Dependence on Major Customers and Customer Credit Risk
First written in FY2018. 3 of 4 entries say "Restated". Latest entry: FY2021.
The whole theme swung hardest in 2026: 39 of 122 companies on the "Worse" side.
41 other companies' latest entry also says "Restated".
- FY2021RestatedAnnual report
「Although our group recognizes the possibility that these risks may materialize, we are implementing measures including strengthening our sales capabilities, expanding sales channels, and expanding and diversifying our business areas.」
The company continues to address dependence on and credit risk associated with key customers by strengthening its sales capabilities, expanding sales channels, expanding and diversifying its business areas, setting credit limits and using credit insurance. - FY2020RestatedAnnual report
「Under our credit management system, we have implemented measures to minimize credit risk, including setting credit limits for each customer. Depending on the nature of the transaction, we also transfer risk through trade credit insurance and other measures.」
The company continues to recognize dependence on key customers and credit risk, and has described risk transfer through trade credit insurance in addition to setting credit limits. - FY2019RestatedAnnual report
「To provide for losses arising from bad debts, we recognize an allowance for doubtful accounts based on historical bad-debt rates and other factors. Under our credit management system, we have implemented measures to minimize credit risk, including setting credit limits for each customer. However, if a key customer becomes insolvent due to an economic downturn or other factors, bad-debt losses could substantially exceed the allowance for doubtful accounts and materially affect operating results and the financial position.」
In addition to the risk of dependence on key customers, the company specifically describes the risk of bad debts arising from customer insolvency and credit management measures such as setting credit limits. - FY2018First statedAnnual report
「Some products are sold primarily to specific customers. Consequently, if such a customer experiences deteriorating business performance, withdraws from the business involving the product, undertakes large-scale inventory adjustments or production adjustments, or demands a substantial price reduction for the product, this could materially affect the operating results and financial position of the group, including through a decline in group sales.」
The company has newly identified as a risk the possibility that customer concentration could cause deteriorating customer performance, business withdrawals, inventory adjustments or demands for price reductions to affect sales and the financial position.