Legal, Foreign Exchange and Other Risks Associated with Overseas Business Expansion
First written in FY2020. 2 of 4 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2025-H1.
MarketEnterprise moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2025: 72 of 118 companies on the "Worse" side.
46 other companies' latest entry also says "Worsened".
- FY2025-H1WorsenedAnnual report
「In addition, in the ocean transport sector for exports, so-called port omissions by container ships, meaning ships skipping ports where they were scheduled to call, have been increasing, temporarily raising inventories held on consignment that were awaiting shipment after orders had been received and revenue to be recognized.」
In addition to risks related to overseas laws and regulations and foreign exchange rates, delays in revenue recognition and an increase in consignment inventory occurred due to container ships skipping ports. In light of the growing proportion of overseas sales, the company is also reviewing its credit management standards. - FY2024-Q2MaterialisedAnnual report
「As a result of strengthening procurement from domestic corporations and expanding overseas sales channels for used agricultural machinery, procurement and sales both proceeded steadily, although gross margin declined partly due to the impact of conditions overseas.」
Although the gross margin on used agricultural machinery declined due to conditions overseas, procurement and sales both proceeded steadily. - FY2021-Q1MaterialisedAnnual report
「Ordinary profit was ¥160.110 million, down 6.2% year on year, primarily due to the recognition of foreign exchange losses resulting from the yen's appreciation.」
The company recognized a foreign exchange loss of ¥3.222 million resulting from the yen's appreciation, and the impact of currency movements on profit and loss has actually materialized. - FY2020First statedAnnual report
「If the Group becomes unable to advance its overseas business because it cannot address potential risks, including the laws and regulations, political and social conditions, and foreign exchange rates of each country, this may affect the Group's business and operating results.」
In connection with its overseas expansion, centered on agricultural machinery exports, the company identified for the first time the risk that it must address the laws and systems, political and social conditions, foreign exchange rates and other factors in each country.