Declining Utilization and Impairment Risk at the Odate Reagent Center
First written in FY2016. 6 of 12 entries say "Restated". Latest entry: FY2025.
Precision System Science moved to the "Worse" side of this theme in 2023, 2 years after the typical company in this theme (2021).
The whole theme swung hardest in 2024: 10 of 25 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Utilization of the second plant at the Otate Reagent Center was intended to improve significantly, while margins improved through higher product supply capacity and a lower manufacturing cost ratio, creating an emerging foundation for securing profits.」
In response to the risk of lower utilization and impairment at the second plant, the company stated that the ODM supply agreement was expected to increase utilization and lower the cost ratio. - FY2025-H1MitigatedAnnual report
「The execution of a five-year OEM product supply agreement with ELITechGroup led to concrete progress in improving profitability for equipment, reagents, consumables, and maintenance-related products, and was intended to significantly improve the utilization rate of the second plant at the Otate Reagent Center,」
In response to the risk of lower utilization and impairment at the second plant of the Otate Reagent Center, the company reported that the five-year supply agreement with ELITechGroup would increase utilization. - FY2024WorsenedAnnual report
「An impairment loss of ¥161.488 million was recognized in the current consolidated fiscal year, as detailed below.」
Impairment losses totaling ¥161.488 million were recognized, comprising ¥104.655 million for the reagent manufacturing facility, ¥29.486 million for the inspection facility, and ¥26.904 million for validation equipment, among other items. The crystallization of capacity-utilization and impairment risks associated with investment in the reagent center and other facilities continued. - FY2024-Q3WorsenedAnnual report
「Our group recognized an impairment loss of ¥133.894 million in the cumulative third-quarter period of the current consolidated fiscal year, as detailed below.」
An impairment loss of ¥133.894 million was recognized on cleanrooms that could not be relocated, validation equipment, and inspection facilities slated for downsizing, among the reagent manufacturing equipment to be relocated to the Otate Reagent Center. The scope of the crystallization of capacity-utilization and impairment risks associated with investment in the reagent center expanded. - FY2024-Q1MaterialisedAnnual report
「As a result of higher depreciation expenses associated with investment in the second plant at the Otate Reagent Center, higher expenses associated with investment in new product development, and the recognition of valuation losses on certain products and impairment losses on certain facilities following the trend toward the end of the COVID-19 pandemic, the previous consolidated fiscal year recorded a material operating loss, ordinary loss, and net loss.」
In addition to the depreciation burden associated with investment in the second plant at the reagent center, valuation losses on certain products and impairment losses on certain facilities were actually recognized in the previous consolidated fiscal year. - FY2023RestatedAnnual report
「However, if sales of reagents and consumables do not expand as expected by our group, the burden of fixed costs due to lower capacity utilization will increase, and there is also a risk that an impairment loss on fixed assets will be recognized.」
Even after the second plant began operations, the risks of lower capacity utilization, higher fixed-cost burdens, and impairment if demand for reagents and consumables falls short continued to be reported. - FY2021RestatedAnnual report
「However, if sales of reagents and consumables do not expand as expected by our group, the burden of fixed costs due to lower capacity utilization will increase, and there is also a risk that an impairment loss on fixed assets will be recognized.」
In connection with the expansion of production capacity, including the second plant at the Otate Reagent Center, the risks of lower capacity utilization, higher fixed-cost burdens, and impairment if demand falls short continued to be reported. - FY2020RestatedAnnual report
「However, if sales of reagents do not expand as expected by our group, the burden of fixed costs due to lower capacity utilization will increase, and there is also a risk that an impairment loss on fixed assets will be recognized.」
The risks of lower capacity utilization, higher fixed-cost burdens, and impairment if reagent sales fall short continued in connection with the expansion of production capacity at the Otate Reagent Center. - FY2019RestatedAnnual report
「However, if sales of reagents do not expand as expected by our group, the burden of fixed costs due to lower capacity utilization will increase, and there is also a risk that an impairment loss on fixed assets will be recognized.」
The risks of lower capacity utilization, higher fixed-cost burdens, and impairment if reagent sales fall short continued in connection with capital investment at the Otate Reagent Center. - FY2018RestatedAnnual report
「However, if sales of reagents do not expand as expected by our group, the burden of fixed costs due to lower capacity utilization will increase, and there is also a risk that an impairment loss on fixed assets will be recognized.」
The risks of lower capacity utilization, higher fixed-cost burdens, and impairment if reagent sales fall short continued in connection with capital investment at the Otate Reagent Center. - FY2017RestatedAnnual report
「However, if sales of reagents do not expand as expected by our group, the burden of fixed costs due to lower capacity utilization will increase, and there is also a risk that an impairment loss on fixed assets will be recognized.」
The risks of lower capacity utilization, higher fixed-cost burdens, and impairment if reagent sales fall short continued in connection with the expansion of production capacity at the Otate Reagent Center. - FY2016First statedAnnual report
「However, if sales of reagents do not expand as expected by our group, the burden of fixed costs due to lower capacity utilization will increase, and there is also a risk that an impairment loss on fixed assets will be recognized.」
The expansion investment in the reagent center explicitly identified the risks of lower capacity utilization, higher fixed-cost burdens, and impairment if demand falls short.