Risks to business activities, orders and construction progress from COVID-19
First written in FY2020. 5 of 16 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2026.
Nakano moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 7 of 30 companies on the "Worse" side.
16 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「If an infectious disease outbreak or similar event occurs, future performance could be affected by a decline in construction orders resulting from an economic downturn and by a decline in revenue due to construction suspensions, among other factors.」
The company continues to disclose general risks of lower orders, construction suspensions and lower revenue due to the pandemic. - FY2024SoftenedAnnual report
「If an infectious disease outbreak or similar event occurs, future performance could be affected by a decline in construction orders resulting from an economic downturn and by a decline in revenue due to construction suspensions, among other factors.」
The company continues to disclose pandemic-related risks, but does not describe specific events that had emerged, such as closures of overseas bases and surging material and labor costs. The risk description is now general. - FY2024-Q3SoftenedAnnual report
「In Southeast Asia, where the Company operates its construction business, the economic recovery remains slow, but the surge in material and labor prices that occurred during the COVID-19 pandemic has eased, and construction plans, including investments from overseas, are gradually moving into full swing.」
The company states that the surge in material and labor prices caused by the pandemic has eased, further reducing the direct impact of pandemic-related cost and operating-environment risks. - FY2024-Q2SoftenedAnnual report
「In overseas construction markets, the impact of the spread of COVID-19 has run its course. However, the market remains in a difficult order environment because residential projects have declined due to the impact of China’s real estate bubble, while a cautious stance toward capital investment in factories, warehouses and other facilities has also begun to become more pronounced.」
The company states that the impact of the pandemic on overseas construction markets has run its course, and the description of the direct impact of pandemic-related risks has weakened. Other external factors, including issues in China’s real estate market, remain. - FY2023SoftenedAnnual report
「If an infectious disease outbreak or similar event occurs, future performance could be affected by a decline in construction orders resulting from an economic downturn and by a decline in revenue due to construction suspensions, among other factors.」
The company continues to disclose pandemic-related risks, but specific events that had emerged by the previous fiscal year, such as closures of overseas bases and surging material and labor costs, have been removed from the current fiscal year’s risk disclosure, and the description of the impact has become more general. - FY2023-Q3SoftenedAnnual report
「COVID-19 cases have increased again due to the eighth wave since last autumn, raising concerns about a decline in orders due to the postponement of capital investment plans depending on future infection trends. However, strict restrictions on activities are currently unlikely to be imposed, and infection-control measures have progressed, so the downside risk to the economy from the pandemic is considered limited.」
While the eighth wave has resulted in another increase in cases and the possibility of lower orders remains, the company assesses that strict restrictions on activities are unlikely and that the downside risk to the economy from the pandemic is limited. - FY2023-Q2Impact easing while concerns over a resurgence remainAnnual report
「The number of COVID-19 cases has begun to decline after peaking this summer, but concerns are increasing about a wave of infections driven by the emergence of new variants and the easing of restrictions on social and economic activity. If infections spread again, future performance could be affected by a decline in orders due to the cancellation or postponement of customers’ capital investment plans, by a decline in revenue due to construction suspensions, and by higher material and labor costs resulting from supply constraints and deterioration in construction profitability due to extended construction periods, among other factors.」
The company reports a decline in cases and the easing of restrictions on social and economic activity, while continuing to indicate concerns about a wave of infections and the possibility of lower orders, construction suspensions and higher material and labor costs if infections spread again. - FY2022COVID-19 losses reduced, risks continuedAnnual report
「To prevent the spread of COVID-19, the Group has introduced staggered working hours, online meetings and other measures. At worksites, it has implemented infection-prevention measures, including temperature checks, health-status checks using checklists and thorough measures to avoid the “three Cs” (crowded places, confined spaces and close-contact settings), and is continuing its business while ensuring the safety of employees and partner companies. If it takes time for the spread of the disease to fully subside, future performance could be affected by a decline in orders resulting from a deterioration in the order environment, including the cancellation or postponement of capital investment following customers’ reviews of their business plans, by a decline in revenue due to construction suspensions, and by deterioration in construction profitability due to infection-control costs and extended construction periods, among other factors.」
The company continues to report pandemic-related risks and measures. The full-year loss attributable to COVID-19 was ¥95 million, down from ¥698 million in the previous fiscal year, although closure costs for the Malaysia base were recorded. - FY2022-Q3WorsenedAnnual report
「Even after lockdowns were lifted in Southeast Asian countries, the overseas construction business remains in a difficult operating environment, as restrictions on activities, labor shortages, surging material prices and other constraints have been slow to ease.」
Restrictions on activities, labor shortages and surging material prices have continued even after lockdowns were lifted. The Southeast Asian construction business posted an operating loss of ¥3,171 million, widening from ¥2,049 million in the same period of the previous year. - FY2022-Q2MaterialisedAnnual report
「COVID-19 began to show signs of subsiding, and all states of emergency and similar measures had been lifted by the end of September. However, if infections spread again, future performance could be affected by a decline in orders resulting from a deterioration in the order environment, including the cancellation or postponement of capital investment following customers’ reviews of their business plans, by a decline in revenue due to construction suspensions, and by deterioration in construction profitability due to infection-control costs and extended construction periods, among other factors.」
