Impairment of Fixed Assets Due to Business Plan Revision
First written in FY2017. 3 of 7 entries say "Worsened", first in FY2022. Latest entry: FY2025-H1.
Hi-Lex moved to the "Worse" side of this theme in 2018, 6 years before the typical company in this theme (2024).
The whole theme swung hardest in 2020: 5 of 16 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「There are no applicable matters for the interim consolidated accounting period (from 1 November 2024 to 30 April 2025).」
No impairment losses on fixed assets were recognized during the current interim period, and the impairment charges that had increased through the previous period against a backdrop of business plans and customer operations have paused. - FY2024Making changes in the EV market more concrete as impairment indicatorsAnnual report
「During the current consolidated fiscal year, impairment indicators were identified at consolidated subsidiaries as a result of deteriorating business conditions, including reduced customer demand due to changes in the EV market. The Group therefore conducted impairment tests and, as a result, recognized impairment losses for certain consolidated subsidiaries.」
Regarding fixed-asset impairment risk, reduced customer demand due to changes in the EV market was newly identified as a specific factor underlying impairment indicators. Impairment losses amounted to ¥1,945 million. - FY2024-Q2WorsenedAnnual report
「Because the assets concerned were no longer expected to be used in the future following the suspension of operations by certain customers, their carrying amounts were reduced to recoverable amounts, and the resulting reductions were recognized as impairment losses under extraordinary losses.」
An impairment loss of ¥199 million was actually incurred on assets no longer expected to be used in the future following the suspension of operations by certain customers. Fixed-asset impairment risk related to deteriorating business plans and customer operations remains. - FY2023WorsenedAnnual report
「During the consolidated fiscal year, impairment indicators were identified at consolidated subsidiaries as business conditions deteriorated worldwide due to surging labor and raw material costs caused by global inflation and changes in the customer mix accompanying the shift to EVs. Impairment tests were therefore conducted, and impairment losses were recognized for some consolidated subsidiaries as a result.」
Against a backdrop of inflation, soaring labor and raw material costs, and changes in the customer mix associated with the shift to EVs, impairment indicators broadened and impairment losses amounted to ¥4,582 million. The realized impact of fixed-asset impairment risk has increased from the previous year. - FY2022WorsenedAnnual report
「During the consolidated fiscal year, impairment indicators were identified at consolidated subsidiaries as business conditions deteriorated worldwide due to the continuing impact of the spread of COVID-19 in various countries since around 2020, production cuts by automakers caused by semiconductor shortages, surging raw material prices and the economic impact of the conflict in Ukraine. Impairment tests were therefore conducted, and impairment losses were recognized for some consolidated subsidiaries as a result.」
Deteriorating business conditions caused by the infectious disease, semiconductor shortages, surging raw material prices and the conflict in Ukraine constituted impairment indicators, and an impairment loss of ¥2,717 million was recognized. - FY2020MaterialisedAnnual report
「At HI-LEX INDIA PRIVATE LTD., a consolidated subsidiary in India, an impairment loss of ¥269 million on non-current assets was recognized after taking into account the business environment and future business plans.」
In addition to Sun Medical Technology Research Institute, impairment of non-current assets occurred at an Indian subsidiary following a review of the business plan and business environment, and ¥269 million was recognized. - FY2017MaterialisedAnnual report
「Following a revision to the business plan of Sun Medical Technology Research Institute Co., Ltd., the total estimated cash flows expected over the originally assumed period were projected to decrease. Accordingly, the Company's operating assets were written down to their recoverable amount, and an impairment loss of ¥26 million was recognized in the Japan segment.」
Following a revision to the business plan, an impairment loss of ¥26 million was recognized on the operating assets of Sun Medical Technology Research Institute.