Going-Concern Risk Due to Persistent Negative Operating Cash Flow
First written in FY2016. 17 of 38 entries say "Worsened", first in FY2017. Latest entry: FY2026.
Sds Holdings moved to the "Worse" side of this theme in 2017, 3 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Net cash used in operating activities in the current consolidated fiscal year was ¥89 million.」
Operating cash flow improved from an outflow of ¥214 million in the previous year to an outflow of ¥89 million. However, it remained negative, and the Company continues to disclose events and circumstances giving rise to significant doubt about the going concern assumption. - FY2026-H1WorsenedAnnual report
「Net cash used in operating activities during the current interim consolidated fiscal period was ¥353 million (compared with net cash provided of ¥112 million in the same period of the previous year).」
Operating cash flow turned from an inflow of ¥112 million in the same period of the previous year to an outflow of ¥353 million, and negative operating cash flow recurred. The Company believes it can fund working capital through a ¥300 million commitment line with directors, but the deterioration in its funding position has appeared in its actual results. - FY2025Renewed deterioration in operating cash flow and response through borrowing facilitiesAnnual report
「During the current consolidated fiscal year, the Group focused on generating stable revenue by promoting its Energy-Saving-Related Business and Renovation Business based on the medium-term business plan formulated in May 2024. Both businesses achieved operating profitability, but consolidated results, including head-office management costs, remained negative. In light of the possibility of serious concerns arising over cash management, the Company recognizes that events and circumstances exist that raise substantial doubt about the going concern assumption.」
Net cash used in operating activities turned from ¥924 million provided in the previous year to ¥214 million used, marking a recurrence of negative operating cash flow. However, the Company considers that working capital can be sufficiently funded through a ¥300 million credit facility agreement with a director and therefore states that no material uncertainty related to the going concern assumption is recognized. - FY2025-H1MitigatedAnnual report
「Net cash provided by operating activities during the current interim consolidated accounting period was ¥112 million, compared with ¥265 million provided in the same period of the previous year.」
Cash flow from operating activities remained an inflow of ¥112 million, and no recurring operating cash flow deficit occurred during the current interim consolidated accounting period. On the other hand, the company recorded an ordinary loss and an interim net loss attributable to owners of the parent, and significant uncertainty regarding the going-concern assumption remains. - FY2024MitigatedAnnual report
「Net cash provided by operating activities was ¥924 million during the current consolidated fiscal year.」
Cash flow from operating activities turned from an outflow of ¥717.609 million in the previous fiscal year to an inflow of ¥924.633 million, and operating profit was positive at ¥25.661 million, indicating some improvement in the performance and funding aspects of going concern risk. However, the company recorded an ordinary loss of ¥51.085 million and a net loss of ¥105.390 million attributable to owners of the parent, and material uncertainty remains. - FY2024-Q3MitigatedAnnual report
「During the nine months ended the third quarter of the current fiscal year, operating income improved to ¥21.855 million from the previous fiscal year, but the Group recorded an ordinary loss of ¥31.329 million and a quarterly net loss attributable to owners of the parent of ¥41.584 million. As a result, conditions exist that raise substantial doubt about the Group’s ability to continue as a going concern.」
Operating profit improved from an operating loss of ¥93 million in the same period of the previous year to ¥21.855 million, while the ordinary loss and quarterly net loss attributable to owners of the parent also narrowed. However, the ordinary and net losses and significant doubt regarding the going concern assumption remain. - FY2024-Q2MitigatedAnnual report
「For the cumulative second quarter, operating profit was ¥39,434 thousand and ordinary profit was ¥1,788 thousand, both improvements from the previous fiscal year, but the Company recorded a quarterly net loss attributable to owners of the parent of ¥3,021 thousand. Consequently, circumstances exist that raise substantial doubt about the Company's ability to continue as a going concern. Net cash provided by operating activities for the cumulative second quarter was ¥265 million (¥382 million used in the same period of the previous year).」
