Losses and impairment at Thai factory due to shortfall against ASEAN sales plan
First written in FY2020. 6 of 10 entries say "Materialised", first in FY2022-Q2. Latest entry: 2026-09-11.
Nikko 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 2017: 4 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「This represents the estimated administrative costs associated with the liquidation of our consolidated subsidiary Nikko Asia(Thailand) Co.,Ltd.」
The risks related to the ASEAN sales plan and Thailand business have emerged in the form of the decision to liquidate Nikko Asia (Thailand) and the recording of a ¥402 million loss on the liquidation of an affiliated company. - FY2023MaterialisedAnnual report
「Because the originally anticipated earnings could no longer be expected, the company reduced the carrying amount to the recoverable amount and recorded the reduction as an impairment loss under extraordinary losses.」
The risk of failure to meet earnings plans for ASEAN sales and the Thailand business actually materialized as total impairment losses of ¥104 million relating to Nikko Asia and Nikko Nilkhosol. - FY2022-Q3WorsenedAnnual report
「In Thailand, construction and the start of operations at the plant of the Thai manufacturing subsidiary have been delayed due to labor shortages and flooding caused by the spread of COVID-19. The company believes that the impact on the Group’s consolidated financial statements is limited at present, but will continue to monitor developments.」
Regarding execution risks for the investment in the Thai manufacturing subsidiary, the scope of the description has expanded from delays in plant construction to delays in both construction and the start of operations. - FY2022-Q2MaterialisedAnnual report
「In Thailand, construction of the plant operated by the Thai manufacturing subsidiary has been delayed due to labor shortages and flooding caused by the spread of COVID-19. The company believes that the impact on the Group’s consolidated financial statements is limited at present, but will continue to monitor developments.」
Regarding the more than ¥1 billion investment in the Thai plant, labor shortages and flooding caused by the spread of COVID-19 have delayed plant construction, making execution risks for the investment plan concrete. - FY2020First statedAnnual report
「As part of its growth strategy, the company established a manufacturing subsidiary in Thailand in fiscal 2020 and decided to invest more than ¥1 billion in a plant. This investment is predicated on the stable annual sale of the company’s asphalt plants in Thailand and other ASEAN countries. However, if the company’s plants fail to gain sufficient support from customers in Thailand and other ASEAN countries and the planned number of units cannot be sold, the plant may become loss-making and face impairment risk.」
The company concretely identifies for the first time the investment risk that failure to meet the ASEAN sales plan for the more than ¥1 billion Thai plant investment could lead to losses and impairment.