Inability to Recover Investments in the Navigation, Accommodation Booking and Inbound Tourism Businesses
First written in FY2017. 4 of 8 entries say "Worsened", first in FY2021-Q1. Latest entry: FY2022.
Shobunsha Holdings moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「Because 株式会社MEGURU, which had overseen this business, including its overseas subsidiaries, ceased to be a subsidiary of our company, the impact on our group's performance became minor.」
It states that, following the tourism business's exclusion from consolidation, the impact of the investment recovery risk associated with the overseas tourism business on our group's performance became minor. - FY2022-Q2MitigatedAnnual report
「We recognise that the impact on our group's performance will be relatively minor going forward.」
It states that, following the transition of MEGURU and its overseas subsidiaries to equity-method affiliates, the tourism business will have a relatively minor impact on our group's performance, expressly indicating a reduction in the risk associated with investment in new businesses. - FY2022-Q1WorsenedAnnual report
「The web services business operated by 株式会社MEGURU and its subsidiaries MMS GUAM CORPORATION, SHOBUNSHA SINGAPORE PTE.LTD., SHOBUNSHA HAWAII CORPORATION and SHOBUNSHA GUAM CORPORATION, primarily involving the sale of local tours and overseas restaurant reservations, has been severely affected by the COVID-19 pandemic, which has continued since March 2020, and operations have effectively come to a halt. While there is still no clear outlook for when overseas travel will resume, we estimate that the cost of maintaining this business until then will be approximately ¥130 million per year, based on the previous year's actual results.」
The effective suspension of the overseas travel-related business and uncertainty over when it will resume continue, and annual business maintenance costs are estimated at approximately ¥130 million. In response to the deterioration in the investment recovery environment, measures to maintain the business have shifted to capital restructuring. - FY2021WorsenedAnnual report
「Our group has entered new businesses that we consider to be in fields with particularly high growth potential, including the inbound business for visitors to Japan and the in-destination travel business, and has invested substantial management resources in them. If these new businesses fail to achieve their business plans and are unable to generate sufficient returns commensurate with the resources invested, this may have a material effect on our group's performance.」
The investment recovery risk associated with new businesses continues to be disclosed. During the current period, the tourism business was effectively suspended due to an infectious disease, and an operating loss of ¥384 million was recorded in the tourism business. - FY2021-Q2WorsenedAnnual report
「During the six-month period ended the second quarter of the current fiscal year, the inbound business was in an extremely difficult situation due to the effects of infectious diseases, and sales activities to win new orders were also constrained.」
The description of the inbound business environment has changed from difficult in the previous quarter to extremely difficult, and sales activities to win new orders remain constrained. It does not state that investment losses or impairment have occurred. - FY2021-Q1WorsenedAnnual report
「In addition to the inbound business being in a difficult situation due to the effects of infectious diseases, sales activities to win new orders are also constrained.」
For the investment recovery risk associated with new businesses, it states that the inbound business is in a difficult situation and sales activities are constrained, indicating a deterioration in the investment recovery environment. It does not state that investment losses or impairment have occurred. - FY2018ReframedAnnual report
「Our group has entered new businesses that we consider to be in fields with particularly high growth potential, including the inbound business for visitors to Japan and the in-destination travel business, which addresses travellers' dining and activity needs during their trips, and has invested substantial resources in them.」
The in-destination travel business has been expressly added to the scope of the investment recovery risk for new businesses, in addition to the existing inbound business. - FY2017First statedAnnual report
「Our group entered the navigation business and accommodation booking business as new businesses and invested substantial resources in them. We also launched an inbound business for visitors to Japan. If these new businesses fail to achieve their business plans and are unable to generate sufficient returns commensurate with the resources invested, this may affect our group's performance.」
It identifies the risk that resources invested in the new navigation, accommodation booking and inbound businesses may not be recovered if their business plans are not achieved.