Toshiba, the Japanese electronics group, reported a Y950bn (£6.5bn) net loss for the year ending 31 March, but forecasts of a return to profit this year ensured gains for the company's shares.
In unaudited results its loss for the 2016-17 year was the worst ever annual performance for a Japanese company after Toshiba was forced to put is US nuclear unit Westinghouse into Chapter 11 bankruptcy protection.
The bankruptcy came as a result of large cost overruns at one of Westinghouse's subsidiaries, Stone & Webster – a nuclear construction company.
Toshiba, one of Japan's biggest globally-recognised brands, has had to put up a number of lucrative assets up for sale, including its Landis+Gyr chip unit, and faces having also to divest its Nand flash memory business.
There has been no shortage of offers for its flagship asset, with Broadcom of the US and Korea's SK Hynix among the bidders for the business, which is valued at about Y2tn.
Japan's government, however, favours a deal that would bring Nand under control of the state-backed Innovation Network Corporation of Japan fund.
Toshiba's woes continued on Monday after the Tokyo-based company reported that it also faced the risk of stock market delisting as it equity turns negative if a buyer for Nand cannot be agreed.
Shares rally on turnaround hopes
Investors appeared confident, however, that all would work out for the company as the shares ended the trading session 3.4% higher at Y261.80.
The stock's advance was in large part due to forecasts of a return to profit in the next 12 months, saying it expected to report net earnings of Y50bn for the fiscal year ending 31 March, 2018.