Prolonged Collection of Equipment Payments and Strengthening Operating Cash Flow
First written in FY2023. 2 of 4 entries say "Worsened", first in FY2025. Latest entry: FY2026.
Aimechatec moved to the "Worse" side of this theme in 2025, the same year as the typical company in this theme.
The whole theme swung hardest in 2025: 3 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Beginning with the current consolidated fiscal year, the company changed its method of recognizing bad-debt allowances to reflect estimates appropriate to the business environment and economic realities. The normal collection period, previously defined uniformly as 5 years, is now defined separately as 1 year for the semiconductor process equipment business and 2.5 years for other receivables.」
The normal collection period was shortened from a uniform 5 years to 1 year for the semiconductor process equipment business and 2.5 years for other receivables, increasing the provision for bad-debt allowances by ¥311.169 million. For overdue receivables, the policy now assumes that 25% to 100% of the balance will be uncollectible. - FY2025WorsenedAnnual report
「The company has established a policy for assessing overdue receivables under which, for balances outstanding for more than 5 years after control of the products has transferred to customers and still uncollected at the time the financial statements are prepared, 25% to 60% is assumed to be uncollectible and bad-debt allowances are recognized in stages.」
For the risk of collecting equipment consideration, the normal collection period remained no more than 5 years, while the upper limit of the impairment rate applied to balances outstanding for more than 5 years increased from 40% in the previous fiscal year to 60%. - FY2024Specification of collection terms and allowance assessmentAnnual report
「We receive approximately 20% of the contract amount as an advance payment when an order is received. We invoice approximately 70% upon shipment or completion of installation at the site and approximately 10% upon the customer’s final acceptance, and collect these amounts in accordance with the payment terms agreed in advance with the customer. The normal collection period is expected to be no more than 5 years.」
The collection risk for equipment consideration was specified through collection terms of 20%, 70%, and 10%, a normal collection period of no more than 5 years, and an assessment method involving bad-debt allowances of 25% to 40% for balances outstanding for more than 5 years. - FY2023First statedAnnual report
「Although approximately 80% of the consideration is collected through advance payments or FOB (free on board), the balance is subject to a contract under which final acceptance takes place only after the entire production line is operational, rather than when our equipment becomes operational, and payment is made after a specified warranty period, such as one year, has elapsed.」
Commercial practices in China and elsewhere may extend collection of approximately 10% of the contract price, while collection of the balance may be delayed until final acceptance and the warranty period have elapsed even after approximately 80% has been collected through advance payments and FOB terms. These were identified as risks to operating cash flow. The company seeks early collection by clarifying acceptance conditions and coordinating with subsidiaries and agents.