Material uncertainty related to the going-concern assumption following two consecutive operating losses
First written in FY2017-Q1. 3 of 10 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2019.
Nippon Sharyo moved to the "Worse" side of this theme in 2016, 7 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 26 of 48 companies on the "Worse" side.
24 other companies' latest entry also says "Mitigated".
- FY2019MitigatedAnnual report
「Based on the foregoing, we determined that, during the first quarter of the current consolidated fiscal year, the events or conditions that raised material doubt about the going-concern assumption had been resolved.」
The determination that material doubt had been resolved in the first quarter was maintained in the full-year results discussion. Full-year net profit attributable to owners of the parent was ¥9,198 million. - FY2019-Q3RestatedAnnual report
「In addition, the material events and other matters related to business risks described in the annual securities report for the previous fiscal year were determined to have been resolved during the first quarter of the current consolidated fiscal year as follows.」
The determination that material doubt about the going-concern assumption had been resolved in the first quarter was maintained, and the Company reported a nine-month net profit attributable to owners of the parent of ¥5,797 million. - FY2019-Q2RestatedAnnual report
「In addition, the material events and other matters related to business risks described in the annual securities report for the previous fiscal year were determined to have been resolved during the first quarter of the current consolidated fiscal year as follows.」
The determination that material doubt about the going-concern assumption had been resolved in the first quarter was maintained, and the Company also reported a quarterly net profit attributable to owners of the parent of ¥3,689 million in the second quarter. - FY2019-Q1MitigatedAnnual report
「Based on the foregoing, we determined that, as of the end of the first quarter of the current consolidated fiscal year, the events or conditions that raised material doubt about the going-concern assumption had been resolved.」
The Group had recorded net losses attributable to owners of the parent for four consecutive consolidated fiscal years through the previous fiscal year, but determined that the substantial doubt regarding the going-concern assumption had been resolved in light of the quarterly net income attributable to owners of the parent of ¥1,646 million recorded in the first quarter, among other factors. - FY2018-Q3RestatedAnnual report
「Based on the foregoing, we recognize that events or conditions exist that raise material doubt about the going-concern assumption. However, as described in “Measures to resolve or improve the material events and other matters disclosed under (6) Business Risks” in “3. Analysis of Financial Position, Operating Results and Cash Flows,” we have implemented measures to resolve and improve these circumstances. Accordingly, we have determined that no material uncertainty related to the going-concern assumption exists.」
Although a quarterly net loss attributable to owners of the parent of ¥7,395 million was recorded, the explanation continued to state that substantial doubt about the going-concern assumption existed but that no material uncertainty was recognized because remedial measures were being implemented. - FY2018-Q2ReframedAnnual report
「Based on the foregoing, we recognize that events or conditions exist that raise material doubt about the going-concern assumption. However, as described in “Measures to resolve or improve the material events and other matters disclosed under (6) Business Risks” in “3. Analysis of Financial Position, Operating Results and Cash Flows,” we have implemented measures to resolve and improve these circumstances. Accordingly, we have determined that no material uncertainty related to the going-concern assumption exists.」
The focus of the material-event disclosure shifted from consecutive operating losses to material doubt about the going-concern assumption in light of the quarterly net loss attributable to owners of the parent of ¥15,446 million resulting from payment of the settlement consideration for the U.S. project. - FY2018-Q1WorsenedAnnual report
「The previous consolidated fiscal year resulted in an operating loss of ¥5,104 million, meaning that the Company recorded operating losses for three consecutive years.」
The disclosure expanded from two consecutive years of operating losses to three consecutive years for the previous consolidated fiscal year. The Company nevertheless recorded an operating profit in the first quarter of the current fiscal year. - FY2017-Q3WorsenedAnnual report
「In addition, at year-end, the Company could potentially breach the financial covenants relating to long-term borrowings described in Section 4, Financial Information, Notes.」
An operating loss of ¥3,889 million was recorded for the nine months ended the third quarter, and the circumstances raising material doubt about the going-concern assumption continued. The possibility of breaching the financial covenants at year-end was also expressly disclosed. - FY2017-Q2WorsenedAnnual report
「In addition, the loss amount was expected to worsen further at the end of the fiscal year, and events or conditions existed that raised material doubt about the going-concern assumption.」
In addition to two consecutive years of operating losses, the disclosure stated that the loss amount was expected to worsen further at year-end, deepening concerns regarding the going-concern assumption. - FY2017-Q1First statedAnnual report
「As a result, the Group reported an operating loss of ¥10,171 million for the previous consolidated fiscal year and recorded operating losses for two consecutive years, meaning that events or conditions existed that raised material doubt about the going-concern assumption.」
Two consecutive years of operating losses, including an operating loss of ¥10,171 million, were disclosed as events or conditions raising material doubt. At the same time, the disclosure stated that no material uncertainty related to the going-concern assumption was identified because remedial measures were being implemented.