Recognition of finance costs (bad debt expense)
The Group, consolidated subsidiary Optimus Group Australia Pty Ltd (OPT AU), and equity-method associate OzCar Pty Ltd
Loans to OzCar, accrued interest, and trade receivables related to used-car sales
OzCar's poor performance and governance concerns coming to light, and the uncertainty surrounding the amount and timing of receivable collections after its transition to VA
Recorded AU$12,000,000 (approximately ¥1,353 million) as bad debt expense and finance costs. Of this amount, the additional amount recorded for the current interim consolidated accounting period was ¥1,272 million.
Interim consolidated accounting period for the fiscal year ending March 2027 (end of September 2026)
The full-year consolidated earnings forecast for the fiscal year ending March 2027 was revised. Profit for the year attributable to owners of the parent changed from ¥3,200 million to ¥1,100 million, and profit before income taxes changed from ¥5,000 million to ¥2,000 million.
Unsecured portion not covered by collateral, provisions or other measures: AU$12,362,850 (approximately ¥1,359 million). Counterparty: OzCar Pty Ltd
Company response
Engaged external experts to review OzCar's financial, business and compliance status
Further strengthening monitoring of investees and the management of credit and receivables
Related procedures
Voluntary Administration (VA)
Based on the policy to be decided at the creditors' meeting in the VA proceedings to be held, the Company will monitor the collection status of accrued interest and trade receivables, seek to maximise recoveries, and make appropriate disclosures depending on the circumstances.
Based on the policy of the creditors' meeting in the VA proceedings, make appropriate disclosures depending on the circumstances
| Item | Details |
|---|---|
| Event name | Recognition of finance costs (bad debt expense) |
| Date of occurrence | End of September 2026 (date of recognition of bad debt expense) |
| Subject Entity | The Group, consolidated subsidiary Optimus Group Australia Pty Ltd (OPT AU), and equity-method associate OzCar Pty Ltd |
| Target Locations / Products | Loans to OzCar, accrued interest, and trade receivables related to used-car sales |
| Cause | OzCar's poor performance and governance concerns coming to light, and the uncertainty surrounding the amount and timing of receivable collections after its transition to VA |
| Amount of Impact on Business Performance | Recorded AU$12,000,000 (approximately ¥1,353 million) as bad debt expense and finance costs. Of this amount, the additional amount recorded for the current interim consolidated accounting period was ¥1,272 million. |
| Accounting period in which recognized | Interim consolidated accounting period for the fiscal year ending March 2027 (end of September 2026) |
| Impact on Earnings Forecast | The full-year consolidated earnings forecast for the fiscal year ending March 2027 was revised. Profit for the year attributable to owners of the parent changed from ¥3,200 million to ¥1,100 million, and profit before income taxes changed from ¥5,000 million to ¥2,000 million. |
| Type of litigation or proceeding | Voluntary Administration (VA) |
| Date of filing / date of action | 8 October 2026 (the date on which OPT AU appointed a voluntary administrator and VA commenced) |
| Amount of receivables at risk of non-collection or delayed collection | Unsecured portion not covered by collateral, provisions or other measures: AU$12,362,850 (approximately ¥1,359 million). Counterparty: OzCar Pty Ltd |
| Investigation structure | Engaged external experts to review OzCar's financial, business and compliance status |
| Measures to prevent recurrence | Further strengthening monitoring of investees and the management of credit and receivables |
| Outlook | Based on the policy to be decided at the creditors' meeting in the VA proceedings to be held, the Company will monitor the collection status of accrued interest and trade receivables, seek to maximise recoveries, and make appropriate disclosures depending on the circumstances. |
| Planned follow-up disclosure | Based on the policy of the creditors' meeting in the VA proceedings, make appropriate disclosures depending on the circumstances |
Items this document does not state (10)
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.OzCar's poor performance and governance concerns came to light, and the amount and timing of receivable collections became uncertain after its transition to Voluntary Administration. The earnings forecast revision was also affected by increased administrative and sales-promotion expenses resulting from intensifying competition in Australia.