Uncollectible risk associated with small receivables from a large number of users
First written in FY2025. 2 of 3 entries say "Restated". Latest entry: FY2026.
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- FY2026RestatedAnnual report
「In the Group's live-streaming services, most trade receivables from users arising from paid services consist of small-balance receivables. The Group believes that the proportion of uncollected receivables is limited because it uses collection services provided by payment processors and other arrangements. However, if small-balance receivables that become uncollectible increase sharply as the user base expands, collection costs and uncollected receivables may increase, potentially affecting the Group's operating results and financial position.」
The Company reiterates the risk of higher uncollected receivables and collection costs as the user base expands, against the backdrop of a business structure involving a large number of small-balance receivables. - FY2026-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new major risks or significant changes to the business risks described in the annual securities report that management recognized as potentially having a material effect on the financial position, operating results, or cash flows of the consolidated companies, among the matters concerning business conditions and financial matters described in this Semiannual Report.」
The Company states that there have been no material changes to its principal risks, including the risk of uncollected small-balance receivables. - FY2025First statedAnnual report
「In the Group's live-streaming services, most trade receivables from users arising from paid services consist of small-balance receivables. The Group believes that the proportion of uncollected receivables is limited because it uses collection services provided by payment processors and other arrangements. However, if small-balance receivables that become uncollectible increase sharply as the user base expands, collection costs and uncollected receivables may increase, potentially affecting the Group's operating results and financial position.」
The Company identifies the increase in uncollected receivables and collection costs as a new risk as its user base expands, against the backdrop of a business structure involving a large number of small-balance receivables.