Japan speeds up fraud freezes as the tape fills with share-count math

Revenue for the year ended April 30 rose to ¥497,877 million, but operating profit fell to ¥21,684 million and net income to ¥3,466 million, while annual common dividends increased to 48.00 yen a share. Operating cash flow fell to ¥11,301 million and year-end cash to ¥71,080 million, and management is guiding for ¥500,000 million in sales and ¥20,000 million in operating profit in the current year.

The company completed payment on June 1 for a 669,600-share third-party allotment at ¥672 a share, raising ¥449,971,200 and lifting stated capital and capital reserve by ¥224,985,600 each. Zenrin took 520,800 shares and Senyo Kogyo 148,800, and a related same-day notice reset several stock-option exercise prices lower because the placement price sat below existing strikes.

On June 1, 32,000 first adjustable-price warrants were exercised, creating 3.2 million new shares and using 22.78% of the original issue. After that burst, 26,397 warrants remained outstanding, equivalent to 2,639,700 shares, though the company's separate May status notice shows a different month-end balance and leaves the paperwork looking untidier than investors would prefer.

The amended filing tied to the third series still shows an estimated offering amount of ¥180 million and marks the document as submission No. 2 linked back to the May 20 registration. Parallel June 1 corrections cover the second series at the same estimated amount and a first-series package that also includes fifth- and sixth-series stock acquisition rights, but the excerpt still does not provide the final conversion price or share count needed to size dilution.

First-quarter sales fell 7.8% to ¥267 million, with an operating loss of ¥57 million and a net loss of ¥65 million. April sales were ¥150.848 million, or 99.2% of the year-earlier month, and the company said the smaller-than-forecast loss partly reflected R&D and advertising costs shifting into later quarters rather than a clean demand surprise.

The company repurchased 1,276,000 shares for ¥275,253,000 in May, taking the running total under the programme to 2,618,000 shares and ¥591,344,100 against a ceiling of 4,100,000 shares and ¥820,000,000. The same day it said it plans to buy 945 TIGEREYE shares, equal to 21.0% of voting rights, in July, but the acquisition price and other terms are still due to be fixed in June.

The company canceled 6,250,000 common shares on June 1, leaving 285,993,496 shares outstanding after the transaction. The notice closes a previously approved step under an April 30 board resolution; it is a capital-structure update, not a fresh buyback plan.

Draft guidance for CPAs and audit firms expands the frame from money laundering and terrorist financing to include proliferation financing, and it lays out checks on customer identity, beneficial owners, high-risk transactions and recordkeeping. The agency explicitly roots the approach in FATF-style risk-based controls, but the packet does not show a final timetable.

The FSA's public-comment update keeps the familiar compliance requirements but puts more weight on day-to-day education, management guidance, agency audits and deadline-based remediation when problems are found. It also adds a clearer section on supervisory methods and responses, including in-depth hearings, off-site monitoring and report requests when needed.

In the FSA's latest tables through end-April, regional banks posted a 98.9% resolved-case rate on SME loan-term change requests, ahead of 96.9% at major banks. Housing cases were softer at 93.4% overall, and the agency warns the tables include some earlier applications, so this is a stocktake rather than a neat monthly trend.

March discussion points published by the FSA tell lenders to keep funding businesses facing higher prices, labour shortages, US tariff measures and Middle East tensions, stay ready for Nankai Trough disruption, and use revised guidance to step up regional succession, M&A and turnaround support. It is a meeting summary rather than a new rulebook, but it reads like a supervisor's to-do list for the months ahead.