Uncertainty in Commercialising Plant Services
First written in FY2017. 13 of 33 entries say "Mitigated", first in FY2018-Q2. Latest entry: 2026-11-13.
Osaka Yuka Industry moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 17 of 55 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2025WorsenedAnnual report
「Because the originally expected revenue from the asset could no longer be expected, we reduced the carrying amount of the asset group to its recoverable amount and recognized the reduction of ¥8.631 million as an impairment loss under extraordinary losses.」
In the Plant Business, revenue fell 29.8% from the previous fiscal year due to the prolonged duration of projects, and the segment loss widened to ¥48.488 million. In addition, total impairment losses of ¥8.631 million were recognized on machinery and equipment, software and other assets, and the uncertainty surrounding commercialization continues to be reflected in losses and asset valuation. - FY2025-H1MaterialisedAnnual report
「Because the originally expected revenue from the asset could no longer be expected, we reduced the carrying amount of the asset group to its recoverable amount and recognized the reduction of ¥8.631 million as an impairment loss under extraordinary losses.」
Originally expected revenue from business assets in the Plant Business could no longer be expected, and total impairment losses of ¥8.631 million were recognized on machinery and equipment, software and other assets. The uncertainty surrounding commercialization has materialized in the results as asset valuation adjustments and losses. - FY2024MaterialisedAnnual report
「In the plant business, although inquiries for distillation and filtration equipment were strong, delays caused by prolonged projects resulted in plant business revenue of ¥112.632 million, down 23.1% from the previous fiscal year, and a segment loss of ¥36.374 million, compared with a segment loss of ¥11.187 million in the previous consolidated fiscal year.」
Projects in the Plant Business actually became prolonged and were postponed, with the uncertainty surrounding commercialization reflected in the results as a decline in revenue and a widening segment loss. - FY2024-Q2MaterialisedAnnual report
「In the plant business, although steady inquiries for distillation and filtration equipment continued, project delays resulted in plant business revenue of ¥33.97 million, down 44.2% year on year, and a segment loss of ¥22.091 million, compared with a segment loss of ¥8.737 million in the six-month period ended the second quarter of the previous consolidated fiscal year.」
Postponement of plant projects actually occurred, with the uncertainty surrounding commercialization reflected in the results as a year-on-year decline in revenue and a widening segment loss. - FY2024-Q1WorsenedAnnual report
「In the plant business, although steady inquiries for distillation and filtration equipment have continued since January 2024, the six-month period ended the first quarter of the consolidated fiscal year was centered on maintenance and sales of consumables. As a result, plant business revenue was ¥8.334 million, down 73.6% year on year, and the segment loss was ¥13.15 million, compared with a segment loss of ¥3.646 million in the six-month period ended the first quarter of the previous consolidated fiscal year.」
Although there was interest in distillation and filtration equipment, revenue fell 73.6% year on year in the quarter, and the segment loss widened from ¥3.646 million to ¥13.15 million. Uncertainty associated with commercialization has worsened in the results. - FY2023MitigatedAnnual report
「In the plant business, construction and maintenance of distillation equipment and steady orders for filtration equipment resulted in plant business revenue of ¥246.094 million, up 90.0% from the previous fiscal year, and a segment loss of ¥11.187 million, compared with a segment loss of ¥42.172 million in the previous consolidated fiscal year.」
Revenue recognition progressed in the Plant Business and the segment loss narrowed substantially, partly mitigating the results-based indications of uncertainty surrounding commercialization. However, a loss remains. - FY2023-Q2MitigatedAnnual report
「In the plant business, construction and maintenance of distillation equipment and steady orders for filtration equipment resulted in plant business revenue of ¥117.321 million, up 138.6% year on year, and a segment loss of ¥8.737 million, compared with a segment loss of ¥23.347 million in the six-month period ended the second quarter of the previous consolidated fiscal year.」
Revenue recognition progressed in the Plant Business and the segment loss narrowed from the same period of the previous year, partly mitigating the results-based indications of uncertainty surrounding commercialization. However, a segment loss remains. - FY2023-Q1MitigatedAnnual report
「In the plant business, the resolution of delivery delays from the previous fiscal year and steady progress in securing orders for both distillation and filtration equipment resulted in plant business revenue of ¥56.548 million, an increase of ¥37.503 million year on year, and a segment loss of ¥3.646 million, compared with a segment loss of ¥15.661 million in the six-month period ended the first quarter of the previous consolidated fiscal year.」
