Bad debt risk on receivables held by Chinese equity-method affiliates
First written in FY2025-H1. 4 of 6 entries say "Mitigated", first in FY2026-H1. Latest entry: FY2026.
The whole theme swung hardest in 2019: 2 of 7 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Equity-method investment loss (non-operating expense) 7,810; provision for allowance for doubtful accounts (non-operating expense) 1,034」
Losses relating to the Chinese equity-method affiliate declined from the previous year's equity-method investment loss of ¥7,810 million and other items to an equity-method investment loss of ¥467 million in the current year, while the balance of related receivables also decreased to ¥429 million. The accounting impact of the risk has narrowed. - FY2026-H1MitigatedAnnual report
「Non-operating income Reversal of allowance for doubtful accounts － 254 Non-operating expenses Equity-method investment loss 2,888 156」
The equity-method investment loss decreased from ¥2,888 million in the same period of the previous year to ¥156 million, while a ¥254 million reversal of the allowance for doubtful accounts was also recorded. The loss impact associated with receivables risk at the Chinese equity-method affiliate narrowed during the interim period. - FY2025MaterialisedAnnual report
「Equity-method investment loss (non-operating expense) 7,810 Provision for allowance for doubtful accounts (non-operating expense) 1,034」
After assessing the repayment capacity of FSH and its parent company, the Company recorded an equity-method investment loss of ¥7,810 million and a provision for allowance for doubtful accounts of ¥1,034 million. The bad debt risk at the Chinese equity-method affiliate has materialised as an accounting loss. - FY2025-H1MaterialisedAnnual report
「Against the backdrop of a prolonged downturn in the Chinese economy, bad debt risk arose during the interim consolidated accounting period in respect of receivables held by an equity-method affiliate. Ordinary profit came to ¥7,094 million, up 58.7% year on year, due in part to the recognition of an equity-method investment loss as a non-operating expense following the recognition of a provision after taking into account the bad debt risk relating to receivables held by Futong Showa Cable (Hangzhou) Co., Ltd., an equity-method affiliate,」
As the downturn in the Chinese economy became prolonged, new bad debt risk arose in respect of receivables held by an equity-method affiliate, and an equity-method investment loss of ¥2,888 million, after taking into account the provision, was recorded as a non-operating expense.