Counterparty Credit and Collection Risk in Construction Contracts
First written in FY2024-Q3. 1 of 3 entries say "Dropped", first in FY2025-H1. Latest entry: FY2025.
The whole theme swung hardest in 2026: 4 of 17 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2025Reinclusion of previously disclosed risksAnnual report
「In the construction industry, contract amounts are large, and depending on the payment terms, it may take time to collect construction payments.」
The customer credit and collection risk under construction contracts, which was stated to have disappeared in the previous fiscal year, has been listed again among the risks for the current fiscal year. - FY2025-H1DroppedAnnual report
「Following the transfer of shares in the Company’s consolidated subsidiary, the following items disclosed in the annual securities report for the previous fiscal year have been eliminated: “(11) Cost fluctuations due to legal amendments,” “(12) Quality control,” “(13) Occupational accidents and other accidents,” and “(14) Credit risk of business partners.”」
It states that customer credit and collection risk under construction contracts disappeared following the transfer of shares in a consolidated subsidiary. - FY2024-Q3First statedAnnual report
「In the construction industry, contract amounts are large, and depending on the payment terms, it may take time to collect construction payments. The Group works to prevent bad debts through thorough credit management. However, if funds become uncollectible or construction schedules are delayed due to a sudden deterioration in a customer's financial condition or other factors, this may affect the Group's operating results and financial condition.」
The risk of uncollectible receivables and construction delays resulting from a customer's deteriorating financial condition is described against the backdrop of large construction contracts and longer collection periods. Thorough credit management is identified as the response measure.