Material Doubt About Going Concern and Business Continuity Through Integrated Management
First written in FY2024-Q2. 2 of 7 entries say "Worsened", first in FY2024. Latest entry: 2026-08-26.
Konaka moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2022: 4 of 13 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026-H1Material uncertainty remains; current ratio declined after improving from the previous fiscal year-endAnnual report
「In addition, as of the end of the interim consolidated accounting period, the current ratio was 116.2%, with current assets exceeding current liabilities. However, the Group has borrowings from financial institutions that are in breach of financial covenants. In light of these circumstances, the Group recognizes that events or conditions exist that raise substantial doubt about the going concern assumption.」
Conditions raising substantial doubt about the going concern assumption persist. The current ratio improved from 92.9% at the end of the previous fiscal year to 116.2%, but declined from 127.1% in the same period of the previous year, and borrowings in breach of financial covenants remain. On the other hand, given the outlook for continued support from financial institutions, the Group has determined that no material uncertainty exists. - FY2025WorsenedAnnual report
「Although net income attributable to owners of the parent was ¥478 million for the consolidated fiscal year, the Group recorded operating losses and ordinary losses for the sixth consecutive period. In addition, as of the end of the consolidated fiscal year, the current ratio was 92.9%, with current liabilities exceeding current assets, and the Group had borrowings from financial institutions that were in breach of financial covenants.」
Net income attributable to owners of the parent returned to profitability, while operating losses and ordinary losses continued for the sixth consecutive period, and the current ratio declined to 92.9%. Borrowings in breach of financial covenants also continued. - FY2025-H1Material doubts regarding the going concern assumption persist, while the current ratio and outlook for continued support improveAnnual report
「As of the end of the interim consolidated accounting period, the current ratio was 127.1%, with current assets exceeding current liabilities. However, the Group has borrowings from financial institutions that are in breach of financial covenants. In light of these circumstances, the Group recognizes that events or conditions exist that raise substantial doubt about the going concern assumption.」
Conditions raising substantial doubt about the going concern assumption persist. The current ratio improved from 121.5% at the end of FY2024 to 127.1%, and, given the outlook for continued support from lending financial institutions, the Group has determined that no material uncertainty exists. - FY2024WorsenedAnnual report
「During the fiscal year, the Group recorded operating losses and ordinary losses for 5 consecutive fiscal years and net losses attributable to owners of the parent for 7 consecutive fiscal years. Although current assets exceeded current liabilities, with a current ratio of 121.5% at the end of the fiscal year, financial institution borrowings of ¥12,012 million were subject to breaches of financial covenants.」
Regarding events that may raise significant doubt, operating losses and ordinary losses continued for 5 consecutive fiscal years, while net losses attributable to owners of the parent continued for 7 consecutive fiscal years. The current ratio improved to 121.5%, while ¥12,012 million of borrowings remained subject to breaches of financial covenants. - FY2024-Q2First statedAnnual report
「Under these circumstances, for the purpose of providing management support to the consolidated subsidiary Samantha Thavasa Japan Limited, the company entered into a share exchange agreement dated 10 April 2024, under which the company would become the wholly owning parent company in the share exchange and STJ would become the wholly owned subsidiary, as described in “IV. Accounting Information, 1. Quarterly Consolidated Financial Statements, Notes (Material Subsequent Events).” As the two companies will manage funds, including borrowings, on an integrated basis, going beyond the financial support provided to date, the company recognizes that events or circumstances exist that may raise significant doubt about the going concern assumption.」
Against a backdrop of 4 consecutive fiscal years of operating losses and ordinary losses, 6 consecutive fiscal years of net losses attributable to owners of the parent, a current ratio of 93.5%, and borrowings of ¥11,414 million subject to breaches of financial covenants, the company disclosed for the first time the existence of events and circumstances that may raise significant doubt about the going concern assumption. Meanwhile, the company determined that no material uncertainty regarding the going concern assumption exists due to STJ becoming a wholly owned subsidiary, integrated management of funds, and the refinancing of existing borrowings.