Chinese Subsidiaries’ Failure to Generate Profits and Potential Impairment
First written in FY2018. 2 of 5 entries say "Restated". Latest entry: FY2023-Q3.
The whole theme swung hardest in 2026: 5 of 11 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2023-Q3MitigatedAnnual report
「As the liquidation of our consolidated subsidiary 龍騎士供応鏈科技(上海)有限公司 has been completed and the subsidiary no longer exists, we have not prepared quarterly consolidated financial statements from the cumulative third quarter of the current fiscal year.」
Regarding the risk previously described as the Chinese subsidiary’s lack of profits and potential impairment, the disclosure states that liquidation of the subsidiary has been completed and that the subsidiary no longer exists. - FY2022MaterialisedAnnual report
「The Chinese subsidiary, 龍騎士供応鏈科技(上海)有限公司 (the local Chinese entity), is undergoing liquidation proceedings as of the filing date of the annual securities report.」
The disclosure states that the Chinese subsidiary has progressed from a future risk of continued losses and possible impairment to the actual status of being in dissolution and liquidation proceedings. - FY2020RestatedAnnual report
「The company has not recorded a profit since its establishment in March 2016. Although the company plans to develop its warehouse inventory management system services overseas over the long term, if performance does not recover, impairment of the carrying value of the subsidiary’s shares may be recognized, potentially affecting our performance. In addition, the subsidiary may need to be liquidated in the future, which could result in related costs.」
The lack of profits at the Chinese subsidiary since its establishment and the potential for impairment and liquidation costs are reiterated. - FY2019RestatedAnnual report
「The company has not recorded a profit since its establishment in March 2016. Although the company plans to develop its warehouse inventory management system services overseas over the long term, if performance does not recover, impairment of the carrying value of the subsidiary’s shares may be recognized, potentially affecting our performance. In addition, the subsidiary may need to be liquidated in the future, which could result in related costs.」
The lack of profits at the Chinese subsidiary since its establishment and the potential for impairment and liquidation costs are reiterated. - FY2018First statedAnnual report
「The company has not recorded a profit since its establishment in March 2016. Although the company plans to develop its warehouse inventory management system services overseas over the long term, if performance does not recover, impairment of the carrying value of the subsidiary’s shares may be recognized, potentially affecting our performance.」
The disclosure states that the subsidiary has not recorded a profit since its establishment and indicates the possibility of future impairment charges and liquidation costs.