Notice Regarding Recording of Extraordinary Losses | May 14, 2026

Financial Summary

Meiden recorded extraordinary losses in its consolidated and individual financial statements for the fiscal year ending March 2026. In the consolidated financial statements, it recognized an impairment loss of 3,303 million yen on fixed assets of a Chinese subsidiary with deteriorated profitability. In the individual financial statements, it recorded a valuation loss of 4,249 million yen on shares of the same subsidiary, a provision for doubtful accounts of 1,690 million yen related to loans and external borrowings, and debt guarantee losses of 1,984 million yen. These losses are attributable to decreased profitability and asset valuation revisions.

Future Outlook and Impact on Shareholders

While the recording of these extraordinary losses may temporarily impact the financial position, they will be eliminated in the consolidated financial statements, thus having a limited direct impact on business performance. Going forward, the company plans to improve profitability and review assets to restore financial health. Investors should pay close attention to future management improvements and restructuring efforts.