Impairment losses on investments and receivables due to the Chinese sales subsidiary's failure to achieve its business plan
First written in FY2022. 5 of 9 entries say "Materialised", first in FY2022. Latest entry: FY2026.
Premier Anti-Aging moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 7 of 15 companies on the "Worse" side.
18 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「We decided to consolidate our sales structure in China into efficient, high-growth cross-border e-commerce, dissolve and liquidate the local subsidiary, and record ¥206 million in business restructuring costs associated with this as an extraordinary loss.」
Issues with the China business plan and sales structure materialized as the dissolution and liquidation of the local subsidiary and ¥206 million in business restructuring costs. Bei An Mei (Shanghai) had negative net worth of ¥1,121 million at the end of July 2026. - FY2023WorsenedAnnual report
「Provision for doubtful accounts of ¥713,592 thousand」
The company recorded a ¥713.592 million provision for doubtful accounts on receivables from affiliates, including its Chinese sales subsidiaries, and the allowance balance increased to ¥1,288.324 million. As in the previous fiscal year, the deterioration in the valuation of investments and receivables due to the Chinese business falling short of plan continued to progress. - FY2022MaterialisedAnnual report
「As a result of our review, we determined that the investment in ベイ安美（上海）化粧品有限公司 was not expected to recover to its acquisition cost based on future business plans, and therefore recorded an impairment loss on investments in an affiliated company of ¥520,859 thousand in the current fiscal year. In addition, we determined that ¥633,432 thousand of the receivables from ベイ安美（上海）化粧品有限公司 were uncollectible and recorded an allowance for doubtful accounts.」
For the Chinese sales subsidiary, a decline in the recoverability of the investment and uncollectibility of receivables actually occurred, resulting in an impairment loss on the investment of ¥520,859 thousand and an allowance for doubtful accounts of ¥633,432 thousand.