Material Events Affecting Going-Concern Assumptions Due to Consecutive Operating Losses and Negative Operating Cash Flow
First written in FY2020-Q4. 6 of 13 entries say "Restated". Latest entry: FY2023.
Sanyo Shokai moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 26 of 48 companies on the "Worse" side.
24 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「As a result, during the current consolidated fiscal year, the company recorded operating income of ¥2,235 million and net income attributable to owners of the parent of ¥2,155 million, while cash flows from operating activities were ¥4,215 million. The company has determined that the events or conditions that may have raised significant doubt about its ability to continue as a going concern have been resolved.」
The company itself has determined that the events and conditions that may have raised significant doubt about its ability to continue as a going concern have been resolved, following the recording of net income, operating income and positive operating cash flow for the first time in 6 years. - FY2023-Q3MitigatedAnnual report
「As described above, the company has been making progress in stabilizing its finances and becoming resilient to the effects of COVID-19 and changes in global economic conditions through refinancing supported by stable financial institutions, inventory control as part of working capital management, and improvements in gross profit margins from its operating activities. Accordingly, the company has determined that no material uncertainty exists regarding the going-concern assumption.」
The company continues to disclose material events related to the going-concern assumption, but states that financial stabilization has progressed through refinancing, inventory control and improvements in gross profit margins, and maintains its assessment that no material uncertainty exists. - FY2023-Q1RestatedAnnual report
「Although the company recorded net income in the previous consolidated fiscal year for the first time in 6 years, it failed to achieve its target of returning to operating profitability, recorded negative operating cash flow for 4 consecutive fiscal years, and recognizes that conditions exist that may raise significant doubt about its ability to continue as a going concern.」
The company continues to disclose the previous consolidated fiscal year's net income, failure to achieve its target of operating profitability and 4 consecutive periods of negative operating cash flow as material events related to the going-concern assumption. At the same time, it maintains its assessment that no material uncertainty exists because it achieved operating profitability in the first quarter of the current fiscal year. - FY2022WorsenedAnnual report
「During the current consolidated fiscal year, the company recorded operating losses for 6 consecutive fiscal years and negative operating cash flow for 4 consecutive fiscal years.」
Regarding material events related to the going-concern assumption, operating losses increased from 5 consecutive fiscal years to 6, and negative operating cash flow from 3 consecutive fiscal years to 4. - FY2022-Q3RestatedAnnual report
「The company recognizes that, during the previous consolidated fiscal year, it recorded operating losses for 5 consecutive fiscal years and negative operating cash flow for 3 consecutive fiscal years, and that events or conditions existed that may raise significant doubt about its ability to continue as a going concern.」
The company continues to disclose 5 consecutive operating losses, 3 consecutive periods of negative operating cash flow and material events related to the going-concern assumption. Although there has been no further increase in the number of consecutive periods, it maintains its assessment that no material uncertainty exists because of refinancing and progress on its rehabilitation plan. - FY2022-Q2RestatedAnnual report
「The company recognizes that, during the previous consolidated fiscal year, it recorded operating losses for 5 consecutive fiscal years and negative operating cash flow for 3 consecutive fiscal years, and that events or conditions existed that may raise significant doubt about its ability to continue as a going concern.」
The company continues to disclose 5 consecutive operating losses, 3 consecutive periods of negative operating cash flow and conditions that may raise significant doubt about its ability to continue as a going concern. It also maintains its assessment that no material uncertainty exists because of refinancing and progress on its rehabilitation plan. - FY2022-Q1RestatedAnnual report
「The company recognizes that, during the previous consolidated fiscal year, it recorded operating losses for 5 consecutive fiscal years and negative operating cash flow for 3 consecutive fiscal years, and that conditions existed that may raise significant doubt about its ability to continue as a going concern. Even now, in the fiscal year ending February 2022, COVID-19 has not yet subsided. Although vaccination is progressing, the spread of more transmissible variants continues to delay recovery in the real economy, and the company continues to incur operating losses attributable to a decline in visitors caused by the closure of physical stores and other factors.」
