NIDEC shares plunge as auditor issues disclaimer of opinion on annual securities report, raising delisting risk

Shares of NIDEC CORPORATION <6594> plunged, hitting a new year-to-date low. After market close on Sep 30, NIDEC filed its annual securities report for the fiscal year ended Mar 2026 with the Kanto Local Finance Bureau. However, its auditor issued a disclaimer of opinion, fueling concerns over increased delisting risk and triggering a wave of forced selling.

PwC Japan, NIDEC's auditor, noted that while certain personnel corrective measures have been taken in response to inappropriate accounting practices, some measures remain incomplete. As a result, PwC Japan pointed out that certain employees and officers involved in the misconduct continue to hold positions of responsibility in the financial reporting process of NIDEC and its group companies, among other issues. PwC Japan said it was unable to obtain sufficient appropriate audit evidence to form a basis for expressing an opinion.

NIDEC disclosed its consolidated financial results for the fiscal year ended Mar 2026, following a delay in the announcement. Net sales came to 2.71 trillion yen (up 3.9% from the prior fiscal year), while net loss came to 564.62 billion yen, compared with net profit of 84.67 billion yen in the prior fiscal year. NIDEC recorded an impairment loss on non-financial assets of 632.14 billion yen. NIDEC also released its consolidated earnings forecast for the fiscal year ending Mar 2027, projecting net sales of 2.8 trillion yen (up 3.4% from the prior fiscal year) and net profit of 100 billion yen.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.