Nankai Plywood Reports Subsidiary Impairment Loss and Bad Debt Provisions

TOKYO, May 15 (Pulse News Wire) – Nankai Plywood CO.,LTD. (7887.T) reported a subsidiary impairment loss and bad debt provisions related to its European operations.

NP Rolpin SAS, a consolidated subsidiary, recorded a fixed asset impairment loss of May 15, 2026 due to poor sales performance amid economic downturn in Europe. Additionally, Nankai Plywood increased bad debt provisions for loans to NP Rolpin SAS and its wholly-owned subsidiary Rolkem SAS. As of March 31, 2026, NP Rolpin SAS had incurred a net debt position of ¥4.605 billion, leading to additional bad debt provisions of ¥677 million, bringing the total provision to ¥4.605 billion.

Similarly, Rolkem SAS faced significant challenges due to rising raw material costs, resulting in a net debt position of ¥1.289 billion, necessitating further bad debt provisions of ¥114 million, making the total provision ¥1.289 billion. The impact of the impairment losses on operating results was disclosed in the company's interim earnings release dated May 15, 2026. However, the bad debt provisions will be eliminated in the consolidated financial statements, thus having no effect on the consolidated financial performance.