Kasai Kogyo reports wider losses, internal control weaknesses

Kasai Kogyo announced a consolidated net loss attributable to owners of the parent of 9,182 million yen for the fiscal year ending March 2025, widening from 1,559 million yen in the prior year. This substantial loss was primarily driven by impairment losses and an increase in loan loss provisions for its U.S. and Mexican subsidiaries. The company also confirmed significant internal control weaknesses, particularly at its Mexican subsidiary, leading to errors in accounts payable and VAT. These issues necessitated the restatement of past financial results and a delay in filing the annual securities report.

The company has taken steps to address these issues, including officer compensation reductions, with the president's salary cut by 30%. Kasai Kogyo remains a "Supervised Issues (in confirmation)" stock, with its supervised status set to be lifted on October 9, 2025, after the submission of corrected financial statements and an improved internal control report. The company projects a consolidated net loss of 2,000 million yen for the fiscal year ending March 2026, with a forecast for no dividend payments.