Bad Debt Risk Associated with Transactions Involving Chinese Subsidiaries
First written in FY2018-Q3. 2 of 5 entries say "Reframed", first in FY2020. Latest entry: FY2025.
The whole theme swung hardest in 2026: 18 of 64 companies on the "Worse" side.
- FY2025MitigatedAnnual report
「・Detailed collection of information on the credit standing of business partners ・Credit investigations, setting credit limits, thorough credit screening」
In response to the risks of business partner insolvency, delays in collecting receivables, and bad debts, the company identified credit information gathering, setting credit limits, and credit screening as its main initiatives. - FY2024ReframedAnnual report
「The Group conducts sales by extending credit to business partners in Japan and overseas. If the Group has difficulty collecting receivables because a business partner becomes insolvent or an unforeseen event occurs, this may adversely affect the Group's operating results and financial condition.」
The discussion was reframed from the specific issue of bad debt risk at the Chinese subsidiary to the broader risks associated with extending credit to business partners in Japan and overseas and collecting receivables. - FY2020ReframedAnnual report
「To expand its business and earnings, the Group has invested in new businesses to develop new sources of revenue, alongside strengthening its existing businesses.」
The bad debt risk associated with transactions by the Chinese subsidiary was no longer described separately and was incorporated into the broader explanation of business investment risks and monitoring of operating conditions and performance after investment. - FY2020-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no changes or newly arising matters concerning the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
The company states that there have been no changes or newly arising matters concerning bad debt risk associated with transactions by the Chinese subsidiary. - FY2018-Q3MaterialisedAnnual report
「Meanwhile, due to the impact of the provision for doubtful receivables associated with transactions by the Chinese subsidiary and delays in the start of mass production at the Thai subsidiary that manufactures and sells printed circuit boards, the segment recorded a loss of ¥226 million (a segment profit of ¥129 million in the same period of the previous year).」
The provision for doubtful receivables associated with transactions by the Chinese subsidiary emerged as a factor contributing to the segment loss in the Global Business segment.