Financial imbalance caused by funding private equity investment assets with borrowings amid high uncertainty over recovery
First written in FY2018. 6 of 10 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2026: 9 of 34 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The combined balance of borrowings and bonds declined from the end of the previous consolidated fiscal year to ¥7,417 million (¥9,833 million for the same period).」
The balance of borrowings and bonds declined from ¥9,833 million to ¥7,417 million, while the equity ratio rose from 33.0% to 44.2%. Progress was made in addressing the financial imbalance from funding illiquid PE assets with borrowings. - FY2023-Q3RestatedAnnual report
「In addition, project finance and bonds for projects operated by the group use only the projects' assets and earnings as sources of repayment, so their impact on the group's financial soundness is limited. Accordingly, the company plans to continue making leveraged investments in a diverse range of projects operated by the group, including renewable energy projects, by combining project finance and bond financing, thereby increasing profitability while maintaining high financial soundness.」
The company continued its policy of expanding investment while maintaining financial soundness by using project finance and bonds backed by project assets and earnings as sources of repayment. - FY2022-Q2RestatedAnnual report
「In addition, project finance and bonds for projects operated by the group use only the projects' assets and earnings as sources of repayment and therefore do not affect the group's financial soundness. Accordingly, the company plans to continue making leveraged investments in a diverse range of projects operated by the group, including renewable energy projects, by combining project finance and bond financing, thereby increasing profitability without impairing financial soundness.」
The company continued its policy of expanding investment without impairing financial soundness by using financing backed by project assets and earnings as sources of repayment. - FY2022-Q1RestatedAnnual report
「Project finance and bonds for projects operated by the group use only the projects' assets and earnings as sources of repayment and therefore do not affect the group's financial soundness. Accordingly, the company plans to continue making leveraged investments in a diverse range of projects operated by the group, including renewable energy projects, by combining project finance and bond financing, thereby increasing profitability without impairing financial soundness.」
The company continued its policy of expanding investment without impairing financial soundness by using financing backed by project assets and earnings as sources of repayment. - FY2021-Q3RestatedAnnual report
「Project finance and other financing for projects operated by the group use only the projects' assets and earnings as sources of repayment and therefore do not affect the group's financial soundness. Accordingly, the company plans to continue making leveraged investments in a diverse range of projects operated by the group, including renewable energy projects, by expanding financing through project finance and other means, thereby increasing profitability without impairing financial soundness.」
The company continued its policy of expanding investment without impairing financial soundness by using project finance, with project assets and earnings serving as sources of repayment. - FY2021-Q1RestatedAnnual report
「Project finance for projects operated by the group uses only the projects' assets and earnings as sources of repayment and therefore does not affect the group's financial soundness. Accordingly, the company plans to continue making leveraged investments in a diverse range of projects operated by the group, including renewable energy projects, by expanding financing through project finance and other means, thereby increasing profitability without impairing financial soundness.」
The company continued to explain its policy of expanding investment without impairing financial soundness by using project finance, with project assets and earnings serving as sources of repayment. - FY2020-Q2RestatedAnnual report
「Project finance for projects operated by the group uses only the projects' assets and earnings as sources of repayment and therefore does not affect the group's financial soundness. Accordingly, the company plans to continue making leveraged investments in a diverse range of projects operated by the group, including renewable energy projects, by expanding financing through project finance and other means, thereby increasing profitability without impairing financial soundness.」
The company continued to explain its policy of expanding investment without impairing financial soundness by using project finance, with project assets and earnings serving as sources of repayment. - FY2020-Q1MitigatedAnnual report
「The company's standalone equity ratio was 40.1% (38.9% for the same period), up 1.2 percentage points from the previous consolidated fiscal year. This reflects improved financial soundness as borrowings were reduced.」
The standalone equity ratio rose from 38.9% to 40.1% as standalone borrowings were reduced. The company continued to address the financial imbalance from funding PE investment assets with standalone borrowings. - FY2019MitigatedAnnual report
「As of the end of March 2019, cash and deposits plus project investment assets already exceeded borrowings by more than ¥1.3 billion. The surplus is expected to expand to ¥5.6 billion, further improving financial soundness.」
Cash and deposits plus project investment assets exceeded borrowings by ¥1.3 billion, with the surplus expected to expand to ¥5.6 billion by the end of March 2021. - FY2018First statedAnnual report
「As of the end of March 2018, under the former consolidated basis (Note), borrowings stood at ¥11.9 billion, while cash and deposits plus relatively liquid investment assets, including renewable energy projects, totaled only ¥10.9 billion, leaving the two out of balance. The company continued to fund private equity investment assets, whose recovery remained highly uncertain, with borrowings.」
Relatively liquid assets totaled only ¥10.9 billion against ¥11.9 billion in borrowings, and the financial imbalance from funding PE investment assets with debt was identified as a current issue.