Material Uncertainty Related to Going Concern
Advance Create Co.,Ltd. and the Group
Insurance agency business, ASP business, media business, media representation business, and reinsurance business
Revenue declined due to a decrease in orders in the media business, sluggish growth in the number of appointments secured in the insurance agency business, sluggish growth in new ACP sales in the ASP business, and weak advertising placements in the media business. In addition, the company incurred operating losses, ordinary losses and net losses attributable to owners of the parent for 4 consecutive fiscal years, negative cash flow from operating activities for 3 consecutive fiscal years, and excess liabilities at the end of the fiscal year.
Net loss attributable to owners of the parent: ¥960.832 million; net assets: negative ¥445.491 million (excess liabilities); extraordinary losses: ¥871.513 million
Fiscal year ending September 2026 (1 October 2025 to 30 September 2026)
The consolidated earnings forecast for the fiscal year ending September 2027 is undecided because it is currently difficult to calculate it reasonably. The company will disclose it promptly once it is in a position to do so.
The company will work to restore and regrow earnings, optimize fixed costs, and maintain relationships with its lending financial institutions. The measures are still being implemented, and material uncertainty exists regarding the going-concern assumption.
The earnings forecast and dividend for the fiscal year ending September 2027 will be disclosed promptly once the company is in a position to do so.
| Item | Details |
|---|---|
| Event name | Material Uncertainty Related to Going Concern |
| Date of occurrence | 30 September 2026 (end of the fiscal year) |
| Subject Entity | Advance Create Co.,Ltd. and the Group |
| Target Locations / Products | Insurance agency business, ASP business, media business, media representation business, and reinsurance business |
| Cause | Revenue declined due to a decrease in orders in the media business, sluggish growth in the number of appointments secured in the insurance agency business, sluggish growth in new ACP sales in the ASP business, and weak advertising placements in the media business. In addition, the company incurred operating losses, ordinary losses and net losses attributable to owners of the parent for 4 consecutive fiscal years, negative cash flow from operating activities for 3 consecutive fiscal years, and excess liabilities at the end of the fiscal year. |
| Amount of Impact on Business Performance | Net loss attributable to owners of the parent: ¥960.832 million; net assets: negative ¥445.491 million (excess liabilities); extraordinary losses: ¥871.513 million |
| Accounting period in which recognized | Fiscal year ending September 2026 (1 October 2025 to 30 September 2026) |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending September 2027 is undecided because it is currently difficult to calculate it reasonably. The company will disclose it promptly once it is in a position to do so. |
| Outlook | The company will work to restore and regrow earnings, optimize fixed costs, and maintain relationships with its lending financial institutions. The measures are still being implemented, and material uncertainty exists regarding the going-concern assumption. |
| Planned follow-up disclosure | The earnings forecast and dividend for the fiscal year ending September 2027 will be disclosed promptly once the company is in a position to do so. |
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.Revenue declined due to a decrease in orders in the media business, sluggish growth in the number of appointments secured in the insurance agency business, sluggish growth in new ACP sales in the ASP business, and weak advertising placements in the media business. Meanwhile, the loss improved because selling, general and administrative expenses declined. Material uncertainty exists regarding the going-concern assumption due to operating losses, ordinary losses and net losses for 4 consecutive fiscal years, negative cash flow from operating activities for 3 consecutive fiscal years, and excess liabilities at the end of the fiscal year.