Recognition of non-operating income (reversal of the provision for loss on debt guarantees) and non-operating expenses (provision for the allowance for doubtful accounts)
FULUHASHI EPO CORPORATION (the Company)
Because, in connection with the execution of a loan to ＣＥＰＯ半田バイオマス発電株式会社, a portion of the expected loss burden related to existing debt guarantees was re-recognized as an allowance for doubtful accounts on the loan receivable.
Reversal of the provision for loss on debt guarantees: ¥438.387 million (non-operating income); provision for the allowance for doubtful accounts: ¥449.999 million (non-operating expense)
Interim consolidated accounting period for the fiscal year ending March 2027 (1 July 2026 to 30 September 2026)
The Company has determined that the impact on the earnings forecast for the fiscal year ending March 2027 is immaterial.
¥449.999 million (allowance for doubtful accounts on the loan receivable; subject: ＣＥＰＯ半田バイオマス発電株式会社)
As this represents the transfer of credit risk related to existing debt guarantees to an allowance for doubtful accounts on the loan receivable and does not newly increase the expected loss burden for the Group as a whole, the Company has determined that the impact on the earnings forecast for the fiscal year ending March 2027 is immaterial.
| Item | Details |
|---|---|
| Event name | Recognition of non-operating income (reversal of the provision for loss on debt guarantees) and non-operating expenses (provision for the allowance for doubtful accounts) |
| Date of occurrence | 31 July 2026 (loan execution date) |
| Subject Entity | FULUHASHI EPO CORPORATION (the Company) |
| Cause | Because, in connection with the execution of a loan to ＣＥＰＯ半田バイオマス発電株式会社, a portion of the expected loss burden related to existing debt guarantees was re-recognized as an allowance for doubtful accounts on the loan receivable. |
| Amount of Impact on Business Performance | Reversal of the provision for loss on debt guarantees: ¥438.387 million (non-operating income); provision for the allowance for doubtful accounts: ¥449.999 million (non-operating expense) |
| Accounting period in which recognized | Interim consolidated accounting period for the fiscal year ending March 2027 (1 July 2026 to 30 September 2026) |
| Impact on Earnings Forecast | The Company has determined that the impact on the earnings forecast for the fiscal year ending March 2027 is immaterial. |
| Amount of receivables at risk of non-collection or delayed collection | ¥449.999 million (allowance for doubtful accounts on the loan receivable; subject: ＣＥＰＯ半田バイオマス発電株式会社) |
| Outlook | As this represents the transfer of credit risk related to existing debt guarantees to an allowance for doubtful accounts on the loan receivable and does not newly increase the expected loss burden for the Group as a whole, the Company has determined that the impact on the earnings forecast for the fiscal year ending March 2027 is immaterial. |
Items this document does not state (16)
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.Because, upon execution of the loan, a portion of the credit risk previously recognized as the expected loss burden related to debt guarantees was re-recognized as an allowance for doubtful accounts on the loan receivable. The Company states that this represents a transfer of provisions for the same credit risk and does not newly increase the expected loss burden for the Group as a whole.