Dependence on Specific Contract Manufacturers and Risk of Supply Disruption
First written in FY2025. 1 of 2 entries say "Mitigated", first in FY2026. Latest entry: FY2026.
The whole theme swung hardest in 2018: 2 of 6 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In addition to ensuring rigorous production and quality control, we are working to mitigate risk by diversifying our manufacturing sites across multiple factories. At present, the relationship between the company and its contract manufacturers is good, and no circumstances have arisen that would hinder termination or continuation, such as problems caused by non-conforming products from contract manufacturers or delayed payments by the company.」
Diversification across multiple factories, quality control and maintaining relationships with contract manufacturers are described as countermeasures, and no event currently exists that would hinder continued supply. - FY2025First statedAnnual report
「Dependence on TOA CORPORATION, among the company’s contract manufacturers, accounted for approximately 50% in the fiscal year ended March 2025. However, if the contract is terminated for any reason in the future, or if stable product supplies from the company are disrupted, sales activities to customers could be hindered, potentially having a material adverse effect on the company’s financial condition, operating results and other aspects of its business.」
Dependence on the principal contract manufacturer is quantified at approximately 50%, with the impact on sales from contract termination or supply stoppages identified as a risk.