Risk of additional processing hours and lower profitability during the quality maturation process for molds intended for sale
First written in FY2022. 1 of 3 entries say "Mitigated", first in FY2024. Latest entry: FY2026.
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- FY2026RestatedAnnual report
「Based on our strength in ultra-high-tensile steel processing technology, our group manufactures and sells dies and other tools required to produce automotive press-formed parts. To produce higher-quality tools sold to customers, estimated additional manufacturing costs may increase due to factors including increased processing hours during the quality-maturation process, resulting in lower profitability for tools sold to customers and other products.」
We continue to disclose the risk of additional processing hours and lower profitability associated with the quality-maturation process for tools sold to customers. Tools sold to customers and other products accounted for ¥1,265 million of work in process, and an inventory valuation loss of ¥80 million was also recorded. - FY2024MitigatedAnnual report
「Our group is working to minimize differences between estimated and actual manufacturing costs for each die by refining the precision of forming analysis, introducing advanced equipment, and further developing and deepening the die-manufacturing expertise and production technologies accumulated since our founding. We also maintain strict cost controls, including monthly reviews of manufacturing costs through evaluation meetings and other forums.」
As measures to address the risk of additional processing hours and lower profitability for tools sold to customers, we identified forming analysis, advanced equipment and monthly cost reviews. - FY2022First statedAnnual report
「Based on our strength in ultra-high-tensile steel processing technology, our group manufactures and sells the dies required to produce automotive press-formed parts. Although we forecast processing hours, prepare cost budgets by vehicle model and proceed with production accordingly, actual manufacturing costs at completion may increase beyond expectations and profitability may decline due to factors including increased processing hours during the quality-maturation process for producing higher-quality dies and other tools sold to customers.」
We have listed as a standalone risk the possibility that additional processing hours will arise during the quality-maturation process for tools sold to customers, causing actual manufacturing costs to exceed expectations.