Risk of failing to recoup investment in new services and products
First written in FY2016. 3 of 6 entries say "Materialised", first in FY2024-Q3. Latest entry: FY2025-H1.
Netyear Group moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2018: 4 of 18 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2025-H1MaterialisedAnnual report
「During the current interim accounting period, the Company recorded an impairment loss of ¥90 million on shares classified as other securities. For shares and other securities without a market price, the Company recognizes impairment losses, taking into account the possibility of recovery, when their real value declines significantly due to deterioration in financial condition.」
In connection with the risk of failing to recoup investment in new services and products, the impairment loss of ¥90 million recorded on shares classified as other securities materialized in actual earnings. - FY2024MaterialisedAnnual report
「In terms of earnings, profit decreased from the previous fiscal year due to lower revenue and higher service development costs for the following fiscal year and beyond, as well as higher costs associated with securing and training personnel.」
Higher service development costs and costs for securing and training personnel were identified as factors behind the decline in profit and materialized in actual earnings. - FY2024-Q3MaterialisedAnnual report
「In terms of earnings, in addition to the decrease in profit resulting from lower revenue, higher service development costs for the following fiscal year and beyond and higher costs associated with securing and training personnel resulted in an operating loss.」
Higher service development costs and costs for securing and training personnel were identified as factors behind the operating loss, and the risk of lower profit margins from additional investment materialized in actual earnings. - FY2023Risk restatedAnnual report
「The Company plans to pursue the development of new services to expand the scale of its business and establish new sources of revenue. Additional investments, including securing personnel and developing products, may be required and could worsen earnings. It is also expected to take a certain period of time and investment before new services begin to generate stable revenue, potentially reducing the overall profit margin.」
The risk of failing to recoup investment in new services and products, which had previously ceased to be disclosed as a separate item, was restated as a risk involving additional investment, the time required to monetize the services and the possibility of lower profit margins. - FY2018DroppedAnnual reportThe current year's business and other risks do not separately identify the risk of failing to recoup investment in new services and products.
- FY2016First statedAnnual report
「If additional expenditures such as development and sales promotion costs are incurred, profit margins may decline. In addition, if development or sales do not progress as planned, the investment may not be recouped, potentially affecting the Group's operating results and financial position.」
Investment risk associated with strengthening the product business.