Risk of Losses and Impairment at Awa Paper (Shanghai)
First written in FY2016. 3 of 5 entries say "Materialised", first in FY2016. Latest entry: FY2022-Q2.
Awa Paper & Technological Company moved to the "Worse" side of this theme in 2016, 9 years before the typical company in this theme (2025).
2 other companies' latest entry also says "Mitigated".
- FY2022-Q2MitigatedAnnual report
「阿波濾材（上海）有限公司, a consolidated subsidiary of the Company, completed its liquidation as of 17 September 2021.」
The liquidation of the Shanghai subsidiary, which had been subject to losses and impairment issues, has been completed. - FY2019MitigatedAnnual report
「Of the amount of the negative net worth, excluding the amount expected to be recoverable in the future, the Company has already recorded a provision in its financial statements, and the amount is also reflected in retained earnings and other items in the consolidated financial statements. Accordingly, it will not affect the Company's financial statements or consolidated financial statements going forward.」
阿波製紙（上海） remains a company with negative net worth, but the provision for the amount expected to be unrecoverable and its reflection in the consolidated financial statements are described. - FY2018MaterialisedAnnual report
「The loss on valuation of investments in affiliates represents the valuation loss on the investment arising from the capital increase subscribed for by the Company in preparation for the liquidation of its subsidiary, 阿波製紙（上海）有限公司.」
In connection with preparations for the liquidation of the Shanghai subsidiary, a ¥1,387.5 million loss on valuation of investments in affiliates was recorded. - FY2017-Q3MaterialisedAnnual report
「阿波製紙（上海）有限公司 was established as an overseas base for the manufacture and sale in the Chinese market of engine filtration materials among the automotive-related materials handled by the Group. Amid intensifying price competition in China, the Company had explored rationalisation measures, including deciding to scale back operations from the previous year. However, it decided to dissolve the company in order to transfer all manufacturing and sales operations in the Chinese market to the joint venture 滁州市国豊阿波濾材有限公司 in Anhui Province, China.」
As a response to the Shanghai subsidiary's losses and impairment issues, dissolution was approved on 9 February 2017. Approximately ¥85 million in special losses, including economic compensation payments to employees, was expected to be recorded in the fiscal year ending March 2017. - FY2016MaterialisedAnnual report
「阿波製紙（上海）有限公司, a consolidated subsidiary of the Company, has a persistent loss-making structure. Although it is working to reduce costs and strengthen sales activities in an effort to return to profitability, if these measures are unsuccessful, the time required to eliminate the losses may be prolonged and this could affect the performance of the Group.」
The Shanghai subsidiary is explicitly described as having a persistent loss-making structure. An impairment loss of ¥63.047 million was recorded for the current fiscal year, mainly due to deteriorating market conditions, reducing the carrying amount of its equipment to zero.