The resolution of delivery delays, the acquisition of orders for distillation and filtration equipment, increased revenue, and a narrower segment loss partly mitigated the results-based indications of uncertainty surrounding the commercialization of the Plant Business. However, a segment loss remains. - FY2022Lower sales continued, while losses narrowedAnnual report
「Due to delivery delays and other factors caused by shortages of parts and materials following the spread of COVID-19, Plant Business revenue was ¥129.503 million, down 12.7% from the previous fiscal year, and the segment loss was ¥42.172 million, compared with a segment loss of ¥46.644 million in the previous consolidated fiscal year.」
The decline in Plant Business revenue and the segment loss continued, with delivery delays caused by shortages of parts and materials reflected in the results. Meanwhile, the loss narrowed from the previous fiscal year. - FY2022-Q3MaterialisedAnnual report
「In the plant business, although 株式会社カイコー was consolidated as a subsidiary and intersegment revenue was recognized, project postponements due to COVID-19 and delivery delays caused by shortages of parts and materials resulted in plant business revenue of ¥75.09 million, down 33.3% year on year, and a segment loss of ¥37.971 million, compared with a segment loss of ¥38.613 million in the nine-month period ended the third quarter of the previous consolidated fiscal year.」
Delays caused by the postponement of plant projects and shortages of parts and materials actually occurred and were reflected in a year-on-year decline in revenue. Meanwhile, the segment loss narrowed from the same period of the previous year. - FY2022-Q2MitigatedAnnual report
「In the plant business, the consolidation of 株式会社カイコー as a subsidiary and the recognition of intersegment revenue resulted in plant business revenue of ¥49.165 million, up 8.9% year on year, and a segment loss of ¥23.347 million, compared with a segment loss of ¥38.126 million in the six-month period ended the second quarter of the previous consolidated fiscal year.」
Revenue recognition progressed in the Plant Business and the segment loss narrowed from the same period of the previous year, partly mitigating the results-based indications of uncertainty surrounding commercialization. However, a segment loss remains. - FY2022-Q1WorsenedAnnual report
「In the plant business, the consolidation of 株式会社カイコー as a subsidiary and the recognition of revenue from maintenance services resulted in plant business revenue of ¥19.045 million, compared with no revenue in the first quarter of the previous consolidated fiscal year. The segment loss was ¥15.661 million, compared with ¥5.626 million in the first quarter of the previous consolidated fiscal year.」
Although revenue recognition progressed in the Plant Business, the segment loss widened from ¥5.626 million in the same period of the previous year to ¥15.661 million, and losses associated with commercialization continue. - FY2021WorsenedAnnual report
「The development of this new business may not proceed smoothly, as market analysis and service development may take time, and acquiring the necessary resources may cost more than expected. Although the new business has already been launched, there is no assurance that its rollout will proceed smoothly, and issues such as changes in policy, revisions to the service, or withdrawal from the service may arise. If the new business fails to generate revenue and incurs losses, it may affect the operating results and financial condition of the Group.」
The Plant Business generated revenue of ¥148.398 million, while the segment loss widened to ¥46.644 million from ¥8.202 million in the previous fiscal year, indicating that losses associated with commercialization are reflected in the results. - FY2021-Q3WorsenedAnnual report
「In the plant business, the consolidation of 株式会社カイコー as a subsidiary and the recognition of revenue from maintenance services resulted in plant business revenue of ¥112.618 million, up 1,842.2% year on year. The recording of M&A-related costs for the acquisition of shares resulted in a segment loss of ¥38.613 million, compared with a segment loss of ¥27.593 million in the same period of the previous year.」
Although revenue recognition progressed following the conversion of Kaiko Co., Ltd. into a consolidated subsidiary and other developments, the Plant Business segment loss widened from ¥27.593 million in the same period of the previous year to ¥38.613 million. - FY2021-Q2Revenue recognized and losses widenedAnnual report
「In the plant business, revenue from small-scale distillation equipment projects and maintenance services resulted in plant business revenue of ¥45.143 million, up 678.5% year on year. The recording of M&A-related costs for the acquisition of shares resulted in a segment loss of ¥38.126 million, up 115.6% year on year.」
Although the recognition of revenue from small-scale distillation equipment projects and maintenance services indicated progress in commercialization, the segment loss also widened due to M&A-related expenses, presenting mixed indications regarding the commercialization of the Plant Business. The risk has been quantified and is reflected in the results as a segment loss. - FY2021-Q1RestatedAnnual report
「In the Plant Business, although orders were secured, they did not result in revenue. Revenue was down 100.0% year on year, and the segment loss was ¥5.626 million, down 35.1% year on year.」
