Risk of Upfront Investment and Failure to Meet Plans in New Businesses
First written in FY2024. 2 of 4 entries say "Materialised", first in 2026-08-13. Latest entry: 2026-08-13.
Amazia moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2019: 6 of 25 companies on the "Worse" side.
10 other companies' latest entry also says "Materialised".
- FY2025WorsenedAnnual report
「If the development or monetization of a new business does not progress as planned, we may be unable to recover our investment, including because it may become necessary to recognize an impairment loss. In addition, depending on the nature of the new business, business-specific risks may arise.」
Regarding the risk of falling short of plans for new businesses, the Group explicitly states the possibility that investments may become unrecoverable and that impairment losses may need to be recognized, specifying the potential financial impact. - FY2024First statedAnnual report
「Our Group intends to actively pursue new services and businesses in order to expand the scale of its operations and diversify its earnings structure going forward. As part of this effort, we launched the IT Solutions Business in the fiscal year ending September 2024. This may result in lower profit margins due to additional upfront expenditures, including personnel recruitment and advertising expenses. If the new services or businesses do not progress as planned, this may affect our Group's operating results and business development.」
The Group has disclosed, as new risks relating to new businesses including the IT Solutions Business, lower profit margins due to upfront investment in personnel recruitment and advertising expenses, as well as the impact of falling short of plans.