Market News
May 15, 2026 TSE Designation of Securities Under Supervision (Examination): Life Intelligent Enterprise Holdings Co.,Ltd.
TSE has designated an issue as a Security Under Supervision (Examination) as follows.
* This decision is based on the results of the examination by Japan Exchange Regulation.
| １．Issue Name | Life Intelligent Enterprise Holdings Co.,Ltd. stock (Code: 5856, Market Segment: Standard Market) |
| ２．Period of Designation as Securities Under Supervision (Examination) |
From May 15, 2026 (Fri.) to the day when TSE determines whether the company has fallen under the delisting criteria |
| Reason (Related Clause) |
Due to the company being deemed likely to fall under a case where the Exchange deems that the company's internal management system, etc. is not adequately developed or that it is no longer likely to be adequately implemented. (Enforcement Rules for Securities Listing Regulations, Rule 604, Paragraph 1, Item (12) Securities Listing Regulations, Rule 601, Paragraph 1, Item (9), c) |
| ３．Details of Reason | On Nov. 18, 2024, Life Intelligent Enterprise Holdings Co.,Ltd. (hereinafter “the Company”) disclosed the findings of a governance committee, an advisory body to its board of directors comprised of external experts. Based on these findings, TSE deemed that improvements to the Company’s internal management system and other related matters were highly necessary and designated the stock of the Company as a Security on Special Alert on Mar. 27, 2025. On Mar. 27, 2026, one year after the designation (hereinafter the “Anniversary Date”), the Company submitted a written confirmation of its internal management system and, on the same day, disclosed a notice regarding an improvement plan and a report on the status of improvements toward enhancing its internal management system. TSE examined these documents and confirmed the actual situation through inquiries and interviews with the Company. As a result, it found that, among the items set out in the improvement plan and status report for its internal management system disclosed on Sep. 30, 2025, at minimum, the item for strengthening group governance had not been fully developed by the Anniversary Date, and the following facts were revealed: - With respect to an ongoing lawsuit involving one of its subsidiaries (hereinafter referred to as the “Lawsuit”), although certain directors of the Company, concurrently serving as directors of said subsidiary, attended said subsidiary's board of directors meetings where the Lawsuit was reported, they failed to appropriately share information about the Lawsuit with the Company. As a result, the Company was unaware of the Lawsuit. In addition, there were omissions in the written confirmation of the internal management system concerning lawsuits other than the Lawsuit, and the Company only became aware of these facts after they were pointed out by Japan Exchange Regulation. This indicates that, as of the Anniversary Date, the Company was not properly managing the lawsuits affecting the Company group. - As a result of the Lawsuit, the Company established a special investigation committee on Feb. 18, 2026. However, as of the Anniversary Date, it was still unclear when the committee would complete its investigation, and the Company had not yet identified the reasons for failing to recognize the Lawsuit nor had it determined whether there were any similar cases. Consequently, as of that date, the Company had not been able to formulate a specific and effective implementation plan for improvements relating to these matters. Furthermore, following the discovery of the Lawsuit, as of the Anniversary Date—which was more than one month after the standard 45-day period following the end of the quarter—the Company had still not been able to determine when it would disclose the financial results for the third quarter of the fiscal year ended Mar. 2026, and a significant delay in disclosure has continued to this day. - Although the Company had stated that it would develop internal rules based on the actual circumstances of its subsidiaries, as of the Anniversary Date, the development of such rules had not been completed by some subsidiaries. In addition, at certain subsidiaries, the internal approval process had become a mere formality, and contracts, credit risk, and similar matters were not being adequately reviewed. Accordingly, the Company had planned not only to improve the rules but also to introduce an electronic internal approval system. However, as of the Anniversary Date, such a system and related measures had yet to be introduced at some subsidiaries. In particular, at certain subsidiaries where neither a board of directors had been established nor had any company auditors been appointed, the Company’s involvement was limited to checking serious problems and similar matters as needed, and no framework had been put in place to provide checks and balances over the representative directors of those subsidiaries. - As of the Anniversary Date, the Company had not comprehensively identified and managed the licenses that underpinned the business operations of its subsidiaries. - Within the Company group, certain subsidiaries had never conducted any checks to confirm whether their business partners and other counterparties had any relationships with anti-social forces, and as of the Anniversary Date, such checks had still not been completed at some subsidiaries. In light of the above, if, as a result of subsequent examinations, TSE deems that the Company's internal management system, etc. has not been adequately developed or that it is no longer likely to be adequately implemented, the Company will fall under the delisting criteria. Accordingly, TSE deems that the Company’s stock is likely to be delisted, and therefore, while continuing the designation of the Company’s stock as a Security on Special Alert, also designates such stock as a Security Under Supervision (Examination). |
Current Designations of Securities Under Supervision & Securities to Be Delisted
Designation History of Securities Under Supervision & Securities to Be Delisted
Designation History of Securities Under Supervision & Securities to Be Delisted
DISCLAIMER: This translation may be used for reference purposes only. This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. This translation is subject to change without notice. Tokyo Stock Exchange, Inc. and/or Japan Exchange Regulation shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.
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