Dependence on Specific Customers and the Need to Diversify the Customer Base
First written in FY2016. 13 of 27 entries say "Materialised", first in FY2018-Q2. Latest entry: FY2026.
Shinden Hightex moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2025: 33 of 106 companies on the "Worse" side.
34 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Sales share of major customers in the Group’s consolidated revenue (the three largest customer groups)」
The sales share of the three largest major customer groups declined from 36.8% to 34.6%, easing customer concentration numerically. - 2026-05-13MaterialisedResults
「当初より想定していた一部車載向けビジネスの商流移管に加え、前年に計上したファウンドリービジネスの反動減が影響し、減収となりました。」
一部車載向けビジネスの商流移管が半導体製品分野の減収要因として実績化した。 - FY2026-H1MaterialisedAnnual report
「In addition, the transfer of distribution channels for part of the automotive business, which had been incorporated into the initial assumptions, also had an impact, and revenue declined overall.」
The transfer of distribution channels for part of the automotive business actually became a factor behind the decline in revenue for the current interim period. - FY2025WorsenedAnnual report
「Sales share of major customers in the Group’s consolidated revenue (the three largest customer groups): previous consolidated fiscal year 33.8%; current consolidated fiscal year 36.8%」
Sales concentration among the three largest major customer groups rose from 33.8% to 36.8%, and customer dependence risk increased numerically. - FY2024MitigatedAnnual report
「Sales share of major customers in the Group’s consolidated revenue (the three largest customer groups)」
The sales share of the three largest customer groups declined from 35.9% to 33.8%, easing customer concentration numerically. At the same time, the Group continued to expand sales channels in growth markets and promote sales of high-value-added products. - FY2024-Q3MaterialisedAnnual report
「Volume business in general-purpose products declined because display market conditions for products aimed primarily at personal consumption continued to deteriorate and a major customer entered civil rehabilitation proceedings, resulting in lower revenue.」
The major customer’s civil rehabilitation proceedings and deteriorating display market conditions continued to materialize as revenue of ¥3.086 billion in the display segment, down 28.6% year on year. - FY2024-Q2MaterialisedAnnual report
「Volume business in general-purpose products declined because display market conditions for products aimed primarily at personal consumption continued to deteriorate and a major customer entered civil rehabilitation proceedings, resulting in lower revenue.」
The major customer’s civil rehabilitation proceedings and deteriorating display market conditions continued to materialize as lower revenue in the display segment. - FY2024-Q1MaterialisedAnnual report
「Revenue declined due to the continued deterioration in display market conditions since the second half of the previous fiscal year and the winding down of the business following a major business partner’s application to commence civil rehabilitation proceedings.」
The winding down of the display-related business following a major business partner’s application to commence civil rehabilitation proceedings materialized as revenue of ¥992 million, down 38.9% year on year. - FY2023WorsenedAnnual report
「Sales share of major customers in the Group’s consolidated revenue (the three largest customer groups): previous consolidated fiscal year 33.2%; current consolidated fiscal year 35.9%」
Sales concentration among the three largest customer groups rose from 33.2% to 35.9%. Dependence on major customers increased numerically, with the Amkor Group accounting for 15.4% of sales and the CPK Group for 10.3%. - FY2023-Q3RestatedAnnual report
「Since the current fiscal year, we have been focusing on sales of high-margin products and working to improve margins as part of the restructuring area. Affected by the shift in distribution channels for the LCD module business to direct dealings, sales were ¥4,325 million, down 54.0% year on year.」
While the decline in sales resulting from the shift of LCD modules to direct transactions continued, the business was supplemented by sales of high-margin products and demand capture in the semiconductor products segment. - FY2023-Q2RestatedAnnual report
「Although the display segment lost the LCD module business that shifted to direct transactions, revenue was recovered through the yen’s depreciation and efforts to capture demand in the semiconductor products segment.」
The loss of the LCD module business shifted to direct transactions continued, while revenue was supplemented by demand capture in the semiconductor products segment and the impact of the weaker yen. - FY2023-Q1MaterialisedAnnual report
「Revenue was ¥1.623 billion, down 60.9% year on year, due to the loss of the LCD module business that shifted to direct transactions.」
The loss of the LCD module business associated with the shift to direct transactions with the manufacturer materialized as a 60.9% year-on-year decline in revenue in the display segment. - FY2022MitigatedAnnual report
「Sales share of major customers in the Group’s consolidated revenue (the three largest customer groups): previous consolidated fiscal year 43.2%; current consolidated fiscal year 33.2%」
The sales share of the three largest customer groups declined from 43.2% to 33.2%, and customer concentration declined numerically. - FY2022-Q3MaterialisedAnnual report
「Although the Company focused on selling high-margin products, revenue was ¥9.403 billion, down 43.5% year on year, because volume business in general-purpose products declined substantially due to the pullback from special demand for the organic EL business, the winding down of demand under the GIGA School Initiative and the partial transfer of the LCD module business that had been scheduled for transfer, among other factors.」
The pullback from special demand, the winding down of demand and the partial transfer of the LCD module business continued to materialize as a 43.5% year-on-year decline in revenue in the display segment. - FY2022-Q2MaterialisedAnnual report
