Inventory Valuation and Sales Risks Arising from Changes in Real Estate Market Conditions and Customer Needs
First written in FY2021. 7 of 15 entries say "Worsened", first in FY2026-H1. Latest entry: 2026-08-12.
Broad-Minded moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2026: 20 of 35 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Cash used in operating activities was ¥468.705 million, compared with ¥311.098 million generated in the previous fiscal year. This was mainly due to pretax income of ¥609.405 million, offset by an increase in inventories of ¥1,071.521 million and income taxes paid of ¥159.216 million, among other factors.」
Inventories increased by ¥1,071.521 million, resulting in cash outflow from operating activities of ¥468.705 million. Some real estate sales were carried forward to the following fiscal year, increasing exposure to inventory and sales risk. - FY2026-H1WorsenedAnnual report
「This was mainly because real estate for sale increased by ¥836.337 million and real estate under development for sale increased by ¥266.777 million as purchases of real estate for sale progressed, while cash and deposits decreased by ¥1,086.155 million and accounts receivable decreased by ¥127.114 million.」
Properties for sale and real estate under development for sale increased by a combined ¥1,103.114 million, and the increase in inventories significantly reduced cash flow from operating activities. No inventory write-down was reported. - FY2025Increase in properties for sale and continued inventory risk responseAnnual report
「Current assets at the end of the consolidated fiscal year amounted to ¥3,844.982 million, an increase of ¥226.184 million from the end of the previous consolidated fiscal year. This was mainly because, although real estate under development for sale decreased by ¥389.250 million as properties for sale were completed and sold, properties for sale increased by ¥450.670 million as acquisitions and other activities progressed, while contract assets increased by ¥146.434 million.」
While real estate under development for sale decreased, properties for sale increased by ¥450.670 million. No inventory write-down was reported. - FY2025-H1Changes in inventory composition and increase in balanceAnnual report
「This was mainly because real estate for sale increased by ¥529.371 million as purchases of real estate for sale progressed, while cash and deposits decreased by ¥505.191 million and real estate under development for sale decreased by ¥209.394 million as real estate for sale was completed and sold.」
While real estate under development for sale decreased, properties for sale increased by ¥529.371 million, resulting in a ¥319.977 million increase in total inventories. No inventory write-down was reported. - FY2024-Q3Further increase in inventory balanceAnnual report
「Current assets at the end of the third quarter of the current consolidated fiscal year totaled ¥3,788.155 million, down ¥276.407 million from the end of the previous consolidated fiscal year. This was mainly because cash and deposits decreased by ¥1,197.520 million, despite increases of ¥294.281 million in real estate for sale and ¥549.163 million in real estate under development for sale as purchases of real estate for sale progressed.」
The company disclosed increases in the balances of properties for sale and real estate under development for sale. Inventory holdings associated with inventory valuation and sales risk arising from changes in market conditions and customer needs continued, although no inventory write-down was reported. - FY2024-Q2Further increase in inventory balanceAnnual report
「Current assets at the end of the second quarter of the current consolidated fiscal year totaled ¥3,674.913 million, down ¥389.649 million from the end of the previous consolidated fiscal year. This was mainly because cash and deposits decreased by ¥1,001.865 million, despite a ¥661.663 million increase in real estate under development for sale as purchases of real estate for sale progressed.」
Real estate under development for sale increased by ¥661.663 million as property acquisitions and related activities progressed, and inventory held in connection with inventory valuation and sales risk arising from changes in market conditions and customer needs continued to increase. - FY2023Further increase in inventory balanceAnnual report
「This was mainly because real estate for sale decreased by ¥260.568 million as properties for sale were sold, while cash and deposits increased by ¥298.405 million and real estate under development for sale increased by ¥472.617 million as acquisitions and other activities relating to real estate for sale progressed.」
While properties for sale were sold, real estate under development for sale increased by ¥472.617 million, expanding inventory holdings associated with inventory valuation and sales risk arising from changes in market conditions and customer needs. - FY2023-Q3Further increase in inventory balanceAnnual report
「This was mainly due to a ¥307,864 thousand increase in real estate under development for sale as the acquisition of real estate for sale progressed, despite a ¥45,921 thousand decrease in cash and deposits.」
Real estate under development for sale increased by ¥307.864 million as acquisitions and other activities relating to real estate for sale progressed. Inventory held in connection with inventory valuation and sales risk arising from changes in market conditions and customer needs continued to increase. - FY2023-Q2Inventory balance increasedAnnual report
「This was mainly due to a ¥461,882 thousand increase in real estate under development for sale, reflecting progress in acquiring real estate for sale, partly offset by decreases of ¥334,663 thousand in cash and deposits and ¥110,008 thousand in accounts receivable and contract assets.」
The company disclosed that real estate under development for sale increased by ¥461.882 million as property acquisitions and related activities progressed. Against the backdrop of inventory valuation and sales risk arising from market changes, this represented new evidence of an increase in inventory held. - FY2021First statedAnnual report
「However, changes in market conditions or customer needs may reduce property acquisitions and sales volumes. In addition, if sales proceeds cannot be obtained because of falling selling prices, cancellations or other factors, inventory write-downs may occur, affecting the financial position and operating results of the Group.」
The company states that it will mitigate the risk of unsold properties and impairment through analysis of demographics and the economic environment, property research reports and expansion of sales channels.