Recognition of Non-operating Income and Non-operating Expenses
Agora Hospitality Group Co., Ltd. and an equity-method affiliate that sells residential development land in Australia (name not disclosed)
A hotel that opened last year (name not disclosed), and residential development land in Australia
The foreign exchange gain resulted from movements in exchange rates that weakened the yen against the currencies in which the foreign-currency-denominated assets are denominated, compared with the end of the previous fiscal year. The compensation was received after construction defects were found at the hotel, resulting in the temporary suspension of hotel operations. The cause of the loss on investments accounted for using the equity method was not disclosed.
¥52 million in foreign exchange gains (non-operating income), ¥28 million in compensation received (non-operating income), and ¥31 million in losses on investments accounted for using the equity method (non-operating expenses)
The cumulative second quarter of the fiscal year ending December 2026 (1 January 2026 to 30 June 2026)
not disclosed. Reflected in the Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 2026 [Japanese GAAP], released today.
Company response
The operations of the hotel where construction defects were found were temporarily suspended (the period and scope of the suspension were not disclosed)
The above non-operating income and non-operating expenses are reflected in the Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 2026 [Japanese GAAP], released today. Other responses and timing were not disclosed.
| Item | Details |
|---|---|
| Event name | Recognition of Non-operating Income and Non-operating Expenses |
| Date of occurrence | not disclosed (recognition period: 1 January 2026 to 30 June 2026) |
| Subject Entity | Agora Hospitality Group Co., Ltd. and an equity-method affiliate that sells residential development land in Australia (name not disclosed) |
| Target Locations / Products | A hotel that opened last year (name not disclosed), and residential development land in Australia |
| Cause | The foreign exchange gain resulted from movements in exchange rates that weakened the yen against the currencies in which the foreign-currency-denominated assets are denominated, compared with the end of the previous fiscal year. The compensation was received after construction defects were found at the hotel, resulting in the temporary suspension of hotel operations. The cause of the loss on investments accounted for using the equity method was not disclosed. |
| Amount of Impact on Business Performance | ¥52 million in foreign exchange gains (non-operating income), ¥28 million in compensation received (non-operating income), and ¥31 million in losses on investments accounted for using the equity method (non-operating expenses) |
| Accounting period in which recognized | The cumulative second quarter of the fiscal year ending December 2026 (1 January 2026 to 30 June 2026) |
| Impact on Earnings Forecast | not disclosed. Reflected in the Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 2026 [Japanese GAAP], released today. |
| Suspended operations | The operations of the hotel where construction defects were found were temporarily suspended (the period and scope of the suspension were not disclosed) |
| Outlook | The above non-operating income and non-operating expenses are reflected in the Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 2026 [Japanese GAAP], released today. Other responses and timing were not disclosed. |
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.The foreign exchange gain arose because the yen weakened against the Australian dollar and other foreign currencies relative to the end of the previous fiscal year, affecting foreign-currency-denominated assets. The compensation was received from the construction contractor after construction defects were found at a hotel that opened last year, resulting in the temporary suspension of hotel operations. No reason was provided for the loss on investments accounted for using the equity method.