Delays, Changes or Cancellations of Large-Scale Medical Projects and Concentration of Revenue Recognition
First written in FY2016. 16 of 29 entries say "Restated". Latest entry: 2026-08-07.
Ship Healthcare Holdings moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2025: 7 of 13 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- 2026-08-07MitigatedEarnings presentation
「Large-scale project engagements were recognized as scheduled」
In the current first quarter, no delay from the scheduled timing of recognition of large-scale project engagements was reported. - FY2026WorsenedAnnual report
「The previous fiscal year included the completion and sale of a large project, a condominium development for seniors, whereas no projects were completed this fiscal year. In addition, profit margins on renewal projects remained weak due in particular to delays in the delivery of energy-saving construction materials, while manufacturer-related operations experienced higher component prices and some production delays. Together with the recognition of nonrecurring expenses such as M&A fees, these factors resulted in profit falling below the previous year's level.」
The concentration of completion timing for large projects, delays in material deliveries and production delays emerged as lower profit, while the existing risks related to the timing of project recognition and execution continued to materialize. - FY2026-H1WorsenedAnnual report
「In the Total Pack Produce business, progress against the full-year plan remained steady, despite project work being planned to be more heavily weighted toward the second half than at any time in the past 5 years and the recognition of nonrecurring expenses such as M&A fees. However, profit declined year on year.」
Project work was planned to be more heavily weighted toward the second half than at any time in the past 5 years, and the concentration in the timing of revenue recognition has been identified as one factor behind the year-on-year decline in profit. - FY2025WorsenedAnnual report
「Meanwhile, the Total Pack Produce and Medical Supply businesses fell short of their initial plans, particularly for short-term projects, as the difficult operating environment for hospitals led to more pronounced delays in medical equipment replacements than in a typical year.」
Against the backdrop of the difficult operating environment for hospitals, pronounced delays in medical equipment replacements emerged, and failure to meet plan, particularly for short-term projects, was reflected in actual performance. - FY2025-H1WorsenedAnnual report
「However, although the launch of several new contracted SPD facilities increased revenue, profit declined due in part to the recognition of project work being more heavily weighted toward the second half than in a typical year.」
The recognition of project work was more heavily weighted toward the second half than in a typical year, and this has actually emerged as a factor behind the decline in profit in the first half. - FY2024-Q3RestatedAnnual report
「Although project work is expected to be weighted toward the fourth quarter this fiscal year, progress through the cumulative third quarter remained in line with plan.」
Although project work remains weighted toward the fourth quarter, progress through the cumulative third quarter was described as being in line with plan. - FY2024-Q2RestatedAnnual report
「In the Total Pack Produce business, project work remained firm.」
There is no mention of delays, changes or cancellations of large projects, and project work was described as remaining firm. - FY2023-Q2RestatedAnnual report
「In the Total Pack Produce business, manufacturer-related operations continued to be affected by difficulty procuring electrical components and higher raw material prices, while project completions and new orders remained firm.」
The impact of difficulty procuring electrical components and other factors continues, but project completions and new orders remain firm. There is no mention of delays or cancellations. - FY2022WorsenedAnnual report
「In the Total Pack Produce business, performance remained sluggish due to factors including the fact that most projects reaching completion in the year were medium- or small-scale, the impact of order adjustments caused by difficulty procuring electrical components for manufacturer-related business, and the reactionary decline in demand for infection-control products that had benefited from COVID-19 countermeasure subsidies.」
The existing risk that the size and mix of large projects and the timing of recognition determine performance materialized as weak business results, as projects reaching completion in the year were concentrated in the small- and medium-scale categories. - FY2022-Q2RestatedAnnual report
「Project performance remained sluggish because plans were weighted toward the second half and due to the impact of political upheaval and the COVID-19 pandemic on the Myanmar subsidiary, among other factors.」
The continued weighting of project work toward the second half has again been confirmed as affecting performance in the Total Pack Produce business. - FY2022-Q1WorsenedAnnual report
「Meanwhile, performance remained sluggish because project work was planned to be more heavily weighted toward the second half than in a typical year, among other factors.」
Project work was planned to be more heavily weighted toward the second half than in a typical year. First-quarter revenue in the Total Pack Produce business was ¥16,827 million, while segment profit fell 11.7% year on year. The concentration in the timing of recognition has materialized as weak performance. - FY2021RestatedAnnual report
「In the Total Pack Produce business, there were more small project orders than in a typical year, and the traditional business remained sluggish,」
The existing risk that the mix and timing of recognition of large and traditional projects affect performance continues. There is no mention of delays or cancellations. - FY2021-Q2RestatedAnnual report
「In the second quarter, results from the newly consolidated medical equipment sales subsidiary in Myanmar contributed, but project work continued to be weighted toward the second half, as usual.」
