Occurrence of Unprofitable Construction Projects
First written in FY2016. 2 of 6 entries say "Reframed", first in FY2021. Latest entry: FY2026.
Shin Nippon Air Technologies moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2021: 11 of 25 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「The company responds according to the characteristics of each risk and works to mitigate the impact if a risk materialises by confirming profitability when orders are received, managing construction costs, schedules and expected acceptance dates, scrutinising contract terms, diversifying suppliers, and establishing communication and initial-response systems for disasters.」
The risk of unprofitable construction projects has been reorganised as construction risk management covering profitability checks when orders are received, management of construction costs and schedules, scrutiny of contract terms, and supplier diversification. - FY2021ReframedAnnual report
「Revenue from completed construction work under the percentage-of-completion method and the recognition of provisions for construction losses depend heavily on estimates of total construction costs, the total expenditures for each construction contract. These estimates are calculated based on past results, taking into account market conditions for materials, subcontracting costs and other factors, as well as the construction conditions of each project. If total construction costs change significantly due to unforeseeable design or specification changes, construction delays, market fluctuations or other factors, the amounts of revenue from completed construction work and provisions for construction losses in the consolidated financial statements for the following consolidated fiscal year may be materially affected.」
The risk of unprofitable construction projects has been reorganised as an accounting risk covering estimation uncertainty relating to revenue from completed construction work under the percentage-of-completion method and provisions for construction losses, as well as design changes, delays and market fluctuations. - FY2020RaisedAnnual report
「If unprofitable construction projects arise due to a sharp rise in the prices of materials and equipment and labour costs caused by the economic environment, or due to unexpected additional construction costs, the company’s group financial position, operating results and other matters may be materially affected through the recognition of provisions for construction losses or other measures.」
The description of the risk of unprofitable construction projects has been expanded to expressly cover sharp increases in materials and equipment prices and labour costs, unexpected additional costs, and potentially material effects on the financial position and operating results. - FY2019MaterialisedAnnual report
「Although completed construction sales increased as the order environment remained firm, completed construction gross profit declined 5.9% year on year to ¥11.252 billion, owing to deteriorating profitability on certain large-scale projects, mainly in the Tokyo metropolitan area.」
For unprofitable construction projects, which had previously been described as a risk, deterioration in the profitability of certain large-scale projects, mainly in the Tokyo metropolitan area, was described as an actual factor contributing to lower profit. - FY2017RestatedAnnual report
「If an unprofitable construction project arises during the construction phase due to unexpected additional costs or other factors, the company’s performance may be affected through the recognition of a provision for construction losses or other measures.」
The company continues to recognise the risks of unprofitable construction projects caused by additional costs and provisions for construction losses. - FY2016First statedAnnual report
「If an unprofitable construction project arises during the construction phase due to unexpected additional costs or other factors, the company’s performance may be affected through the recognition of a provision for construction losses or other measures.」
The company recognises unprofitable construction projects caused by additional costs during construction and provisions for construction losses as performance risks.