Diamond Electric Holdings has cut its reported profit for the year to March 2026 to ¥217mn, from the ¥819mn it first published in May, after an audit review of intercompany accounting left sales unchanged at ¥96.77bn but dragged down lower-line earnings.
| Metric | First published | Corrected |
|---|---|---|
| Sales | ¥96.77bn | ¥96.77bn |
| Operating profit | ¥2.75bn | ¥2.43bn |
| Ordinary profit | ¥2.74bn | ¥2.06bn |
| Net profit attributable to owners of parent | ¥819mn | ¥217mn |
This was not a cosmetic tidy-up. In the corrected earnings release, operating profit fell to ¥2.43bn from ¥2.75bn and ordinary profit to ¥2.06bn from ¥2.74bn. The company said the revision was required because, during the audit process for the year-end accounts, it found items needing correction, mainly in the accounting treatment of internal transactions between consolidated subsidiaries.
The separate corrected variance notice shows how much the story changed. What had been presented as a ¥219mn beat to the company’s ¥600mn net-profit forecast became a ¥382mn miss. Operating profit still finished ¥331mn above forecast and ordinary profit ¥362mn above, but the company said net profit was pulled lower by extraordinary losses including a ¥524mn product warranty provision tied to a market recall in China and a ¥441mn impairment loss, mainly at its Hungary unit.
The corrected year-end results still show a business that grew sales 5.5 per cent and lifted ordinary profit 40.5 per cent from the previous year, yet net profit fell 47.2 per cent to ¥217mn from ¥411mn. The audit delay also spilled into governance mechanics: the company pushed the reporting items at its annual shareholder meeting into an adjourned session on July 27, and later said the source of its year-end dividend would be changed from other capital surplus to retained earnings after receiving the auditor’s report and completing closing procedures.
Just as notable is what the company did not say. It described the change as an audit-process correction tied to intercompany accounting treatment, not as fraud or a broader control breakdown.