Abalance Corporation (TSE: 3856), which makes solar panels through units in Vietnam, Ethiopia and Texas, filed corrected versions of four past earnings reports on August 19, 2026, the latest step in an accounting investigation that has run for nearly a year. The corrections follow a company notice a day earlier detailing revisions to prior annual securities reports and quarterly financial summaries.
What went wrong
The root problem sat in buy-sell transactions at overseas units: a subsidiary would import polysilicon, hand it to an outside processor, then repurchase the resulting wafers. Abalance says the accounting for these deals was handled improperly. A third-party committee set up on September 2, 2025 delivered its findings on December 17, 2025; Abalance then judged the report needed further checking and appointed a second, independent verification committee on January 8, 2026, which reported back on February 20, 2026. An internal-control improvement plan followed on July 31, 2026.
A second, separate problem surfaced this year: Abalance's auditor, Chubu Sogo Audit Corporation, flagged suspected fictitious sales at Abit Co., a former subsidiary that merged into Abalance on March 31, 2025. The audit and supervisory committee received that finding on April 21, 2026, a fresh investigation committee was set up on April 27, and its report, received June 30, 2026, triggered further restatement of past financial statements.
The corrected numbers
| Period | Net sales | Operating profit | Net profit / (loss) |
|---|---|---|---|
| Year to March 2025 (9-month transition period) | ¥62.8bn | ¥2.6bn | (¥314mn) |
| Q1, year to June 2025 (Jul-Sep 2024) | ¥20.0bn | ¥1.5bn | (¥409mn) |
| First half, year to March 2026 (Apr-Sep 2025) | ¥56.2bn | ¥5.5bn | ¥6.2bn |
| Q1, year to March 2026 (Apr-Jun 2025) | ¥35.9bn | ¥3.3bn | ¥989mn |
The scale of the rewrite is unusual: the nine-month transition year to March 2025, the first quarter of the year to June 2025, and both the first quarter and first half of the year to March 2026 have all been reissued with revised figures.
Auditor pushback and a going-concern flag
Chubu Sogo has twice declined to reach a conclusion on Abalance's quarterly reviews, once on the reissued first-quarter 2025 figures and again on the third-quarter results for the year to March 2026, citing incomplete internal controls and a complex, multi-subsidiary transaction structure it could not fully verify. The full-year filing for the year to March 2026 goes further, flagging a material doubt about Abalance's ability to continue as a going concern, tied to constrained access to financing after the governance lapses.
Adding to the strain, U.S. Customs and Border Protection detained solar panels shipped from Vietnamese unit VSUN starting in January 2026 under the Uyghur Forced Labor Prevention Act, halting U.S.-bound shipments and adding roughly ¥2.1bn in demurrage and related costs. The Tokyo Stock Exchange placed Abalance shares under supervision, pending examination, from July 31, 2026.
The headline numbers, for now
Despite the turmoil, the year to March 2026 looked strong on paper: net sales of ¥120.2bn, up from ¥62.8bn in the prior, shortened nine-month period, operating profit of ¥13.9bn and net profit attributable to shareholders of ¥7.7bn. What Abalance will not yet say is what comes next. Citing the unresolved governance review and a planned overseas subsidiary reorganization, the company has withheld its earnings and dividend forecasts for the year to March 2027.