Large-Scale Capital Investment and the Risks of Excess Capacity and Impairment
First written in FY2016. 12 of 27 entries say "Materialised", first in FY2019-Q2. Latest entry: 2026-08-10.
Nakamura Choukou moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2024: 10 of 25 companies on the "Worse" side.
5 other companies' latest entry also says "Materialised".
- FY2026WorsenedAnnual report
「Because profit or loss from operating activities remained negative, the carrying amount of the assets associated with the asset group was reduced to their recoverable amount, and the resulting decrease of ¥20.361 million was recognized as an impairment loss under extraordinary losses.」
The impairment loss increased from ¥8.968 million in the previous fiscal year to ¥20.361 million, as the decline in the profitability of assets used in the special precision equipment business continued and intensified as a loss. - FY2026-H1WorsenedAnnual report
「Because profit or loss from operating activities remained negative, the carrying amount of the assets associated with the asset group was reduced to their recoverable amount, and the resulting decrease of ¥19.989 million was recognized as an impairment loss under extraordinary losses.」
An impairment loss of ¥19.989 million was recognized on assets used in the special precision equipment business because profit or loss from operating activities remained negative. - FY2025MitigatedAnnual report
「The Company recognized an impairment loss of ¥8 million for the consolidated fiscal year.」
The impairment loss declined from ¥45 million in the previous fiscal year to ¥8 million. However, impairment losses continued in the D-Next business, materials science business and other businesses. - FY2025-H1WorsenedAnnual report
「Because profit or loss from operating activities remained negative, the carrying amount of the assets associated with the asset group was reduced to their recoverable amount, and the resulting decrease of ¥8.313 million was recognized as an impairment loss under extraordinary losses.」
The impairment loss increased from ¥7.196 million in the same period of the previous year to ¥8.313 million. Impairment losses arose on assets used in the D-Next business, assets used in the materials science business and shared assets because profit or loss from operating activities remained negative. - FY2024MaterialisedAnnual report
「For assets used in the spinning-nozzle business for synthetic fibers, the Company decided to discontinue production of melt-blown nozzles and tooling for die processing. Because recovery of the investment was no longer expected, the assets were individually classified as idle assets, their recoverable amount was set at zero, and their entire carrying amount was impaired.」
Some assets related to the new plant and large-scale equipment were affected by the discontinuation of production and the inability to recover the investment, and were impaired as idle assets. Total impairment losses for the fiscal year were ¥45 million. - FY2024-Q3WorsenedAnnual report
「Because profit or loss from operating activities remained negative, the carrying amount of the assets associated with the asset group was reduced to their recoverable amount, and the resulting decrease of ¥28.668 million was recognized as an impairment loss under extraordinary losses.」
The impairment loss increased from ¥11.813 million in the same period of the previous year to ¥28.668 million. Impairment losses arose on assets used in the special precision equipment business, assets used in the D-Next business and shared assets because operating profit or loss remained negative. - FY2024-Q2MitigatedAnnual report
「Because profit or loss from operating activities remained negative, the carrying amount of the assets associated with the asset group was reduced to their recoverable amount, and the resulting decrease of ¥7.196 million was recognized as an impairment loss under extraordinary losses.」
An impairment loss of ¥7.196 million was recognized for the special precision equipment business and D-Next business. Although the amount declined from ¥11.505 million in the same period of the previous year, impairment losses continued for asset groups with persistently negative operating profit or loss. - FY2024-Q1MitigatedAnnual report
「Impairment loss ¥0.190 million」
The impairment loss for the first quarter was ¥0.190 million, down from ¥3.220 million in the same period of the previous year. However, impairment losses continued to be recognized. - FY2023-Q3MitigatedAnnual report
「Because profit or loss from operating activities remained negative, the carrying amount of the assets associated with the asset group was reduced to their recoverable amount, and the resulting decrease of ¥11.813 million was recognized as an impairment loss under extraordinary losses.」
The impairment loss declined substantially from ¥286.694 million in the same period of the previous year to ¥11.813 million. However, impairment losses continued for asset groups with negative cash flow from operating activities. - FY2023-Q2MitigatedAnnual report
「Because profit or loss from operating activities remained negative, the carrying amount of the assets associated with the asset group was reduced to their recoverable amount, and the resulting decrease of ¥11.505 million was recognized as an impairment loss under extraordinary losses.」
The impairment loss declined from ¥107.104 million in the same period of the previous year to ¥11.505 million. However, impairment losses continued to arise for asset groups that continued to generate negative profit or loss from operating activities. - FY2023-Q1WorsenedAnnual report
「Impairment loss ¥3.220 million」
An impairment loss of ¥3.220 million was recognized during the first three months of the fiscal year under review. The amount increased from ¥1.099 million in the same period of the previous year, and impairment related to declining profitability of equipment and business assets continued after the structural reforms. - FY2022-Q3WorsenedAnnual report
