Risk of Failing to Recoup Investments in Equipment and Equipment Obsolescence Due to Technological Innovation
First written in FY2017. 1 of 3 entries say "Restated". Latest entry: FY2020.
Hibino moved to the "Worse" side of this theme in 2020.
1 other company's latest entry also says "Reframed".
- FY2020ReframedAnnual report
「In addition to capitalising on our strengths, such as technical expertise and know-how, the Group is pursuing a transformation of its business model, shifting the source of value creation from tangible assets such as equipment to human capital.」
The response to the risks of insufficient recovery of equipment investments and obsolescence is being reframed as a business model transformation that shifts the source of value creation to human capital, rather than relying solely on differentiation through equipment ownership. - FY2018RestatedAnnual report
「In the concert sound and event video industries, it is essential to own the latest equipment in large quantities to differentiate ourselves from competitors, making continued investment in equipment unavoidable. Although we make equipment investments in a timely and appropriate manner, if we are unable to secure sufficient profits commensurate with the investment or if our equipment becomes obsolete as a result of rapid technological innovation, this could affect the financial position and operating results of the Group.」
The risks of insufficient recovery of equipment investments and obsolescence of owned equipment due to technological innovation are reiterated. - FY2017First statedAnnual report
「In the concert sound and event video industries, it is essential to own the latest equipment in large quantities to differentiate ourselves from competitors, making continued investment in equipment unavoidable. Although we make equipment investments in a timely and appropriate manner, if we are unable to secure sufficient profits commensurate with the investment or if our equipment becomes obsolete as a result of rapid technological innovation, this could affect the financial position and operating results of the Group.」
While equipment investment is necessary to maintain competitiveness, insufficient recovery of investments and equipment obsolescence due to rapid technological innovation are identified as risks.