宝ホールディングス announced that its investigation into the accounting treatment at its US subsidiary, Takara Bio USA, found no intentional accounting fraud. The results were disclosed approximately 2 months late, with revenue of ¥103.2 billion, operating profit of ¥2.9 billion and net profit of ¥3.6 billion.
宝HD explained that an investigation involving lawyers and others into an issue flagged by its audit firm over unclear aspects of the accounting treatment at its US subsidiary, Takara Bio USA, found no intentional accounting fraud and concluded that the matter was limited to ordinary accounting errors. The company said the delay in publication was due to consideration for the parties involved.
The results were for the April-June 2026 quarter. Revenue was ¥103.2 billion, up 10.6% year on year, operating profit was ¥2.9 billion, down 14.7%, and net profit was ¥3.6 billion, down 12.4%. Despite the delay in reporting, the impact on financial results was considered limited, and the company indicated that it did not believe past results needed to be restated.
ValueAct Capital, the largest shareholder of 宝HD, requested on the 22nd that an extraordinary shareholders meeting be convened and expressed its view that the Board of Directors' oversight of management should be examined. It is seeking the dismissal of 3 outside directors and has indicated that it wants to strengthen oversight of management.
At the results briefing, Masakazu Usami (宇佐美昌和), General Manager of Public Relations and IR, apologized for the delay in announcing the results. Regarding ValueAct's shareholder proposal, he said the company would take its views seriously while carefully considering its response.