Shortfalls in investment outcomes from public offering proceeds and front-loaded losses
First written in FY2021. 1 of 7 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2026-H1.
Enechange moved to the "Worse" side of this theme in 2022, 3 years before the typical company in this theme (2025).
5 other companies' latest entry also says "Reframed".
- FY2026-H1ReframedAnnual report
「③ Growth investment funds contributing to the development, control and optimization of next-generation energy infrastructure, including V2X: The remaining ¥9.74 million is scheduled to be allocated between July 2025 and the end of December 2028 as funds for growth investments, including M&A, contributing to the development, control and optimization of next-generation energy infrastructure, including V2X and distributed energy resources.」
The Company changed the use of the unused proceeds from the third-party allocation of shares by the JICVGI fund from future growth investment in the EV Charging business to growth investment in next-generation energy infrastructure, including V2X and distributed energy resources. - FY2023AdvancedAnnual report
「The funds raised through the third-party allocation of shares conducted in February 2024 are planned to be allocated as growth investment funds as follows: ① funds for investment to strengthen promotion and the business operating structure of the EV Charging business; ② working capital for purchasing charging equipment to build an EV charging infrastructure network; and ③ investment funds contributing to the future growth of the EV Charging business.」
In addition to resuming the use of public offering proceeds for promotional purposes in August 2023, the Company explicitly stated its plan to allocate the proceeds from the 2024 third-party allocation of shares to the EV Charging business. - FY2023-Q2Resumption of use of funds raisedAnnual report
「The Company determined that the stagnation in user acquisition activities triggered by soaring wholesale electricity prices and other factors in the energy industry, which had formed the background to this situation, was generally returning to normal, and announced that it resumed using the funds raised for ① on 10 August 2023.」
Use of the public offering proceeds for promotion and other purposes, whose allocation timing had been undecided since May 2022, resumed on 10 August 2023 because user acquisition activities had returned to normal. The possibility of failing to achieve the expected investment effects remains disclosed. - FY2022SoftenedAnnual report
「On 13 May 2022, the Company changed the timing of the allocation for ① to undecided.」
Of the public offering proceeds, the Company withheld the allocation of ¥700 million in promotional expenses for the Energy Platform business until the external environment improves and changed the allocation timing to undecided. - FY2022-Q3WorsenedAnnual report
「As a result, segment revenue was ¥2,891 thousand and segment loss was ¥406,510 thousand.」
Against the explanation that growth investments would result in front-loaded costs, the EV Charging business incurred an accumulated segment loss of ¥406.510 million, expanding the situation in which investment effects lag behind costs in terms of earnings. - FY2022-Q1MaterialisedAnnual report
「In the EV Charging Business, the Company made upfront investments, including building an organizational structure through increased recruitment focused on engineers and sales personnel and conducting proactive marketing, to launch and promote the business, and accumulated orders. As a result, segment revenue was ¥717 thousand and segment loss was ¥89,709 thousand.」
Against the previous explanation that growth investments funded by public offering proceeds would result in front-loaded costs and an expected operating loss for the fiscal year ending December 2022, the EV Charging business recorded a segment loss of ¥89.709 million in the first quarter. - FY2021First statedAnnual report
「Because investments ①, ③ and ⑤ are by nature front-loaded in terms of costs relative to their effects, the Company expects to record an operating loss and negative free cash flow in the fiscal year ending December 2022. Although the Company intends to make these investments after conducting a rigorous cost-benefit analysis, the investments may fail to produce the expected effects.」
While investing the public offering proceeds in promotion, expansion of its own services and growth of the data business, among other areas, the Company has newly disclosed its expectation of an operating loss and negative FCF for the fiscal year ending December 2022, as well as the risk of failing to achieve the expected investment effects.