Risk of insufficient profitability or failure to meet plans in new businesses
First written in FY2019. 3 of 5 entries say "Materialised", first in FY2021-Q2. Latest entry: FY2022.
Azplanning moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 15 of 49 companies on the "Worse" side.
25 other companies' latest entry also says "Materialised".
- FY2022MaterialisedAnnual report
「We are considering converting certain properties in the accommodation business to a different revenue model through relocation and have temporarily suspended their operations. As a result, revenue for the fiscal year was ¥474,084 thousand, down 17.6% year on year, and segment loss was ¥116,644 thousand, compared with a segment loss of ¥99,229 thousand in the previous fiscal year.」
In new and newly developed business areas, including the accommodation business, the suspension of operations associated with consideration of a shift to a different revenue model and the widening of segment losses have actually occurred. - FY2021MaterialisedAnnual report
「In the real estate leasing business, the Tohoku Hotel and its private lodging operations were significantly affected by the spread of COVID-19, resulting in an operating loss in the segment.」
The decline in utilization and segment losses have actually occurred in the Tohoku hotel and private lodging businesses, which had been treated as new businesses, due to the impact of infectious diseases. - FY2021-Q2MaterialisedAnnual report
「In the real estate leasing business segment, the carrying amount of private lodging facilities scheduled for withdrawal was reduced to the recoverable amount, and the reduction was recognized as an impairment loss. The impairment loss recognized during the six-month cumulative period of the current fiscal year was ¥24,822 thousand.」
The planned withdrawal from the private lodging facilities business, a new business, was disclosed, and an impairment loss of ¥24,822 thousand was recognized. The previously identified risks relating to profitability and failure to meet plans have materialized as a business reorganization and loss. - FY2020ReframedAnnual report
「We have launched new businesses, including the operation of accommodation facilities, such as private lodging facilities, under the Private Lodging Business Act. Although we are carefully examining the profitability of these new businesses, if the expected revenue is not generated or the businesses do not progress as planned, this could affect our operating results and other aspects of our business.」
Examples of new businesses have been reorganized from coworking offices and rental meeting rooms to focus primarily on private lodging facilities, while the risks of failing to achieve profitability or plans continue to be disclosed. - FY2019First statedAnnual report
「We have launched new businesses, including the operation of coworking offices and rental meeting rooms and the operation of business hotels in the Tohoku region. Although we are carefully examining the profitability of these new businesses, if the expected revenue is not generated or the businesses do not progress as planned, this could affect our operating results and other aspects of our business.」
We have identified the possibility that new businesses, including coworking offices, rental meeting rooms and business hotels in the Tohoku region, may fail to generate the expected revenue or progress as planned as risks.