Country Risk and Foreign Exchange Fluctuation Risk Associated with Overseas Production and Foreign Currency Transactions
First written in FY2016. 5 of 12 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2025.
Generation Pass moved to the "Worse" side of this theme in 2026, 7 years 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".
- FY2025WorsenedAnnual report
「In March 2024, the Company established NEW FIBER LAO SOLE CO.,LTD in Laos as a core location for its new high-performance fiber products, and is establishing a structure to expand production capacity after the end of the consolidated fiscal year. Accordingly, geopolitical, social, credit and market risks associated with the region may affect the Group's business and results.」
Laos has been added as a high-performance fiber production location among the regions subject to overseas production and foreign-currency transactions, expanding the Group's exposure to regional risks accompanying the expansion of production capacity. - FY2023-Q3MitigatedAnnual report
「Although on-site support through overseas business trips became more active and sales activities were strengthened,」
Restrictions on socioeconomic activity were largely lifted, creating conditions in which on-site support through overseas business trips and sales activities could be resumed and strengthened. - FY2023-Q1MitigatedAnnual report
「In the product planning-related business, sales and profit increased year on year as a result of the resumption of on-site support through overseas business trips and strengthened sales activities in Vietnam, improved factory operating rates as the production system was established, and continued strong order levels at the Company's Chinese subsidiary, 青島新綻紡貿易有限会社.」
The resumption of on-site support through overseas business trips in Vietnam, together with the establishment of the production system and improved factory operating rates, further reduced the impact of the overseas production locations. - FY2022-Q3MitigatedAnnual report
「Restrictions related to COVID-19 in Vietnam have been easing, while progress in establishing the production system has improved factory operating rates.」
At the Vietnam location, restrictions related to infectious diseases have been eased, the production system has been established, and factory operating rates have improved, reducing the impact of overseas production risks. - FY2022-Q2MitigatedAnnual report
「Although conditions such as difficulties securing production personnel continued at Genepa Vietnam Company, partner factories and suppliers due to the impact of COVID-19 in Vietnam, progress was gradually made in securing production personnel during the second quarter, and factory operating rates began to improve.」
Although difficulties securing production personnel continue at the Vietnam location and elsewhere, personnel recruitment gradually progressed and factory operating rates began to improve. - FY2022-Q1MitigatedAnnual report
「Although conditions such as difficulties securing production personnel continue at Genepa Vietnam co.,Ltd. (the “Genepa Vietnam Company”), partner factories and suppliers due to the impact of COVID-19 in Vietnam, there are currently no restrictions on factory operations, and operating rates have been improving compared with the previous year.」
Although difficulties securing production personnel continue at the Vietnam location and elsewhere, there are no restrictions on factory operations, and operating rates have improved from the previous year. - FY2021MaterialisedAnnual report
「Genepa Vietnam Co.,Ltd. was in the initial stage of establishing its factory, and travel restrictions also made it impossible to provide sufficient support and backup, contributing to the weak results. In addition, because the impact of COVID-19 and other factors remained uncertain for the following fiscal year and beyond, the Company recorded an impairment loss on Genepa Vietnam Co.,Ltd.'s fixed assets.」
At the Vietnam location, difficulties providing support due to travel restrictions contributed to weak results, and an impairment loss of ¥144 million was recorded on fixed assets. - FY2021-Q2WorsenedAnnual report
「Genepa Vietnam Company was particularly severely affected by COVID-19. It faced difficulties securing shipping containers and procuring materials due to surging raw material prices, resulting in extremely difficult conditions for both sales and profit.」
Regarding risks related to overseas production and transactions, the Vietnam location experienced difficulties securing containers, surging raw material prices and difficulties procuring materials, directly affecting sales and profit. - FY2021-Q1WorsenedAnnual report
「In the product planning-related business, all locations, including the domestic business, the Company's subsidiary Genepa Vietnam Co.,Ltd. (the “Genepa Vietnam Company”) and the Company's subsidiary 青島新綻紡貿易有限会社 (the “新綻紡 Company”), were affected by COVID-19 and the second state of emergency declaration, resulting in widespread delays to delivery schedules and a year-on-year decline in sales.」
Delivery schedules were delayed at all domestic, Vietnamese and Chinese locations due to infectious diseases and other factors, contributing to lower sales in the product planning-related business. - FY2020WorsenedAnnual report
「In the product planning-related business, the settlement of foreign-currency transactions related to imports and purchases and sales, as well as the translation of foreign-currency-denominated assets and liabilities, is affected by foreign exchange rates, primarily through transactions with Vietnamese suppliers. Accordingly, foreign exchange movements may affect the Group's financial position and operating results.」
In addition to the existing risks associated with overseas production in China, Vietnam and elsewhere, the Company specifies the foreign-currency settlement and translation risks associated with transactions in Vietnam. - FY2018RestatedAnnual report
「Geopolitical, social, credit and market risks associated with the relevant regions may affect the Group's business and results.」
The Company continues to disclose geopolitical, social, credit and market risks and foreign exchange risk associated with overseas production in China, Indonesia and other countries. - FY2016First statedAnnual report
「Geopolitical, social, credit and market risks associated with the relevant regions may affect the Group's business and results.」
In connection with production in China, Indonesia and other countries and transactions with Vietnam and Cambodia, the Company identifies geopolitical, social, credit and market risks, as well as foreign exchange fluctuations.