Additional Investment in the Sakura Plant and the Need for Financing
First written in FY2019-Q2. 15 of 19 entries say "Restated". Latest entry: FY2026-H1.
The whole theme swung hardest in 2025: 16 of 29 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「The new chip-drying equipment at the Sakura Plant began operating at the end of the previous fiscal year, and production continued smoothly without any major problems.」
As the new chip-drying equipment at the Sakura Plant, following the additional investment, began operating at the end of the previous fiscal year and production has proceeded smoothly, the risk of restoring the equipment through additional investment and financing has been partly reduced. - FY2024Finalisation of the investment plan for renovating the chip-drying equipmentAnnual report
「Sakura Plant (Sakura, Chiba): Wood Environmental Solutions Business; chip-drying equipment; planned investment: ¥700 million; amount already paid: ¥155 million; funding: internal funds; start date: November 2023; scheduled completion: November 2024」
The Company has disclosed a plan to invest a total of ¥700 million from internal funds in chip-drying equipment at the Sakura Plant to support stable production, with completion scheduled for November 2024. - FY2024-Q3RestatedAnnual report
「In addition to implementing these measures developed independently by the Company, we will seek to improve cash flow and strengthen our financial position by deepening close relationships with our business partners and establishing cooperative arrangements as necessary, thereby working to resolve and improve the situation.」
Measures continue to improve cash flow and strengthen the financial position through cooperation with business partners. - FY2024-Q1RestatedAnnual report
「Certain borrowings are subject to financial covenants. However, following discussions with all relevant financial institutions regarding our financial position and funding plans, we have obtained their agreement not to exercise their rights to declare a loss of the benefit of time. We will continue to maintain close relationships with these financial institutions and hold regular discussions to ensure their continued support.」
Measures are being reiterated to continue discussions with financial institutions, obtain their agreement not to exercise rights to declare a loss of the benefit of time, and secure continued support while the financial covenants remain in breach. - FY2023-Q2RestatedAnnual report
「In addition to implementing these measures developed by the Group, we will seek to improve cash flow, strengthen our financial position and resolve or improve the situation by deepening close cooperative relationships with each business partner and establishing a support framework as necessary. Certain borrowings are subject to financial covenants, but after discussing our financial condition, funding plans and other matters with all relevant financial institutions, we obtained their agreement not to exercise their rights to accelerate the loans. We will continue to maintain close relationships with these financial institutions and hold regular discussions to secure their ongoing support.」
Measures continue to be presented to improve cash flow and strengthen the financial position through cooperation with business partners, and to secure continued support through discussions with financial institutions. - FY2023-Q1RestatedAnnual report
「In addition to implementing these measures developed by the Group, we will seek to improve cash flow, strengthen our financial position and resolve or improve the situation by deepening close cooperative relationships with each business partner and establishing a support framework as necessary. Certain borrowings are subject to financial covenants, but after discussing our financial condition, funding plans and other matters with all relevant financial institutions, we obtained their agreement not to exercise their rights to accelerate the loans. We will continue to maintain close relationships with these financial institutions and hold regular discussions to secure their ongoing support.」
Measures remain in place to improve cash flow and strengthen the financial position through cooperation with business partners, and to secure continued support through discussions with financial institutions. - FY2022RestatedAnnual report
「In addition to implementing these measures developed independently by the Company, we will seek to improve cash flow and strengthen our financial position by deepening close relationships with our various business partners and establishing cooperative arrangements as necessary, thereby working to resolve and improve the situation. Certain borrowings are subject to financial covenants. However, following discussions with all relevant financial institutions regarding our financial position and funding plans, we have obtained their agreement not to exercise their rights to declare a loss of the benefit of time. We will continue to maintain close relationships with these financial institutions and hold regular discussions to ensure their continued support.」
Measures remain in place to cooperate with business partners, improve cash flow, strengthen the financial position, and secure support through discussions with financial institutions. - FY2022-Q3RestatedAnnual report
「In addition to implementing these measures developed by the Group, we will seek to improve cash flow, strengthen our financial position and resolve or improve the situation by deepening close cooperative relationships with each business partner and establishing a support framework as necessary. Certain borrowings are subject to financial covenants, but after discussing our financial condition, funding plans and other matters with all relevant financial institutions, we obtained their agreement not to exercise their rights to accelerate the loans. We will continue to maintain close relationships with these financial institutions and hold regular discussions to secure their ongoing support.」
Measures have been reiterated to improve cash flow through cooperation with business partners, strengthen the financial position, and secure support through ongoing discussions with financial institutions. - FY2022-Q2RestatedAnnual report
