Risk of delays in new factories and capital investment and failure to achieve the expected benefits
First written in FY2019. 4 of 9 entries say "Restated". Latest entry: 2026-11-12.
Matsuoka moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 13 of 34 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026MaterialisedAnnual report
「During the current consolidated fiscal year, the Company returned a leased property used as a warehouse by AN NAM MATSUOKA GARMENT CO.,LTD. Accordingly, for assets with no expected future use, the recoverable amount was set at zero and their full carrying amount was recognized as an impairment loss under extraordinary losses.」
Due to lower profitability and reduced prospects for use of overseas production equipment and other assets, an impairment loss of ¥204 million was actually recognized for the warehouse and other assets of AN NAM. - FY2025RestatedAnnual report
「If profitability declines due to changes in the business environment or other factors, the Group may recognize impairment losses on tangible fixed assets, such as production equipment held overseas, and intangible assets, such as right-of-use assets.」
The impairment risk arising from lower profitability of overseas production equipment and other assets continues to be disclosed together with measures including the assessment of impairment indicators and profitability improvement plans. - FY2023-Q3RestatedAnnual report
「Regarding production conditions, upfront expenses associated with the construction of new factories and rising production costs due to the rapid depreciation of the yen affected profit as factors pushing it down.」
Upfront costs associated with the new factory under construction continue to weigh on profit. The cost burden continues until the benefits of constructing the new factory are realized. - FY2023-Q2RestatedAnnual report
「While the Group generally maintained a solid production structure, upfront costs at a new production base under construction and higher production costs resulting from the sharp depreciation of the yen, among other factors, weighed on profit.」
Upfront costs associated with the new production base under construction continued to weigh on profit. - FY2022-Q3MaterialisedAnnual report
「Although production capacity recovered, as did orders and sales, the production situation was affected by upfront costs at a new production base under construction and costs temporarily incurred through productivity improvement initiatives at some factories, which weighed on profit.」
Upfront costs associated with construction of a new production base and temporary costs associated with productivity improvement initiatives actually weighed on profit. - FY2020MaterialisedAnnual report
「The inability to improve the productivity of new factories that began operations in recent years due to sluggish order growth」
The Company explained that it was unable to improve the productivity of its new factories because of sluggish order growth, indicating that the risk of failing to achieve the expected benefits of capital investment has materialized in actual business conditions. - FY2019First statedAnnual report
「If these projects do not progress smoothly, the capital investment schedule may be delayed. In addition, immediately after a new factory begins operations, production efficiency temporarily declines because production lines must be adjusted, machinery must undergo trial operation and workers must be trained.」
The risks of delays in capital investment due to permits and approvals for factory construction and rebuilding, infrastructure, recruitment and initial operating adjustments and training, as well as lower production efficiency, deteriorating profit margins and impairment, were disclosed in an organized manner for the first time.