Raising working capital to increase diamond wire production through the sale and leaseback of fixed assets
First written in FY2018-Q1. 2 of 4 entries say "Advanced", first in FY2018-Q2. Latest entry: FY2020-Q2.
No other company in this theme has enough history to compare yet.
- FY2020-Q2AdvancedAnnual report
「At a meeting of the Board of Directors held on 30 August 2019, the company resolved to enter into agreements with Jiangsu SanChao Diamond Tools Co., Ltd., a wholly owned subsidiary of Nanjing SanChao New Materials Co., Ltd., covering the transfer of the company's diamond wire production equipment and the provision of technology for manufacturing diamond wire (the “transfer of diamond wire production equipment, etc.”). On the same day, the company entered into an equipment sales agreement and a technology licence agreement.」
The process progressed from purchasing leased equipment and preparing for its sale to entering into an equipment sales agreement and a technology licence agreement. The total consideration was approximately ¥2.2 billion. - FY2020-Q1Purchasing leased equipment in preparation for saleAnnual report
「To transfer diamond wire production equipment to Nanjing SanChao Co., Ltd., the leased equipment included in the assets to be transferred had to become company-owned property before a formal contract was signed with Nanjing SanChao Co., Ltd. The company negotiated with each leasing company and agreed to terminate the lease contracts early and purchase the equipment concerned.」
The purpose shifted from raising funds through the use of leases to purchasing leased equipment in preparation for selling the equipment. The purchase price was ¥1,006,666 thousand, while lease liabilities decreased by ¥964,231 thousand. - FY2018-Q2AdvancedAnnual report
「Proceeds from sale and leaseback 1,112,264」
Proceeds of ¥1,112,264 thousand from the sale and leaseback were recorded under cash flows from financing activities, confirming that funds had been raised through the sale and leaseback of fixed assets. - FY2018-Q1First statedAnnual report
「The funds were raised to strengthen the company's operating base and will be used as additional working capital resulting from the expansion of diamond wire production and other activities.」
The company entered into a fixed-asset sale-and-leaseback agreement under which diamond wire manufacturing equipment was sold for ¥1,047 million and lease liabilities of the same amount were incurred. The lease commenced on 1 July 2017, and the company announced plans to use the funds as working capital associated with increased production.