Funding and liquidity risks associated with large-scale capital investment
First written in FY2016. 22 of 43 entries say "Mitigated", first in FY2017-Q3. Latest entry: 2026-10-09.
Japan Display moved to the "Worse" side of this theme in 2024, 1 year after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 17 of 32 companies on the "Worse" side.
15 other companies' latest entry also says "Mitigated".
- FY2026WorsenedAnnual report
「To secure the working capital needed for near-term business operations, we obtained a new loan from Ichigo Trust during the fiscal year, in April 2025, with total principal of ¥5.5 billion. We also agreed with Ichigo, after the end of the fiscal year, to extend the repayment dates for the borrowings until 31 July 2026 for total principal of ¥27 billion, until 31 August 2026 for total principal of ¥18 billion, and until 30 September 2026 for total principal of ¥16 billion.」
The outstanding borrowings from Ichigo Trust reached ¥65.0 billion, and multiple extensions of repayment deadlines were required in addition to new borrowings. Although ¥9.5 billion was repaid in May 2026, reliance on external financing continues. - FY2026-H1WorsenedAnnual report
「To secure the working capital required for business operations, the company obtained new borrowings from Ichigo Trust during the current interim consolidated accounting period, consisting of ¥5.5 billion in principal in April 2025. In addition, by the filing date of this semiannual report, the company had agreed with Ichigo Trust to extend the repayment dates for borrowings, to 28 November 2025 for ¥22.0 billion in principal, 26 December 2025 for ¥16.0 billion, and 30 January 2026 for ¥27.0 billion.」
The company newly borrowed ¥5.5 billion from Ichigo Trust and extended the repayment deadlines for several existing borrowings. Short-term borrowings reached ¥65 billion, and dependence on external funding and liquidity risk continued. - FY2025WorsenedAnnual report
「During the consolidated fiscal year, the Group obtained new borrowings 8 times from July 2024 to March 2025, with a total principal amount of ¥26 billion. In addition, by the date of submission of this annual securities report, it had extended the repayment date for part of its borrowings.」
New borrowings from Ichigo Trust and extensions of repayment deadlines continued, bringing short-term borrowings at the fiscal year-end to ¥59.5 billion. Dependence on external financing requiring additional borrowing and further extensions continued, deepening liquidity risk. - FY2025-H1WorsenedAnnual report
「During the interim consolidated accounting period, the company obtained new borrowings from Ichigo Trust on 3 occasions between July and September 2024, with total principal of ¥10.5 billion. By the date of submission of the interim report, the company had also agreed with Ichigo to extend the repayment dates for part of the borrowings: until 29 November 2024 for ¥12.5 billion of principal, until 27 December 2024 for ¥8 billion, and until 31 January 2025 for ¥16 billion.」
To secure working capital, the Company borrowed ¥10.5 billion from Ichigo Trust and extended the repayment deadlines for existing borrowings. Short-term borrowings at the end of the interim period were ¥44.0 billion, and an additional ¥3.5 billion was borrowed after the filing date, indicating continued reliance on external funding and ongoing liquidity risk. - FY2024WorsenedAnnual report
「During the consolidated fiscal year under review, the company raised total principal of ¥33.5 billion from Ichigo Trust for working capital purposes, under an agreement from which details have been omitted.」
As a liquidity measure, the company borrowed a total of ¥33.5 billion from いちごトラスト between May 2023 and February 2024. The repayment deadline for the borrowings also had to be extended, and dependence on external funding for cash management continued. - FY2024-Q3WorsenedAnnual report
「From a financial perspective, in view of the importance of securing cash on hand in preparation for continued global inflation and supply-chain risks, the Company obtained a new loan from Ichigo Trust (principal amount of ¥4 billion dated 30 October 2023) during the cumulative period of the third quarter. In addition, by the date of submission of the quarterly securities report, the Company had agreed with Ichigo Trust to extend the repayment dates for existing borrowings.」
To secure cash on hand, the company took out a new ¥4 billion loan from Ichigo and extended the repayment dates of existing borrowings. While implementing funding measures, a significant impact on cash flow from a delay in the recovery of results and material uncertainty regarding the going-concern assumption remain. - FY2024-Q2WorsenedAnnual report
「From a financial perspective, in view of the importance of securing cash on hand in preparation for accelerating global inflation and continuing supply-chain risks, during the six-month period of the current fiscal year the company drew new borrowings from Ichigo Trust (principal amounts of ¥4.0 billion dated 28 July 2023 and ¥4.0 billion dated 17 August of the same year),」
