Impairment Risk Associated with Significant Capital Investment
First written in FY2020. 3 of 5 entries say "Mitigated", first in FY2022. Latest entry: FY2026.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Total impairment losses (A) + (B) + (C) 174」
The impairment risk associated with significant capital investment continued to materialize at the U.S. subsidiary, but impairment losses decreased from ¥303 million in the previous period to ¥174 million. Investment recovery analyses and monitoring of actual recovery also continued. - FY2025MitigatedAnnual report
「Total impairment losses (A) + (B) + (C) 754 China, Qingdao, Shandong Province, 青島東洋熱交換器有限公司, heat exchanger manufacturing and sales business, total 869」
The impairment risk associated with significant capital investment has materialized, but impairment losses decreased from ¥1,623 million in the previous period to ¥303 million in the current period. - FY2024MaterialisedAnnual report
「Total impairment losses (A) + (B) + (C) 754 China, Qingdao, Shandong Province, 青島東洋熱交換器有限公司, heat exchanger manufacturing and sales business, total 869」
The U.S. subsidiary recorded ¥754 million in impairment losses on aluminum and stainless-steel product equipment and idle equipment, while the Qingdao subsidiary in China recorded ¥869 million. The impairment risk associated with significant capital investment has materialized as actual losses. - FY2022MitigatedAnnual report
「To control this risk, the Group evaluates risks through investment recovery analyses when making new investments and monitors actual investment recovery.」
In response to the impairment risk associated with significant capital investment, management measures involving recovery analyses for new investments and monitoring of actual investment recovery were specified. - FY2020First statedAnnual report
「Accordingly, if a business in which significant capital investment has been made is unable to generate the expected profits due to a decline in sales or other factors, significant impairment losses may arise and have a material impact on the Group's operating results and financial position.」
Given the structure in which capital investment becomes substantial for new-model production and other purposes, the risk of impairment losses when sales decline was disclosed as a standalone key risk.