Decline in High-Quality Projects and Intensifying Competition to Acquire Them
First written in FY2016-Q3. 3 of 6 entries say "Worsened", first in FY2017-Q3. Latest entry: FY2018-Q1.
FinTech Global moved to the "Worse" side of this theme in 2016.
0 other companies' latest entry also says "Worsened".
- FY2018-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, the real estate subsidiaries were excluded from the scope of consolidation following the sale of their shares, and revenue from renewable energy power plant-related operations ceased. However, revenue from investment recoveries, including corporate investments and real estate sales, resulted in revenue of ¥611 million, down 76.3% year on year.」
Revenue from renewable-energy generation projects disappeared, and the decline in related projects materialized as the elimination of recognized revenue. - FY2017WorsenedAnnual report
「Asset investment recoveries fell to 2 projects from 9 in the previous fiscal year because a securitisation-related recovery was carried over to the next fiscal year and the number of renewable energy generation-related projects declined.」
The decline in renewable-energy-related projects and the carryover of projects scheduled for collection materialized as a decrease in asset investment exits from 9 to 2. - FY2017-Q3WorsenedAnnual report
「In real estate securitization arrangements, transaction closings declined in the third quarter, but revenue from arrangement and other services increased year on year.」
The document states that service revenue increased year on year, while transaction closings declined in the third quarter, adding a negative factor concerning conditions for winning and structuring transactions. - FY2017-Q1MitigatedAnnual report
「In real estate securitization arrangements, transaction structuring progressed smoothly, and the amount financed under the relevant contracts was ¥1.7 billion, up 250.1% year on year.」
Transaction structuring in real estate securitization arrangements progressed smoothly, and the amount financed rose 250.1% year on year, mitigating the impact of deteriorating conditions for structuring transactions, at least in this area. - FY2016MaterialisedAnnual report
「As competition to win projects intensified and sales failed to progress, reducing capital turnover, gross profit from asset investments was limited to ¥200 million.」
Intensifying competition to win high-quality projects and sluggish sales actually resulted in lower capital turnover and asset investment profit falling short of plan. - FY2016-Q3First statedAnnual report
「Competition to win high-quality projects is intensifying as their number declines. The environment for structuring transactions is challenging, the number of transactions structured has declined, and revenue from high-margin arrangement fees has decreased.」
The decline in high-quality projects and intensifying competition are reflected in an actual decrease in the number of transactions structured and arrangement-fee revenue.