Regulatory, infrastructure, political, economic and foreign exchange risks associated with overseas expansion
First written in FY2016. 5 of 18 entries say "Worsened", first in FY2017-Q3. Latest entry: FY2024.
Gokurakuyu Holdings moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2025: 70 of 110 companies on the "Worse" side.
18 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「The company had operated hot-spring bathing facilities in China, but following the sale of its shares in its consolidated Chinese subsidiaries on 1 November 2023, the China Group (11 consolidated Chinese subsidiaries) was removed from the scope of consolidation at the end of December 2023. As a result, the impact of this risk on the Group's operating performance and financial position has been substantially reduced.」
It states that the impact on the Group of overseas expansion risks related to Chinese laws and regulations, political and economic conditions, and social infrastructure has been substantially reduced following the exclusion from consolidation. - FY2024-Q3MitigatedAnnual report
「The company had operated hot-spring bathing facilities in China, but following the sale of its shares in its consolidated Chinese subsidiaries on 1 November 2023, the China Group (11 consolidated Chinese subsidiaries) was removed from the scope of consolidation at the end of December 2023. As a result, the impact of this risk on the Group's operating performance and financial position has been substantially reduced.」
It states that the impact of regulatory, political and economic, and social infrastructure risks associated with overseas operations on the Group's results and financial position has been substantially reduced following the exclusion of the China Group from consolidation. - FY2023RestatedAnnual report
「Going forward, political and economic factors in China inherently carry the risk that obstacles to business activities arising from ① changes in laws and tax regulations, ② underdeveloped social systems and infrastructure, ③ investment restrictions and restrictions on the repatriation of earnings, and ④ other economic, social and political circumstances may materialize.」
The company has restated the overseas business risks arising from Chinese laws and regulations, social infrastructure, investment and remittance restrictions, and political and economic factors. - FY2022ReframedAnnual report
「Going forward, political and economic factors in China inherently carry the risk that obstacles to business activities arising from ① changes in laws and tax regulations, ② underdeveloped social systems and infrastructure, ③ investment restrictions and restrictions on the repatriation of earnings, and ④ other economic, social and political circumstances may materialize.」
Investment restrictions and restrictions on the repatriation of earnings are explicitly added to the previously identified overseas regulatory, infrastructure, political and economic risks. - FY2022-Q3MitigatedAnnual report
「Foreign exchange gains 240,645」
Foreign exchange gains for the cumulative third quarter amounted to ¥240.645 million, up from foreign exchange gains of ¥106.712 million in the same period of the previous year. The impact of foreign exchange on profit and loss has improved since the previous disclosure. - FY2021-Q3MitigatedAnnual report
「Foreign exchange gains 106,712」
Compared with foreign exchange losses in the same period of the previous year, the cumulative third quarter produced foreign exchange gains of ¥106.712 million, indicating an improvement in the impact of foreign exchange on profit and loss. - FY2021-Q2MitigatedAnnual report
「Foreign exchange gains 51,810」
Compared with foreign exchange losses of ¥219.722 million recorded in the same period of the previous year, the cumulative second quarter produced foreign exchange gains of ¥51.810 million, indicating an improvement in the impact of foreign exchange on profit and loss during the period. - FY2020-Q2WorsenedAnnual report
「Foreign exchange losses 219,722」
Foreign exchange losses of ¥219 million were recorded for the cumulative second quarter, with the impact increasing from ¥99 million in the same period of the previous year and ¥135 million in the first quarter. - FY2020-Q1WorsenedAnnual report
「Foreign exchange losses 135,828」
Foreign exchange losses of ¥135 million were recorded in the first quarter, and the foreign exchange impact increased from ¥71 million in the same period of the previous year. - FY2019-Q3WorsenedAnnual report
「Foreign exchange losses 152,262」
Foreign exchange losses of ¥152 million were recorded for the cumulative third quarter, while the foreign currency translation adjustment decreased by ¥287 million in other comprehensive income. The foreign exchange effects associated with overseas operations continue to materialize. - FY2019-Q2WorsenedAnnual report
「Foreign exchange losses 99,837」
Foreign exchange losses of ¥99 million were recorded for the cumulative second quarter. The cumulative impact increased from ¥71 million in the previous cumulative quarter, indicating that the foreign exchange effects associated with overseas operations continue to materialize. - FY2019-Q1MaterialisedAnnual report
「Foreign exchange losses 71,090」
Foreign exchange losses of ¥71 million were recorded in the first quarter, and the foreign currency translation adjustment also decreased from the end of the previous consolidated fiscal year. - FY2018RestatedAnnual report
「Overseas business expansion inherently carries the risk that obstacles to business activities arising from ① changes in laws and tax regulations, ② underdeveloped social systems and infrastructure, and ③ other economic, social and political circumstances may materialize. If these issues arise, they could disrupt overseas business activities and affect the Group's operating results or financial condition. In preparing the Group's consolidated financial statements, the financial statements of overseas consolidated subsidiaries are translated into yen, and significant fluctuations in exchange rates could affect the Group's operating results or financial condition.」
The risks associated with overseas laws and regulations, infrastructure, and political and economic conditions, as well as foreign exchange risk arising from translating the financial statements of overseas subsidiaries into yen, continue to be described. - FY2018-Q1MaterialisedAnnual report
「This was mainly because non-controlling interests increased by ¥36 million, while the foreign currency translation adjustment decreased by ¥77 million due to foreign exchange effects.」
It states that the foreign currency translation adjustment decreased by ¥77 million from the end of the previous consolidated fiscal year due to foreign exchange effects. - FY2017MaterialisedAnnual report
「However, due to foreign exchange movements, segment sales on a yen basis decreased by 9.5%, while operating profit increased by 49.6%.」
It states that foreign exchange movements actually affected yen-denominated sales and operating profit in the China segment. The foreign currency translation adjustment also decreased by ¥270.475 million during the period. - FY2017-Q3WorsenedAnnual report
「Foreign exchange losses 137,935」
Foreign exchange losses increased from ¥112 million for the cumulative second quarter to ¥137 million for the cumulative third quarter, while the foreign currency translation adjustment changed from ¥214 million at the end of the previous consolidated fiscal year to negative ¥72 million. - FY2017-Q2MaterialisedAnnual report
「Foreign exchange losses 112,360」
Regarding foreign exchange risk associated with overseas expansion, foreign exchange losses of ¥112 million were recorded for the cumulative second quarter, while the foreign currency translation adjustment also decreased by ¥268 million from the end of the previous consolidated fiscal year. - FY2016First statedAnnual report
「Overseas business expansion inherently carries the risk that obstacles to business activities arising from ① changes in laws and tax regulations, ② underdeveloped social systems and infrastructure, and ③ other economic, social and political circumstances may materialize. If these issues arise, they could disrupt overseas business activities and affect the Group's operating results or financial condition.」
In addition to the initial investment and time required before overseas stores begin operating, the effects of local systems and foreign currency translation are identified.