「In addition, the Company recognized an impairment loss of ¥271 million related to the pilot plant for nanosized zeolite being developed in the materials science business during the first nine months of the fiscal year under review.」
An impairment loss related to the pilot plant for nanosized zeolite arose, bringing the impairment loss for the first nine months of the fiscal year under review to ¥286.694 million. In addition to the impairment losses incurred through the previous quarter, the decline in the profitability of the pilot plant assets materialized as a significant loss. - FY2022-Q2WorsenedAnnual report
「The Company recognized the resulting decrease of ¥107.104 million as an impairment loss under extraordinary losses.」
An impairment loss of ¥107 million was recognized for asset groups that had continued to generate negative profit or loss from operating activities. The amount increased substantially from ¥7.576 million in the same period of the previous year, as the decline in the profitability of equipment and business assets was further reflected as a loss. - FY2022-Q1MaterialisedAnnual report
「The impairment loss was ¥1.099 million.」
Although the impairment loss on property, plant and equipment declined from ¥7.146 million in the same period of the previous year, impairment losses continued to arise after the structural reforms. - FY2021MaterialisedAnnual report
「The Company recognized an impairment loss of ¥18 million for the consolidated fiscal year.」
Even after the reduction in production capacity, impairment losses totaling ¥18 million arose in the electronic materials slicing-related business, special precision equipment business, materials science business and other businesses. - FY2021-Q3MaterialisedAnnual report
「Impairment Losses」
An impairment loss of ¥18.036 million was recognized during the first nine months of the fiscal year under review. Impairment of property, plant and equipment continued even after the reduction in production capacity. The figures in the breakdown are presented in the quarterly consolidated statements of income and segment information. - FY2021-Q2MaterialisedAnnual report
「The impairment loss was ¥7.576 million.」
Impairment losses on property, plant and equipment continued after the structural reforms and production capacity reductions. The amount declined from ¥65.921 million in the same period of the previous year. - FY2021-Q1MaterialisedAnnual report
「The impairment loss was ¥7.146 million.」
Impairment losses on property, plant and equipment continued after the structural reforms and production capacity reductions. The amount declined from ¥13.666 million in the same period of the previous year. - FY2020-Q2MaterialisedAnnual report
「During the first six months of the fiscal year under review (1 April 2019 to 30 September 2019), the Group recognized impairment losses on the following asset groups.」
An impairment loss of ¥65.921 million was recognized even after the plant closures and withdrawal from the production business, and the risks associated with excess equipment and declining profitability continued to materialize. - FY2020-Q1MaterialisedAnnual report
「The impairment loss was ¥13.666 million.」
Impairment losses on property, plant and equipment continued after the plant closures and production capacity reductions, and the risks associated with excess equipment and declining profitability continued to materialize in the results. - FY2019MaterialisedAnnual report
「Because the closure of the Okinawa Plant and Izumi No. 2 Plant had been decided and a significant deterioration in the operating environment had been recognized, the carrying amount of the assets in the relevant asset group was reduced to their recoverable amount, and the resulting reduction of ¥5,176.438 million was recorded as an impairment loss under extraordinary losses.」
The risk of excess equipment and impairment losses arising from expanded production capacity materialized in the decision to close the Okinawa Plant and Izumi No. 2 Plant, as well as in an impairment loss of ¥5.176 billion. - FY2019-Q3MaterialisedAnnual report
「Because the temporary suspension of the Okinawa Plant had been decided and a significant deterioration in the operating environment had been recognized, the carrying amount of the assets in the relevant asset group was reduced to their recoverable amount, and the resulting reduction of ¥5,013.679 million was recorded as an impairment loss under extraordinary losses.」
An impairment loss of ¥5,013 million was recorded for the asset group including the Okinawa Plant, making the risk relating to excess capacity and fixed assets concrete as a loss. - FY2019-Q2MaterialisedAnnual report
「Because the temporary suspension of the Okinawa Plant had been decided and a significant deterioration in the operating environment had been recognized, the carrying amount of the assets in the relevant asset group was reduced to their recoverable amount, and the resulting reduction of ¥5,011.827 million was recorded as an impairment loss under extraordinary losses.」
The risk of excess capacity associated with expanded production capacity actually materialized, and an impairment loss of ¥5,011 million was recorded on fixed assets, including the Okinawa Plant. - FY2017-Q3WorsenedAnnual report
「As a new challenge, the Group is required to improve business profitability, which has declined due to higher fixed costs associated with expanded production facilities, falling selling prices and other factors.」
The increase in fixed costs associated with expanded production facilities was explicitly identified as a factor behind lower profitability, making the fixed-cost burden associated with capital investment a more specific challenge. - FY2016First statedAnnual report
「If demand and other conditions fail to expand as anticipated by the Group in response to substantial capital investment, depreciation expenses may weigh on profitability, while impairment or disposal of excess capacity may become necessary, potentially affecting the Group's operating performance and financial position.」
While advancing investment to expand diamond wire production capacity, the Group recognizes the burden that would result if its demand forecasts prove inaccurate.