Material Uncertainty Related to Going Concern
First written in FY2016. 8 of 14 entries say "Mitigated", first in FY2017-Q2. Latest entry: FY2023-Q3.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- FY2023-Q3MitigatedAnnual report
「Based on these circumstances, we determined that the events or conditions that raised substantial doubt about the Group's ability to continue as a going concern had been resolved.」
The company determined that the events and conditions raising substantial doubt about its ability to continue as a going concern had been resolved, citing improved profitability in the new electricity business, profitability at all levels and the procurement of necessary funds, as well as resolution of the violation of financial covenants. - FY2023-Q2RestatedAnnual report
「However, because resource prices remain elevated and profit levels are below previous levels, the outlook for business results continues to involve a certain degree of uncertainty. We therefore recognize that events or conditions existed in the cumulative second quarter under review that raised substantial doubt about the Group's ability to continue as a going concern. Based on the foregoing, we determined that no material uncertainty relating to the going-concern assumption existed.」
Although the Group recorded profits at all levels, it states that profit levels remain below previous levels and that events or conditions raising substantial doubt about its ability to continue as a going concern still exist. However, it maintains its determination that no material uncertainty exists, taking into account the procurement of necessary funds and the business scale-back. - FY2023-Q1MitigatedAnnual report
「These measures substantially reduced price volatility risk related to electricity procurement, and the Group recorded operating profit, ordinary profit and quarterly net profit attributable to owners of the parent in the cumulative first quarter under review. However, because resource prices remain elevated and profit levels are below previous levels, the outlook for business results continues to involve a certain degree of uncertainty. We therefore recognize that events or conditions existed in the cumulative first quarter under review that raised substantial doubt about the Group's ability to continue as a going concern. Based on the foregoing, we determined that no material uncertainty relating to the going-concern assumption existed.」
The company reduced procurement price volatility risk by scaling back the new electricity business and transitioning contracts, and was profitable at all profit levels in the quarter. However, it states that profit levels remain below previous levels and that events or conditions raising substantial doubt about going concern still exist, while determining that no material uncertainty relating to the going-concern assumption exists. - FY2022MaterialisedAnnual report
「In the consolidated fiscal year under review, the Group recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent, and events or conditions existed that raised substantial doubt about its ability to continue as a going concern. This was because, in the new electricity business within the energy business segment, prices in the Japan Electric Power Exchange (JEPX) wholesale electricity market rose to unprecedented levels from October 2021. In March 2022, electricity supply became tight after thermal power plants were shut down following an earthquake off the coast of Fukushima Prefecture, while global energy prices also rose amid the Russia-Ukraine situation, resulting in a substantial increase in electricity procurement costs. Based on the foregoing, we determined that no material uncertainty relating to the going-concern assumption existed.」
The material events concerning going concern, which had disappeared from the disclosures through the previous fiscal year, were disclosed again against a backdrop of substantial full-year losses and higher procurement costs in the new electricity business. At the same time, the company determined that no material uncertainty existed based on contract reviews, financing and agreements with financial institutions. - FY2019DroppedAnnual reportAfter determining in the previous fiscal year that the substantial doubt about the Group's ability to continue as a going concern had been resolved, this report contains no reference to that substantial doubt.
- FY2018MitigatedAnnual report
「As a result, the Group has recorded operating profit, ordinary profit and net profit attributable to owners of the parent for two consecutive fiscal years since the previous consolidated fiscal year. In addition, profitability has steadily recovered through execution of the medium-term management plan, and the Group has repaid short-term borrowings after securing sufficient working capital. Based on these circumstances, we determined that the events or conditions that raised substantial doubt about the Group's ability to continue as a going concern had been resolved in the consolidated fiscal year under review.」
The company determined that the events and conditions raising substantial doubt about its ability to continue as a going concern had been resolved, based on two consecutive fiscal years of profitability at all profit levels, securing working capital and repaying short-term borrowings. - FY2018-Q3MitigatedAnnual report
「The Group had recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent for two consecutive fiscal years through the fiscal year ended March 2016. In the previous consolidated fiscal year, however, it recorded operating profit, ordinary profit and net profit attributable to owners of the parent. In the cumulative third quarter under review, it recorded operating profit of ¥773 million, ordinary profit of ¥558 million and quarterly net profit attributable to owners of the parent of ¥341 million, while steadily advancing its medium-term management plan. At the same time, the Group remains in the process of achieving the plan, and its interest-bearing debt was ¥13,133 million, a high level relative to its cash and cash equivalents. We recognize that events or conditions continue to exist that raise substantial doubt about the Group's ability to continue as a going concern.」
Operating profit, ordinary profit and net profit remained positive, and interest-bearing debt declined from the end of the previous quarter, further improving both the earnings and debt positions. However, the medium-term management plan remains in progress, and substantial doubt about the Group's ability to continue as a going concern remains. - FY2018-Q2Operating profit remained positive, while ordinary and net losses and substantial doubt about going concern continuedAnnual report