To secure cash on hand, the company obtained total new borrowings of ¥8 billion from Ichigo and extended the repayment date for existing borrowings. While implementing financing measures, it continued to disclose the possibility that delayed performance recovery could have a material impact on cash flow. - FY2024-Q1WorsenedAnnual report
「However, given the continuing effects of the recent global surge in raw-material costs, increased power and transportation costs resulting from higher energy costs, and a global decline in consumption, the return to profitability through an early recovery in performance may be delayed. In light of the possibility of a material impact on the group’s cash flow, a material uncertainty regarding the going-concern assumption is recognised at this time.」
Although Ichigo provided a total of ¥1.2 billion in short-term borrowings, it continued to disclose that a delay in the recovery of performance could have a material impact on cash management and that material uncertainty remained regarding the going-concern assumption. - FY2023MitigatedAnnual report
「With all of the company's borrowings converted into equity, it secured substantial debt reduction, a stable long-term capital structure and greater flexibility in financial measures to address future funding needs.」
The year-end balance of borrowings fell to zero due to debt forgiveness of ¥15,000 million by Ichigo and a ¥86,680 million debt-for-equity swap, among other measures. However, free cash flow was an outflow of ¥74,296 million, and dependence on future financing remained. - FY2023-Q3MitigatedAnnual report
「Pursuant to a resolution of the board of directors held on 21 December 2022, the company entered into a memorandum with INCJ on 22 December 2022 to extend the repayment date under the loan agreement as a short-term borrowing executed with INCJ on 2 September 2019.」
The repayment deadline for borrowings from INCJ with total principal of ¥20 billion was extended to 28 February 2023, and a ¥28 billion short-term borrowing from Ichigo Trust was executed. Short-term liquidity measures progressed, but significant uncertainty regarding the going-concern assumption continued to exist. - FY2023-Q2MitigatedAnnual report
「To meet short-term funding needs, the company will take timely and appropriate financing measures to strengthen its financial position by making flexible short-term borrowings from Ichigo Trust (hereinafter, “Ichigo Trust”), comprising a principal amount of ¥13 billion dated 26 September of the same year and a scheduled principal amount of USD80 million dated 21 November of the same year, as well as securing stable long-term funding mainly through the sale or securitization of low-efficiency assets and financing from business partners, financial investors and other parties.」
The company drew down ¥13 billion in short-term borrowings from Ichigo Trust and outlined measures to secure funds through additional borrowings and the sale and securitisation of low-efficiency assets. While short-term funding measures progressed, securing stable long-term funding remains an ongoing issue. - FY2023-Q1MitigatedAnnual report
「The company agreed with INCJ to extend to 28 December 2022 the repayment deadline for its borrowings from INCJ dated 2 September 2019, with total principal of ¥20 billion.」
The repayment deadline for the ¥20 billion in principal borrowed from INCJ was extended to 28 December 2022, and measures were taken to address short-term repayment obligations. However, the company was considered to need to secure stable long-term funding through the sale and monetization of low-efficiency assets and additional financing, and significant uncertainties regarding its cash position remain. - FY2022MitigatedAnnual report
「Subsequently, the Company also completed raising the full ¥55.4 billion related to Class E preferred shares through the exercise of the 12th series of stock acquisition rights by 4 March 2022 during the current consolidated fiscal year.」
The company completed in full the ¥55.4 billion funding through Series E preferred shares by Ichigo Trust and repaid the ¥20 billion INCJ borrowing. While it indicated a financial policy of maintaining liquidity on hand at approximately 1.5 months of consolidated revenue, the possibility of additional funding needs remains. - FY2022-Q3MitigatedAnnual report
「This was mainly due to an outflow of ¥20,000 million for repayment of borrowings to INCJ, while proceeds of ¥24,842 million were received from the issuance of shares upon the exercise of stock acquisition rights by Ichigo Trust.」
While raising ¥24,842 million through the exercise of stock acquisition rights by Ichigo Trust, the company repaid ¥20,000 million of borrowings from INCJ. Liquidity measures progressed, but the need for additional financing remains. - FY2022-Q2MitigatedAnnual report
「This was mainly due to an outflow of ¥20,000 million for repayment of borrowings to INCJ, while proceeds of ¥24,842 million were received from the issuance of shares upon the exercise of stock acquisition rights by Ichigo Trust.」
