Risk of Fixed Asset Impairment
First written in FY2024. 2 of 3 entries say "Worsened", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2020: 51 of 96 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「The Group owns fixed assets, including property, plant and equipment and intangible assets, and expects fixed assets to increase through future system development, acquisitions of business assets and goodwill recognized through M&A.」
Total fixed assets increased from ¥1,772.108 million in the previous fiscal year to ¥3,313.193 million, expanding exposure to impairment risk through the acquisition of battery-storage facilities and the acquisition of Chukyo Electric Power. - FY2025WorsenedAnnual report
「The Group owns fixed assets, including property, plant and equipment and intangible assets, and expects fixed assets to increase through future system development, acquisitions of business assets and goodwill recognized through M&A.」
Fixed assets have increased through acquisitions and M&A, including ¥792.800 million for a grid-scale battery storage facility and ¥493.731 million of goodwill, increasing exposure to impairment risk. - FY2024First statedAnnual report
「If profitability declines because of significant changes in the business environment or business conditions and it is determined that sufficient cash flow cannot be generated, impairment losses on the relevant assets could affect our financial position and operating results.」
As intangible fixed assets are expected to increase through system development, the company discloses impairment losses arising from lower profitability as a risk.