Holding and Review of Investment Shares to Maintain Business Relationships
First written in FY2017. 3 of 7 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2019: 18 of 135 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「The shares had been held to expand and strengthen business relationships, including sales transactions involving the turning of outer rings without bearings for industrial machinery and railway rolling-stock bearings in the bearing business. However, as cross-shareholdings were unwound during the fiscal year and it was determined that there were no circumstances preventing the sale of the shares, their purpose is being changed to a pure investment purpose.」
The purpose of 1,512 JTEKT shares was changed from policy holding to pure investment following the unwinding of cross-shareholdings. The company also stated a policy of verifying the profitability of pure investment shares and selling them to capture growth investment opportunities, including investments in personnel, development, DX and expanded production capacity. - FY2025AdvancedAnnual report
「YAMABIKO CORPORATION: All shares of the company were sold during the fiscal year.」
In connection with its review of policy-held shares, the company changed its holding of Yamabiko shares to a pure investment purpose and then sold all of them. It also changed its holding of Sumitomo Rubber Industries shares to a pure investment purpose because its purchasing transactions had ended. The proceeds from the sale of investment securities were ¥505,306 thousand. - FY2023Change in Holding PurposeAnnual report
「Investment shares whose holding purpose was changed during the fiscal year from a purpose other than pure investment to a pure investment purpose: Mizuho Financial Group, Inc. 2,080 shares ¥3,906 thousand; Sumitomo Mitsui Trust Holdings, Inc. 400 shares ¥1,816 thousand」
In connection with its review of policy-held shares, the company changed the purpose of 2 issues from purposes other than pure investment to pure investment purposes. - FY2020RestatedAnnual report
「The basic policy is to reduce holdings when their significance is considered to have diminished and continued ownership is deemed inappropriate. On a quarterly basis during each fiscal year, the Board of Directors comprehensively considers each individual issue, including whether the purpose of holding it remains appropriate and whether the benefits and risks associated with holding it are commensurate with the cost of capital, and verifies whether it should continue to be held.」
The company specifically states its policy of having the Board of Directors review individual issues of policy-held shares on a quarterly basis and reducing holdings when their rationale has diminished. - FY2019RestatedAnnual report
「After reviewing share-price trends, the Board of Directors comprehensively considers the purpose of the holdings, transaction status and future outlook, among other factors, and verifies the rationale for holding them.」
The company has reconfirmed its policy of verifying the rationale at Board of Directors meetings and continuing to hold investment shares for the purpose of maintaining business relationships, manufacturing cooperation and financial transactions. - FY2018RestatedAnnual report
「Shares classified as investment securities are exposed to the risk of fluctuations in market prices, but are primarily shares in companies with which the company has business relationships. The company regularly monitors their fair value and the financial condition of the issuers, which are business partners, and continuously reviews its holdings in light of market conditions and its relationships with business partners.」
The company has reconfirmed its policy of holding investment shares for the purpose of maintaining business relationships and reviewing such holdings based on market value, the issuer’s financial condition and business relationships. - FY2017First statedAnnual report
「Shares classified as investment securities are exposed to the risk of fluctuations in market prices, but are primarily shares in companies with which the company has business relationships. The company regularly monitors their fair value and the financial condition of the issuers, which are business partners, and continuously reviews its holdings in light of market conditions and its relationships with business partners.」
The company discloses its holdings of shares for the purpose of maintaining relationships involving business transactions, manufacturing cooperation and financial transactions, as well as its ongoing reviews based on fair value and the issuer's condition.