It raised ¥24,842 million through the exercise of subscription rights to shares by Ichigo Trust, while repaying ¥20,000 million in borrowings from INCJ. Although fundraising and debt repayment progressed, cash flow from operating activities was an outflow of ¥6,803 million, and cash management challenges remain. - FY2022-Q1MitigatedAnnual report
「Through the issuance of Class E preferred shares associated with the partial exercise of the 12th series of subscription rights to shares by Ichigo Trust, the company raised approximately ¥19.4 billion on 25 March 2021 and approximately ¥16.6 billion on 30 July 2021.」
Approximately ¥19.4 billion and ¥16.6 billion were raised through the issuance of Class E preferred shares by いちごトラスト, as measures were taken to address liquidity and the financial base. The disclosure also stated that an additional approximately ¥19.4 billion was expected to be raised from the unexercised portion. - FY2021-Q3MitigatedAnnual report
「The sale of the plant, which had been a non-operating asset, reduced liabilities by approximately ¥74.3 billion because the sale proceeds were applied to payments of advances received from customers, with part of the amount offset against accounts receivable. This also contributed to improvements in the balance sheet and cash flow.」
The consideration received for the transfer of the Hakusan Plant was applied to the repayment of advances received, reducing liabilities by approximately ¥74.3 billion and improving the balance sheet and cash flow. Progress was made in addressing liquidity risk. - FY2021-Q1MitigatedAnnual report
「In addition, on 6 August of the same year, the company reached an agreement with INCJ to extend by 1 year the repayment date for the loan dated 7 August 2019 from INCJ, with a total principal amount of ¥20 billion, and by 2 years the repayment date for the loan dated 2 September 2019, also with a total principal amount of ¥20 billion.」
The company agreed to extend the repayment deadline for its INCJ borrowings and proceeded with measures to address its cash flow. Ichigo Trust also completed payment of ¥5 billion for Class D preferred shares and the issuance of warrants for Class E preferred shares. Regarding past breaches of financial covenants, the company obtained an agreement from INCJ not to exercise its rights. - FY2020MitigatedAnnual report
「All capital contributions were completed on 26 March 2020. The refinancing was also carried out on the same day, and completion of the senior loan amendment agreement reduced interest-bearing debt by approximately ¥148.3 billion on a net basis. In addition, a gain of approximately ¥30.6 billion on the sale of shares accompanying the in-kind settlement was recorded. As a result, the Group had eliminated its negative net worth as of the end of the current consolidated fiscal year.」
The company carried out capital injections and refinancing by Ichigo Trust and INCJ, reducing interest-bearing debt on a net basis by approximately ¥148.3 billion and eliminating its negative net worth. However, it stated that the possibility remained that the COVID-19 pandemic could affect its cash flow and liquidity. - FY2020-Q3MitigatedAnnual report
「As of the filing date of this quarterly report, the company expects to eliminate its negative net worth upon completion of external investment and refinancing by INCJ, and will continue to pursue measures to strengthen its finances and improve its business operations.」
As of the filing date of this quarterly report, external capital contributions and refinancing from INCJ had been completed, and the company had reached the stage at which elimination of its negative net worth was expected. However, medium- to long-term cash flow risks remain if the recovery in future performance is delayed. - FY2020-Q2WorsenedAnnual report
「This was mainly because short-term borrowings increased by ¥59,923 million, including ¥60 billion borrowed under bridge loan and short-term borrowing agreements with INCJ, while accounts payable decreased by ¥8,010 million and advances received decreased by ¥10,279 million.」
Short-term borrowings increased through bridge loans and short-term borrowings from INCJ, bringing the balance of short-term borrowings to ¥190,767 million. Cash flow from operating activities was an outflow of ¥57,377 million, and the company continued to depend on external investment and the early completion of refinancing from INCJ to manage its liquidity. - FY2020-Q1WorsenedAnnual report
「Even if the capital injection is confirmed, considering the possibility of a material impact on the company’s cash management if it is unable to return to profitability through an early recovery in performance, the company believes that significant uncertainty regarding the going-concern assumption exists at present.」
