Sumitomo Chemical and Sumitomo Pharmaceutical (tickers: 4005, 4506): The ¥116 billion Swiss Shuffle
- Gotham City Research LLC
- Aug 4
- 2 min read
GOTHAM CITY RESEARCH’S OPINIONS
Sumi Pharma’s FY2025 financial statements are misstated by 116-165 billion. Financial statements will be restated and the Company will face an investigation.
Pharma manipulates receivables to fuel Pharma and Chemical’s profits. Without these, earnings collapse, and Chemical’s FY2025 Leverage is closer to 10x rather than 3x.
Shares of both Chemical and Pharma are uninvestable, and face 50%-100% downside risk.
SUMMARY OF THE BASES OF OPINIONS
Sumitomo Pharma FY2025 earnings account for 92% of Sumitomo Chemical FY2025 earnings.
Chemical’s FY2025 earnings are inflated by non-recurring sources. Removing these, reduces its earnings 84%-111%.
Pharma FY2025 earnings are inflated by non-recurring sources. Removing these reduces earnings by ~50%.
Pharma FY2025 earnings are inflated by anomalous accounts receivable growth. Removing these, reduces earnings by an additional 50%.
Pharma’s FY2025 Receivables grew 76% YoY while revenue grew 14%. We suspect channel stuffing, aggressive revenue recognition, or fictitious revenue.
A March press release announced a 48 billion dividend to Pharma from its Switzerland subsidiary SMPS, weeks before Pharma’s 116.4 billion JPY public offering in April.
Yet SMPS paid Pharma’s parent company a 164 billion dividend, not 48 billion, according to the notes to the Pharma’s parent company 2025FY financial statements.
The 164 billion dividend does not appear on the income statement, even though it is explicitly described as an income statement activity within the 2025FY period.
The 164 billion dividend is a distribution in-kind, in the form of accounts receivables previously held by SMPS.
The 116 billion difference between the two differing dividend figures is not explained. We are unable to reconcile this difference to any accounts found within the FY 2025 Pharma financial statements.
The 48 billion dividend represents ~42% of the parent company’s net income. The 164 billion amount represents 143%, implying the parent company is loss making.
Although Pharma and Chemical share the same auditor, KPMG AZSA, the Swiss subsidiary’s auditor is KPMG. They are separate legal entities.
for the full report please download here:
This is way more complicated than the headline makes it sound. spend elon musk money
A clever number puzzle where each swipe changes the board: 2048 free. Merge matching tiles, protect open spaces, plan ahead, and build bigger numbers without getting stuck.
After searching for a reliable vehicle, I decided to check their affordable used cars in Sigonella, and I'm glad I did. I found a well-maintained car at a competitive price, and the staff made the whole buying process simple. They explained the vehicle's features, paperwork, and purchase process clearly, which gave me confidence in my decision. The car has performed very well since I bought it, and I would happily return to them when I'm ready for another vehicle.
finding an update should not feel like a difficult task. i appreciate how sassa status check can make the process more straightforward, while srd status check gives you another convenient way to review current information.
Accessibility is the main advantage of Free Games. Sometimes customers had to buy pricey gaming accessories or real copies of the games before they could begin playing. Thanks to modern browsers and internet technology, people may now instantly engage in hundreds of intriguing activities. This ease of use has attracted millions of users looking for amusement without meaningless challenges.