Difficult-to-predict risks associated with entering a new business
First written in FY2016. 2 of 6 entries say "Restated". Latest entry: FY2024-Q2.
Abist moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 10 of 27 companies on the "Worse" side.
26 other companies' latest entry also says "Materialised".
- FY2024-Q2MaterialisedAnnual report
「Following the discontinuation of the 3D printing business on 31 March 2024, the company reconsidered the future use of the Toyohashi facility and reviewed the expected use of its assets. The amount represents losses and other costs related to certain assets expected to remain idle, comprising ¥5.955 million in impairment losses on property, plant and equipment, ¥14.077 million in inventory valuation losses on raw materials, and ¥3.143 million in other costs.」
Regarding the unpredictable risks associated with new businesses, the discontinuation of the 3D printing business resulted in actual business exit losses of ¥23.176 million, including impairment losses on property, plant and equipment and valuation losses on raw materials. - FY2022MaterialisedAnnual report
「Sales declined due to delays in orders from major customers and price competition.」
The company stated that delays in orders from major customers actually occurred in connection with the risk that orders for mass-produced products and other items in the 3D printing business would not progress as planned. - FY2021WorsenedAnnual report
「In the 3D printing business, a delay in turning profitable is possible if orders for mass-produced products do not progress as planned.」
In addition to the general unpredictable risks associated with new businesses, the company explicitly identified the risk of a delayed return to profitability in the 3D printing business due to orders for mass-produced products falling short of plan. - FY2018RestatedAnnual report
「The Group will actively pursue new businesses with limited connections to its existing businesses to achieve long-term corporate growth. However, new businesses may give rise to risks during execution due to sudden changes in the business environment or unforeseen problems that emerge after the fact, which may affect the Group's operating performance and financial condition.」
The company continues to disclose both its active expansion into new businesses and the unpredictable risks associated with it. - FY2017RestatedAnnual report
「The Group will actively pursue new businesses with limited connections to its existing businesses to achieve long-term corporate growth. However, new businesses may give rise to risks during execution due to sudden changes in the business environment or unforeseen problems that emerge after the fact, which may affect the Group's operating performance and financial condition.」
The company continues to disclose the unpredictable risks associated with actively expanding into new businesses. - FY2016First statedAnnual report
「New businesses may give rise to risks during execution due to sudden changes in the business environment or unforeseen problems that emerge after the fact, which may affect the Group's operating performance and financial condition.」
The company identifies the uncertainty associated with entering new businesses having little connection with its existing businesses as a general risk.