Establishment of a Special Investigation Committee and Appointment of Committee Members
REVOLUTION Co., Ltd., WeCapital Co., Ltd., which was a consolidated subsidiary at the time, and ヤマワケエステート株式会社
Repurchase transactions, WeCapital Co., Ltd.'s subsidiary management framework, the consolidated financial closing process, and the process of making WeCapital Co., Ltd. a consolidated subsidiary
Deficiencies in the Company's internal control framework, and potential issues with internal controls over subsidiary management and financial reporting
Related procedures
Investigation relating to the designation by the Tokyo Stock Exchange as a Security on Special Alert and the formulation of an improvement plan
Tokyo Stock Exchange, Inc.
Company response
A Special Investigation Committee was established on 17 September 2026. The committee is chaired by attorney Nakamura Nobuo (中村 信雄), with certified public accountant Kiyose Yu (清瀨 由) and attorney Byeon Seongyu (辺 誠祐) serving as members. It comprises 3 external experts.
Formulation of an improvement plan following designation as a Security on Special Alert
There is no impact on the publication of the summary of financial results for the third quarter of the fiscal year ending October 2026. Any revision to the earnings forecast: Not disclosed
The Special Investigation Committee's investigation will be conducted over approximately 1 to 1.5 months, after which the results will be verified and an improvement plan formulated. The full investigation results report will be disclosed promptly as timely disclosure upon receipt.
The full investigation results report will be disclosed promptly as timely disclosure upon receipt of the Special Investigation Committee's investigation results. The summary of financial results for the third quarter of the fiscal year ending October 2026 is expected to be announced during October 2026.
| Item | Details |
|---|---|
| Event name | Establishment of a Special Investigation Committee and Appointment of Committee Members |
| Date of occurrence | 17 September 2026 (date on which the establishment of the Special Investigation Committee was decided) |
| Subject Entity | REVOLUTION Co., Ltd., WeCapital Co., Ltd., which was a consolidated subsidiary at the time, and ヤマワケエステート株式会社 |
| Target Locations / Products | Repurchase transactions, WeCapital Co., Ltd.'s subsidiary management framework, the consolidated financial closing process, and the process of making WeCapital Co., Ltd. a consolidated subsidiary |
| Cause | Deficiencies in the Company's internal control framework, and potential issues with internal controls over subsidiary management and financial reporting |
| Impact on Earnings Forecast | There is no impact on the publication of the summary of financial results for the third quarter of the fiscal year ending October 2026. Any revision to the earnings forecast: Not disclosed |
| Type of litigation or proceeding | Investigation relating to the designation by the Tokyo Stock Exchange as a Security on Special Alert and the formulation of an improvement plan |
| Court or authority | Tokyo Stock Exchange, Inc. |
| Date of filing / date of action | 25 July 2026 (date of designation as a Security on Special Alert) |
| Investigation structure | A Special Investigation Committee was established on 17 September 2026. The committee is chaired by attorney Nakamura Nobuo (中村 信雄), with certified public accountant Kiyose Yu (清瀨 由) and attorney Byeon Seongyu (辺 誠祐) serving as members. It comprises 3 external experts. |
| Measures to prevent recurrence | Formulation of an improvement plan following designation as a Security on Special Alert |
| Outlook | The Special Investigation Committee's investigation will be conducted over approximately 1 to 1.5 months, after which the results will be verified and an improvement plan formulated. The full investigation results report will be disclosed promptly as timely disclosure upon receipt. |
| Planned follow-up disclosure | The full investigation results report will be disclosed promptly as timely disclosure upon receipt of the Special Investigation Committee's investigation results. The summary of financial results for the third quarter of the fiscal year ending October 2026 is expected to be announced during October 2026. |
Items this document does not state (12)
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 Company determined that additional investigation was necessary into issues in the internal control framework that could not be sufficiently addressed through the existing internal investigation report alone, in preparation for formulating an improvement plan following its designation as a Security on Special Alert.