Risk of Dependence on Major Customers in the Auction Business
First written in FY2016. 3 of 6 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2018.
System Location moved to the "Worse" side of this theme in 2017, 6 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 12 of 76 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2018MaterialisedAnnual report
「Revenue from resale business support, which was ¥183.769 million in the previous fiscal year, will no longer be recorded from the current fiscal year due to the withdrawal from the business」
Following the withdrawal from the resale business support operations, the resale revenue recorded in the previous fiscal year disappeared from the current fiscal year, and the business impact related to dependence on the auction and resale businesses has materialized in the results. - FY2017MaterialisedAnnual report
「As noted above, the planned withdrawal from the resale business support operations at the end of March 2017 had a significant impact, and, particularly after the announcement, the number of vehicles consigned to the Group's auctions declined significantly year on year.」
The decline in vehicle consignments due to dependence on major customers actually occurred over the full fiscal year, and the withdrawal from the resale business support operations at the end of March 2017 affected the decline. - FY2017-Q3MaterialisedAnnual report
「As noted above, the planned withdrawal from the resale business support operations at the end of March 2017 also had an impact, and the number of vehicles consigned to the Group's auctions declined significantly year on year during the quarter.」
The decline in auction consignments due to dependence on major customers actually occurred, while the business was also scheduled to withdraw from the resale business support operations at the end of March 2017. - FY2017-Q2The decline was less than expected, but there has been no recoveryAnnual report
「The number of vehicles listed in our Group’s auctions did not decline as much as initially expected at the beginning of the period. However, the number of listings has not recovered to its previous level, and we recognize that difficult conditions continue.」
Although the number of vehicles consigned did not decline as much as initially expected, it has not recovered to its previous level, and the difficult situation related to dependence on major customers continues. - FY2017-Q1Has bottomed out but has not recoveredAnnual report
「The number of vehicles consigned to the Group's auctions finally showed signs of bottoming out around the end of the previous fiscal year. However, there are no signs of recovery to the level of the same period of the previous year or earlier, and we recognize that the difficult situation is continuing.」
Although the number of vehicles consigned to auctions showed signs of bottoming out around the end of the previous fiscal year, it did not recover to the level of the same period of the previous year or earlier, and the difficult situation related to dependence on major customers continues. - FY2016First statedAnnual report
「The Group's auction business depends substantially on the number of vehicles consigned by certain major customers. If major customers, including auto leasing companies, increasingly bring their auction businesses in-house or switch their policy to consigning vehicles to other auctions, the number of vehicles consigned to the Group's auctions may decline, potentially adversely affecting the Group's business results and financial position.」
The number of vehicles consigned to auctions has declined significantly year on year since the second quarter, partly due to the restructuring of a major auto leasing company, and the stated dependence risk has materialized in the Group's results.