Inventory Valuation Losses Due to Changes in Market Conditions
First written in FY2021. 2 of 3 entries say "Materialised", first in FY2026. Latest entry: FY2027-H1.
Moresco moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 38 companies on the "Worse" side.
35 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「In connection with the dissolution and progress of liquidation procedures for Tianjin Molykote Technology Co., Ltd., the company recognized an inventory valuation loss of ¥22 million, an impairment loss of ¥294 million and an addition to the provision for losses on the liquidation of affiliates of ¥68 million.」
In connection with liquidation proceedings for the Tianjin subsidiary, an inventory valuation loss of ¥22 million was recorded, and inventory valuation losses attributable to market conditions and other factors emerged in results again in the current interim period. - FY2026MaterialisedAnnual report
「Inventory write-downs included in cost of sales (△ represents reversals) are presented net of reversals.」
Inventory write-downs increased from ¥81 million in the previous fiscal year to ¥121 million in the current fiscal year, indicating that the risk of write-downs due to changes in market conditions and other factors has materialized. - FY2021First statedAnnual report
「If the company determines that profitability has declined due to a sharp deterioration in market conditions or other factors and recognizes a write-down on its inventories, this could affect the Group's operating results and financial position.」
The company has for the first time identified the decline in inventory profitability and the potential recognition of write-downs resulting from sudden changes in market conditions as a key risk.