KOS business insolvency, business continuity and risk of losses from withdrawal
First written in FY2025. 7 of 11 entries say "Materialised", first in 2026-05-12. Latest entry: FY2026.
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- FY2026MaterialisedAnnual report
「A business withdrawal loss of ¥19,990 million was recorded as an extraordinary loss in the consolidated income statement for the current consolidated fiscal year.」
The risks to KOS's business continuity and the risk of losses on withdrawal materialised in the form of the decision to suspend operations in January 2026, business withdrawal losses of ¥19,990 million, impairment losses of ¥14,602 million and negative net worth of ¥7,181 million. - FY2026-H1WorsenedAnnual report
「In addition, PT.KRAKATAU OSAKA STEEL, our subsidiary (KOS), recorded steel product sales volume of 102,000 tonnes in the interim consolidated accounting period from January to June 2025, compared with 146,000 tonnes in the same period of the previous year; revenue of ¥8.364 billion, compared with ¥13.267 billion; an ordinary loss of ¥1.955 billion, compared with an ordinary loss of ¥194 million; and an interim net loss of ¥1.993 billion, compared with a net loss of ¥232 million. To prevent the erosion of KOS's business value, we will monitor structural FCF quarterly and make a comprehensive assessment of business continuity based on whether it remains continuously negative.」
KOS's sales volume and revenue declined, while its ordinary loss and net loss expanded substantially from the same period of the previous year. The framework for assessing business continuity by monitoring structural FCF quarterly and using sustained negative FCF as the criterion remains in place. - FY2025First statedAnnual report
「Our Indonesian subsidiary, KOS (PT.KRAKATAU OSAKA STEEL), returned to profitability in 2021, but has recorded losses for the period continuously since 2022 and had negative net worth of ¥1.8 billion at the end of FY2023. It recorded a loss for the period of ¥1.6 billion for January–September 2024, and as a loss for the period is also expected for the end of the same period, its negative net worth is expected to continue. If the business is withdrawn, losses of approximately ¥20.0 billion could arise depending on the timing and method of withdrawal.」
While KOS continues to report losses and negative net worth, a framework has been newly specified under which structural FCF is monitored quarterly to assess business continuity, together with the possibility of losses of approximately ¥20.0 billion upon withdrawal.