Nichirei discovers misconduct at Chinese subsidiary, expects limited impact

Nichirei Corporation (TSE:2871) disclosed that a former employee of its Chinese subsidiary, Nichirei Foods, engaged in unauthorized activities resulting in an estimated loss of ¥90 million (approximately $0.62 million USD). The misconduct involved the former employee, who was the chairman and general manager of a related company, entering into agreements involving the subsidiary's funds and guarantees without proper internal procedures. Nichirei has established an investigative committee to investigate the full extent of the situation and plans to implement preventative measures based on the committee's findings. While the company anticipates a limited impact on its consolidated earnings, it has expressed deep regret for any concern caused to stakeholders. Nichirei plans to disclose further details on preventative measures as they are determined.