Collection risk on receivables from Chinese real estate development projects
First written in FY2016-Q3. 22 of 26 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2026: 19 of 65 companies on the "Worse" side.
- FY2025RestatedAnnual report
「Long-term loans receivable and long-term accounts receivable are receivables comprising long-term loans receivable and long-term accounts receivable from business partners. These receivables, collectively referred to as “long-term receivables,” were originally receivables from business partners that had invested in real estate development projects in China. As recovery from the Chinese real estate development business became difficult, the recovery source was changed to the Japanese entity of the company that operated the business, and the receivables remain exposed to collection concerns and the credit risk of the business partner.」
For long-term receivables related to the Chinese real estate development business, recovery continues to be directed to the Japanese entity, and collection and credit risks remain. The allowance for doubtful accounts is ¥790.44 million. - FY2025-H1RestatedAnnual report
「Long-term loans receivable ¥425.222 million Long-term accounts receivable ¥370.42 million Allowance for doubtful accounts △¥795.42 million」
Long-term receivables and the allowance for doubtful accounts related to the Chinese real estate development business continue to be recognized. - FY2024RestatedAnnual report
「Long-term loans receivable and long-term accounts receivable are receivables comprising long-term loans receivable and long-term accounts receivable from business partners. These receivables, collectively referred to as “long-term receivables,” were originally receivables from business partners that had invested in real estate development projects in China. As recovery from the Chinese real estate development business became difficult, the recovery source was changed to the Japanese entity of the company that operated the business, and the receivables remain exposed to collection concerns and the credit risk of the business partner.」
For long-term receivables related to the Chinese real estate development business, recovery was changed to the Japanese entity on the assumption that recovery would be difficult, while collection and credit risks continue. - FY2024-Q3RestatedAnnual report
「Long-term loans receivable ¥425.94 million ¥425.442 million Long-term accounts receivable ¥385.44 million ¥377.93 million Allowance for doubtful accounts △¥810.44 million △¥802.93 million」
Long-term receivables and the allowance for doubtful accounts described as relating to the Chinese real estate development business continue to be recognized. Although the balances have changed, no new changes in the estimation method or issues are cited. - FY2024-Q2RestatedAnnual report
「Long-term loans receivable ¥425.94 million ¥425.799 million Long-term accounts receivable ¥385.44 million ¥380.42 million Allowance for doubtful accounts △¥810.44 million △¥805.42 million」
Long-term receivables and the allowance for doubtful accounts described as relating to the Chinese real estate development business continue to be recognized. Although the balances have changed, no new changes in the estimation method or issues are cited. - FY2024-Q1RestatedAnnual report
「Long-term loans receivable ¥425.87 million Long-term accounts receivable ¥382.95 million Allowance for doubtful accounts △¥807.95 million」
Long-term receivables and the allowance for doubtful accounts described as relating to the Chinese real estate development business continue to be recognized. No new changes in the estimation method or issues are cited. - FY2023RestatedAnnual report
「Long-term loans receivable and long-term accounts receivable comprise long-term loans receivable from employees and long-term loans receivable and long-term accounts receivable from business partners. Long-term loans receivable and long-term accounts receivable from business partners are receivables from business partners that have invested in real estate development projects in China, and are exposed to collection concerns arising from the slowdown in the Chinese economy, country risk, and the progress of the relevant real estate development projects, as well as to the credit risk of the business partners.」
The report continues to cite collection concerns relating to long-term receivables from the Chinese real estate development business, arising from the Chinese economy, country risk, project progress, and the creditworthiness of business partners. - FY2022RestatedAnnual report
「Long-term loans receivable comprise long-term loans receivable from employees and long-term loans receivable from business partners. Long-term loans receivable and long-term accounts receivable from business partners, collectively referred to as “long-term receivables,” are receivables from business partners that have invested in real estate development projects in China, and are exposed to collection concerns arising from the slowdown in the Chinese economy, country risk, and the progress of the relevant real estate development projects, as well as to the credit risk of the business partners.」
