Working Capital, Credit, Inventory and Overseas Sales Risks in the Cosmetics Business
First written in FY2016. 16 of 24 entries say "Materialised", first in FY2020-Q3. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026MitigatedAnnual report
「As announced in the 18 August 2025 notice titled “Notice Regarding the Decision to Discontinue the Business Activities of Subsidiary Bbl and the Transfer of Trademark Rights,” Bbl withdrew from the Chinese market, and the cosmetics business relating to placenta products, a core product based on its domestic operations, was transferred to consolidated subsidiary 日本予防医薬㈱ as of 1 March 2026.」
While the overseas-sales risk arising from dependence on the Chinese market took concrete form in the discontinuation of business activities and the transfer of the domestic business, exposure to China decreased. - FY2025MaterialisedAnnual report
「As the cosmetics manufacturing and sales business operated by Bbl is highly dependent on the Chinese market and a substantial recovery in performance is difficult to foresee, the Company resolved to discontinue its business activities.」
The existing overseas-sales risks of dependence on the Chinese market, deterioration in local market conditions and the rise of local manufacturers took concrete form in the policy to discontinue the cosmetics subsidiary's business activities. - FY2024MaterialisedAnnual report
「In addition, wholesale sales fell sharply to ¥1,415 million, down 62.8% from the previous fiscal year. Sales of products for the Chinese market were affected by the continuing impact of the intensifying boycott of Japanese products triggered by the release of treated water from the Fukushima Daiichi nuclear power plant into the ocean, the delay in starting direct transactions with 高浪控股股份有限公司, its capital and business alliance partner, and intensifying competition resulting from the rise of local domestic manufacturers, among other factors.」
The external-environment, partner and competitive-environment risks previously disclosed in relation to overseas sales in the cosmetics business materialised over the full fiscal year as a substantial decline in wholesale revenue from China. - FY2024-Q3MaterialisedAnnual report
「Meanwhile, wholesale sales fell sharply to ¥883 million, down 73.3% year on year, as sales of products for the Chinese market were affected by the intensifying boycott of Japanese products triggered by the release of treated water from the Fukushima Daiichi nuclear power plant into the ocean, as well as intensifying competition resulting from the rise of local domestic manufacturers, among other factors.」
The external-environment and competitive-environment risks previously disclosed in relation to overseas sales continue to materialise as a substantial decline in sales to China owing to the intensification of the boycott and stronger competition from local manufacturers. - FY2024-Q2MaterialisedAnnual report
「Meanwhile, wholesale sales fell sharply to ¥711 million, down 62.3% year on year, as sales of products for the Chinese market were affected by the intensifying boycott of Japanese products triggered by the release of treated water from the Fukushima Daiichi nuclear power plant into the ocean, as well as intensifying competition resulting from the rise of local domestic manufacturers, among other factors.」
The external-environment and competitive-environment risks previously disclosed in relation to overseas sales materialised as a substantial decline in sales to China owing to the intensification of the boycott and stronger competition from local manufacturers. - FY2024-Q1MaterialisedAnnual report
「Meanwhile, wholesale sales fell sharply to ¥136 million, down 87.3% year on year, as sales of products for the Chinese market were affected by the intensifying boycott of Japanese products triggered by the release of treated water from the Fukushima Daiichi nuclear power plant into the ocean, among other factors.」
The impact of the external environment and demand fluctuations, previously disclosed as overseas-sales risks, materialised as a substantial decline in sales to China owing to the intensification of a boycott of Japanese products. - FY2023MaterialisedAnnual report
「Meanwhile, wholesale sales were ¥3,810 million, down 20.5% from the previous fiscal year, as sales of products for the Chinese market were affected by intensifying competition resulting from the rise of local manufacturers, among other factors.」
The change in the competitive environment, previously disclosed as an overseas-sales risk in the cosmetics business, also materialised over the full fiscal year as lower sales to China owing to the rise of local Chinese manufacturers. - FY2023-Q3MaterialisedAnnual report
「Meanwhile, wholesale sales were ¥3,312 million, down 7.5% year on year, as sales of products for the Chinese market were affected by intensifying competition resulting from the rise of local domestic manufacturers, among other factors.」
The change in the competitive environment, previously disclosed as an overseas-sales risk in the cosmetics business, continues to materialise as lower sales to China owing to the rise of local Chinese manufacturers. - FY2023-Q2MaterialisedAnnual report
「Meanwhile, wholesale sales were ¥1,888 million, down 27.1% year on year, as sales of products for the Chinese market were affected by intensifying competition resulting from the rise of local domestic manufacturers, among other factors.」
The change in the competitive environment, previously disclosed as an overseas-sales risk, continued to materialise as lower sales to China owing to the rise of local Chinese manufacturers, and the decline widened. - FY2023-Q1MaterialisedAnnual report
「Meanwhile, wholesale sales were ¥1,077 million, down 17.9% year on year, as sales of products for the Chinese market were affected by intensifying competition resulting from the rise of local domestic manufacturers, among other factors.」
The change in the competitive environment, previously disclosed as an overseas-sales risk in the cosmetics business, materialised as lower sales to China owing to the rise of local Chinese manufacturers. - FY2022-Q3MaterialisedAnnual report
「Meanwhile, wholesale sales were ¥3,581 million, up 0.5% year on year. Sales of products for the Chinese market, centered on “Moist Cream Mask Pro.,” had shown signs of slowing in the second half of the previous fiscal year, but regained momentum broadly in line with the year-earlier period during the cumulative third quarter, supported by steady shipments ahead of Alibaba Group’s major shopping event, “Tmall Double 11,” as well as growing sales during the event, among other factors.」
