Sun Electronics revised down its consolidated earnings forecast for the fiscal year ending March 2027 and expects a final loss of ¥7.6 billion. Following a tax investigation by the Nagoya Regional Taxation Bureau, the company recorded approximately ¥12.067 billion as an expense for corporate taxes and related items after receiving a tax reassessment notice.
Sun Electronics announced that its consolidated earnings forecast for the fiscal year ending March 2027 had changed from revenue of ¥19.222 billion to ¥12.4 billion, operating profit from ¥2.131 billion to ¥0.35 billion and ordinary profit from ¥8.3 billion to ¥2.0 billion, while final profit or loss is expected to change to a loss of ¥7.6 billion.
The expected rates of decline from the previous forecast are approximately 35.4% for revenue, 83.5% for operating profit and 75.9% for ordinary profit. In addition, the significant deterioration in final profit includes the impact of recording approximately ¥12.067 billion in additional expenses related to tax accounting.
For tax-related matters, the company received a tax reassessment notice from the Nagoya Regional Taxation Bureau and recorded expenses including corporate tax, inhabitant tax and enterprise tax, as well as additional tax for underreporting. This had a significant impact on final profit or loss. Sun Electronics maintains that there were no errors in its tax accounting and has indicated its intention to seek cancellation of the reassessment.