「In addition to implementing these measures developed by the Group, we will seek to improve cash flow, strengthen our financial position and resolve or improve the situation by deepening close cooperative relationships with each business partner and establishing a support framework as necessary. Certain borrowings are subject to financial covenants, but after discussing our financial condition, funding plans and other matters with all relevant financial institutions, we obtained their agreement not to exercise their rights to accelerate the loans. We will continue to maintain close relationships with these financial institutions and hold regular discussions to secure their ongoing support.」
Measures continue to be presented to improve cash flow through cooperation with business partners, strengthen the financial position, and secure support through ongoing discussions with financial institutions. - FY2022-Q1RestatedAnnual report
「In addition to implementing these measures developed by the Group, we will seek to improve cash flow, strengthen our financial position and resolve or improve the situation by deepening close cooperative relationships with each business partner and establishing a support framework as necessary. Certain borrowings are subject to financial covenants, but after discussing our financial condition, funding plans and other matters with all relevant financial institutions, we obtained their agreement not to exercise their rights to accelerate the loans. We will continue to maintain close relationships with these financial institutions and hold regular discussions to secure their ongoing support.」
The measures of improving cash flow through cooperation with business partners, strengthening the financial position and securing support through ongoing discussions with financial institutions continue. - FY2021RestatedAnnual report
「The Group’s working capital requirements primarily comprise manufacturing costs and operating expenses, including selling, general and administrative expenses. Its investment-related funding requirements arise from capital investment associated with construction of the Sakura Plant, renovation of the Shinkiba Recycling Plant and other projects.」
The need for capital investment at the Sakura Plant and Shinkiba Plant, as well as additional funding and cash-flow stabilization due to the shortfall against the sales plan, continues. - FY2021-Q3RestatedAnnual report
「Because funding is required to cover the shortfall against the sales plan, in addition to the measures described above, the Group continues discussions with its lending institutions and other parties in an effort to secure additional funding and stabilize its cash flow.」
The response of continuing to secure additional funding and hold discussions with lending institutions and others in response to funding needs arising from the shortfall against the sales plan has been reiterated. - FY2021-Q2RestatedAnnual report
「Because funding is required to cover the shortfall against the sales plan, in addition to the measures described above, the Group continues discussions with its lending institutions and other parties in an effort to secure additional funding and stabilize its cash flow.」
The Group continues to secure additional funding and hold discussions with financial institutions and others in response to funding needs related to the Sakura Plant’s full-scale operation and delays in selling new products. - FY2020-Q3RestatedAnnual report
「As of the date of submission of this document, the Sakura Plant has established a full-production system and is operating smoothly. However, sales of new products are currently behind the initial plan, creating a need to secure funding to maintain stable production and increase sales. If additional funding cannot be secured, this may affect the Group’s operating results and financial condition.」
Even after the full-production system was established, the need for additional funding due to delays in selling new products, and the risk of an impact if funding efforts are unsuccessful, continues. - FY2020-Q2ReframedAnnual report
「As of the date of submission of this document, the Sakura Plant has established a full-production system and is operating smoothly. However, sales of new products are currently behind the initial plan, creating a need to secure funding to maintain stable production and increase sales. If additional funding cannot be secured, this may affect the Group’s operating results and financial condition.」
The focus of the additional investment and funding risk has shifted from establishing the plant’s production system itself to securing funds to maintain stable production and increase sales following delays in selling new products. The sales delays have actually occurred. - FY2020-Q1RestatedAnnual report
「During the cumulative first-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
It was concluded that there had been no material change in the need for additional investment and additional funding to bring the Sakura Plant to full production. - FY2019RestatedAnnual report
「The Group aimed to bring the Sakura Plant in Sakura, Chiba Prefecture, equipped with state-of-the-art particleboard manufacturing facilities, into full-scale operation in order to pursue a broader product strategy focused on structural materials rather than primarily on flooring.」
Although the Sakura Plant is operating, the need for additional personnel, equipment and time to achieve full-scale operation continues. An investment plan of ¥649 million for additional equipment has also been presented. - FY2019-Q3RestatedAnnual report
「As of the date of submission of this document, the Sakura Plant is operating toward full production, but additional capital investment and time beyond the initial plan are required. If funding for the additional capital investment cannot be secured, this may affect the Group’s operating results and financial condition.」
Although the Sakura Plant is operating, the need for additional investment and time beyond the initial plan to achieve full production continues to be recognized as a risk. - FY2019-Q2First statedAnnual report
「As of the date of submission of this document, the Sakura Plant is operating toward full production, but additional capital investment and time beyond the initial plan are required. If funding for the additional capital investment cannot be secured, this may affect the Group’s operating results and financial condition.」
The need for additional investment and time beyond the initial plan to bring the Sakura Plant to full production, and the potential impact on operating results and financial condition if the necessary funding cannot be secured, were explicitly identified as a new risk.