「Because volume business in general-purpose products declined substantially due to the pullback from special demand for the organic EL business, the winding down of demand under the GIGA School Initiative and the partial transfer of the LCD module business that had been scheduled for transfer, among other factors」
Changes in distribution channels and a partial transfer of the LCD module business were implemented, and the risk of changes in customers and distribution channels materialized as a decline in volume business for general-purpose products. - FY2021WorsenedAnnual report
「As the domestic distributor for LG Display Japan Co., Ltd., the Company purchases and sells its LCD modules for automotive and monitor applications. However, due to the company’s review of its distributor policy, sales are expected to decline from the fiscal year ending March 2022 onward.」
The review of the major supplier’s distributor policy is expected to result in lower sales from the fiscal year ending March 2022 onward. In addition, the sales share of the three largest major customer groups rose from 34.2% to 43.2%. - FY2020MitigatedAnnual report
「DENSO TEN Group 6,288,995 14.2; NEC Group 4,476,648 10.1」
The sales share of major customers declined from 17.8% to 14.2% for the DENSO TEN Group and from 11.2% to 10.1% for the NEC Group. Customer concentration declined numerically, but changes in major customers’ production plans continued to have an impact. - FY2020-Q3MaterialisedAnnual report
「Although business for PCs and automotive applications remained firm in the LCD segment, revenue was ¥12.435 billion, down 14.4% year on year, as LCD modules declined due to production adjustments by certain major customers.」
Production adjustments by certain major customers materialized as a decline in LCD modules and a 14.4% year-on-year decrease in revenue in the LCD segment. - FY2020-Q2MaterialisedAnnual report
「Revenue in the LCD segment was ¥8.756 billion, down 4.7% year on year, as LCD modules declined due to production adjustments by certain major customers.」
Production adjustments by certain major customers materialized as a decline in LCD modules and lower revenue in the LCD segment. - FY2019WorsenedAnnual report
「In recent years, the Group has become increasingly dependent on sales to the DENSO TEN Group, EIZO Co., Ltd. and the NEC Group (collectively, the “Groups”), and fluctuations in transactions with each Group affect the performance and other aspects of the Group.」
The three major customer groups accounted for 17.8% of sales for the DENSO TEN Group, 12.9% for EIZO and 11.2% for the NEC Group, quantifying the Group’s dependence on each customer. - FY2019-Q3MaterialisedAnnual report
「Although the equipment business, including foreign-object detection machines, remained firm in the electronic equipment segment, revenue was ¥4.685 billion, down 52.3% year on year, due to the loss of special demand for semiconductor inspection equipment in the previous fiscal year and a decline in memory module projects associated with changes in the distribution channels of certain customers.」
The decline in memory module projects associated with changes in the distribution channels of certain customers materialized as lower revenue in the electronic equipment segment. - FY2019-Q2RestatedAnnual report
「The automotive equipment business remained strong in the LCD segment, but delivery delays for some monitor LCD models supplied to major customers resulted in revenue of ¥9.184 billion, down 4.9% year on year.」
Although sales to the automotive equipment sector were strong, delivery delays occurred for some monitor LCD models supplied to major customers, resulting in lower revenue in the LCD segment. - FY2019-Q1MaterialisedAnnual report
「The LCD segment performed well in applications for automotive equipment, but revenue was ¥4,532 million, down 6.0% from the same quarter of the previous year, because delivery dates were postponed for certain types of LCDs for monitors supplied to major customers.」
Delivery delays occurred for some monitor LCD models supplied to major customers, and sales fluctuations related to specific customers materialized as a decline in revenue in the LCD segment. - FY2018-Q3RestatedAnnual report
「Revenue from the LCD segment declined from the previous year because sales of products for automotive equipment to certain customers changed to direct sales by the manufacturer, resulting in revenue of ¥14,955 million, down 11.1% from the same quarter of the previous year.」
The impact of the change to direct sales by the manufacturer for automotive equipment sold to certain customers continued, and revenue from the LCD segment declined 11.1% from the same quarter of the previous year. - FY2018-Q2MaterialisedAnnual report
「Revenue from the LCD segment declined from the previous year because sales of products for automotive equipment to certain customers changed to direct sales by the manufacturer, resulting in revenue of ¥9,653 million, down 12.3% from the same quarter of the previous year.」
Revenue from the LCD segment declined because sales to certain customers changed to direct sales by the manufacturers, making fluctuations in specific customers and sales transactions apparent in the results. - FY2017WorsenedAnnual report
「In recent years, dependence on sales to the Fujitsu Group and EIZO Corporation has increased, and fluctuations in transactions with both groups affect our group's operating results and other matters.」
While the need to diversify the customer base was identified, the Fujitsu Group's proportion of revenue increased from 16.1% to 21.6%, raising dependence. - FY2016First statedAnnual report
「In recent years, dependence on sales to the Panasonic Group and Fujitsu Group has increased, and fluctuations in transactions with both groups affect our group's operating results and other matters.」
The proportions of revenue were 16.3% for the Panasonic Group and 16.1% for the Fujitsu Group in the current fiscal year.