「The Group had recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent for two consecutive fiscal years through the fiscal year ended March 2016. In the previous consolidated fiscal year, however, it recorded operating profit, ordinary profit and net profit attributable to owners of the parent. In the cumulative second quarter under review, it recorded operating profit of ¥138 million, an ordinary loss of ¥29 million and a quarterly net loss attributable to owners of the parent of ¥155 million, while steadily advancing its medium-term management plan. At the same time, the Group remains in the process of achieving the plan, and its interest-bearing debt was ¥13,652 million, a high level relative to its cash and cash equivalents. We recognize that events or conditions continue to exist that raise substantial doubt about the Group's ability to continue as a going concern.」
Operating profit remained positive, but an ordinary loss and net loss were recorded, and interest-bearing debt remained high. Accordingly, substantial doubt about the Group's ability to continue as a going concern remains. Interest-bearing debt declined from the end of the previous quarter. - FY2018-Q1MitigatedAnnual report
「The Group had recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent for two consecutive fiscal years through the fiscal year ended March 2016. In the previous consolidated fiscal year, however, it recorded operating profit, ordinary profit and net profit attributable to owners of the parent, and in the cumulative first quarter under review it recorded operating profit of ¥396 million, ordinary profit of ¥292 million and quarterly net profit attributable to owners of the parent of ¥209 million. Nevertheless, the Group remains in the process of achieving its medium-term management plan, and its interest-bearing debt was ¥14,110 million, a high level relative to its cash and cash equivalents. We recognize that events or conditions continue to exist that raise substantial doubt about the Group's ability to continue as a going concern.」
As in the previous consolidated fiscal year, the first quarter was profitable at the operating, ordinary and net profit levels, further mitigating earnings-related risk. However, substantial doubt remains due to the high level of interest-bearing debt and the Group's progress toward achieving its medium-term management plan. - FY2017MitigatedAnnual report
「In the consolidated fiscal year under review, the Group recorded operating profit of ¥1,036 million, ordinary profit of ¥907 million and net profit attributable to owners of the parent of ¥416 million. Nevertheless, the Group remains in the process of achieving its medium-term management plan, and its interest-bearing debt was ¥14,634 million, a high level relative to its cash and cash equivalents. We recognize that events or conditions exist that raise substantial doubt about the Group's ability to continue as a going concern.」
Operating profit, ordinary profit and net profit were all positive for the full fiscal year, improving the earnings position. However, significant uncertainty remains due to the high level of interest-bearing debt and the Group's progress toward achieving its medium-term management plan. - FY2017-Q3MitigatedAnnual report
「The Group had recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent for two consecutive fiscal years through the fiscal year ended March 2016. In the cumulative third quarter under review, however, it recorded operating profit of ¥674 million, ordinary profit of ¥452 million and quarterly net profit attributable to owners of the parent of ¥51 million. Nevertheless, the Group remains in the process of achieving its medium-term management plan, and its interest-bearing debt was ¥15,360 million, a high level relative to its cash and cash equivalents. We recognize that events or conditions continue to exist that raise substantial doubt about the Group's ability to continue as a going concern.」
Operating profit, ordinary profit and quarterly net profit attributable to owners of the parent were all positive, further improving the earnings position that had contributed to going-concern risk. However, substantial doubt remains due to the high level of interest-bearing debt and the Group's progress toward achieving its medium-term management plan. - FY2017-Q2MitigatedAnnual report
「The Group recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent for two consecutive fiscal years through the fiscal year ended March 2016. In the cumulative second quarter under review, it recorded operating profit of ¥103 million and ordinary profit of ¥202 million, but also recorded a quarterly net loss attributable to owners of the parent of ¥146 million.」
The company returned to profitability at the operating and ordinary profit levels, improving its earnings position from the same period of the previous fiscal year. However, a quarterly net loss attributable to owners of the parent and interest-bearing debt of ¥15,785 million remained, and substantial doubt about the Group's ability to continue as a going concern persisted. - FY2017-Q1RestatedAnnual report
「The Group recorded significant operating losses, ordinary losses and net losses attributable to owners of the parent for two consecutive fiscal years through the fiscal year ended March 2016. In the cumulative first quarter under review, it also recorded an operating loss of ¥446 million, an ordinary loss of ¥368 million and a quarterly net loss attributable to owners of the parent of ¥621 million. The Group's interest-bearing debt was ¥15,157 million, a high level relative to its cash and cash equivalents, and we recognize that events or conditions continue to exist that raise substantial doubt about the Group's ability to continue as a going concern.」
Although losses narrowed year on year, the company recorded operating, ordinary and net losses in the quarter and stated that interest-bearing debt remained high, reaffirming the material events concerning going concern. - FY2016First statedAnnual report
「In the consolidated fiscal year under review, revenue declined substantially due in part to changes in the market environment for the solar power generation business. The Group recorded an operating loss of ¥2,229 million, an ordinary loss of ¥1,949 million, a net loss attributable to owners of the parent of ¥4,604 million and negative operating cash flow of ¥5,403 million. The Group's interest-bearing debt was ¥12,884 million, a high level relative to its cash and cash equivalents. As a result, events or conditions existed that raised substantial doubt about the Group's ability to continue as a going concern.」
The company explicitly identifies substantial doubt about its ability to continue as a going concern, citing losses, negative operating cash flow and high interest-bearing debt.