Customer Credit Risk Associated with Business Expansion into New Territories
First written in FY2025. 4 of 5 entries say "Mitigated", first in FY2026-H1. Latest entry: FY2026.
The whole theme swung hardest in 2026: 19 of 65 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Operating profit was ¥1,119 million, compared with an operating loss of ¥2,122 million in the same period of the previous year, due mainly to a decrease in selling, general and administrative expenses resulting from a decrease in the provision for doubtful accounts and a review of expense spending.」
The provision for doubtful accounts decreased from ¥1,228 million in the previous fiscal year to negative ¥60 million in the current fiscal year, reducing the impact of credit risk on profit or loss. However, the risk itself continues to be disclosed. - FY2026-H1MitigatedAnnual report
「Due mainly to the favorable performance of an increase in the number of large live performances and overseas distribution of animation works in the animation and video businesses, net sales were ¥64,028 million, up 14.1% year on year. Operating profit was ¥1,119 million, compared with an operating loss of ¥2,122 million in the same period of the previous year, due mainly to a decrease in selling, general and administrative expenses resulting from a decrease in the provision for doubtful accounts and a review of expense spending.」
The provision for doubtful accounts decreased from ¥715 million in the same period of the previous year to negative ¥37 million in the current interim consolidated accounting period, reducing the impact of credit risk on profit or loss during the period. However, the risk itself is not stated to have disappeared. - FY2025MaterialisedAnnual report
「As the Group actively expands its business into new territories, its business results and financial position may be affected if receivables become uncollectible due to the failure of major business partners or their related subsidiaries, among other causes. Provision for doubtful accounts 1,228」
Credit risk associated with business expansion into new territories is described as a separate risk. During the consolidated fiscal year, a provision for doubtful accounts of ¥1,228 million was recognized for certain business partners, indicating that the risk has materialized.