As operating income and ordinary income turned positive, and operating cash flow also changed from an outflow of ¥382 million in the same period of the previous year to an inflow of ¥265 million, some of the performance and funding aspects indicating going-concern risk improved. However, a quarterly net loss attributable to owners of the parent of ¥3 million and material doubts and uncertainties remain. - FY2024-Q1RestatedAnnual report
「The Group has continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent since the previous consolidated fiscal year and earlier, and continued losses may raise concerns about its cash flow. During the first quarter of the fiscal year, the Group also recorded an operating loss of ¥58,351 thousand, an ordinary loss of ¥77,577 thousand and a quarterly net loss attributable to owners of the parent of ¥76,568 thousand. As a result, circumstances exist that raise substantial doubt about the Group's ability to continue as a going concern.」
Operating loss, ordinary loss and quarterly net loss attributable to owners of the parent continued, and the disclosure continues to recognize substantial doubt and material uncertainty related to the going concern assumption. Each loss was smaller than in the same period of the previous year. - FY2023WorsenedAnnual report
「The company recorded an operating loss of ¥106,801 thousand, an ordinary loss of ¥162,471 thousand, and a net loss attributable to owners of the parent of ¥270,863 thousand for the fiscal year. Cash flow from operating activities was also negative at ¥717,609 thousand. As a result, conditions exist that raise substantial doubt about the company's ability to continue as a going concern.」
While the operating loss and ordinary loss narrowed from the previous fiscal year, negative cash flow from operating activities widened from ¥485 million in the previous fiscal year to ¥718 million, and the company continues to disclose significant doubt regarding the going-concern assumption. - FY2023-Q3RestatedAnnual report
「The Group has continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent since the previous consolidated fiscal year and earlier, and continuing losses may raise concerns about cash flow. In the cumulative third quarter of the current consolidated fiscal year, the Group also recorded an operating loss of ¥93.991 million, an ordinary loss of ¥135.22 million and a quarterly net loss attributable to owners of the parent of ¥169.942 million. As a result, circumstances exist that could raise material doubts regarding the going-concern assumption.」
The company continues to disclose ongoing losses and cash-flow concerns, as well as a material doubt about the going-concern assumption. Losses have narrowed from the previous comparable period's operating loss of ¥227.753 million, ordinary loss of ¥250.190 million and quarterly net loss attributable to owners of the parent of ¥268.434 million, but material uncertainty remains. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, the company recorded an operating loss of ¥91.076 million, an ordinary loss of ¥119.967 million and a quarterly net loss of ¥131.014 million attributable to owners of the parent. Operating cash flow was also negative at ¥382.427 million, and these circumstances give rise to a situation that may create material doubt about the going concern assumption.」
Operating losses, ordinary losses, quarterly net losses attributable to owners of the parent and negative operating cash flow continue, and the company continues to recognize substantial doubt and material uncertainty regarding the going-concern assumption. Although the amount of losses decreased year on year, cash outflows from operating activities increased. - FY2023-Q1RestatedAnnual report
「The Group has continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent since before the previous consolidated fiscal year, and continued losses may raise concerns about cash management. In the cumulative first quarter of the current fiscal year, it also recorded an operating loss of ¥79.475 million, an ordinary loss of ¥94.119 million and a quarterly net loss attributable to owners of the parent of ¥92.197 million. As a result, circumstances exist that raise substantial doubt about the going concern assumption.」
The company continues to record operating losses, ordinary losses and quarterly net losses attributable to owners of the parent, and continues to disclose significant doubt and significant uncertainty regarding the going-concern assumption. - FY2022WorsenedAnnual report
「In the current consolidated fiscal year, the company recorded an operating loss of ¥260.694 million, an ordinary loss of ¥298.344 million and a net loss of ¥333.788 million attributable to owners of the parent. As a result, circumstances exist that raise substantial doubt about the going-concern assumption.」
Recurring losses and significant uncertainty regarding the going-concern assumption continue. While the current-period operating loss widened from ¥252 million in the previous year to ¥260 million, negative cash flow from operating activities narrowed from ¥515 million to ¥485 million. - FY2022-Q3RestatedAnnual report
