TOKYO, May 14 (Pulse News Wire) – S Crypto Energy Inc. (5721.T) reported higher revenue than previously forecasted for its fiscal year ended March 31, 2026, but lower operating and net profits due to extraordinary expenses.
The company recorded sales of ¥1.441 billion compared to a previous estimate of ¥998 million, marking a 44.3% increase. However, ordinary profit and net income fell below expectations, primarily due to significant impairment losses on cryptocurrency holdings and interest expense related to bond issuance. Specifically, S Crypto Energy recognized a loss of ¥1.863 billion from the decline in value of its cryptocurrency assets. Additionally, the firm recorded interest expenses of ¥31 million and a bond repayment loss of ¥199 million.
Other extraordinary costs included issuance fees for the eighth and ninth tranches of warrant shares amounting to ¥280 million, bringing total extraordinary expenses to ¥2.379 billion. Despite these challenges, the sale of real estate properties in Idate City, Hokkaido contributed positively to revenues, adding ¥404 million to the bottom line. Nevertheless, the impact of extraordinary expenses led to a shortfall in operating and net profits relative to earlier projections. In summary, while S Crypto Energy saw a boost in top-line performance, operational profitability was dampened by substantial non-operational charges.
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