The report continues to cite collection concerns relating to long-term receivables from the Chinese real estate development business, arising from the Chinese economy, country risk, project progress, and the creditworthiness of business partners. - FY2022-Q3RestatedAnnual report
「Long-term loans receivable ¥428.466 million Long-term accounts receivable ¥397.93 million Allowance for doubtful accounts △¥822.93 million」
Long-term receivables and the allowance for doubtful accounts described as relating to the Chinese real estate development business continue to be recognized. - FY2022-Q2RestatedAnnual report
「Long-term loans receivable ¥428.583 million Long-term accounts receivable ¥400.42 million Allowance for doubtful accounts △¥825.42 million」
Long-term receivables and the allowance for doubtful accounts described as relating to the Chinese real estate development business continue to be recognized. Although the balances have changed, no new changes in the estimation method or additional issues are cited. - FY2021RestatedAnnual report
「Long-term loans receivable comprise long-term loans receivable from employees and long-term loans receivable from business partners. Long-term loans receivable and long-term accounts receivable from business partners, collectively referred to as “long-term receivables,” are receivables from business partners that have invested in real estate development projects in China, and are exposed to collection concerns arising from the slowdown in the Chinese economy, country risk, and the progress of the relevant real estate development projects, as well as to the credit risk of the business partners.」
The report continues to cite collection concerns relating to long-term receivables from the Chinese real estate development business, arising from the Chinese economy, country risk, project progress, and the creditworthiness of business partners. - FY2021-Q3RestatedAnnual report
「Long-term loans receivable ¥428.931 million Long-term accounts receivable ¥407.93 million Allowance for doubtful accounts △¥832.93 million」
Long-term receivables and the allowance for doubtful accounts described as relating to the Chinese real estate development business continue to be recognized. Although the balances have changed from the end of the previous consolidated fiscal year, no new changes in the estimation method or additional issues are cited. - FY2021-Q2RestatedAnnual report
「Long-term loans receivable ¥429.046 million Long-term accounts receivable ¥410.42 million Allowance for doubtful accounts △¥835.42 million」
Long-term receivables and the allowance for doubtful accounts described as relating to the Chinese real estate development business continue to be recognized. Although the balances have changed from the end of the previous consolidated fiscal year, no new changes in the estimation method or additional issues are cited. - FY2021-Q1RestatedAnnual report
「Long-term loans receivable ¥429.161 million Long-term accounts receivable ¥421.25 million Allowance for doubtful accounts △¥846.25 million」
Long-term loans receivable, long-term accounts receivable, and the allowance for doubtful accounts described as relating to the Chinese real estate development business continue to be recognized. No new changes in the estimation method or additional losses for the quarter are cited. - FY2020-Q3RestatedAnnual report
「Long-term loans receivable ¥429.39 million Long-term accounts receivable ¥421.55 million Allowance for doubtful accounts △¥846.55 million」
Balances of long-term loans receivable, long-term accounts receivable, and the allowance for doubtful accounts related to receivables from the Chinese real estate development business continue to be recognized. - FY2020-Q1MaterialisedAnnual report
「The Company received an indication that there were questions concerning its recognition of allowances for doubtful accounts in prior years for receivables including loans related to its China projects. On 10 July 2019, it established a special investigation committee comprising outside experts with no interests in the Company. Following the committee’s professional and objective investigation, the Company submitted amended annual securities reports and other documents for prior years to the Kanto Local Finance Bureau on 13 September 2019. As a result, on 28 November 2019, the Financial Services Agency issued an order requiring payment of a surcharge in connection with the amendments to the annual securities reports and other documents for prior years.」
Questions concerning the recognition of allowances for doubtful accounts on receivables including loans related to the China projects led to a special investigation, amendments to prior-period filings, and an order from the Financial Services Agency requiring payment of a surcharge. - FY2019RestatedAnnual report
「Long-term loans receivable and long-term accounts receivable from business partners are receivables from business partners that have invested in real estate development projects in China, and are exposed to collection concerns arising from the slowdown in the Chinese economy, country risk, and the progress of the relevant real estate development projects, as well as to the credit risk of the business partners.」
