Nippon Yusen: Chinese Subsidiary's Corruption Case Has Minimal Impact

- Mar 28, 2018-

After investigating the corruption case of its subsidiary NYK Car Carrier (China), Nippon Yuken stated that the corruption case had minimal impact on the consolidated financial performance of Nippon Ships in 2017 and prior years. 45 DEG LR ELBOW

 

Nippon Mail announced on March 23 that it has completed the submission of a nine-month quarterly securities report for the period ending December 31, 2017 to the Kanto Regional Finance Bureau of Japan. The company announced in its report the findings of the survey in February 2018 that NYK Car Carrier (China), a subsidiary of its automobile transportation and logistics business in Shanghai, hired administrators in front of local authorities for illegal spending or corruption. The company expects that its corporate income tax and value-added tax will be additionally assessed, and that it will revise future fines and penalties that may arise in the future, and reassess accounting and taxation in the past few years. GLENFLANGE    

 

However, Nippon Yusen believes that this time of corruption will have little effect on the consolidated financial performance of Nippon Yusen. As a result, the company’s consolidated financial results over the past few years and the company’s consolidated financial results for the nine months ended December 31, 2017 need not be corrected. In addition, the company stated that due to the aforementioned tax assessment, it is expected that the amount that may be affected in the future is approximately 880 million yen (approximately RMB 53.4 million), and this effect is expected to be reflected in the financial year-end results as of the end of March 2018. The outlook of the consolidated financial performance announced by Japan Post on January 31, 2018 has not changed.JIS 2220 FLANGE