Notice Regarding the Recognition of Extraordinary Loss
CHEER証券株式会社 (consolidated subsidiary), 株式会社お金のデザイン (equity-method affiliate), and Tokai Tokyo Financial Holdings,Inc. (standalone financial statements)
Software and other assets used by CHEER証券 in its business activities
For CHEER証券, we determined that it would take time to recover the investment based on the company’s future business outlook. For 株式会社お金のデザイン, it was conservatively determined that recovery from business losses incurred in prior fiscal years could take some time.
Consolidated financial statements: extraordinary loss of ¥2,001 million. Standalone financial statements: extraordinary loss of ¥7,525 million due to a reduction in the carrying value of CHEER証券 shares, and ¥2,308 million for a provision for investment losses, recognized as an extraordinary loss. The ¥2,308 million was already recognized in the consolidated financial statements for prior fiscal years and therefore has no impact on the financial results for the fiscal year ending March 2026.
Financial results for the fiscal year ending March 2026
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of Extraordinary Loss |
| Subject Entity | CHEER証券株式会社 (consolidated subsidiary), 株式会社お金のデザイン (equity-method affiliate), and Tokai Tokyo Financial Holdings,Inc. (standalone financial statements) |
| Target Locations / Products | Software and other assets used by CHEER証券 in its business activities |
| Cause | For CHEER証券, we determined that it would take time to recover the investment based on the company’s future business outlook. For 株式会社お金のデザイン, it was conservatively determined that recovery from business losses incurred in prior fiscal years could take some time. |
| Amount of Impact on Business Performance | Consolidated financial statements: extraordinary loss of ¥2,001 million. Standalone financial statements: extraordinary loss of ¥7,525 million due to a reduction in the carrying value of CHEER証券 shares, and ¥2,308 million for a provision for investment losses, recognized as an extraordinary loss. The ¥2,308 million was already recognized in the consolidated financial statements for prior fiscal years and therefore has no impact on the financial results for the fiscal year ending March 2026. |
| Accounting period in which recognized | Financial results for the fiscal year ending March 2026 |
Items this document does not state (19)
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.For CHEER証券, we determined that it would take time to recover the investment based on the company’s future business outlook. For 株式会社お金のデザイン, we made a conservative assessment that recovery from business losses incurred in prior fiscal years could take some time.