The company reports signs that the pandemic was subsiding and the lifting of the state of emergency, while overseas it experienced construction delays, extended construction periods and surging material and labor costs. It recorded a ¥94 million loss attributable to COVID-19 and an operating loss of ¥2,516 million in the Southeast Asian construction business. - FY2022-Q1MaterialisedAnnual report
「COVID-19 showed no signs of abating during the cumulative first quarter of the current fiscal year. As stated in the “Business and Other Risks” section of the annual securities report for the previous fiscal year, if it takes time for the spread of the disease to subside, the company’s future performance may be affected by a decline in orders resulting from a deterioration in the order environment, including the cancellation or postponement of capital investment following customers’ reviews of their business plans, by a decline in revenue due to construction suspensions, and by deterioration in construction profitability due to infection-control costs and extended construction periods, among other factors.」
The resurgence of the pandemic led to closures of overseas bases, extended construction periods and higher material and labor costs. The Southeast Asian construction business posted an operating loss of ¥2,693 million and recorded a provision for construction losses. - FY2021MaterialisedAnnual report
「In response to requests from the governments of Singapore and Malaysia, among others, the consolidated subsidiaries NAKANO SINGAPORE (PTE.) LTD. and NAKANO CONSTRUCTION SDN. BHD. had closed their worksites and offices to prevent the spread of COVID-19. Fixed costs incurred and expenses incurred during the closure period have been recorded.」
Closures of overseas bases, slower construction progress and construction losses due to the pandemic occurred over the full fiscal year, and the company recorded a ¥698 million loss attributable to COVID-19. - FY2021-Q3WorsenedAnnual report
「COVID-19 showed no signs of abating during the cumulative third quarter of the current fiscal year. As stated in the “Business and Other Risks” section of the annual securities report for the previous fiscal year, if the spread of the disease is prolonged in Japan and overseas, the company’s future performance may be affected by a decline in orders resulting from a deterioration in the order environment, including the cancellation or postponement of capital investment following customers’ reviews of their business plans, by a decline in revenue due to construction suspensions, and by deterioration in construction profitability due to infection-control costs and extended construction periods, among other factors.」
While pandemic-related risks continue, closures of overseas subsidiaries’ construction sites, construction suspensions and restrictions on site access have continued. Losses attributable to COVID-19 totaled ¥664 million for the cumulative third quarter of the current fiscal year. The Southeast Asian construction business also posted an operating loss of ¥2,049 million. - FY2021-Q2MaterialisedAnnual report
「COVID-19 showed no signs of abating during the cumulative second quarter of the current fiscal year. As stated in the “Business and Other Risks” section of the annual securities report for the previous fiscal year, if the global spread of the disease is prolonged, the company’s future performance may be affected by a decline in orders resulting from a deterioration in the order environment, including the cancellation or postponement of capital investment following customers’ reviews of their business plans, by a decline in revenue due to construction suspensions, and by deterioration in construction profitability due to infection-control costs and extended construction periods, among other factors.」
While pandemic-related risks continue, construction suspensions due to lockdowns, labor shortages and restrictions on site access have actually occurred at certain overseas subsidiaries. The Southeast Asian construction business posted an operating loss, and a ¥602 million loss attributable to COVID-19 was recorded during the cumulative second quarter of the current fiscal year. - FY2021-Q1MaterialisedAnnual report
「COVID-19 showed no signs of abating during the cumulative first quarter of the current fiscal year. As stated in the “Business and Other Risks” section of the annual securities report for the previous fiscal year, if the global spread of the disease is prolonged, the company’s future performance may be affected by a decline in orders resulting from a deterioration in the order environment, including the cancellation or postponement of capital investment following customers’ reviews of their business plans, by a decline in revenue due to construction suspensions, and by deterioration in construction profitability due to infection-control costs and extended construction periods, among other factors. Orders received by the Group’s construction business in Southeast Asia totaled ¥4,425 million, down 77.8% year on year. Revenue declined by ¥3,228 million year on year to ¥3,069 million, down 51.3%. This was due to slower construction progress and lower revenue resulting from the closure of construction sites operated by certain consolidated subsidiaries following the spread of COVID-19, as well as lower profit margins on certain projects. As a result, the business posted an operating loss of ¥165 million, compared with an operating loss of ¥19 million in the same quarter of the previous year.」
While the risk of a prolonged pandemic continues, the company has actually reported construction-site closures in Southeast Asia, declines in orders and revenue, and an operating loss. The income statement also includes a ¥375 million loss attributable to COVID-19. - FY2020First statedAnnual report
「The inability to forecast the impact of the global spread of COVID-19 on economic activity is expected to continue. If the global spread of the disease is prolonged, future business performance could be affected by a decline in orders resulting from a deterioration in the order environment, including the cancellation or postponement of capital investment following customers’ reviews of their business plans, by a decline in revenue due to construction suspensions, and by deterioration in construction profitability due to infection-control costs and extended construction periods, among other factors.」
The company identifies declines in orders, construction suspensions, higher costs and deterioration in construction profitability due to a prolonged pandemic as new major risks. Closures and suspensions of business activities have actually occurred at subsidiaries in Southeast Asia.