Securing Subcontractors and Stability of Construction Capacity
First written in FY2021. 1 of 2 entries say "Materialised", first in FY2025-Q1. Latest entry: FY2025-Q1.
Taiyo Kisokogyo moved to the "Worse" side of this theme in 2024, 1 year before the typical company in this theme (2025).
The whole theme swung hardest in 2026: 14 of 57 companies on the "Worse" side.
5 other companies' latest entry also says "Materialised".
- FY2025-Q1MaterialisedAnnual report
「However, in the construction business, a court issued a preservation order in connection with the bankruptcy proceedings of a subcontractor, resulting in the suspension of construction and an extension of the construction period. As a result, we incurred construction losses due to increased labor and rental costs during the work stoppage and the execution of a contract with a new subcontractor.」
Regarding the previously identified risk that an unforeseen event affecting a cooperating company could affect construction capacity and operating results, the company states that bankruptcy proceedings involving a subcontractor, construction suspension and an extended construction period, additional costs, and the recognition of construction losses actually occurred. Quantified: false; materialized: true. - FY2021First statedAnnual report
「We manage construction work, and securing cooperating companies and building good relationships with them are essential. At present, we have sufficient construction capacity to handle the projects we have undertaken, primarily through cooperating companies with which we have had business relationships for many years. However, if an unforeseen event affects a cooperating company in the future and stable construction capacity can no longer be secured, this could adversely affect the maintenance or expansion of our business activities, our operating results and our financial position.」
The company identifies the securing of cooperating companies and the development of relationships with them as essential to construction capacity, and explicitly presents the possibility that unforeseen events affecting such companies could affect business activities and operating results as a new risk.