Operating and Market Risks of the Malaysian Polysilicon Business
First written in FY2016. 3 of 5 entries say "Mitigated", first in FY2017-Q1. Latest entry: FY2018-Q1.
No other company in this theme has enough history to compare yet.
- FY2018-Q1MitigatedAnnual report
「Tokuyama Malaysia Sdn.Bhd., which had been a specified subsidiary, was excluded from the scope of consolidation from the first quarter of the current fiscal year because we sold all of the shares we held in the company.」
The sale of all shares in Tokuyama Malaysia and its exclusion from the scope of consolidation reduced our direct exposure associated with owning, consolidating and operating the company. - FY2017-Q3RestatedAnnual report
「The new polysilicon plant built by our group in Sarawak, Malaysia, is large even compared with the plants at our group's existing overseas sites. If discrepancies arise in its stable operation or sales plans, or if unforeseeable changes in systems, laws or regulations, labor-management issues or other problems occur, they could have a significant impact on our group's operating results and financial position.」
For the Malaysian business, the group continues to disclose changes in systems, laws and regulations and labor-management issues, in addition to discrepancies in operating and sales plans, as ongoing risks associated with overseas operations. - FY2017-Q2MitigatedAnnual report
「We have made ongoing efforts to improve the facilities and raise productivity to maintain business operations, reaching a level at which a certain degree of productivity can be secured.」
The disclosure states that a certain level of productivity was achieved despite past technical problems and deteriorating market conditions, indicating reduced operating risk. However, the transfer to OCI remains subject to approval by competition authorities and other conditions, and the disclosure does not state that the risks have been fully resolved. - FY2017-Q1MitigatedAnnual report
「Operating income increased by ¥6,591 million year on year to ¥9,531 million, up 224.2% year on year, mainly due to improved capacity utilization and lower depreciation expenses at Tokuyama Malaysia Sdn. Bhd., as well as lower manufacturing costs resulting from the decline in raw material and fuel prices.」
Improved capacity utilization in the Malaysian business was cited as a factor contributing to higher operating income. However, increased prototyping costs at the company were also reported under non-operating expenses, and the disclosure does not state that the risks have been fully resolved. - FY2016MaterialisedAnnual report
「Net loss attributable to owners of the parent widened because an impairment loss of ¥123.875 billion was recorded for consolidated subsidiary Tokuyama Malaysia Sdn. Bhd.」
For the first-phase plant, it was determined that shipping samples for customer qualification was effectively impossible due to technical problems. For the second-phase plant, an impairment loss was recognized following a decline in selling prices caused by oversupply.