Kyodo Paper Holdings, a Tokyo Stock Exchange Standard-listed paper wholesaler trading under code 9849, said on July 6 that it received a formal notice from the Tokyo Labour Bureau cancelling a decision to pay the company an employment adjustment subsidy. The bureau fixed the refund at 70,387,000 yen, roughly ¥70.4mn.
The cancellation follows the company's own move on June 26, when it announced it would voluntarily return subsidies it had already received and applied to the bureau to do so. Monday's notice makes that return official and sets the exact figure the company owes.
Kyodo Paper Holdings said it will record the full ¥70.4mn as an extraordinary loss in the first quarter of the fiscal year ending March 2027, covering April through June. The company apologized to shareholders, business partners and other stakeholders for the trouble and worry caused, and said it would tighten internal operational checks to prevent a repeat.
The disclosure does not explain why the original subsidy payment was found to be in error. It says only that the company initiated the voluntary return before the bureau's formal cancellation notice arrived, and that the refund amount is now confirmed rather than estimated.