「The Group has continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent since before the previous consolidated fiscal year, and continued losses may raise concerns about cash management. In the cumulative third quarter of the current fiscal year, it also recorded an operating loss of ¥227.753 million, an ordinary loss of ¥250.190 million and a quarterly net loss attributable to owners of the parent of ¥268.434 million. As a result, circumstances exist that raise substantial doubt about the going concern assumption.」
The Company continues to disclose ongoing operating, ordinary and net losses, concerns about cash flow and significant doubt regarding the going concern assumption. Compared with the same period of the previous year, the operating loss was at roughly the same level, while the ordinary loss and quarterly net loss widened. - FY2022-Q2RestatedAnnual report
「During the six-month period of the current consolidated fiscal year, the company recorded an operating loss of ¥155.220 million, an ordinary loss of ¥162.098 million, and a quarterly net loss of ¥180.032 million attributable to owners of the parent. As a result, circumstances exist that raise substantial doubt about the going-concern assumption.」
The disclosure continues to cite ongoing operating, ordinary and net losses and material doubts regarding the going-concern assumption. Although the loss decreased year on year in the cumulative second quarter, operating cash flow was an outflow of ¥174.768 million, and material uncertainty has also been identified. - FY2022-Q1RestatedAnnual report
「The Group has continued to report operating losses, ordinary losses and net losses attributable to owners of the parent since the previous consolidated fiscal year and earlier, and continued losses may raise concerns about its cash flow. During the nine months ended the first quarter of the current fiscal year, the Group also recorded an operating loss of ¥89.823 million, an ordinary loss of ¥93.116 million and a quarterly net loss attributable to owners of the parent of ¥93.964 million. As a result, conditions exist that raise substantial doubt about the Group’s ability to continue as a going concern.」
An operating loss of ¥89.823 million, an ordinary loss of ¥93.116 million and a quarterly net loss of ¥93.964 million were recorded. Continued losses, concerns over cash management and material doubt regarding the going concern assumption continue to be disclosed. - FY2021WorsenedAnnual report
「During the current consolidated fiscal year, the company recorded an operating loss of ¥252.479 million, an ordinary loss of ¥272.124 million, and a net loss attributable to owners of the parent of ¥348.374 million. As a result, circumstances exist that raise significant doubt about the going-concern assumption.」
The company recorded an operating loss of ¥252 million, an ordinary loss of ¥272 million and a net loss attributable to owners of the parent of ¥348 million, while operating cash flow was also negative at ¥515 million. Material uncertainty regarding the going concern assumption continues to exist. - FY2021-Q3WorsenedAnnual report
「For the nine months ended 31 December, the Group recorded a significant operating loss of ¥227 million and an ordinary loss of ¥247 million. As a result, events or circumstances giving rise to significant doubt about the going concern assumption exist. The Group is taking measures to improve or resolve these events or circumstances at an early stage, but significant uncertainty regarding the going concern assumption remains at present.」
The company recorded an operating loss of ¥227 million and an ordinary loss of ¥247 million, and material uncertainty related to the going concern assumption continues. Losses widened from an operating loss of ¥130 million and an ordinary loss of ¥133 million in the cumulative period through the previous quarter. - FY2021-Q2WorsenedAnnual report
「During the six months ended the second quarter of the current fiscal year, the Group recorded an operating loss of ¥173.884 million, an ordinary loss of ¥192.568 million and a quarterly net loss attributable to owners of the parent of ¥193.188 million. Operating cash flow was also negative at ¥426.512 million. As a result, conditions exist that raise substantial doubt about the Group’s ability to continue as a going concern.」
The company recorded an operating loss and an ordinary loss, while negative cash flow from operating activities was ¥426 million. The outflow widened from the ¥193 million negative figure in the same period of the previous year, and significant uncertainty regarding the going-concern assumption also continues. - FY2021-Q1WorsenedAnnual report
「The Group has continuously recorded operating losses, ordinary losses and net losses attributable to owners of the parent since before the previous consolidated fiscal year. Because continued losses may raise concerns over cash management and the Group was in a net liabilities position during the nine months ended June 2025, circumstances exist that may give rise to material doubt regarding the going concern assumption.」