The Company explicitly stated that recovery from its negative net worth and cash management depended on securing the Suwa capital injection and achieving profitability at an early stage. Although it had arranged or planned a ¥20,000 million bridge loan and additional short-term borrowings from INCJ, uncertainty regarding financing remained. - FY2019WorsenedAnnual report
「The funding injection under the capital and business alliance agreement, which is scheduled to cover part of the repayment funds, is subject to the fulfillment of conditions with Suwa. As the Company’s cash flow could be materially affected if the funding injection is not finalized, a material uncertainty regarding the going-concern assumption exists at present.」
Funding and liquidity risks became more concrete, with ¥107,000 million drawn under the commitment line, no undrawn amount remaining, and future capital injections subject to conditions. - FY2019-Q3RestatedAnnual report
「In terms of funding, the company improved cash flow by implementing financial measures to stabilize cash management, including a third-party allotment of new shares and the renewal of its commitment line agreement.」
The company stated that it continues measures to stabilize cash management, including third-party allotments and renewals of commitment line agreements. Negotiations for alliances to strengthen the financial base were recorded separately as a new initiative. - FY2019-Q2RestatedAnnual report
「In terms of funding, the company is improving cash flow by implementing financial measures to stabilize cash management, including a private placement of shares and the renewal of a commitment-line agreement, and has determined that no material uncertainty related to the going-concern assumption is recognized.」
The company stated that it continued measures to stabilize liquidity, including third-party allotment capital increases and the renewal of commitment-line agreements. Cash flow from operating activities was an outflow of ¥31,015 million. - FY2019-Q1MitigatedAnnual report
「In terms of funding, the company is improving cash flow by implementing financial measures to stabilize cash management, including a private placement of shares and the renewal of a commitment-line agreement, and has determined that no material uncertainty related to the going-concern assumption is recognized.」
The company implemented a private placement and renewed its commitment line agreement as measures to stabilise cash management, and proceeded with measures addressing funding and liquidity. - FY2018WorsenedAnnual report
「Commitment facility ¥107.0 billion」
To secure working capital, the commitment line was expanded to ¥107.0 billion. At fiscal year-end, drawn borrowings were ¥98.0 billion and the undrawn amount was ¥9.0 billion. While financing measures became more concrete, the amount drawn under the facility also increased substantially. - FY2018-Q3RestatedAnnual report
「The Group is working to improve cash flow by implementing financial measures to raise funds and stabilize cash management.」
The company reiterated that it was continuing measures to improve cash flow by raising funds and stabilizing cash management in response to material events and other matters. - FY2018-Q2MitigatedAnnual report
「The Group is working to improve cash flow by implementing financial measures to raise funds and stabilize cash management.」
The company disclosed that it was implementing financial measures to raise funds and stabilize cash management in response to circumstances giving rise to material doubt about its ability to continue as a going concern. - FY2017MitigatedAnnual report
「The company issued ¥45.0 billion of unsecured convertible bonds with stock acquisition rights, subject to subordinated provisions, with Innovation Network Corporation of Japan as the allottee, and obtained ¥30.0 billion in subordinated borrowing from the same entity, raising a total of ¥75.0 billion.」
The company raised ¥75 billion for use in OLED research and development and proceeded with measures to address funding risk. - FY2017-Q3MitigatedAnnual report
「The Company decided to offer ¥45 billion in unsecured convertible bonds with share acquisition rights, subject to a subordinated condition, to be allocated to Innovation Network Corporation of Japan, and to obtain ¥30 billion in subordinated borrowings from the same company, for total funding of ¥75 billion.」
Regarding financing for large-scale research and development investments and other purposes, the Company decided to raise a total of ¥75.0 billion through ¥45.0 billion in convertible bonds and ¥30.0 billion in subordinated borrowings. The disclosure did not state that all financing risks had been eliminated. - FY2016First statedAnnual report
「As the Group continues to invest in research and development and advanced production lines, it may raise funds through borrowings from financial institutions, leases, and bond issuance, among other means.」
Cash flows from investing activities for the fiscal year represented an outflow of ¥181,156 million, while cash and cash equivalents at the end of the period stood at ¥55,077 million. The Company cited the availability of financing through borrowings, leases and bond issuance as a risk.