Quality, equipment and contract-continuation risks at OEM suppliers
First written in FY2016. 1 of 2 entries say "Restated". Latest entry: FY2022.
The whole theme swung hardest in 2024: 10 of 32 companies on the "Worse" side.
34 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「When entering into OEM agreements with suppliers, the Group conducts water-quality testing and production-system reviews at a level equivalent to its own standards, as well as corporate due diligence, and has maintained good business relationships with them. However, if a serious problem arises with an OEM supplier's water quality or factory facilities, or if poor business performance or an unexpected contract termination occurs, this could have a material impact on the production system and the Group's performance.」
The disclosure continues to describe risks related to the quality, facilities and contract continuity of OEM suppliers, as well as measures involving preliminary due diligence and maintaining business relationships. - FY2016First statedAnnual report
「If a material problem arises with the water quality or plant equipment of an OEM supplier, or if the supplier suffers poor business performance or unexpectedly terminates its contract, the Group’s production system and results could be materially affected.」
The disclosure describes the Group’s dependence on OEM suppliers for products from Kinjo and Aso.