Risk of deteriorating profitability of investment assets related to facilities, systems and M&A
First written in FY2020. 1 of 2 entries say "Materialised", first in FY2021. Latest entry: FY2021.
Kato Sangyo 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 2019: 13 of 34 companies on the "Worse" side.
27 other companies' latest entry also says "Materialised".
- FY2021MaterialisedAnnual report
「At 和歌山産業㈱, a consolidated subsidiary of the company, the carrying amount of fixed assets was reduced to the recoverable amount because the decline in profitability made recovery of the capital investment amount no longer expected.」
The risk of deteriorating profitability of assets acquired through capital expenditure materialized, and the company recognized an impairment loss of ¥190 million on buildings, machinery and equipment and other assets at 和歌山産業. - FY2020First statedAnnual report
「If changes in the business environment or other factors result in a situation in which these assets do not generate sufficient cash flow, the performance and financial condition of the Group may be affected.」
The company newly identified the risk that fixed assets and other assets acquired through capital expenditure, systems investment and M&A investment may fail to generate sufficient cash flow. Its response measures are investment decisions by the Board of Directors and ongoing monitoring.