Kaihan reconsiders Nepal hydropower project, forecasts significant loss

Kaihan Co., Ltd. has decided to suspend its Nepal hydroelectric power generation business, originally launched on February 28, 2025, with a potential full withdrawal. This decision, made on November 14, 2025, follows social unrest in Nepal and delays in funding. As a result, Kaihan expects to record an extraordinary loss of 2,084 million yen for the second quarter of the fiscal year ending March 2026, stemming from the impairment of goodwill related to NEPAL HYDRO POWER HOLDINGS. This loss will be reflected in the Q2 financial results.

Consequently, Kaihan has revised its consolidated earnings forecast for the fiscal year ending March 2026 to "undetermined" from the previously announced 15,401 million yen in net sales, 1,617 million yen in operating income, 1,532 million yen in ordinary income, and 1,466 million yen in net income attributable to owners of the parent.

The decision underscores the uncertainty surrounding the project's future, with ongoing discussions about the disposition of the hydropower rights, including potential sale to other operators. Kaihan will continue to monitor the situation and provide updates as further decisions are made regarding the project and its financial implications.