Although orders were secured, they did not result in revenue, and uncertainty surrounding the commercialization of the Plant Business remains. The segment loss was ¥5.626 million. - FY2020-Q3WorsenedAnnual report
「In the Plant Business, although an order was secured for a large project, it did not result in revenue during the cumulative third quarter of the fiscal year. As a result, Plant Business revenue was ¥5.798 million and the segment loss was ¥27.593 million.」
Revenue has still not been recognized after the large project order was secured, and the segment loss has widened from ¥17.68 million for the cumulative second quarter to ¥27.593 million. The uncertainty surrounding the commercialization of Plant Services has become more pronounced in the results. - FY2020-Q2RestatedAnnual report
「In the Plant Business, although an order was secured for a large project, it did not result in revenue during the cumulative second quarter of the fiscal year.」
Revenue has still not been recognized after securing an order for a large project, and the uncertainty surrounding the commercialization of Plant Services remains. - FY2020-Q1Large project order secured, but no revenue recognizedAnnual report
「In the Plant Business, although an order was secured for a large project, it did not result in revenue. As a result, Plant Business revenue was ¥5.798 million and the segment loss was ¥8.67 million.」
Although securing an order for a large project represented progress, it did not result in revenue, and the previously noted uncertainty surrounding the commercialization of Plant Services remains. - FY2019WorsenedAnnual report
「Although no orders were received for large-scale plants, orders for research and development equipment and maintenance services were secured, resulting in Plant Services revenue of ¥9.2 million, down 78.5% year on year.」
Orders for research and development equipment and maintenance services continued, but no orders were received for large-scale plants, and revenue fell 78.5% year on year. The uncertainty surrounding commercialization is strongly reflected in the results. - FY2019-Q3RestatedAnnual report
「As orders for R&D projects and maintenance services were secured, plant services revenue was ¥9.12 million, down 74.6% year on year.」
Although orders and revenue recognition have continued, Plant Services revenue has declined year on year, and the previously noted uncertainty surrounding its commercialization remains evident on both sides. - FY2019-Q2Commercialization progress accompanied by a decline in revenueAnnual report
「Revenue from plant services was ¥4.170 million, down 88.2% year on year, due to the acquisition of orders for an R&D-purpose project and maintenance services.」
Although orders and revenue recognition have continued, revenue has declined year on year, presenting mixed indications regarding the commercialization of the new service. - FY2019-Q1MitigatedAnnual report
「Revenue from plant services was ¥3.725 million due to the acquisition of orders for an R&D-purpose project and maintenance services.」
Plant Services has continued to demonstrate progress that partly mitigates the uncertainty surrounding its commercialization by generating revenue from orders for research and development equipment and maintenance services. - FY2018MitigatedAnnual report
「The Company aims to achieve further growth and plans to develop and grow Plant Services, which it launched as a new service. If the new service fails to generate revenue and incurs losses, it may affect the Company's operating results and financial condition. Following the acquisition of multiple new projects, revenue from Plant Services was ¥42.884 million, up 366.1% year on year.」
The risk that the new service will fail to generate revenue remains, but the acquisition of multiple new projects and recognition of ¥42.884 million in revenue demonstrate progress that has further partly mitigated the uncertainty surrounding its commercialization. - FY2018-Q3MitigatedAnnual report
「Revenue from plant services was ¥35.846 million, up 7,154.6% year on year, due to the acquisition of an R&D-purpose project.」
Plant Services has continued to generate revenue, further partly mitigating the uncertainty surrounding its commercialization. - FY2018-Q2MitigatedAnnual report
「Revenue from plant services was ¥35.260 million due to the acquisition of projects for R&D purposes.」
In the previous quarter, revenue had not been recognised even after orders were secured. In the current quarter, revenue was recognised, partially mitigating the uncertainty surrounding the commercialisation of plant services. - FY2018-Q1Orders secured, but no revenue recognisedAnnual report
「The Company won orders for plant services, but they had not yet resulted in revenue.」
Although securing orders represents progress, revenue has not yet been recognised, leaving the commercialisation status of plant services mixed. - FY2017First statedAnnual report
「Although the new service has already launched, there is no assurance that it will develop smoothly going forward, and the company anticipates the possibility of problems such as changes in policy, a review of the service or withdrawal from the service.」
While positioning plant services as a growth initiative, the company also identifies delays in development, policy changes, reviews and withdrawal as risks.