SanBio misses forecast, restructures capital amid losses

SanBio Company Limited [TSE:4592] announced a deviation from its previously released consolidated earnings forecast for the fiscal year ending January 31, 2025, with a wider-than-expected ¥3.022 billion ordinary loss due to foreign exchange fluctuations and stock issuance expenses. Net loss attributable to owners of the parent also increased to ¥2.882 billion. To address these losses and enhance financial stability, SanBio plans to reduce stated capital and capital reserves by ¥1.772 billion each, transferring these amounts to other capital surplus. This move, subject to shareholder approval in April and effective June 6, 2025, aims to lower the company's tax burden and facilitate future shareholder returns. SanBio also plans a ¥3.545 billion transfer from other capital surplus to retained earnings. Concurrently, SanBio is issuing new shares via a third-party allotment to CVI Investments, Inc., and issuing bonds with stock acquisition rights, aiming to raise ¥2.080 billion. Finally, the company expects to ship AKUUGO® in the second quarter.