Difficulty eliminating negative net worth due to failure to meet targets for the existing and Chinese uniform businesses
First written in FY2018-Q3. 1 of 2 entries say "Mitigated", first in FY2018. Latest entry: FY2018.
The whole theme swung hardest in 2020: 2 of 9 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2018MitigatedAnnual report
「The operating cash flow deficit that had continued since the preceding fiscal year and earlier turned positive in the current consolidated fiscal year, and the excess of liabilities over assets had been eliminated as of the end of the current consolidated fiscal year.」
From the previous quarter's position that eliminating the negative net worth was difficult because the existing business and Chinese uniform business had failed to meet their plans, the company had eliminated its negative net worth by the end of the fiscal year. - FY2018-Q3First statedAnnual report
「The capital increase was also intended to eliminate the excess of liabilities over assets for the fiscal year ended January 2018. However, because the existing business and the uniform business operated by the Chinese subsidiary failed to meet their targets during the 9-month period of the current consolidated fiscal year, it has become difficult to eliminate the excess of liabilities over assets by the end of the current consolidated fiscal year using earnings from those businesses.」
The disclosure states that, because the existing business and the Chinese subsidiary's uniform business failed to meet their business-plan targets, it became difficult to eliminate the negative net worth as planned in connection with the capital increase for the fiscal year ended January 2018.