Customer Credit and Receivables Collection Risk
First written in FY2017. 2 of 6 entries say "Mitigated", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2026: 19 of 65 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Increase during the period (provision) 17 - Decrease during the period (reversal) - 67 Balance at end of period 21 1,288」
The allowance for doubtful accounts on credit-impaired financial assets decreased by ¥67 million due to a reversal, bringing the balance at the end of the period to ¥1,288 million. Credit and collection risks remain, but no provision was recorded during the period. - FY2025MaterialisedAnnual report
「Increase during the period (provision) 0 172」
A provision of ¥172 million was recorded for the allowance for doubtful accounts on credit-impaired financial assets, bringing the balance at the end of the period to ¥1,356 million. The collection delay and non-collection risk related to the energy business that arose in the previous period remains reflected in the results. - FY2024MaterialisedAnnual report
「The increase in the allowance for doubtful accounts for credit-impaired assets in the current consolidated fiscal year primarily resulted from the Company's decision on 15 May 2024 to terminate the sales contract for the relevant solar power generation facilities with the business partner, after determining that completion of development of the facilities and commencement of electricity supply could no longer reasonably be expected due to substantial construction delays attributable to the business partner and delays in collecting trade receivables related to the sale of materials in the energy business. As a result, the Company determined that the rights to claim repayment of advance payments for the purchase of facilities from the respective business partners, as well as trade receivables related to the sale of materials and other receivables, might be uncollectible or subject to delayed collection, and recorded an allowance for doubtful accounts of ¥1,160 million, representing the full amount expected to be uncollectible.」
Regarding customer credit and trade receivables collection risk, construction and collection delays occurred in the energy business, and an allowance for doubtful accounts of ¥1,160 million was recorded for the amount expected to be uncollectible. - FY2020MitigatedAnnual report
「Because many of the Group's customers are highly creditworthy companies and other entities, credit risk is limited. In addition, the Group has no receivables that are past due, and the impact on impairment of operating receivables and contract assets and on the allowance for doubtful accounts is immaterial. Accordingly, disclosure of changes in the allowance for doubtful accounts has been omitted.」
The disclosure states that there are no past-due receivables and that customer credit risk is limited. - FY2019RestatedAnnual report
「Trade receivables, which are operating receivables, are exposed to customer credit risk, including the risk of contractual non-performance by business partners.」
Customer credit risk that could result in the non-collection of trade receivables has been restated as a financial instrument risk. - FY2017First statedAnnual report
「Trade receivables, which are operating receivables, are exposed to customer credit risk, including the risk of contractual non-performance by business partners.」
Customer credit risk associated with contractual non-performance by business partners and other factors has been explicitly disclosed for trade receivables for the first time.