Recording of an Extraordinary Loss Associated with the Discontinuation of Use and Impairment Treatment of Training and Other Facilities at the Head Office Location, and Revision of the Earnings Forecast for the Six Months Ending September 2026
MEITEC Group Holdings Inc. (the company)
Atsugi Techno Center and other facilities (Atsugi, Kanagawa Prefecture, primarily training facilities)
The facilities have low utilization due to poor transport access, no improvement is expected going forward, and maintenance costs are a significant burden because more than 30 years have passed since they were built. The earnings forecast was revised because operating hours in the engineer dispatch business are expected to fall below the initial forecast.
Approximately ¥3 billion (an impairment loss under the Accounting Standard for Impairment of Fixed Assets, expected to be recorded as an extraordinary loss). Interim net income attributable to owners of the parent is expected to decrease by ¥2,600 million.
Six months ending 30 September 2026 (1 April 2026 to 30 September 2026)
The earnings forecast has been revised. Net sales have been revised from ¥69,500 million to ¥68,800 million, operating income from ¥9,500 million to ¥10,100 million, ordinary income from ¥9,600 million to ¥10,200 million, and interim net income attributable to owners of the parent from ¥6,500 million to ¥3,900 million. The interim dividend forecast of ¥85 per share is unchanged.
Company response
Discontinuation of use of the Atsugi Techno Center and other training and related facilities
The company plans to sell the real estate comprising the facilities. A proposal to amend the articles of incorporation is scheduled to be submitted at the annual general meeting of shareholders next June. The forecast for full-year results and the year-end dividend for the fiscal year ending March 2027 will be announced when the interim financial results are released, scheduled for 29 October 2026.
Details will be announced when the interim financial results are released, scheduled for 29 October 2026. The company will make a further announcement regarding the amendment to the articles of incorporation once it has been decided.
| Item | Details |
|---|---|
| Event name | Recording of an Extraordinary Loss Associated with the Discontinuation of Use and Impairment Treatment of Training and Other Facilities at the Head Office Location, and Revision of the Earnings Forecast for the Six Months Ending September 2026 |
| Date of occurrence | 29 September 2026 (the date on which the Board of Directors decided to discontinue use) |
| Subject Entity | MEITEC Group Holdings Inc. (the company) |
| Target Locations / Products | Atsugi Techno Center and other facilities (Atsugi, Kanagawa Prefecture, primarily training facilities) |
| Cause | The facilities have low utilization due to poor transport access, no improvement is expected going forward, and maintenance costs are a significant burden because more than 30 years have passed since they were built. The earnings forecast was revised because operating hours in the engineer dispatch business are expected to fall below the initial forecast. |
| Amount of Impact on Business Performance | Approximately ¥3 billion (an impairment loss under the Accounting Standard for Impairment of Fixed Assets, expected to be recorded as an extraordinary loss). Interim net income attributable to owners of the parent is expected to decrease by ¥2,600 million. |
| Accounting period in which recognized | Six months ending 30 September 2026 (1 April 2026 to 30 September 2026) |
| Impact on Earnings Forecast | The earnings forecast has been revised. Net sales have been revised from ¥69,500 million to ¥68,800 million, operating income from ¥9,500 million to ¥10,100 million, ordinary income from ¥9,600 million to ¥10,200 million, and interim net income attributable to owners of the parent from ¥6,500 million to ¥3,900 million. The interim dividend forecast of ¥85 per share is unchanged. |
| Suspended operations | Discontinuation of use of the Atsugi Techno Center and other training and related facilities |
| Outlook | The company plans to sell the real estate comprising the facilities. A proposal to amend the articles of incorporation is scheduled to be submitted at the annual general meeting of shareholders next June. The forecast for full-year results and the year-end dividend for the fiscal year ending March 2027 will be announced when the interim financial results are released, scheduled for 29 October 2026. |
| Planned follow-up disclosure | Details will be announced when the interim financial results are released, scheduled for 29 October 2026. The company will make a further announcement regarding the amendment to the articles of incorporation once it has been decided. |
Items this document does not state (14)
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 decided to discontinue use of the facilities to reduce future costs because they have low utilization due to poor transport access, no improvement is expected going forward, and maintenance costs are a significant burden as more than 30 years have passed since they were built. In addition, although operating hours in the engineer dispatch business are expected to fall below the initial forecast, operating income and ordinary income are expected to exceed the forecast. The earnings forecast was revised to reflect these earnings trends and the extraordinary loss.