Concentration of Operations at the Chinese Subsidiary and Country Risk in China
First written in FY2016. 5 of 9 entries say "Restated". Latest entry: FY2023.
The whole theme swung hardest in 2022: 3 of 6 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「The Company’s consolidated subsidiary, レカムビジネスソリューションズ(大連)株式有限公司, has the headquarters function for the BPR business and plays a central role in 4 BPO centres. It also plays an important role in the indirect operations of Group companies, including by outsourcing the Group’s sales administration functions.」
The concentration structure, in which the Dalian subsidiary handles the BPR headquarters, 4 BPO centres and the Group’s sales administration functions, as well as country risk in China, continues to be recognized. - FY2022RestatedAnnual report
「The Company’s consolidated subsidiary, レカムビジネスソリューションズ(大連)株式有限公司, has the headquarters function for the BPR business and plays a central role in 4 BPO centres. It also plays an important role in the indirect operations of Group companies, including by outsourcing the Group’s sales administration functions.」
The concentration structure, in which the Dalian subsidiary handles the BPR headquarters, 4 BPO centres and the Group’s sales administration functions, as well as country risk in China, continues to be recognized. - FY2022-Q3MaterialisedAnnual report
「While restrictions on activity have been eased in ASEAN countries, operations in Shanghai, China, came to a standstill during lockdowns in April and May 2022.」
Country risk in China materialized in the suspension of operations in Shanghai due to lockdowns in April and May 2022. - FY2022-Q2MaterialisedAnnual report
「Meanwhile, procurement of goods has been hampered by the semiconductor shortage and disruptions to logistics in China, among other factors. In particular, the Company has been unable to procure sufficient air conditioners and LED lighting, which has affected sales.」
The risks associated with logistics disruptions in China and dependence on product procurement materialized as procurement difficulties and an impact on sales due to the semiconductor shortage and other factors. - FY2020RestatedAnnual report
「The company serves as the headquarters function for the BPO business and plays a central role in the BPO centres. It is also deeply involved in the indirect operations of Group companies, including sales administration for the Group’s IT solutions business and energy solutions business.」
The concentration structure, in which the Dalian subsidiary handles the BPO headquarters and centres and sales administration for the IT and energy businesses, as well as country risk in China, continues to be recognized. - FY2019RestatedAnnual report
「This Chinese subsidiary of the Company serves as the headquarters function for the BPO business and plays a central role in the BPO centres. It is also deeply involved in the Group’s indirect operations, including the operations of the Group’s information and communications business and environmental-related business, as well as sales administration.」
The concentration structure, in which the Dalian subsidiary handles the BPO headquarters and centres and the indirect operations of the information and communications and environmental-related businesses, as well as country risk in China, continues to be recognized. - FY2018WorsenedAnnual report
「This Chinese subsidiary of the Company serves as the headquarters function for the BPO business and plays a central role in the BPO centres. It is also deeply involved in the Group’s indirect operations, including the operations of the Group’s information and communications business and environmental-related business, as well as sales administration.」
The disclosure clarifies the scope of the concentration, stating that the Dalian subsidiary not only serves as the headquarters and central hub for the BPO business, but is also deeply involved in the information and communications and environmental-related businesses, as well as sales administration. - FY2017RestatedAnnual report
「The group plans to continue promoting cost reductions through the subsidiary, but China presents country risks, including political deterioration, changes in economic conditions, and revisions to laws and tax laws.」
The concentration of operations in the Dalian subsidiary and country risk arising from changes in China’s political conditions, economy, laws and tax system continue to be recognized. - FY2016First statedAnnual report
「The group’s Chinese subsidiary performs a substantial portion of the group’s indirect operations, primarily sales and administrative functions for the information and communications business, with the aim of reducing costs. The group plans to continue promoting cost reductions within the group by utilizing this subsidiary. However, China presents country risks, including political deterioration, changes in economic conditions, and revisions to laws and tax laws. If the subsidiary’s management or operations are significantly affected, the group’s business operations may be disrupted and its performance may be adversely affected.」
While indicating that indirect operations are concentrated in the Chinese subsidiary and that the group plans to reduce costs through the subsidiary, the company identifies political and economic conditions in China and changes to its legal and tax systems as risks.