Risks of Equipment Aging and Breakdowns, and Recovering Investment in a New Plant
First written in FY2018. 2 of 6 entries say "Restated". Latest entry: FY2026.
Koa Shoji Holdings moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2024: 10 of 25 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Some of the manufacturing equipment owned by the Group, including equipment at the head office plant of コーアイセイ株式会社, has been in service for a long period. In line with the useful life of each item of equipment, the company plans and implements the transfer of manufacturing to newly installed equipment and timely, appropriate repairs, maintenance and upgrades of existing equipment. However, unexpected equipment malfunctions or unforeseen breakdowns due to aging could affect the manufacturing schedule.」
Regarding equipment and fixed asset risks, the company explicitly identifies, in addition to the risks of recovering investments in and impairment of the Zao Plant, the risk that equipment in long-term use at the head office plant could break down and affect the manufacturing schedule. - FY2025RestatedAnnual report
「At the Zao Plant of コーアイセイ株式会社, if delays occur in the launch of new products scheduled for manufacture or reductions in planned sales volumes result in a substantial deviation from the original business plan, the Group may need to recognize impairment losses on fixed assets, potentially affecting its operating results and financial condition.」
The company continues to describe the risks of recovering investments in the Zao Plant and impairment resulting from delays in launching new products or reductions in sales volumes. It also states that no indicators of impairment were identified at the Zao Plant during the fiscal year. - FY2024MaterialisedAnnual report
「In the pharmaceutical manufacturing and marketing business, delays in shipments of products originally scheduled for shipment and additional costs arose during the fourth quarter of the current fiscal year because adjustments to some production plans became necessary and scheduled equipment maintenance was prolonged.」
Regarding equipment and fixed asset risks, the company states that delays in product shipments and additional costs actually arose due to prolonged scheduled equipment maintenance and other factors. Meanwhile, it determined that the Zao Plant had positive projected operating results for the current and following fiscal years and that no indicators of impairment existed. - FY2021WorsenedAnnual report
「At the Zao Plant of コーアイセイ株式会社, the company determined that indicators of impairment existed because operating income and loss had remained negative, and examined whether an impairment loss needed to be recognized.」
The company explicitly identifies continued negative operating results and indicators of impairment at the Zao Plant. However, it determined that undiscounted future cash flows exceeded the carrying amount and did not recognize an impairment loss. - FY2019RestatedAnnual report
「If delays occur in the launch of new products or reductions in planned sales volumes result in a substantial deviation from the original business plan, the Group may need to recognize impairment losses on fixed assets, potentially affecting its operating results and financial condition.」
The company continues to recognize the risks of breakdowns at aging facilities, recovery of investments and impairment of fixed assets. - FY2018First statedAnnual report
「If delays occur in the launch of new products or reductions in planned sales volumes result in a substantial deviation from the original business plan, the Group may need to recognize impairment losses on fixed assets, potentially affecting its operating results and financial condition.」
The company identifies the risks of recovering investments in expanded production capacity at the Zao Plant and other facilities and of impairment, as well as the risk of breakdowns at aging facilities.