Loss and Goodwill Impairment Risk in China Investment Business
First written in FY2019. 1 of 5 entries say "Materialised", first in FY2021-Q3. Latest entry: FY2024-Q2.
The whole theme swung hardest in 2023: 35 of 98 companies on the "Worse" side.
29 other companies' latest entry also says "Restated".
- FY2024-Q2RestatedAnnual report
「During the consolidated first quarter, MISSION SKY GROUP LIMITED was excluded from the scope of equity-method accounting following the sale of its shares.」
The removal of MISSION SKY GROUP LIMITED from the scope of equity-method accounting following the sale of its shares continues to be confirmed in the notes. - FY2024-Q1MitigatedAnnual report
「During the consolidated first quarter under review, MISSION SKY GROUP LIMITED was excluded from the scope of equity-method accounting following the sale of its shares.」
MISSION SKY GROUP LIMITED, formerly an equity-method investee in China, was excluded from the scope of equity-method accounting following the sale of its shares. The company's exposure to previously disclosed loss and bankruptcy risks related to the investee changed as the company ceased to be subject to the equity method. - FY2021WorsenedAnnual report
「With respect to Universal Pulp and Paper(Shandong) Co. Ltd., a subsidiary of the company's equity-method affiliate Mission Sky Group Limited, the company's creditors filed a petition for bankruptcy with the local court due to deteriorating liquidity, and the local court accepted the petition. The amount includes an equity-method investment loss of ¥2,463 million arising from this event.」
A bankruptcy petition was accepted for a group company in the Chinese equity-method investment, and an investment loss of ¥2.463 billion was recognized. The previously disclosed deterioration in liquidity progressed to formal bankruptcy proceedings and a loss. - FY2021-Q3MaterialisedAnnual report
「With respect to Universal Pulp and Paper(Shandong) Co. Ltd., a subsidiary of the company's equity-method affiliate Mission Sky Group Limited, the company's creditors filed a petition for bankruptcy with the local court due to deteriorating liquidity, and the local court accepted the petition. The amount includes an equity-method investment loss of ¥2,463 million arising from this event.」
For the equity-method investment in China, the investee group's deteriorating liquidity and acceptance of a bankruptcy petition actually occurred, and the company recognized an equity-method investment loss of ¥2,463 million. - FY2019First statedAnnual report
「The equity-method investment in MISSION SKY GROUP LIMITED, which manufactures and sells containerboard through a joint venture with the Samson Paper Holdings Group, amounted to ¥3.622 billion at the end of the consolidated fiscal year under review, including ¥1.178 billion in goodwill. If a sudden change in the business environment or other unexpected change in circumstances causes a significant deviation from the business plan and the equity-method investee incurs losses, those losses may be recognized in the consolidated financial statements in proportion to the company's ownership interest.」
For the equity-method investment in China, the company disclosed an investment amount of ¥3,622 million and goodwill of ¥1,178 million, and newly disclosed the risk that deviations from the business plan or the occurrence of losses could affect consolidated results.