Project work remained weighted toward the second half during the quarter, reaffirming the concentration in the timing of revenue recognition. - FY2021-Q1MaterialisedAnnual report
「In the Total Pack Produce business, results from the newly consolidated medical equipment sales company in Myanmar contributed, but performance remained challenging because project work became more heavily weighted toward the second half than in the previous fiscal year.」
The weighting of project work toward the second half occurred during the quarter, with revenue in the Total Pack Produce business down 13.1% year on year and segment profit down 14.4%. - FY2020RestatedAnnual report
「Against this economic backdrop, some performance in manufacturer-related businesses and new investment projects was sluggish, but project work was recognized as initially scheduled.」
Although some manufacturer-related and new investment projects were sluggish, project work was recognized as initially scheduled, with no delays or cancellations reported. - FY2020-Q3RestatedAnnual report
「Against this economic backdrop, our group was affected by last-minute demand ahead of the consumption tax increase implemented in October last year and the subsequent reactionary decline. However, performance remained firm as project work was recognized steadily and the Medical Supply business worked to secure new projects, among other factors.」
Although there was an impact from last-minute demand and the subsequent reactionary decline following the consumption tax increase, project work was described as being recognized steadily, with no delays, changes or cancellations reported. - FY2020-Q2RestatedAnnual report
「In the Total Pack Produce business, large projects were recognized above plan during the first half, while other projects and replacement equipment benefited from last-minute demand ahead of the consumption tax increase.」
Large projects were recognized above plan during the first half, but there is no mention of any material change in the existing risk concerning the timing of project recognition. - FY2020-Q1RestatedAnnual report
「In the Total Pack Produce business, project work progressed steadily.」
Large projects were described as progressing steadily during the quarter as well, with no delays, changes or cancellations reported. - FY2019-Q2RestatedAnnual report
「In the Total Pack Produce business, some hospital completion projects, which are weighted toward the second half, were recognized earlier than initially planned, while performance related to manufacturers was weak compared with the previous fiscal year.」
The continued weighting of hospital completion projects toward the second half and the earlier recognition of some projects have been indicated. There is no mention of delays, changes or cancellations of projects. - FY2019-Q1RestatedAnnual report
「In the Total Pack Produce business, large projects progressed as planned.」
The risks of delays, changes and cancellations in large projects continue to be disclosed, but large projects for the quarter were described as progressing as planned. - FY2018RestatedAnnual report
「In the Total Pack Produce business, project work progressed steadily, while demand for equipment replacements at existing facilities also remained firm.」
Although the risk of delays, changes and cancellations in large projects remains, project work for the period was described as progressing steadily. - FY2018-Q3RestatedAnnual report
「In the Total Pack Produce business, expenses related to launching overseas subsidiaries and heavy-ion radiotherapy facilities were recorded, but projects progressed as planned, mainly large-scale projects.」
Large projects were described as progressing as planned, and there is no mention of delays, changes or cancellations during the quarter. - FY2018-Q2RestatedAnnual report
「In the Total Pack Produce business, some hospital completion projects, which are generally weighted toward the second half, were recognized earlier than initially planned.」
Although hospital completion projects remain weighted toward the second half, some projects were recognized earlier than planned, indicating that the risk of concentration in the timing of revenue recognition remains. - FY2018-Q1MaterialisedAnnual report
「In the Total Pack Produce business, large projects in the first quarter remained sluggish because hospital completion projects were generally weighted toward the second half. As a result, revenue was ¥13,394 million, down 11.7% from the same quarter of the previous year on a consolidated cumulative basis.」
The heavy weighting of hospital completion projects toward the second half left large projects sluggish in the first quarter, resulting in an 11.7% year-on-year decline in revenue from the business. - FY2017-Q2RestatedAnnual report
「In the Total Pack Produce business, hospital completion projects remain heavily weighted toward the second half, but some project work was recognized earlier than initially planned, while healthcare-related manufacturers also continued on a recovery trend.」
Although hospital completion projects remain weighted toward the second half, the earlier recognition of some project work has partly offset the impact of the timing of revenue recognition. - FY2017-Q1MaterialisedAnnual report
「Profit declined due to the recognition of advisory fees related to the business integration, the effects of revisions to reimbursement prices and dispensing fees, and the concentration of project revenue recognition in the second half of the year to a greater extent than usual.」
The recognition of large projects was more heavily weighted toward the second half than in a typical year, causing revenue and profit in the Total Pack Produce business in the first quarter to fall below the year-earlier period. - FY2016First statedAnnual report
「If delays, changes, or cancellations occur in the schedules of major projects, they may adversely affect results.」
The company also identifies limits on the deployment of dedicated personnel, concentration of revenue recognition from January through March, and concentration of results in the first half, second half, and individual quarters as risks.