Litigation and Damages Risks Relating to Chinese Production Subsidiaries
First written in FY2019-Q1. 3 of 8 entries say "Worsened", first in FY2019-Q2. Latest entry: FY2025-H1.
- FY2025-H1MitigatedAnnual report
「A court settlement was reached between our consolidated subsidiary Olympus (Shenzhen) Industrial Ltd. and Shenzhen Anpingtai Investment Development Co., Ltd. to conclude the appeal proceedings, and we reversed the provision previously recognized to provide for losses relating to the litigation.」
A court settlement was reached to conclude the appeal proceedings relating to the Chinese manufacturing subsidiary, and a provision of ¥1.308 billion was reversed. - FY2023WorsenedAnnual report
「Our consolidated subsidiary Olympus (Shenzhen) Industrial Ltd. is involved in 2 business disputes in total with Shenzhen Anpingtai Investment Development Co., Ltd. and Shenzhen YL Technology Co., Ltd. Depending on the future course of the proceedings, these matters may affect the business performance and financial condition of our Group.」
Regarding litigation and dispute risks relating to the Chinese manufacturing subsidiary, we stated that 2 business disputes in total were pending. - FY2022Remand judgment; appeal ongoingAnnual report
「A judgment was issued on 31 December 2021. We appealed the first-instance judgment after remand on 24 January 2022, as we were dissatisfied with it, and the appeal is currently pending. However, depending on the future course of the proceedings, the matter may affect the business performance and financial condition of our Group.」
The litigation relating to the Chinese manufacturing subsidiary remains on appeal after the remand judgment, and the proceedings are still pending. - FY2021-Q1MitigatedAnnual report
「On 1 July 2020, the Guangdong Provincial Higher People's Court issued a ruling setting aside the first-instance judgment and remanding the case for retrial, on the grounds that, among others, the facts on which Anpingtai based its claim were unclear. However, depending on the future course of the proceedings, the matter may affect the business performance and financial condition of our Group.」
The first-instance judgment in the litigation relating to the Chinese manufacturing subsidiary was set aside and the case was remanded for retrial. The litigation risk continues, but the procedural status has changed from the previous damages judgment. - FY2020MaterialisedAnnual report
「Olympus (Shenzhen) Industrial Ltd., our consolidated sub-subsidiary in China, has been served with a complaint in litigation brought by Shenzhen YL Technology Co., Ltd.」
Following the termination of the OSZ equity transfer agreement, YL brought new litigation and served the complaint. The Company stated that there would be no impact on its business performance. - FY2019-Q3WorsenedAnnual report
「Although the judgment upheld some of the claims made by our consolidated subsidiary, it ordered the payment of damages. Accordingly, we reasonably estimated the amount deemed necessary to provide for losses relating to the litigation and recorded ¥3,828 million as other expenses.」
The provision for litigation losses relating to the Chinese manufacturing subsidiary increased from ¥3.793 billion to ¥3.828 billion. - FY2019-Q2WorsenedAnnual report
「In the litigation between our consolidated subsidiary Olympus (Shenzhen) Industrial Ltd. and Shenzhen Anpingtai Investment Development Co., Ltd., a judgment was issued by the Shenzhen Intermediate People's Court on 30 July 2018 and served on 3 August of the same year. Although the judgment upheld some of the claims made by our consolidated subsidiary, it ordered the payment of damages. Accordingly, we reasonably estimated the amount deemed necessary to provide for losses relating to the litigation and recorded ¥3,793 million as other expenses.」
Following the damages judgment relating to the Chinese manufacturing subsidiary, the litigation provision increased from ¥3.457 billion to ¥3.793 billion. - FY2019-Q1MaterialisedAnnual report
「In the litigation between our consolidated subsidiary Olympus (Shenzhen) Industrial Ltd. and Shenzhen Anpingtai Investment Development Co., Ltd., a judgment was issued by the Shenzhen Intermediate People's Court on 30 July 2018 and served on 3 August of the same year. Although the judgment upheld some of the claims made by our consolidated subsidiary, it ordered the payment of damages. Accordingly, we reasonably estimated the amount deemed necessary to provide for losses relating to the litigation and recorded ¥3,457 million as other expenses.」
A damages judgment was issued in litigation relating to a Chinese manufacturing subsidiary, and ¥3.457 billion was recorded as a loss, marking the occurrence and crystallization of a new risk.