Notice of Recording of Income Tax Adjustment (Loss)

Overview of Results

Due to higher-than-expected sales in the high-priority segment of contract manufacturing services, quarterly net income increased. In addition, reductions in selling, general, and administrative expenses through business selection and concentration contributed. Consequently, carried-forward losses decreased, leading to a write-down of deferred tax assets and recording an income tax adjustment (loss) of 38 million yen. The above impact is reflected in the publicly disclosed Financial Summary for the third quarter of the fiscal year ending October 2026 (Japanese accounting standards, unaudited).

Impact on shareholders and outlook

The recording of the income tax adjustment (loss) affects net income in the short term, but details on the full-year outlook and segment-specific impact are expected to be disclosed separately in the current fiscal year earnings report. The key point to monitor is whether the sales resilience and cost-reduction effects continue.