Abalance Corporation, the Tokyo-listed solar panel maker, filed a correction on August 19 to the quarterly earnings statement it originally issued on August 14, 2025, restating net profit attributable to shareholders at ¥989mn on sales of ¥35.9bn for the quarter running April to June 2025. The fix is not routine housekeeping. It follows a separate notice the company published a day earlier disclosing corrections to its prior-year securities reports, the product of outside investigations into how the company accounted for domestic raw-material toll-processing deals.
The trouble traces to what Abalance calls "paid-supply" transactions, arrangements in which a company supplies raw materials to an external processor for a fee and buys back the finished goods. A third-party committee of outside experts, set up on September 2, 2025, examined the company's domestic paid-supply transactions and delivered its findings on December 17. Abalance judged that report needed further scrutiny and formed a second, independent validation committee on January 8, 2026, which reported back on February 20. Separately, Abalance ran its own voluntary check of similar arrangements across the group's overseas subsidiaries. That review found that an overseas unit was importing polysilicon, handing it to an external processor, and buying back the finished wafers, and the company made additional corrections to that accounting where needed. An internal-control improvement plan followed on July 31, 2026.
The restated numbers
With the corrections applied, quarterly ordinary profit came to ¥4.18bn, lifted by a ¥1.93bn foreign-exchange gain, while total assets rose to ¥169.9bn and the equity ratio improved to 20.2%. Full-year guidance for the year to March 2026 is unchanged.
| Metric | Q1 (Apr-Jun 2025) | Context |
|---|---|---|
| Net sales | ¥35.9bn | Restated from the original August 2025 filing |
| Operating profit | ¥3.26bn | - |
| Ordinary profit | ¥4.18bn | Includes a ¥1.93bn foreign-exchange gain |
| Net profit attributable to parent | ¥989mn | - |
| Total assets | ¥169.9bn | Up from ¥146.8bn at the fiscal year-end in March 2025 |
| Equity ratio | 20.2% | Up from 15.7% at the fiscal year-end in March 2025 |
| Full-year sales forecast | ¥95bn | Unchanged from the guidance issued in May 2025 |
| Full-year net profit forecast | ¥3bn | Unchanged from the guidance issued in May 2025 |
Two loose ends investors should track
Abalance and seven consolidated subsidiaries were served with a lawsuit in December 2024 by a rival solar panel maker through the US District Court for the Northern District of California. The parent company has since been dropped as a defendant, but eight of its subsidiaries remain named, and Abalance says it cannot reasonably estimate the financial impact at this stage.
Separately, the filing discloses a subsequent event: at a board meeting on July 15, 2025, Abalance approved and immediately executed the sale of a solar power plant in Miyagi Prefecture that belonged to its green-energy subsidiary WWB Corporation, transferring it to a domestic company. Abalance says the buyer has no capital, personnel, or trading ties to the group, but it is withholding the buyer's name and the sale price, citing confidentiality obligations. The company frames the sale as part of a broader push to build out grid-connected battery storage and Non-FIT power projects rather than a retreat from solar generation itself.
What the correction does not change is the company's outlook: management is still guiding for ¥95bn in full-year sales and ¥3bn in net profit, the same targets it set in May 2025, even as it works through the accounting cleanup and the pending litigation.