NFK Holdings Posts Provision for Doubtful Accounts Due to Collection Delays

TOKYO, Apr 30 (Pulse News Wire) – NFK Holdings Co.,ltd (6494.T) reported a provision for doubtful accounts due to delays in collecting receivables from a Malaysian oil company transaction totaling approximately ¥40.6 million. As of March 31, 2026, the remaining amount of ¥35.5 million had not been paid despite legal efforts through local law firms.

The provision, amounting to ¥35.5 million, was recorded in the fiscal year ending March 31, 2026, representing 0.54% of the group's consolidated net assets as of December 31, 2025. The company noted that while there are uncertainties surrounding the recovery of the debt, ongoing negotiations and legal actions will continue to address the issue.

Any future recoveries would result in reversal entries being made. The impact on the consolidated operating profit for the fiscal year ending March 31, 2026, is expected to be significant but limited on cash flow.

A detailed assessment of the effect on the forecasted consolidated performance for the same period is currently underway, and further updates will be provided once finalized.