In addition to recurring losses and concerns about cash management, the company explicitly states that it became insolvent during the first quarter of the current consolidated fiscal year. Net assets were negative ¥72 million, operating loss was ¥90 million, and ordinary loss was ¥91 million, and significant uncertainty regarding the going-concern assumption continues to be recognized. - FY2020WorsenedAnnual report
「The group recorded an operating loss during the consolidated fiscal year under review and negative cash flow from operating activities. As a result, circumstances exist that raise substantial doubt about the going-concern assumption.」
The Company recorded an operating loss of ¥167 million and negative operating cash flow of ¥6 million, and the situation involving substantial doubt about the going-concern assumption continues. Consolidated net assets declined from ¥495 million in the previous year to ¥19 million, and material uncertainty is also recognised. - FY2020-Q3RestatedAnnual report
「During the nine months ended [the current third quarter], the Group recorded a material operating loss of ¥176 million and an ordinary loss of ¥181 million. As a result, events or conditions exist that raise substantial doubt about the Group’s ability to continue as a going concern.」
Although the operating and ordinary losses narrowed from the same period of the previous year, the situation involving material doubt regarding the going concern assumption and recognition of material uncertainty continues. The quarterly net loss attributable to owners of the parent was ¥355 million, and net assets had declined to ¥23 million. - FY2020-Q2WorsenedAnnual report
「For the six months ended 30 September, the Group recorded an operating loss of ¥130,191 thousand, an ordinary loss of ¥133,909 thousand and a quarterly net loss attributable to owners of the parent of ¥308,217 thousand. Operating cash flow was also negative at ¥193,013 thousand, and these circumstances give rise to significant doubt about the going concern assumption.」
An operating loss of ¥130 million, an ordinary loss of ¥133 million and a quarterly net loss attributable to owners of the parent of ¥308 million were recorded, while operating cash flow was also negative at ¥193 million. Operating losses, ordinary losses and net losses widened year on year, and material uncertainty regarding the going concern assumption continues. - FY2020-Q1RestatedAnnual report
「Although our group is undertaking measures to improve and resolve the relevant events or circumstances at an early stage, material uncertainty remains regarding the going-concern assumption at this time.」
The Company recorded an operating loss of ¥52.320 million, an ordinary loss of ¥54.603 million and a quarterly net loss attributable to owners of the parent of ¥237.766 million. Although it continues to implement measures, material uncertainty regarding the going-concern assumption remains. - FY2019WorsenedAnnual report
「In the previous consolidated fiscal year, the Group recorded a significant operating loss of ¥284,827 thousand, an ordinary loss of ¥292,495 thousand and a net loss attributable to owners of the parent of ¥582,181 thousand. In the current consolidated fiscal year, it also recorded an operating loss of ¥362,116 thousand, an ordinary loss of ¥399,757 thousand and a net loss attributable to owners of the parent of ¥161,314 thousand, and circumstances exist that raise substantial doubt about the Group's ability to continue as a going concern.」
The Company recorded an operating loss of ¥362 million and an ordinary loss of ¥399 million in the current fiscal year, while operating cash flow was negative ¥387 million. Material uncertainty related to the going concern assumption continues to be recognized. - FY2019-Q3WorsenedAnnual report
「During the nine months ended [the current third quarter], the Group recorded a material operating loss of ¥306 million and an ordinary loss of ¥308 million. As a result, events or conditions exist that raise substantial doubt about the Group’s ability to continue as a going concern.」
The operating loss for the nine-month cumulative period was ¥306 million, and the ordinary loss was ¥308 million. The Company remains in a situation where material doubt exists regarding the going-concern assumption. It states that material uncertainty remains at this time even after implementing measures. - FY2019-Q2WorsenedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, the Group recorded a significant operating loss of ¥116 million and an ordinary loss of ¥113 million. As a result, events or conditions exist that raise substantial doubt about the going-concern assumption.」
For the cumulative second quarter, the Company recorded an operating loss of ¥116 million and an ordinary loss of ¥113 million, while operating cash flow was also negative at ¥259.784 million. The outflow increased from the ¥202.489 million negative operating cash flow in the same period of the previous year, and material uncertainty regarding the going-concern assumption continues to be recognized. - FY2019-Q1WorsenedAnnual report
