March 19, 2026
To Whom it May Concern
Company name | GungHo Online Entertainment, Inc. |
Representative | Kazuya Sakai |
Representative Director & President, CEO | |
(Securities code：3765) | |
Contact person | Kazumasa Takayama |
Corporate Officer, CFO & IRO, and Executive General Manager of Corporate Planning Division | |
(TEL：03-6895-1650) |
GungHo Online Entertainment, Inc. ("the Company") hereby announces that there have been corrections made to the above-mentioned disclosure material released on February 13, 2026. As numerical data has also been corrected, the corrected numerical data is also sent.
Reason for corrections
After the release of the "Financial Results for the Year Ended December 31, 2025 [Japanese GAAP] (Consolidated)", the Company has found errors in the Consolidated Statement of Cash Flows. The primary cause of these errors was the application of incorrect foreign exchange rates, among other factors. Accordingly, the Company hereby corrects the relevant items as follows.
Details of corrections
The corrected portions are indicated by underlines.
1. Consolidated financial results for the fiscal year ended December 31, 2025 (from January 1, 2025 to December 31, 2025)
(3) Status of consolidated cash flows
[Before correction]
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Balance of cash and cash equivalents at the end of the year
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Fiscal year ended December 31,
2025
149
(28,676)
(8,827)
31,021
Fiscal year ended December 31,
2024
17,132
(47,588)
(12,217)
68,171
[After correction]
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Balance of cash and cash equivalents at the end of the year
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Fiscal year ended December 31,
2025
(355)
(28,676)
(8,827)
31,021
Fiscal year ended December 31,
2024
17,132
(47,588)
(12,217)
68,171
(3) Overview of the cash flow for the current fiscal year
[Before correction]
(Cash flows from operating activities)
Funds obtained from operating activities were 149 million yen. This was mainly because the Company recorded a profit before income taxes and minority interests of 6,576 million yen and payment of income taxes which amounted to 4,804 million yen.
[After correction]
(Cash flows from operating activities)
Funds used for operating activities were 355 million yen. This was mainly because the Company recorded a profit before income taxes and minority interests of 6,576 million yen and payment of income taxes which amounted to 6,607million yen.
Consolidated Financial Statements
(4) Consolidated Cash Flow Statements [Before correction]
(Millions of yen) | ||
Fiscal year ended December 31, 2024 | Fiscal year ended December 31, 2025 | |
Cash flows from operating activities | ||
Profit before income taxes | 19,838 | 6,576 |
Depreciation | 951 | 1,012 |
Share-based payment expenses | 205 | 182 |
Impairment losses | 174 | 203 |
Increase (decrease) in allowance for doubtful accounts | (8) | 7 |
Interest and dividend income | (1,955) | (1,809) |
Interest expenses | 15 | 29 |
Foreign exchange losses (gains) | (104) | (71) |
Decrease (increase) in trade receivables | 430 | 3,360 |
Decrease (increase) in inventories | 5 | (30) |
Increase (decrease) in trade payables | (329) | (20) |
Increase/decrease in consumption taxes payable/consumption taxes refund receivable | 503 | (2,787) |
Decrease (increase) in other current assets | (101) | (1,725) |
Increase (decrease) in other current liabilities | 3,111 | (1,865) |
Other, net | (341) | 65 |
Subtotal | 22,396 | 3,128 |
Interest and dividends received | 1,684 | 1,854 |
Interest paid | (15) | (29) |
Income taxes paid | (6,933) | (4,804) |
Net cash provided by (used in) operating activities | 17,132 | 149 |
Cash flows from investing activities | ||
Payments into time deposits | (90,572) | (171,492) |
Proceeds from withdrawal of time deposits | 45,342 | 144,373 |
Net decrease (increase) in short-term investment securities | (1,330) | (633) |
Purchase of investment securities | - | (63) |
Purchase of property, plant and equipment and intangible assets | (243) | (605) |
Payments of leasehold and guarantee deposits | (478) | (277) |
Purchase of shares of subsidiaries resulting in change in scope of consolidation | (308) | - |
Other, net | 3 | 22 |
Net cash provided by (used in) investing activities | (47,588) | (28,676) |
Cash flows from financing activities | ||
Net decrease (increase) in treasury shares | (9,865) | (5,002) |
Dividends paid | (1,809) | (3,350) |
Other, net | (542) | (474) |
Net cash provided by (used in) financing activities | (12,217) | (8,827) |
Effect of exchange rate change on cash and cash equivalents | 1,196 | 203 |
Net increase (decrease) in cash and cash equivalents | (41,476) | (37,150) |
Cash and cash equivalents at beginning of period | 109,648 | 68,171 |
Cash and cash equivalents at end of period | 68,171 | 31,021 |
[After correction]
(Millions of yen) | ||
Fiscal year ended December 31, 2024 | Fiscal year ended December 31, 2025 | |
Cash flows from operating activities | ||
Profit before income taxes | 19,838 | 6,576 |
Depreciation | 951 | 1,012 |
Share-based payment expenses | 205 | 182 |
Impairment losses | 174 | 203 |
Increase (decrease) in allowance for doubtful accounts | (8) | 6 |
Interest and dividend income | (1,955) | (1,809) |
Interest expenses | 15 | 29 |
Foreign exchange losses (gains) | (104) | (71) |
Decrease (increase) in trade receivables | 430 | 3501 |
Decrease (increase) in inventories | 5 | (29) |
Increase (decrease) in trade payables | (329) | (174) |
Increase/decrease in consumption taxes payable/consumption taxes refund receivable | 503 | (984) |
Decrease (increase) in other current assets | (101) | (1,676) |
Increase (decrease) in other current liabilities | 3,111 | (1,945) |
Other, net | (341) | (404) |
Subtotal | 22,396 | 4,417 |
Interest and dividends received | 1,684 | 1,864 |
Interest paid | (15) | (29) |
Income taxes paid | (6,933) | (6,607) |
Net cash provided by (used in) operating activities | 17,132 | (355) |
Cash flows from investing activities | ||
Payments into time deposits | (90,572) | (171,492) |
Proceeds from withdrawal of time deposits | 45,342 | 144,373 |
Net decrease (increase) in short-term investment securities | (1,330) | (633) |
Purchase of investment securities | - | (63) |
Purchase of property, plant and equipment and intangible assets | (243) | (605) |
Payments of leasehold and guarantee deposits | (478) | (277) |
Purchase of shares of subsidiaries resulting in change in scope of consolidation | (308) | - |
Other, net | 3 | 22 |
Net cash provided by (used in) investing activities | (47,588) | (28,676) |
Cash flows from financing activities | ||
Net decrease (increase) in treasury shares | (9,865) | (5,002) |
Dividends paid | (1,809) | (3,350) |
Other, net | (542) | (474) |
Net cash provided by (used in) financing activities | (12,217) | (8,827) |
Effect of exchange rate change on cash and cash equivalents | 1,196 | 707 |
Net increase (decrease) in cash and cash equivalents | (41,476) | (37,150) |
Cash and cash equivalents at beginning of period | 109,648 | 68,171 |
Cash and cash equivalents at end of period | 68,171 | 31,021 |