Delinquencies, Bad Debts and Collection Risk in the Digital Finance Business
First written in FY2017. 11 of 25 entries say "Restated". Latest entry: 2026-08-14.
Wedge Holdings moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 6 of 17 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- FY2026-H1WorsenedAnnual report
「Change in allowance for doubtful accounts (△ indicates a decrease) 27,354」
During the interim consolidated accounting period, the allowance for doubtful accounts increased by more than ¥27 million, expanding provisions for credit and collection risk. - FY2025WorsenedAnnual report
「Current assets increased by ¥1.468 billion to ¥2.946 billion. The main components were an increase of ¥1.145 billion in cash and deposits, an increase of ¥486 million in short-term loans receivable and an increase of ¥216 million in the allowance for doubtful accounts.」
While short-term loans receivable increased, the allowance for doubtful accounts also increased by ¥216 million from the end of the same period of the previous year, reflecting increased provisions for credit and collection risks. - FY2024MaterialisedAnnual report
「This was due to the recognition of an equity-method investment loss in the process of reviewing the income incorporated from equity-method affiliates for the current consolidated fiscal year, primarily reflecting a review of provisions for doubtful accounts based on the performance of Group Lease PCL.'s subsidiaries and the operating environments in the regions where the business operates, as well as provisions recognized in connection with the liquidation of a subsidiary and legal dispute costs and the resulting losses.」
A review of provisions for doubtful accounts based on operating conditions in the regions where the business operates, provisions associated with the liquidation of a subsidiary and legal dispute costs were actually incurred and recognized as an equity-method investment loss. - FY2024-Q1MaterialisedAnnual report
「This was due to the recognition of an equity-method investment loss of ¥590 million in the process of reviewing the income or loss incorporated from equity-method affiliates for the nine-month period of the current fiscal year, primarily reflecting a review of provisions for doubtful accounts based on the performance of Group Lease PCL.'s subsidiaries and the operating environments in the regions where the business operates, as well as the occurrence of foreign-exchange losses.」
Provisions for doubtful accounts were reviewed based on operating conditions in the regions where the business operates, resulting in the recognition of an equity-method investment loss of ¥590 million. Credit and collection risks have been reflected in actual loss recognition. - FY2023-Q3RestatedAnnual report
「In Myanmar, Laos and Sri Lanka, which are experiencing economic hardship, the prices of imported motorcycles and other products have risen sharply, in some cases to more than double. Potential customers' willingness to buy and their relative repayment capacity have declined, and conditions are not suitable for expanding leasing and similar businesses.」
In Myanmar, Laos and Sri Lanka, conditions continue to constrain the expansion of leasing as a result of surging product prices, reduced willingness to buy and lower repayment capacity. - FY2023-Q1RestatedAnnual report
「In Myanmar, Laos and Sri Lanka, which are experiencing economic hardship, the prices of imported motorcycles and other products have risen sharply, in some cases to more than double. Potential customers' willingness to buy and their relative repayment capacity have declined, and conditions are not suitable for expanding leasing and similar businesses.」
The company continues to explain that surging product prices, reduced willingness to buy and lower repayment capacity in Myanmar, Laos and Sri Lanka could lead to delinquencies and bad debts. - FY2022WorsenedAnnual report
「Prices of imported motorcycles and other products have risen sharply, in some cases to more than double, while potential customers' willingness to buy and their relative repayment capacity have declined. Conditions are not suitable for expanding leasing and similar businesses.」
The company explains that product prices in Myanmar, Laos and Sri Lanka have risen to more than double, while customers' willingness to buy and relative repayment capacity have declined. - FY2022-Q3RestatedAnnual report
「The group also suspended operations or closed temporarily due to lockdowns, coups and other events. As a conservative risk-management measure, it restrained new lending and focused on collections.」
In response to suspended operations and political upheaval, the company continues its policy of addressing delinquency and bad-debt risks by restraining new lending and focusing on the collection of operating loans. - FY2022-Q2RestatedAnnual report
「The group also suspended operations or closed temporarily due to lockdowns, coups and other events. As a conservative risk-management measure, it restrained new lending and focused on collections.」
In response to suspended operations and political upheaval, the company continues its policy of addressing delinquency and bad-debt risks by restraining new lending and focusing on the collection of operating loans. - FY2022-Q1RestatedAnnual report
「During this period, the group focused on ① collecting operating loans and ② tightening and restraining new-loan screening as its main measures in preparation for an economic downturn.」
The company continues its policy of addressing delinquency and bad-debt risks through collection of operating loans, stricter screening of new loans and restraint on lending. - FY2021MaterialisedAnnual report
「In addition, repayment delays occurred and bad debts increased substantially due to the impact of COVID-19 across Southeast Asia and the impact of the political upheaval in Myanmar.」