「Although our group is undertaking measures to improve and resolve the relevant events or circumstances at an early stage, material uncertainty remains regarding the going-concern assumption at this time.」
The Company recorded an operating loss of ¥65,810 thousand, an ordinary loss of ¥68,606 thousand and a quarterly net loss attributable to owners of the parent of ¥49,883 thousand. Although it is taking measures, it explicitly states that significant uncertainty remains in this instance. - FY2018-Q3WorsenedAnnual report
「The group recorded an operating loss of ¥236 million during the nine-month period of the current consolidated fiscal year and recognizes that events or circumstances exist that raise substantial doubt about the going-concern assumption, as it has recorded negative cash flow from operating activities for 3 consecutive fiscal years through the previous consolidated fiscal year.」
The operating loss for the nine-month cumulative period increased to ¥236 million from ¥153 million in the previous cumulative quarter. The Company states that negative operating cash flow continued for 3 consecutive fiscal years through the previous consolidated fiscal year. - FY2018-Q2WorsenedAnnual report
「The Group recorded an operating loss of ¥153.169 million for the six months ended September 2025 and had recorded negative operating cash flow for 3 consecutive fiscal years through the previous consolidated fiscal year. Accordingly, the Group recognizes that events or circumstances exist that may give rise to material doubt regarding the going concern assumption.」
The Company recorded an operating loss of ¥153.169 million for the six-month cumulative period and negative cash flow from operating activities of ¥202.489 million. It had reported negative operating cash flow for 3 consecutive fiscal years through the previous fiscal year, and going-concern risk continues. - FY2018-Q1WorsenedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, the Group recorded an operating loss of ¥111.224 million. In light of the fact that it had recorded negative operating cash flow for 3 consecutive fiscal years through the previous consolidated fiscal year, the Group recognises that events or conditions exist that raise substantial doubt about the going-concern assumption.」
The Company recorded an operating loss of ¥111.224 million and disclosed that negative operating cash flow had continued for 3 consecutive fiscal years through the previous consolidated fiscal year. The duration increased from 2 consecutive years in the previous year. - FY2017WorsenedAnnual report
「During the current consolidated fiscal year, our group recorded an operating loss, and operating cash flow was also negative. We have continued to record negative operating cash flow. As a result, circumstances exist that raise significant doubt about the going-concern assumption.」
Negative operating cash flow continued, amounting to a negative ¥495,677 thousand in the consolidated fiscal year under review. The outflow increased from the negative ¥230,119 thousand recorded in the previous fiscal year, and the company also recorded an operating loss of ¥117,074 thousand. Meanwhile, it has determined that no material uncertainty exists as a result of specific measures taken. - FY2017-Q3RestatedAnnual report
「The group recorded an operating loss of ¥50,706 thousand during the cumulative third quarter and recorded negative cash flow from operating activities for 2 consecutive fiscal years through the previous consolidated fiscal year. Accordingly, it recognizes that events or conditions exist that raise substantial doubt about the going-concern assumption.」
The Company recorded an operating loss of ¥50.706 million for the cumulative third quarter and explains that operating cash flow remained negative for 2 consecutive fiscal years through the previous consolidated fiscal year. Meanwhile, it has determined that no material uncertainty is recognized due to the response measures. - FY2017-Q2RestatedAnnual report
「Cash decreased as a result of operating activities by ¥124 million, compared with a decrease of ¥128 million in the same period of the previous year.」
Operating cash flow for the six-month cumulative period was negative ¥124 million, and cash outflows from operating activities continued, as in the same period of the previous year. - FY2017-Q1RestatedAnnual report
「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is explained that there have been no material changes to the previous year’s risk disclosures, including going-concern risk due to consistently negative operating cash flow. - FY2016MaterialisedAnnual report
「The Group recorded a significant operating loss in the previous fiscal year, and operating cash flow was also substantially negative. Operating cash flow remained negative in the fiscal year under review, and the Group has continued to report negative operating cash flow.」
Operating cash flow for the fiscal year was negative ¥230 million, and the Company identifies this as a circumstance giving rise to substantial doubt about the going-concern assumption.