The report continues to cite collection concerns relating to long-term receivables from the Chinese real estate development business, arising from the Chinese economy, country risk, project progress, and the creditworthiness of business partners. - FY2019-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The Company states that there were no material changes to business or other risks relating to the collection risk for receivables from the Chinese real estate development business. - FY2019-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The Company states that there were no material changes to business or other risks relating to the collection risk for receivables from the Chinese real estate development business. - FY2018-Q3RestatedAnnual report
「Long-term loans receivable ¥430.296 million Long-term loans receivable from affiliates ¥1,925 million Long-term accounts receivable ¥421.35 million Allowance for doubtful accounts △¥270.005 million」
The allowance for doubtful accounts related to receivables from the Chinese real estate development business was ¥270.005 million and had not changed from the end of the previous consolidated fiscal year. No new provisions or changes in the estimation method are cited. - FY2018-Q2RestatedAnnual report
「Long-term loans receivable ¥430.408 million Long-term accounts receivable ¥421.5 million Allowance for doubtful accounts △¥270.005 million」
The allowance for doubtful accounts related to receivables from the Chinese real estate development business was ¥270.005 million and had not changed from the end of the previous consolidated fiscal year. No new changes in the estimation method or additional provisions are cited. - FY2018-Q1RestatedAnnual report
「Long-term loans receivable ¥430.519 million Long-term accounts receivable ¥421.65 million Allowance for doubtful accounts △¥270.005 million」
The allowance for doubtful accounts related to receivables from the Chinese real estate development business was ¥270.005 million and had not changed from the end of the previous consolidated fiscal year. No new changes in the estimation method or additional provisions are cited. - FY2017-Q3RestatedAnnual report
「Long-term loans receivable ¥437.411 million Long-term accounts receivable ¥422.95 million Allowance for doubtful accounts △¥270.005 million」
The allowance for doubtful accounts related to receivables from the Chinese real estate development business was ¥270.005 million at the end of the third quarter, and the report does not cite any new changes in the estimation method. - FY2017-Q1WorsenedAnnual report
「Allowance for doubtful accounts △ ¥263.255 million △ ¥270.005 million」
For receivables related to the Chinese real estate development business, the allowance for doubtful accounts increased from ¥263.255 million at the end of the previous consolidated fiscal year to ¥270.005 million, and an additional provision of ¥6.75 million was recorded as an extraordinary loss during the quarter. - FY2016WorsenedAnnual report
「As a result, profit before income taxes and other adjustments for the fiscal year decreased by ¥83.884 million compared with the previous method.」
For long-term loans receivable and long-term accounts receivable related to the Chinese real estate development business, the allowance for doubtful accounts increased from ¥179.37 million in the previous fiscal year to ¥263.255 million in the current fiscal year, resulting in a ¥83.884 million reduction in profit before income taxes and other adjustments for the fiscal year due to the change in the estimation method. - FY2016-Q3First statedAnnual report
「Long-term loans receivable from and long-term accounts receivable from business partners that have invested in real estate development projects in China, amounting to ¥425 million and ¥420.75 million, respectively, at the end of the third quarter of the current consolidated fiscal year, had previously been subject to an allowance for doubtful accounts calculated as the difference between the receivable amounts and the amounts obtained by deducting amounts expected to be recovered over an extended period from the present values calculated using the cash flow estimation method, based on the policy of recovering the proceeds from the relevant real estate development projects. During the third quarter of the current consolidated fiscal year, the Company changed its estimation method so that the allowance for doubtful accounts would be the difference between the receivable amounts and the amounts expected to be recovered from the borrowers, taking into account the slowdown in the Chinese economy, country risk, the progress of the relevant real estate development projects, and the expected recovery of funds from those projects.」
The estimation method for the allowance for doubtful accounts was changed based on the slowdown in the Chinese economy, country risk, and the progress of the development projects, reducing profit before income taxes and other adjustments for the quarter by ¥39.259 million.