Risks Related to the Success or Failure of Large-Scale Capital Investments and Depreciation Burden
First written in FY2020. 1 of 3 entries say "Reframed", first in FY2021. Latest entry: FY2023.
0 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「These are investments aimed at significantly expanding the company’s business, but if they fail to deliver the expected investment benefits and we are unable to absorb the invested capital, depreciation burden and other costs, they could affect the company’s operating results and other financial metrics.」
The company continues to identify the investment benefits, invested capital and depreciation burden associated with large-scale capital investments such as the new factory as risks. - FY2021ReframedAnnual report
「We have completed construction of a new factory to expand production of mochi products, including arare and okaki rice crackers, and accelerate product development, as well as expansion work to relocate and consolidate aging factories in order to reduce manufacturing costs. These projects represent large-scale capital investments for the company, and if we are unable to absorb the invested capital, depreciation burden and other costs, they could affect the company’s operating results and other financial metrics.」
Construction of the new factory and the relocation and consolidation of aging factories have been completed, shifting the focus of the risk from the planning and construction stages to the absorption of invested capital and depreciation burdens. - FY2020First statedAnnual report
「These projects involve large-scale construction for the company and carry a significant depreciation burden. Depending on their success or failure, they could affect the company’s operating results and other financial metrics.」
The company has identified the scale of construction, depreciation burden, and the potential earnings impact of the success or failure of investments in the construction of BEIKA Lab and the relocation and expansion of factories as new risks.