Recovery and Valuation Risks for Investments in Unlisted Shares
First written in FY2022. 4 of 9 entries say "Mitigated", first in 2026-05-08. Latest entry: 2026-08-06.
for Startups 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 2024: 9 of 12 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026-H1WorsenedAnnual report
「During the interim consolidated accounting period, the fair value of the unlisted shares held by FOR STARTUPS No. 1 Investment Limited Partnership, reflecting excess earning power, fell significantly below their acquisition cost. Accordingly, an impairment loss on operating investment securities of ¥93.153 million was recorded in cost of sales. Including recurring management expenses, the segment loss was ¥97.120 million, compared with a loss of ¥3.722 million in the same period of the previous year.」
An impairment loss on unlisted shares recurred, resulting in the recognition of a ¥93.153 million impairment loss on operating investment securities. The venture capital business segment loss also widened from ¥3.722 million in the same period of the previous year to ¥97.120 million. - FY2025RestatedAnnual report
「To address these risks, the Group primarily invests in unlisted companies that provide recruitment support through talent agencies. At the time of investment, it makes decisions after thoroughly examining the business model and market environment, and after investment it regularly monitors the condition of its investees to mitigate risk.」
The Group continues to recognise the risks of impairment and investment recovery associated with unlisted shares, and cites due diligence at the time of investment and regular post-investment monitoring as its measures to address them. - FY2024-Q3MaterialisedAnnual report
「During the first 3 quarters of the fiscal year, the fair value of the unlisted shares held by FOR STARTUPS No. 1 Investment Limited Partnership, reflecting excess earning power, fell significantly below their acquisition cost. Accordingly, an impairment loss on operating investment securities of ¥136.343 million was recorded in cost of sales.」
The fair value of unlisted shares fell significantly below their acquisition cost, resulting in the recognition of a ¥136.343 million impairment loss on operating investment securities, meaning that the valuation and investment recovery risks associated with unlisted shares materialised. - FY2022First statedAnnual report
「Operating investment securities are unlisted shares held by investment partnerships managed and operated by the Group. Compared with listed companies, unlisted companies have less stable earnings and financial bases and more limited management resources, making them more vulnerable to economic conditions and other factors. They are exposed to the risk that expected capital gains will not be realised and that invested funds cannot be recovered.」
The risks arising from the unstable earnings and financial bases of unlisted companies, unrealised expected capital gains and inability to recover invested funds have been newly disclosed in connection with the launch of the investment business.