For sales to the Chinese market, both the slowdown in the second half of the previous consolidated fiscal year and the recovery driven by event-related shipments and sales were disclosed, indicating that the risks relating to demand fluctuations and overseas sales are reflected in actual sales trends. - FY2022-Q2MaterialisedAnnual report
「Meanwhile, wholesale sales were ¥2,592 million, down 8.8% year on year. Sales of products for the Chinese market, centered on “Moist Cream Mask Pro.,” had shown signs of slowing in the second half of the previous fiscal year, but regained momentum broadly in line with the year-earlier period during the cumulative second quarter, supported by steady shipments ahead of Alibaba Group’s major shopping event, “Tmall Double 11,” as well as growing sales during the event, among other factors.」
Sales to the Chinese market continued to slow in the second half of the previous consolidated fiscal year, and wholesale sales fell 8.8% year on year. A recovery driven by event-related shipments and sales growth was also disclosed, indicating that fluctuations in overseas demand continue to be reflected in actual sales trends. - FY2022-Q1MaterialisedAnnual report
「Meanwhile, wholesale sales were ¥1,313 million, down 1.5% year on year. Sales of products for the Chinese market, centered on “Moist Cream Mask Pro.,” had shown signs of slowing in the second half of the previous fiscal year, but regained momentum broadly in line with the year-earlier period during the cumulative first quarter, supported by steady shipments ahead of Alibaba Group’s major shopping event, “Tmall Double 11,” among other factors.」
For sales to the Chinese market, the Company disclosed a slowdown in the second half of the previous consolidated fiscal year and a recovery driven by shipments ahead of an event, with the risks relating to demand fluctuations and overseas sales reflected in actual sales trends. - FY2021-Q3MaterialisedAnnual report
「Wholesale revenue was ¥3,562 million, up 8.6% year on year. Sales of products for the Chinese market, centered on “モイストクリームマスクPro.”, showed a decline in the third quarter of the current consolidated accounting period, partly due to a reaction to strong sales at Alibaba Group’s major shopping event “天猫ダブルイレブン” in November 2020. However, sales increased over the current consolidated cumulative period as a whole, due in part to higher sales at the event and the effect of the capital and business alliance concluded in February 2019 with the Chinese distribution company 杭州高浪控股有限公司.」
Although cumulative sales to China increased, the risks relating to demand fluctuations and overseas sales continue to be reflected in actual progress, in the form of a decline in the third-quarter accounting period following the large-scale shopping event. - FY2021-Q1MaterialisedAnnual report
「Wholesale revenue was ¥1,333 million, up 37.0% year on year. Sales of products for the Chinese market, centered on “モイストクリームマスクPro.”, continued to trend upward, partly due to the effect of the capital and business alliance concluded in February 2019 with the Chinese distribution company 杭州高浪控股有限公司. However, progress fell below plan due in part to customers holding back purchases ahead of Alibaba Group’s major shopping event “天猫ダブルイレブン”, which was expected to be larger than in previous years.」
Although sales to China increased cumulatively, progress fell short of plan because customers held back from purchases ahead of sales events, and the existing risks relating to demand fluctuations and overseas sales emerged as developments in operating performance. - FY2020MaterialisedAnnual report
「In China, regarded as the origin of the novel coronavirus, infections spread significantly ahead of other countries from around January 2020, and economic activity stagnated owing to lockdowns and other measures. Sales in the cosmetics business also declined from late January to around mid-February of that year.」
The previously recognised external-environment risk in the Chinese market and overseas sales materialised as lower sales caused by the spread of infections and lockdowns. It is stated that sales subsequently performed steadily. - FY2020-Q3MaterialisedAnnual report
「Wholesale revenue was ¥3,281 million, up 74.5% year on year. Sales of products for China’s cross-border e-commerce market, centered on “モイストクリームマスクPro.”, generally continued to expand despite a temporary decline caused by the spread of COVID-19, partly due to the effect of the capital and business alliance concluded in February 2019 with the Chinese distribution company 杭州高浪控股有限公司.」
The impact of changes in the external environment, previously disclosed as an overseas-sales risk, was specifically described as a temporary decline in cross-border e-commerce sales to China. However, wholesale sales as a whole increased substantially. - FY2020-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It is stated that there have been no material changes in the working capital, credit, inventory and overseas-sales risks in the cosmetics business. - FY2020-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It is stated that there have been no material changes in the working capital, credit, inventory and overseas-sales risks in the cosmetics business. - FY2019-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The working capital, credit, inventory and overseas-sales risks in the cosmetics business are disclosed in a consolidated statement as having undergone no material changes. - FY2019-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The working capital, credit, inventory and overseas-sales risks in the cosmetics business are disclosed in a consolidated statement as having undergone no material changes. - FY2019-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The working capital, credit, inventory and overseas-sales risks in the cosmetics business are disclosed in a consolidated statement as having undergone no material changes. - FY2018RestatedAnnual report
「In overseas sales, local laws and regulations, the practices of administrative authorities and business customs differ from those in Japan, and there are limits to the collection of information on customers' creditworthiness and other matters. Consequently, unexpected losses may arise, or results may fail to meet expectations.」
The risks relating to working capital, credit, inventory, overseas laws and regulations and business practices, and creditworthiness in the cosmetics business continue to be disclosed. - FY2016First statedAnnual report
「If a significant gap arises between the sales plan and actual results owing to intensified competition with competitors, consumer demand trends or other factors, the Company may ultimately recognise an impairment loss on products due to inventory obsolescence and other causes,」
The Group cites customer defaults, inventory obsolescence resulting from anticipated orders, and uncertainties relating to overseas laws and regulations, business practices and creditworthiness.