Risk of recovering the investment in the Vietnam mining business
First written in FY2020. 9 of 15 entries say "Worsened", first in FY2021. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026Still uncollected after the arbitral awardAnnual report
「In April 2026, SIAC issued a final arbitral award ordering the SSI shareholders to repay the funds paid by the Company to acquire the shares and to bear most of the related interest, arbitration costs and other expenses. No payment had been received by the payment deadline, and a certain degree of uncertainty remains regarding the progress of legal proceedings and other matters.」
Regarding recovery of the investment in the Vietnamese mining business, the final SIAC arbitral award in April 2026 ordered repayment and other obligations, but no payment had been received by the deadline, and the Company had recorded an allowance for doubtful accounts against the entire ¥3,517 million of long-term receivables. - FY2025-H1MitigatedAnnual report
「Reversal of allowance for doubtful accounts - 190」
Regarding the collection risk associated with recovery of the investment in the Vietnamese mineral business, the Company recorded a reversal of allowance for doubtful accounts of ¥190 million for the interim consolidated accounting period, reducing the balance of the allowance from ¥3,332 million at the end of the previous consolidated fiscal year to ¥3,141 million. - FY2024WorsenedAnnual report
「The Company assessed the recoverability of the funds paid to SSI shareholders to acquire SSI shares, based on the value of DL shares pledged as collateral under the Company's right to seek repayment from SSI shareholders, and determined that there was no recoverability at present. Accordingly, the Company recorded an allowance for doubtful accounts against the entire amount of long-term receivables.」
Regarding recovery of the investment in the Vietnamese mineral business, the Company continued to determine that recovery was unlikely and recorded an allowance for doubtful accounts of ¥3,332 million against long-term receivables of ¥3,331 million. The balance increased from ¥2,938 million at the end of the previous fiscal year. - FY2024-Q3Provision for doubtful accounts decreased year on yearAnnual report
「Provision for allowance for doubtful accounts 471 182」
The provision for doubtful accounts related to the investment in and contract with the Vietnamese mineral business company was ¥182 million for the third quarter of the current consolidated cumulative period, down from ¥471 million in the same period of the previous year. Meanwhile, the balance of the allowance for doubtful accounts on the quarterly consolidated balance sheet was ¥3,121 million. - FY2024-Q2WorsenedAnnual report
「Provision for allowance for doubtful accounts 738 353」
The Company recorded a provision of ¥353 million for doubtful accounts during the second quarter of the current consolidated cumulative period in connection with the investment in and contract with the Vietnamese mineral business company. The balance of the allowance for doubtful accounts increased from ¥2,938 million at the end of the previous consolidated fiscal year to ¥3,291 million. - FY2024-Q1WorsenedAnnual report
「Provision for allowance for doubtful accounts 559 252」
The Company recorded a provision of ¥252 million for doubtful accounts during the first quarter of the current consolidated cumulative period in connection with collection risks related to the investment in and contract with the Vietnamese mineral business company. The balance of the allowance for doubtful accounts increased from ¥2,938 million at the end of the previous consolidated fiscal year to ¥3,190 million. - FY2023WorsenedAnnual report
「The Company assessed the recoverability of the funds paid to SSI shareholders to acquire SSI shares, based on the value of DL shares pledged as collateral under the Company's right to seek repayment from SSI shareholders, and determined that there was no recoverability at present. Accordingly, the Company recorded an allowance for doubtful accounts against the entire amount of long-term receivables.」
Regarding recovery of the investment in the Vietnamese mineral business, the Company determined that recovery remained unlikely even after termination of the contract, and recorded an allowance for doubtful accounts of ¥2,938.870 million against long-term receivables of ¥2,937.660 million. - FY2023-Q3WorsenedAnnual report
「Provision for allowance for doubtful accounts - 471,672」
The Company recorded a provision of ¥471.672 million for doubtful accounts during the third quarter of the current consolidated cumulative period in connection with collection risks related to the investment in and contract with the Vietnamese mineral business company. The balance of the allowance for doubtful accounts was ¥2,920.610 million. - FY2023-Q2WorsenedAnnual report
「Provision for allowance for doubtful accounts - 738,092」
The Company recorded a provision of ¥738.092 million for doubtful accounts during the second quarter of the current consolidated cumulative period in connection with collection risks related to the investment in and contract with the Vietnamese mineral business company. - FY2023-Q1WorsenedAnnual report
「Provision for allowance for doubtful accounts - 559,232」
The Company recorded a provision of ¥559.232 million for doubtful accounts during the first quarter of the current consolidated cumulative period in connection with collection risks related to the investment in and contract with the Vietnamese mineral business company. - FY2022MaterialisedAnnual report
「The Company abandoned its planned investment in a Vietnamese mineral business company, which was intended to secure a stable long-term supply of zirconium minerals, the principal raw material used by its consolidated subsidiary Vietnam Rare Elements Chemical Joint Stock Company (VREC).」
The Company abandoned its investment in the Vietnamese mineral business company and recorded an allowance for doubtful accounts of ¥1,804.727 million against the entire amount of long-term prepaid expenses, as well as an impairment loss on advances of ¥546.271 million arising from termination of the mineral purchase and sale agreement. Including provisions made through the previous fiscal year, the allowance for doubtful accounts totaled ¥2,447.727 million. - FY2021WorsenedAnnual report
「During the fiscal year, the Company reasonably estimated the expected future losses arising from this investment, taking into account the period elapsed since the start of the contractual procedures, the uncertainty surrounding performance of the obligations stipulated in the contract, the risk of fluctuations in the share value of the mineral business company, and the risk of contract termination and other factors, and additionally recorded an allowance for doubtful accounts of ¥152 million.」
For the investment in the Vietnamese mineral business, the Company made an additional provision of ¥152 million on top of the ¥491 million provided through the previous fiscal year, bringing the total allowance for doubtful accounts to ¥643 million. - FY2020MaterialisedAnnual report
「During the fiscal year, the Company reasonably estimated the expected future losses arising from this investment, taking into account the period elapsed since the start of the contractual procedures, the uncertainty surrounding performance of the obligations stipulated in the contract, the risk of fluctuations in the business value of the mining company, and the risk of contract termination and other factors, and recorded an allowance for doubtful accounts of ¥491 million.」
The Company recognized uncertainty regarding performance of the contractual obligations and business value in connection with the investment procedures for investing in a Vietnamese mining company to secure a stable long-term supply of zircon sand for VREC, and recorded an allowance for doubtful accounts of ¥491 million.