Repayment delays and increases in bad debts actually occurred due to economic deterioration, the COVID-19 pandemic and political upheaval. - FY2021-Q3RestatedAnnual report
「During this period, the group focused on ① collecting operating loans and ② tightening and restraining new-loan screening as its main measures in preparation for an economic downturn.」
The company continues its policy of addressing delinquency and bad-debt risks through collection of operating loans, stricter screening of new loans and restraint on lending. - FY2021-Q2RestatedAnnual report
「During this period, the group focused on ① collecting operating loans and ② tightening and restraining new-loan screening as its main measures in preparation for an economic downturn.」
The company continues its policy of addressing delinquency and bad-debt risks through collection of operating loans, stricter screening of new loans and restraint on lending. - FY2021-Q1RestatedAnnual report
「At the same time, we conservatively recognized special provisions for COVID-19 measures in preparation for customer repayment delays. The amount is currently considered appropriate, and collections have subsequently progressed more smoothly than expected.」
The company continues to explain that it recognized special provisions in preparation for customer repayment delays, while subsequent collections progressed more smoothly than expected. - FY2020RestatedAnnual report
「At the same time, we conservatively recognized special provisions for COVID-19 measures in preparation for customer repayment delays. The amount is currently considered appropriate, and collections have subsequently progressed more smoothly than expected.」
The company continues to explain that it recognized special provisions in preparation for customer repayment delays, while subsequent collections progressed more smoothly than expected. - FY2020-Q3MitigatedAnnual report
「At the same time, we increased special provisions in preparation for customer repayment delays, but collections have subsequently progressed more smoothly than expected. We therefore believe that profits will increase going forward as the number of new contracts rises and repayment delays decline.」
The company recognized special provisions in preparation for repayment delays caused by COVID-19, while explaining that subsequent collections progressed more smoothly than expected and that it anticipates higher profits through a reduction in repayment delays. - FY2020-Q2MaterialisedAnnual report
「Although cost reductions made some contribution to operating profit, profit declined as a result of recognizing special provisions in preparation for customer repayment delays caused by COVID-19.」
The company actually recognized special provisions in preparation for customer repayment delays caused by COVID-19. It explains that approximately THB82 million (approximately ¥289 million) was added to provisions in the Digital Finance business. - FY2020-Q1MitigatedAnnual report
「Profit increased as the company advanced business restructuring to improve the quality of its loan portfolio, with nonperforming loans and the effects of cost reductions making significant contributions.」
The company explains that business restructuring aimed at improving loan quality and measures addressing bad debts contributed to improved earnings, indicating progress in addressing delinquency, bad-debt and loan-quality issues. - FY2019MitigatedAnnual report
「As a result of structural reforms, including stricter screening of new loans to reduce bad debts and early collection of receivables before they become bad debts, operating cash flow improved due to a substantial decrease in operating loans.」
The company explains that stricter screening of new loans and early collection before receivables become bad debts led to a decrease in operating loans and an improvement in operating cash flow. - FY2019-Q3MitigatedAnnual report
「Structural reforms in sales and collections have progressed in Thailand and Cambodia, and preparations are under way for expanding sales and increasing profits from September onward, after the rainy season ends.」
The company explains that structural reforms in both sales and collections have progressed in Thailand and Cambodia, and that measures relating to receivables collection and quality have advanced. - FY2019-Q2RestatedAnnual report
「In Cambodia and Indonesia, as part of business-model restructuring, and also in Thailand, with the aim of improving the quality of the overall loan portfolio, we have reviewed the criteria for bad debts on a more conservative basis and are actively accelerating the accounting treatment of bad debts. As a result, current-quarter profit has been pressured.」
The company continues to improve loan quality by applying more conservative bad-debt criteria and accelerating the treatment of bad debts. - FY2018RestatedAnnual report
「We respond promptly when delinquencies occur and make every effort to preserve and collect receivables. If a bad debt occurs, we generally initiate procedures to terminate the loan agreement and seek to maximize recovery, including by selling collateral.」
The company continues to recognize delinquency and bad-debt risks and explains that preservation of receivables, contract termination and the sale of collateral are measures for addressing them. - FY2017First statedAnnual report
「We conduct rigorous transaction screening when entering into new loan contracts and maintain comprehensive credit controls thereafter. However, because the loan terms are long, unexpected events such as delinquencies and bad debts may occur as a result of economic fluctuations or other factors.」
The company conducts rigorous screening and credit management but recognises that long-term lending may result in delinquencies and bad debts due to economic fluctuations, potentially requiring additional loan-loss provisions.