Losses at 長鼎電子材料（蘇州） and Debt Guarantees
First written in FY2018. 6 of 13 entries say "Mitigated", first in FY2019-Q2. Latest entry: FY2022.
The whole theme swung hardest in 2017: 12 of 48 companies on the "Worse" side.
77 other companies' latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「Sale of the entire equity interest in 长鼎电子材料（蘇州）有限公司 The sale of the equity interest was completed on 28 January 2022.」
The sale of the equity interest in 长鼎电子材料（蘇州） was completed, progressing the elimination of the equity-method investment and guarantee exposure. The provision for losses on debt guarantees also had no remaining balance at the end of the current consolidated fiscal year. - FY2022-Q3MitigatedAnnual report
「This was mainly due to factors reducing liabilities, including the ¥244 million decrease in the provision for bonuses and the ¥250 million decrease in the provision for losses on debt guarantees for 长鼎电子材料（蘇州）有限公司 resulting from the reversal of provisions.」
The provision for losses on debt guarantees for 长鼎电子材料（蘇州） decreased by ¥250 million, leaving no balance on the balance sheet at the end of the current quarter. In addition, although an agreement for the sale of the equity interest had been signed, completion of the sale was pending completion of approval and registration procedures. - FY2022-Q2MitigatedAnnual report
「Although we provided various forms of support to improve quality, the affiliate's performance did not recover as expected, leading us to determine that a sale to a Chinese company was the best course of action. Our ownership interest after the sale will be 0%.」
As performance at 长鼎电子材料（蘇州） failed to recover, the company moved toward eliminating its exposure through the sale of its equity interest. In addition, the provision for losses on debt guarantees of ¥250 million decreased through a reversal on the balance sheet, reducing the guarantee-related burden. The sale itself was scheduled for December 2021. - FY2021RestatedAnnual report
「This was mainly because the equity-method investment loss related to the company decreased by ¥577 million following the impairment treatment undertaken by 长鼎电子材料（蘇州）有限公司 at the end of the previous fiscal year.」
Following the impairment treatment by 长鼎电子材料（蘇州）有限公司 in the previous fiscal year, no equity-method investment loss arose in the current fiscal year, while the ¥250 million provision for losses on debt guarantees remained. The affiliate's losses and guarantee exposure continued to be disclosed. - FY2020WorsenedAnnual report
「The impairment loss recognized on 长鼎电子材料 was due to a reassessment of future profitability based on the outlook that the affiliate's performance improvement would be delayed by the spread of COVID-19 in China.」
长鼎电子材料（蘇州） reported a net loss of ¥1.44263 billion and negative net assets of ¥173.35 million. The company recognized an equity-method investment loss of ¥577 million, an allowance for doubtful accounts of ¥191 million and a provision for losses on debt guarantees of ¥250 million, increasing the burden associated with the affiliate's losses and guarantee exposure. - FY2020-Q3WorsenedAnnual report
「长鼎电子材料（蘇州）有限公司 ¥244,499 thousand」
Debt guarantees for 长鼎电子材料（蘇州） increased from ¥154,524 thousand at the end of the previous consolidated fiscal year to ¥244,499 thousand, expanding the guarantee exposure. - FY2020-Q2WorsenedAnnual report
「长鼎电子材料（蘇州）有限公司 ¥198,120 thousand」
Debt guarantees for 长鼎电子材料（蘇州） increased from ¥154.524 million at the end of the previous consolidated fiscal year to ¥198.12 million, expanding the guarantee exposure. - FY2020-Q1WorsenedAnnual report
「长鼎电子材料（蘇州）有限公司 ¥207,463 thousand」
Debt guarantees for 长鼎电子材料（蘇州）有限公司 increased from ¥154.524 million at the end of the previous consolidated fiscal year to ¥207.463 million, expanding the guarantee exposure. - FY2019MitigatedAnnual report
「长鼎电子材料（蘇州）有限公司 ¥154,524 thousand」
Debt guarantees for 长鼎电子材料（蘇州） decreased from ¥650 million at the end of the previous fiscal year to ¥154.52 million. Although the affiliate reported a net loss of ¥537.01 million for the fiscal year, the guarantee exposure has declined. - FY2019-Q3MitigatedAnnual report
「长鼎电子材料（蘇州）有限公司 ¥605,347 thousand 长鼎电子材料（蘇州）有限公司 ¥120,708 thousand」
Debt guarantees for 长鼎电子材料（蘇州）有限公司 decreased from ¥605,347 thousand at the end of the previous consolidated fiscal year to ¥120,708 thousand at the end of the third quarter, reducing the guarantee exposure. - FY2019-Q2MitigatedAnnual report
「长鼎电子材料（蘇州）有限公司 ¥251,835 thousand」
Debt guarantees for 长鼎电子材料（蘇州）有限公司 decreased from ¥605,347 thousand at the end of the previous consolidated fiscal year to ¥251,835 thousand, reducing the guarantee exposure. - FY2019-Q1WorsenedAnnual report
「长鼎电子材料（蘇州）有限公司 ¥721,545 thousand」
Debt guarantees for 长鼎电子材料（蘇州）有限公司 increased from ¥605,347 thousand at the end of the previous consolidated fiscal year to ¥721,545 thousand, expanding the guarantee exposure. - FY2018First statedAnnual report
「长鼎电子材料（蘇州）有限公司 Net income △¥577,766 thousand」
Net income at 长鼎电子材料（蘇州）, treated as a material affiliate, was △¥577,766 thousand, while guarantees of the affiliate's borrowings increased to ¥605,347 thousand. The affiliate's losses and guarantee exposure were disclosed in specific terms.