Recovery Risk from Long-Term Holding and Low Liquidity of Unlisted Investments
First written in FY2017. 9 of 17 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2024-Q3.
Japan Asia Investment moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2018: 3 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2024-Q3WorsenedAnnual report
「Total valuation losses on operating investment securities and provisions for investment losses increased 31.0% year on year to ¥607 million. The amount increased because valuation losses on operating investment securities were recognized for portfolio companies with relatively large investment balances whose business progress was delayed.」
Due to delays in business progress, impairment losses on portfolio companies with relatively large investment balances increased to ¥607 million, with the recovery risk of long-term, illiquid investments becoming an actual loss. - FY2024-Q1WorsenedAnnual report
「Total valuation losses on operating investment securities and provisions for investment losses increased 11,030.3% year on year to ¥161 million because provisions were recognized for portfolio companies whose expected recovery amounts had declined.」
The decline in expected recovery amounts from portfolio companies was actually recognized through provisions, and the recovery risk of long-term, illiquid investments continues to materialize. - FY2023-Q3WorsenedAnnual report
「The Company recorded provisions for investment losses for portfolio companies whose business progress was significantly delayed or whose recovery negotiations were taking an extended period. The amount increased from the same period of the previous year because provisions were recorded for portfolio companies with relatively large investment balances.」
Delays in portfolio companies' business progress and the protracted recovery negotiations were reflected in provisions for portfolio companies with relatively large investment balances, indicating a deterioration in the recovery risk of long-term, illiquid investments. - FY2023-Q2WorsenedAnnual report
「Provisions for investment losses increased for portfolio companies whose business progress was significantly delayed or whose recovery negotiations were taking an extended period.」
Delays in portfolio companies' business progress and the protracted recovery negotiations were reflected in increased provisions for investment losses, indicating a deterioration in the recovery risk of long-term, illiquid investments. - FY2022WorsenedAnnual report
「For unlisted shares, some sale negotiations took longer than expected and no agreement was reached by the fiscal year-end. In addition, an unanticipated impairment loss was recognized on investment securities of a fund managed by another company.」
Negotiations to sell unlisted shares took longer than expected, and no agreement was reached by the fiscal year-end. The uncertainty surrounding the recovery of long-term, illiquid investments continues to be evident. - FY2022-Q2WorsenedAnnual report
「During the six months ended the second quarter, the Company recognized impairment losses on operating investment securities and recorded provisions for investment losses as the expected recovery amount from portfolio companies with deteriorating business conditions declined.」
The deterioration in portfolio companies' business conditions and the decline in expected recovery amounts were recognized as impairment losses and provisions, with the recovery risk of unlisted, illiquid investments continuing to materialize. - FY2022-Q1MaterialisedAnnual report
「The amount increased because the expected recovery amount from portfolio companies whose business progress was behind plan declined.」
The decline in the expected recovery amount due to delays in portfolio companies' business progress was recognized as ¥28 million in impairment losses and provisions for investment losses. - FY2021-Q3WorsenedAnnual report
「In addition, at a private equity fund managed by another company, the expected recovery amount from portfolio companies declined, resulting in a ¥217 million equity loss, an increase of 845.4% year on year.」
The expected recovery amount from portfolio companies of a private equity fund managed by another company declined, resulting in a ¥217 million equity loss. - FY2021-Q2MaterialisedAnnual report
「At a private equity fund managed by another company, the expected recovery amount from portfolio companies declined, resulting in a ¥213 million equity loss, an increase of 1,754.6% year on year.」
The decline in the expected recovery amount from a portfolio company resulted in a ¥213 million equity loss, with the recovery risk of long-term, illiquid investments becoming an actual loss. - FY2021-Q1MaterialisedAnnual report
「At private equity funds managed by other companies, a decline in the expected recovery amounts of investee companies resulted in equity-method losses of ¥208 million, up 6,773.4% year on year.」
The decline in the expected recovery amount from portfolio companies was recognized as a ¥208 million equity loss, with the recovery risk of long-term, illiquid investments becoming an actual loss. - FY2020-Q3MaterialisedAnnual report
「In both the same period of the previous year and the cumulative third quarter of the current consolidated fiscal year, losses were recognized for investments whose expected sale proceeds fell below their investment amounts.」
For long-term, low-liquidity investment assets, investments whose expected sale proceeds were below their investment amounts emerged during the quarter, and the risk materialized through the recognition of valuation losses and provisions. - FY2020-Q2MaterialisedAnnual report
「In both the same period of the previous year and the cumulative second quarter of the current consolidated fiscal year, the amounts were recognized primarily for investments whose expected sale proceeds fell below their investment amounts as we proceeded to liquidate overseas investment assets with long investment periods.」
For long-term overseas investment assets, investments whose expected sale proceeds were below their investment amounts emerged during the quarter, and the risk materialized through the recognition of valuation losses and provisions for investment losses. quantified=true, materialized=true. - FY2019MaterialisedAnnual report
「The total of valuation losses on operating investment securities and provision for investment losses increased from the previous consolidated fiscal year to ¥710 million, due to the emergence of companies among long-term investment assets whose expected recovery amounts were below their investment amounts and the recognition of provisions for investee companies of funds nearing maturity, among other factors.」
For long-term investments, companies whose expected recovery amounts were below their investment amounts emerged, and the risks of low liquidity and lower recovery prices continued to be reflected in recognized losses and provisions. - FY2019-Q3MaterialisedAnnual report
「Total valuation losses on operating investment securities and provisions for investment losses increased 12.3% year on year to ¥673 million. Factors included companies among overseas investment assets held for the long term whose expected sale proceeds were below their investment amounts, as well as provisions recognized for portfolio companies of funds approaching maturity.」
For long-term, low-liquidity overseas investments, companies whose expected sale proceeds were below their investment amounts actually emerged, and this was reflected in increased valuation losses and provisions. - FY2019-Q2MaterialisedAnnual report
「Among overseas investment assets with long investment periods, companies whose expected sale proceeds were below their investment amounts emerged, among other factors, resulting in ¥437 million, up 20.9% year on year.」
For long-term, low-liquidity overseas investments, companies whose expected sale proceeds were below their investment amounts actually emerged, and this was reflected in increased losses and provisions. - FY2019-Q1MaterialisedAnnual report
「As we proceeded to liquidate overseas investment assets with long investment periods, the expected sale proceeds for some companies fell below the investment amounts. As a result, the amount increased from the same period of the previous year to ¥415 million, up 702.2%.」
For long-term overseas investments, companies whose expected sale proceeds were below their investment amounts actually emerged, and the risks of low liquidity and lower recovery prices materialized as losses recognized. - FY2017First statedAnnual report
「Investments by our group in unlisted shares and other assets normally require a long period before the investee company goes public or the investment is sold to a third party or other buyer. During this period, the enterprise value of the investee may fluctuate from the initial expectations due to deteriorating performance or other factors. In addition, unlisted shares and similar assets are significantly less liquid than shares of listed companies, so there is no guarantee that they can be sold at the desired price or time, and capital losses may occur or the assets may remain unsold for a long period.」
The risks associated with the long recovery period for unlisted investments and the inability to sell at the desired price or time due to fluctuations in enterprise value and low liquidity were systematically described.