Impairment Risk Arising from Deteriorating Profitability of Fixed Assets
First written in FY2020. 2 of 4 entries say "Worsened", first in FY2023. Latest entry: FY2026.
Soken Chemical & Engineering moved to the "Worse" side of this theme in 2026, 7 years after the typical company in this theme (2019).
The whole theme swung hardest in 2017: 9 of 14 companies on the "Worse" side.
6 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「During the consolidated fiscal year, the company identified indicators of impairment for tangible fixed assets held by Soken Chemical Asia Co.,Ltd., a consolidated subsidiary belonging to the Chemicals segment, with a carrying amount of ¥523.648 million, because operating losses had continued to be recorded, among other factors. However, no impairment loss was recognized because the recoverable amount exceeded the carrying amount.」
For the tangible fixed assets of the Thai subsidiary, valued at ¥523.648 million, indicators of impairment were identified due to continuing operating losses. No impairment loss was recorded, but the risk has become concrete. - FY2024MitigatedAnnual report
「During the consolidated fiscal year, no indicators of impairment were identified for the Chemicals and Equipment Systems segments because their operating income was positive, and no impairment losses were recorded.」
Because operating income was positive in both segments, the company determined that there were no indicators of impairment, and no impairment losses were recorded for the fiscal year. - FY2023WorsenedAnnual report
「During the consolidated fiscal year, the company identified indicators of impairment for tangible fixed assets held by the parent company and belonging to the Chemicals segment, with a carrying amount of ¥7,270.115 million, because operating losses had been recorded for 2 consecutive periods, among other factors. However, no impairment loss was recorded because total undiscounted future cash flows exceeded the carrying amount of the assets.」
For the parent company’s Chemicals-related tangible fixed assets of ¥7,270.11 million, indicators of impairment were identified due to operating losses in 2 consecutive periods. Although no impairment loss was recorded, the risk has become specific and quantifiable. - FY2020First statedAnnual report
「These assets may require impairment if their fair value declines significantly, or if the profitability of operating assets deteriorates and recovery is not expected. Any impairment loss could affect the Group’s performance.」
For the first time, the company has separately disclosed impairment risk for fixed assets, including production and research facilities, due to declines in fair value or deteriorating profitability. No impairment losses were recorded by segment during the current fiscal year.