Recognition of an equity-method investment loss (non-operating expense)
ES-CON JAPAN Ltd. and its equity-method affiliate, 合同会社 TSUNAGU Community Farm
合同会社 TSUNAGU Community Farm's automated plant factory
Shipment volumes from the company's automated plant factory remained below the initial plan, reducing profitability and prompting a reassessment of the recoverable amount based on future cash flows.
¥3,829 million (equity-method investment loss, non-operating expense)
The fiscal year ending March 2026 consolidated financial statements
The impact of this matter on financial results has been reflected in the "Summary of Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)," announced today.
| Item | Details |
|---|---|
| Event name | Recognition of an equity-method investment loss (non-operating expense) |
| Subject Entity | ES-CON JAPAN Ltd. and its equity-method affiliate, 合同会社 TSUNAGU Community Farm |
| Target Locations / Products | 合同会社 TSUNAGU Community Farm's automated plant factory |
| Cause | Shipment volumes from the company's automated plant factory remained below the initial plan, reducing profitability and prompting a reassessment of the recoverable amount based on future cash flows. |
| Amount of Impact on Business Performance | ¥3,829 million (equity-method investment loss, non-operating expense) |
| Accounting period in which recognized | The fiscal year ending March 2026 consolidated financial statements |
| Impact on Earnings Forecast | The impact of this matter on financial results has been reflected in the "Summary of Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)," announced today. |
Items this document does not state (18)
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.Shipment volumes from 合同会社 TSUNAGU Community Farm's automated plant factory remained below the initial plan, reducing profitability. The recoverable amount based on future cash flows was therefore reassessed, and an impairment loss was recognized.