Political, Economic and Regulatory Risks in China
First written in FY2023. 3 of 9 entries say "Worsened", first in FY2024. Latest entry: 2026-05-15.
Tecnisco moved to the "Worse" side of this theme in 2023, 2 years after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 9 of 14 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- 2026-05-15MitigatedEarnings
「Although the Company effectively withdrew from products that had become unprofitable in the Chinese market, revenue increased from the same period of the previous year due to the recovery in demand from major customers in Europe and North America, among other factors.」
The Company reviewed its product mix by effectively withdrawing from unprofitable products, while the risk of weak business conditions in the Chinese market remained. - FY2026-H1Substantive withdrawal from unprofitable products in ChinaAnnual report
「Although the Group substantively withdrew from unprofitable products in the Chinese market in its high-performance heat-sink business for the industrial laser equipment market, sales of heat-sink products increased from the same period of the previous year, due in part to recovering demand from major customers in Europe, the United States and Japan.」
The Group explicitly disclosed its substantive withdrawal from unprofitable products in the Chinese market. Although the risk of sluggish business sentiment in China remains, the Group disclosed a review of its product mix based on profitability. - FY2025WorsenedAnnual report
「Currently, sales in the Chinese market have declined substantially due to deteriorating market conditions and continued price competition with Chinese competitors.」
In the Chinese market, sales declined substantially as deteriorating business sentiment stemming from the real estate problem was compounded by price competition with Chinese competitors and lower customer demand. - FY2025-H1WorsenedAnnual report
「Sales of heat-sink products overall declined from the same period of the previous year, primarily in the Chinese market, due to a combination of deteriorating business sentiment stemming from the real estate problem, continued price competition with Chinese competitors and lower demand from some customers.」
In the Chinese market, deteriorating business sentiment resulting from the real estate problem was compounded by price competition with Chinese competitors and lower demand from some customers, increasing the impact in the form of declining overall heat-sink product sales. - FY2024WorsenedAnnual report
「In the Chinese market, demand showed a declining trend across a broad range of applications due to deteriorating business sentiment stemming from the real estate problem.」
Declining demand in the Chinese market materialised as lower full-year sales, with sales in China declining from ¥2,004,448 thousand in the previous fiscal year to ¥1,860,344 thousand. - FY2024-Q3Signs of order recovery amid continuing demand weaknessAnnual report
「Although orders in the Chinese market for laser processing machines have recently begun to recover, demand showed a declining trend across a broad range of applications due to deteriorating business sentiment stemming from the real estate problem.」
While orders in the Chinese market have recently begun to recover, deteriorating business sentiment caused by the real estate problem and declining demand across a broad range of applications continue. - FY2024-Q2MaterialisedAnnual report
「In the Chinese market for laser processing machines, demand has shown a declining trend across a broad range of applications due to deteriorating business sentiment stemming from the real estate problem.」
Against the backdrop of China's real estate problem and deteriorating business sentiment, declining demand has actually occurred across a broad range of applications in the laser processing machine market, leading to lower sales of heat-sink products. - FY2024-Q1MaterialisedAnnual report
「There are also many uncertainties, including China's real estate problem, the situation in Ukraine and, more recently, the situation in the Middle East, raising concerns about a deterioration in growth prospects.」
Against the backdrop of China's real estate problem and other factors, construction demand has shown a declining trend, with the impact emerging on demand for and sales of heat-sink products, including in the Chinese market. - FY2023First statedAnnual report
「In recent years, China has experienced a succession of events with a major impact on economic conditions, including the U.S.-China trade dispute, geopolitical tensions with neighbouring countries and a major shift in policy on infectious diseases.」
For production and sales activities at the Suzhou site, regulatory changes, economic deterioration, additional tax payments and higher costs are identified as risks. During the period, customer factories faced operating restrictions due to the zero-COVID policy and power shortages.