Collection losses and declining creditworthiness caused by deterioration in distributors' credit quality or legal violations
First written in FY2023. 1 of 2 entries say "Mitigated", first in FY2024. Latest entry: FY2024.
The whole theme swung hardest in 2020: 7 of 29 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「Our Group takes the utmost care to avoid credit risk by establishing credit limits and other measures based on the financial condition and performance of contracted distributors. In addition, if a contracted distributor engages in an illegal act, the Group's credibility and brand image could suffer. We work to build relationships of trust with contracted distributors and enhance guidance and training.」
The company specified credit limits based on distributors' financial condition, relationship-building, and guidance and training as measures to address contracted distributor risks. - FY2023First statedAnnual report
「If the financial condition of a contracted distributor deteriorates and receivables become uncollectible, this could affect the Group's business, operating results, and financial condition. In addition, if a contracted distributor engages in an illegal act, the Group's credibility and brand image could suffer.」
The company identified as new risks the inability to collect receivables due to deterioration in distributors' credit quality and declines in credibility and brand image due to legal violations by distributors.