Risks Associated with Overseas Subsidiaries and Overseas Equity-Method Affiliates
First written in FY2016. 7 of 15 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Daikokuya Holdings moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2025: 72 of 117 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「The company transferred its shares in the UK-based SFL Group on 27 March 2026 and excluded it from the scope of consolidation.」
The scope of the overseas business risk changed from including the UK-based SFL to being centered on the Chinese operations, including the Shanghai subsidiary, following the transfer of SFL. - 2026-05-15MaterialisedRevisions to earnings forecasts
「The recording of a ¥1,278 million loss on the reversal of the foreign currency translation adjustment account in connection with the external sale of the UK sub-subsidiary also caused net loss attributable to owners of the parent to fall below the previous forecast.」
The ¥1,278 million loss on the reversal of the foreign currency translation adjustment account associated with the external sale of the UK sub-subsidiary became an actual factor behind the downside variance in net loss attributable to owners of the parent. - FY2025RestatedAnnual report
「The Group includes overseas subsidiaries, namely the SFL Group and 上海黛庫商業有限公司. The operation of overseas subsidiaries involves foreign exchange risk, as well as business risks specific to each location, including the impact of changes in economic and political conditions, laws and regulations, and tax systems in each country and region, and differences in business practices.」
The risks arising from foreign exchange, country conditions, laws and regulations, tax systems and differences in business practices were reconfirmed for the overseas subsidiaries, consisting of the UK-based SFL, which is in the process of exiting, and 上海黛庫 in China. - FY2023-Q3MaterialisedAnnual report
「The outlook remains uncertain due to the spread of infections following China's policy shift, the situation in Ukraine, and soaring resource prices caused by the yen's sharp depreciation.」
The spread of infections following China's policy shift, the situation in Ukraine, and the yen's sharp depreciation and resulting surge in resource prices have actually affected the business environment as overseas and external risks. - FY2023-Q2MaterialisedAnnual report
「Meanwhile, the continued zero-COVID policy in China slowed the growth of the purchasing and resale business in the country.」
China's continued zero-COVID policy actually materialized as an overseas business environment risk in the form of slower growth in the domestic purchasing and resale business. - FY2023-Q1MaterialisedAnnual report
「In late December last year, 上海黛庫 opened 大黒屋高青路店 inside Alibaba Group's Freshippo as its first purchasing and resale store. However, operations were subsequently affected by lockdowns resulting from the explosive spread of COVID-19 centered in Shanghai, forcing employees to work from home, while the suspension of international mail shipments to China further compounded the situation.」
The lockdown in China and Shanghai and the suspension of international mail shipments to China actually occurred as risks associated with overseas subsidiary operations, affecting local operations. - FY2022RestatedAnnual report
「The Group includes overseas subsidiaries, namely the SFL Group and 上海黛庫商業有限公司. The operation of overseas subsidiaries involves foreign exchange risk, as well as business risks specific to each location, including the impact of changes in economic and political conditions, laws and regulations, and tax systems in each country and region, and differences in business practices.」
The overseas business risk was reconfirmed as relating to the UK-based SFL, which is in the process of exiting, and 上海黛庫, which is expanding its operations. - FY2022-Q1ReframedAnnual report
「During the first quarter of the current consolidated fiscal year, Beijing XinBang Daikokuya Trading Corporation, Ltd. (Other business segment) was removed from the scope of equity-method application following completion of its liquidation.」
It was confirmed that the overseas business shifted from a structure including an equity-method joint venture with CITIC to a China business centered on a wholly owned Shanghai subsidiary following the liquidation of that joint venture. - FY2021ReframedAnnual report
「The Group includes overseas subsidiaries, namely the SFL Group and 上海黛庫商業有限公司, as well as an overseas equity-method affiliate, a joint venture with CITIC XINBANG ASSET MANAGEMENT CORPORATION LTD., established in August 2016.」
The scope of the overseas business risk changed from being centered on the UK-based SFL to including the Shanghai subsidiary. The Chinese joint venture was also disclosed as having been dissolved, indicating that the overseas business is being reorganized. - FY2020-Q2MaterialisedAnnual report
「This was due to a ¥74 million foreign exchange loss on a pound-denominated loan to SFL.」
The foreign exchange risk associated with overseas operations was reflected in earnings as a ¥74 million foreign exchange loss on a pound-denominated loan to SFL. - FY2019RestatedAnnual report
「The operation of overseas subsidiaries and overseas equity-method affiliates involves foreign exchange risk, as well as business risks specific to each location, including the impact of changes in economic and political conditions, laws and regulations, and tax systems in each country and region, and differences in business practices.」
The risks arising from foreign exchange, country conditions, laws and regulations, tax systems and differences in business practices at overseas subsidiaries and overseas equity-method affiliates were reconfirmed. - FY2017WorsenedAnnual report
「Going forward, the proportion of revenue and profit generated by overseas subsidiaries and overseas equity-method affiliates within the Group may increase. If economic conditions in each country or region fluctuate, this may affect the Group's performance.」
The company stated that a future increase in the revenue and profit contribution of overseas subsidiaries and equity-method affiliates could broaden the impact of changes in overseas conditions on performance. - FY2017-Q2MaterialisedAnnual report
「Decrease of ¥699 million in the foreign currency translation adjustment account and ¥251 million in non-controlling interests」
The impact of overseas operations and foreign exchange fluctuations was reflected in net assets at the end of the second quarter as a ¥699 million decrease in the foreign currency translation adjustment account. - FY2017-Q1MaterialisedAnnual report
「In addition, as the yen strengthened following the UK's withdrawal from the EU in June, the company is disposing of overpriced inventory, particularly high-value items, after taking into account the decline in market prices for branded goods.」
In relation to overseas business and foreign exchange risk, Brexit and the yen's appreciation actually occurred, affecting the market for branded goods and inventory disposals. - FY2016First statedAnnual report
「The operation of overseas subsidiaries and overseas equity-method affiliates involves foreign exchange risk, as well as business risks specific to each location, including the impact of changes in economic and political conditions, laws and regulations, and tax systems in each country and region, and differences in business practices.」
Foreign exchange, country conditions, laws and regulations, tax systems and differences in business practices were identified as risks for the SFL Group and the Chinese joint venture.