Legal and Regulatory, Political, and Foreign Exchange Risks Related to Overseas Operations
First written in FY2016. 5 of 8 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2023-Q1.
GMO Payment Gateway moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2025: 72 of 118 companies on the "Worse" side.
23 other companies' latest entry also says "Materialised".
- FY2023-Q1MaterialisedAnnual report
「This was due to financial expenses of ¥614.509 million, including a foreign exchange loss of ¥457.899 million.」
Regarding foreign exchange fluctuation risks associated with overseas operations and other activities, a foreign exchange loss of ¥457.899 million arose in the first quarter under review and contributed to the recognition of financial expenses. - FY2021ReframedAnnual report
「Our Group is accelerating its overseas business expansion and operates lending services as a financial-related business in addition to its payment processing business. Overseas business operations are subject to risks including unexpected changes in laws and regulations and changes in the economic environment, as well as social or political turmoil caused by war, terrorism, conflict or other factors. These events may affect our Group's operating results through the emergence of bad-debt risks in the lending services business and foreign exchange risks, among others.」
The company reorganized its explanation of the overseas business risks that emerged at Macro Kiosk Berhad around its current business structure, which is accelerating overseas payment processing and lending services, and explicitly identified bad-debt risk. - FY2020-Q3MaterialisedAnnual report
「After comprehensively considering the deterioration in profitability of overseas operations, the burden of upfront investment, excess liabilities, and increasing uncertainties and risks that were difficult for our company to control, including the spread of the novel coronavirus across Asia, including Malaysia, from the end of January 2020 and a large-scale recession, we decided to transfer all shares in Macro Kiosk Berhad held by our company through its subsidiary to Goh Chee Ken, Goh Chee Heng and Goh Chee Seng, the company's founders and current management, 3 people.」
The transfer of all shares in Macro Kiosk Berhad, decided on the grounds of uncertainty including deteriorating profitability in overseas operations and the spread of the novel coronavirus, was completed on 18 May 2020. - FY2020-Q2MaterialisedAnnual report
「After comprehensively considering the deterioration in profitability of overseas operations, the burden of upfront investment, excess liabilities, and increasing uncertainties and risks that were difficult for our company to control, including the spread of the novel coronavirus across Asia, including Malaysia, from the end of January 2020 and a large-scale recession, we decided to transfer all shares in Macro Kiosk Berhad held by our company through its subsidiary to Goh Chee Ken, Goh Chee Heng and Goh Chee Seng, the company's founders and current management, 3 people.」
The company explained that uncertainties and risks had increased due to deteriorating profitability in overseas operations, the burden of upfront investment, excess liabilities, the spread of the novel coronavirus in Asia and a large-scale recession, and decided to transfer all shares in Macro Kiosk Berhad. - FY2019WorsenedAnnual report
「At the same time, because the burden of costs associated with upfront investment to establish a business base in emerging markets was substantial and we determined that the outlook for generating the medium-term earnings originally anticipated remained uncertain, we reduced the carrying amount of the asset to its recoverable amount of ¥336.974 million and recognized an impairment loss of ¥992.503 million as other expenses in the consolidated statement of income.」
As the burden of upfront investment in overseas operations and the uncertainty surrounding earnings generation increased, an impairment loss of ¥992.503 million was recognized for Macro Kiosk Berhad. - FY2018MaterialisedAnnual report
「In light of these current conditions, the surrounding market environment and competitors' movements, we determined that the company was unlikely to achieve the medium-term plan initially formulated when it became a subsidiary. Accordingly, we recognized an impairment loss on goodwill of ¥359.469 million.」
For Macro Kiosk Berhad, the likelihood of failing to achieve the original medium-term plan increased following a decline in revenue from the MPS business and other factors, and an impairment loss of ¥359.469 million was recognized on goodwill. - FY2018-Q3MaterialisedAnnual report
「However, because foreign exchange losses arose from fluctuations in foreign exchange rates, profit declined year on year.」
For the overseas subsidiary Macro Kiosk Berhad, foreign exchange fluctuations previously identified as a risk actually resulted in foreign exchange losses and became a factor behind the year-on-year decline in profit. - FY2016First statedAnnual report
「Overseas business operations are subject to risks including unexpected changes in laws and regulations and changes in the economic environment. In addition, social or political turmoil caused by war, terrorism, conflict or other factors, as well as foreign exchange risks associated with lending, may affect our Group's operating results through fluctuations in foreign exchange rates.」
The company summarizes the risks associated with overseas expansion, including laws and regulations, the economic environment, political and social conditions such as war and terrorism, lending and foreign exchange fluctuations.