Risk of impairment of investment in affiliated company due to delay in Vietnamese factory business plan
First written in FY2021. 1 of 2 entries say "Worsened", first in FY2024. Latest entry: FY2024.
Tsurumi Manufacturing moved to the "Worse" side of this theme in 2024, 2 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 3 of 12 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「TSURUMI PUMP VIET NAM CO., LTD., a consolidated subsidiary, reported an operating loss for the current consolidated fiscal year and was generating returns below those projected at the time of investment. Accordingly, indicators of impairment were identified in its fixed assets, and the Company considered whether an impairment loss needed to be recognized.」
Indicators of impairment were identified for the Vietnamese subsidiary's fixed assets because it reported an operating loss and profitability below the assumptions made at the time of investment. No impairment loss was recognized for the current fiscal year because undiscounted future cash flows exceeded the carrying amount. - FY2021First statedAnnual report
「TSURUMI PUMP VIET NAM CO., LTD., the Company's non-consolidated subsidiary, was established to manufacture and sell submersible pumps and related parts in Vietnam and is currently in the business launch stage. However, during the current consolidated fiscal year, delays in its business plan caused in part by the spread of COVID-19 resulted in a temporary accumulation of losses, which significantly reduced the substantive value of the Company's investment in the subsidiary, and the Company recognized an impairment loss.」
Due to delays in the Vietnamese subsidiary's business plan and the temporary accumulation of losses, the Company recognized a ¥491 million valuation loss on investments in an affiliated company.