The company continues to disclose 5 consecutive operating losses, 3 consecutive periods of negative operating cash flow and conditions that may raise significant doubt about its ability to continue as a going concern. Operating losses attributable to the closure of physical stores and other factors have continued due to the spread of variants, but no further increase in the number of consecutive periods is disclosed. - FY2021WorsenedAnnual report
「The company recognizes that, during the current consolidated fiscal year, it recorded operating losses for 5 consecutive fiscal years and negative operating cash flow for 3 consecutive fiscal years, and that conditions exist that may raise significant doubt about its ability to continue as a going concern.」
Regarding material events related to the going-concern assumption, the company states that operating losses increased from 4 consecutive fiscal years to 5, and negative operating cash flow from 2 consecutive fiscal years to 3. - FY2021-Q3RestatedAnnual report
「The company recognizes that, during the previous consolidated fiscal year, it recorded operating losses for 4 consecutive fiscal years and negative operating cash flow for 2 consecutive fiscal years, and that events or conditions existed that may raise significant doubt about its ability to continue as a going concern.」
The company continues to disclose 4 consecutive operating losses, 2 consecutive periods of negative operating cash flow and conditions that may raise significant doubt about its ability to continue as a going concern. At the same time, it maintains its assessment that no material uncertainty exists because of financing and asset sales, among other measures. - FY2021-Q2RestatedAnnual report
「The company recognizes that, during the previous consolidated fiscal year, it recorded operating losses for 4 consecutive fiscal years and negative operating cash flow for 2 consecutive fiscal years, and that events or conditions existed that may raise significant doubt about its ability to continue as a going concern. In addition, during the current consolidated fiscal year, a substantial decline in sales opportunities occurred in the first quarter due to store closures and other factors caused by COVID-19, which has not yet shown signs of subsiding globally. Although signs of recovery are visible, a situation in which a certain number of new infections continues to be reported remains in place.」
The company continues to disclose 4 consecutive operating losses, 2 consecutive periods of negative operating cash flow and a decline in sales opportunities due to COVID-19. At the same time, it maintains its assessment that no material uncertainty exists regarding the going-concern assumption. - FY2021-Q1WorsenedAnnual report
「The company recognizes that, during the previous consolidated fiscal year, it recorded operating losses for 4 consecutive fiscal years and negative operating cash flow for 2 consecutive fiscal years, and that conditions existed that may raise significant doubt about its ability to continue as a going concern. In addition, during the fiscal year ending February 2021, the spread of COVID-19, which had taken on pandemic proportions, had already resulted in operating losses and negative operating cash flow due to a decline in visitors caused by the closure of physical stores and other factors.」
The company states that, in addition to 4 consecutive operating losses and 2 consecutive periods of negative operating cash flow through the previous consolidated fiscal year, operating losses and negative operating cash flow attributable to the closure of physical stores and other factors had already occurred in the fiscal year ending February 2021. - FY2020WorsenedAnnual report
「The company recognizes that, during the current consolidated fiscal year, it recorded operating losses for 4 consecutive fiscal years and negative operating cash flow for 2 consecutive fiscal years, and that conditions exist that may raise significant doubt about its ability to continue as a going concern.」
Compared with the previous outlook for 3 consecutive operating losses, the company reports 4 consecutive operating losses and 2 consecutive periods of negative operating cash flow as actual results for the current fiscal year. It also states that operating losses and negative operating cash flow attributable to the impact of COVID-19 had already occurred in the following fiscal year. - FY2020-Q4First statedAnnual report
「The company recorded operating losses for 3 consecutive fiscal years from the fiscal year ended December 2016 through the fiscal year ended December 2018, and expects to record an operating loss in the fiscal year ending February 2020, which is the current consolidated fiscal year. In addition, operating cash flow was negative in the consolidated statement of cash flows for the fiscal year ended December 2018 and is expected to be negative in the fiscal year ending February 2020. Accordingly, the company recognizes that events or conditions exist that may raise significant doubt about its ability to continue as a going concern.」
The company has, for the first time, separately disclosed 3 consecutive operating losses and the outlook for negative operating cash flow as material events that may raise significant doubt about its ability to continue as a going concern. However, the company states that there are no concerns about liquidity because of its cash and deposits and banking agreements, and that the issue can be resolved through execution of a new business plan.