will disclose it once the new forecast figure has been finalized.
The Company plans to negotiate the transfer with a counterparty capable of ensuring stable operation of the plant and supply to customers. If timely disclosure becomes necessary, such as when the transfer of the fixed assets is decided, the Company will make an announcement promptly.
The Company will make an announcement once the new “forecast figure under the previous consolidation standards” has been finalized. If timely disclosure becomes necessary, such as when the transfer is decided, the Company will make an announcement promptly.
| Item | Details |
|---|---|
| Event name | Recognition of an extraordinary loss (impairment loss) resulting from the decision on the policy for disposal of fixed assets |
| Date of occurrence | 10 November 2026 (the Investment Committee decided on the disposal policy) |
| Subject Entity | The Group (which holds the fixed assets through a fund) |
| Target Locations / Products | Smart Agri Project (plant factory; lettuce produced in a fully enclosed facility) |
| Cause | Although the current plant factory secured a certain level of production and customers, it failed to achieve the investment profitability expected by the Company |
| Amount of Impact on Business Performance | ¥560 million (expected to be recognized as an extraordinary loss (impairment loss) in the consolidated financial statements; under the previous consolidation standards, expected to be recognized in consolidated operating costs) |
| Accounting period in which recognized | Second quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | The Company does not issue earnings forecasts. The “forecast figure under the previous consolidation standards” for the fiscal year ending March 2027, announced on 15 May 2026, is currently under review, and the Company will disclose it once the new forecast figure has been finalized. |
| Outlook | The Company plans to negotiate the transfer with a counterparty capable of ensuring stable operation of the plant and supply to customers. If timely disclosure becomes necessary, such as when the transfer of the fixed assets is decided, the Company will make an announcement promptly. |
| Planned follow-up disclosure | The Company will make an announcement once the new “forecast figure under the previous consolidation standards” has been finalized. If timely disclosure becomes necessary, such as when the transfer is decided, the Company will make an announcement promptly. |
Items this document does not state (15)
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.Although the plant factory secured a certain level of production and customers, it failed to achieve the expected investment profitability. The Company therefore determined that disposing of it and allocating management resources to more profitable investments, rather than continuing to invest, would enhance corporate value.