Going-concern risk in the information and communications-related business and focus on the reuse business
First written in FY2023. 5 of 8 entries say "Mitigated", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2025: 2 of 11 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As a result, operating profit for the current consolidated fiscal year was ¥126.570 million, compared with an operating loss of ¥165.842 million in the previous consolidated fiscal year, while cash flow from operating activities was negative ¥13.560 million, compared with negative ¥672.970 million in the previous consolidated fiscal year. Operating profit and operating cash flow therefore improved substantially.」
The material event remains because operating cash flow has been negative for 4 consecutive periods, but the operating result turned from a loss to a profit of ¥126.570 million and the negative operating cash flow narrowed substantially. The company therefore determined that no material uncertainty exists. - FY2026-H1MitigatedAnnual report
「During the current interim consolidated accounting period, operating profit improved substantially to ¥147.480 million, compared with an operating loss of ¥122.993 million in the same period of the previous year, and cash flow from operating activities improved to ¥12.271 million, compared with negative ¥238.719 million in the same period of the previous year.」
Regarding the material event relating to the going-concern assumption arising from past losses and negative operating cash flow, including those in the information and communications-related business, the company has determined that no material uncertainty exists because operating profit and operating cash flow improved following the transfer of ReYuu shares and other measures. - FY2024MitigatedAnnual report
「In addition, together with a substantial reduction in costs, the segment loss for the current consolidated fiscal year was ¥116.963 million, an improvement of ¥127.660 million from ¥244.624 million in the previous fiscal year.」
The material event remains because the information and communications-related business continues to report an operating loss, but the loss narrowed by ¥127.660 million. The company also entered into a capital and business alliance with AIF and carried out a ¥677.418 million third-party allotment, and has disclosed its response, including its financial position. - FY2024-H1RestatedAnnual report
「While operating multiple businesses, the group has continued to report operating losses since the consolidated fiscal year ended December 2022 because the spread of COVID-19 affected the information and communications-related business through procurement difficulties and other issues. As it continues to report an operating loss for the current interim consolidated accounting period, events or circumstances exist that raise substantial doubt about the going-concern assumption.」
The disclosure states that the operating loss in the information and communications-related business and the material event relating to the going-concern assumption have continued since the fiscal year ended December 2022 and during the current interim consolidated accounting period. However, the company has determined that no material uncertainty exists because of its concentration on the reuse business, expectations of a return to profitability, and support from financial institutions. - FY2024-Q1RestatedAnnual report
「While operating multiple businesses, the group has continued to report operating losses since the consolidated fiscal year ended December 2022 because the spread of COVID-19 affected the information and communications-related business through procurement difficulties and other issues. As it continues to report an operating loss for the cumulative period of the current quarter, events or circumstances exist that raise substantial doubt about the going-concern assumption.」
The disclosure states that the operating loss in the information and communications-related business and the material event relating to the going-concern assumption have continued since the fiscal year ended December 2022 and during the current quarter. However, the company has determined that no material uncertainty exists because of its concentration on the reuse business, expectations of a return to profitability, and support from financial institutions. - FY2023First statedAnnual report
「In the information and communications-related business, the group has continued to report substantial operating losses, ordinary losses, net losses attributable to owners of the parent, and negative operating cash flow since the previous consolidated fiscal year because the spread of COVID-19 caused difficulties in procurement and other effects. Accordingly, at the end of the current consolidated fiscal year, events or circumstances exist that raise substantial doubt about the going-concern assumption.」
Losses and negative operating cash flow have continued because of procurement difficulties and other issues in the information and communications-related business, and an event raising substantial doubt about the going-concern assumption has been newly disclosed. However, the company is addressing this by withdrawing from the mobile communications business and concentrating on the reuse business, and has determined that no material uncertainty exists.