Risk that investments in new businesses will not generate expected returns
First written in FY2016. 3 of 6 entries say "Restated". Latest entry: FY2024.
Sankyo Kasei moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 13 of 33 companies on the "Worse" side.
28 other companies' latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「In connection with the transfer to 山川モールディング株式会社 of all shares in SY RUBBER (THAILAND) CO.,LTD. owned by the Company and the receivables the Company held against that company, which had previously been a consolidated subsidiary, the Company recognized a ¥124.031 million loss on liquidation of affiliated companies.」
The risk that investments in the new company and manufacturing subsidiary would not generate stable earnings materialized as the transfer of SY RUBBER shares and receivables and a ¥124.031 million loss on liquidation of affiliated companies. - FY2020WorsenedAnnual report
「As it takes some time for a business to begin generating stable earnings, the Group's profits may decline temporarily.」
The risk of lower profits until stable earnings are achieved from the establishment of a new company and capital investment in a manufacturing subsidiary was explicitly identified, with increased operating expenses, including those related to SY RUBBER, appearing in actual results. - FY2019RestatedAnnual report
「When the Company invests in new businesses or other initiatives to expand operations, it conducts a thorough review of the business plan from every perspective before making the investment. However, if returns fall short of expectations, business performance could be affected.」
The review of plans before investing in new businesses and the risk of returns falling short of expectations continue to be disclosed. - FY2018RestatedAnnual report
「When investing in new businesses or other initiatives to expand operations, we conduct a thorough review of the business plan from every perspective before making the investment. However, if returns fall short of expectations, business performance could be affected.」
The review of plans before investing in new businesses and the risk of returns falling short of expectations continue to be disclosed. - FY2017RestatedAnnual report
「When investing in new businesses or other initiatives to expand operations, we conduct a thorough review of the business plan from every perspective before making the investment. However, if returns fall short of expectations, business performance could be affected.」
The review of plans before investing in new businesses and the risk of returns falling short of expectations continue to be disclosed. - FY2016First statedAnnual report
「When investing in new businesses or other initiatives to expand operations, we conduct a thorough review of the business plan from every perspective before making the investment. However, if returns fall short of expectations, business performance could be affected.」
While business plans are thoroughly reviewed before investment, the disclosure explicitly identifies the possibility of returns falling short of expectations.