Material doubt regarding the going concern assumption due to lengthening component lead times and other factors
First written in FY2024-Q1. 1 of 4 entries say "Mitigated", first in FY2024-Q2. Latest entry: FY2024.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
11 other companies' latest entry also says "Achieved".
- FY2024AchievedAnnual report
「Based on the foregoing, we have determined that the deterioration in business performance and financial condition caused by the issue of extended material lead times has improved substantially, and that the events or conditions that could raise significant doubt about the going-concern assumption have been resolved.」
The company recorded operating profit of ¥919 million and operating cash flow of ¥1.641 billion, and determined that the significant doubt regarding the going-concern assumption caused by the issue of extended material lead times had been resolved. - FY2024-Q3RestatedAnnual report
「As a result of implementing these measures, we have determined that no material uncertainty exists regarding the going-concern assumption for our group.」
While material procurement risks remain and the company recognizes events or conditions that raise significant doubt about the going-concern assumption, it continues to determine that no material uncertainty is recognized as a result of measures to strengthen its earnings base and financial base. - FY2024-Q2MitigatedAnnual report
「As a result of implementing these measures, we have determined that no material uncertainty exists regarding the going-concern assumption for our group.」
Although the company continues to recognize events or conditions that raise significant doubt about the going-concern assumption, it stated that, as a result of measures to improve its earnings base and financial base, no material uncertainty was recognized. - FY2024-Q1First statedAnnual report
「Our group has been significantly affected by the issue of extended material lead times in the manufacture and sale of telecommunications equipment. As a result, production activity stagnated because, among other factors, there was no clear prospect of securing some key materials required for production, and sales declined substantially. Consequently, the group recorded an operating loss and negative operating cash flow for 2 consecutive periods, and also recorded an operating loss in the cumulative first quarter of the current consolidated fiscal year. We recognize that events or conditions exist that may raise significant doubt about the going-concern assumption for our group, as these severe external conditions are expected to continue to have a substantial impact on our group's business.」
Against a backdrop of production stagnation caused by extended material lead times, operating losses and negative operating cash flow for 2 consecutive periods, and an operating loss in the current quarter, the company explicitly stated for the first time that events or conditions existed that could raise significant doubt about the going-concern assumption. It also stated that, as a result of measures including securing sales from large orders, passing through higher prices, reducing costs, managing material inventories and strengthening monthly management controls, no material uncertainty was recognized.