Expanding the Customer Base in Thailand and Improving Production Capabilities at the China Site

「In Thailand, net sales declined because production of automotive components for major customers decreased both for the domestic market and for export. However, profit increased owing to ongoing efforts to improve the profit structure, including reductions in manufacturing expenses and selling, general and administrative expenses.」

「In Thailand, sales decreased due to lower production of automotive parts for major customers in both the domestic and export markets, but profit increased due to the continuing effects of structural reforms, including workforce optimisation and the downsizing of the die business implemented by the previous fiscal year, as well as higher selling prices reflecting soaring energy costs. In China, although production cuts by major Japanese OEMs, the main customers, continued, production of electrification components for automotive battery manufacturers continued to increase substantially. Sales and profit both increased significantly due to the continuing effects of structural reforms, including workforce optimisation and the sale of fixed assets, implemented by the previous fiscal year.」

「In Thailand, sales and profit both increased due to higher production of automotive parts and general-purpose engine parts for major customers in both the domestic and export markets compared with the previous year, as well as the continuing effects of structural reforms, including workforce optimisation and cost-reduction initiatives implemented by the previous fiscal year. As a result, sales were ¥3,238 million, up 10.3% year on year, and ordinary income was ¥96 million, compared with an ordinary loss of ¥101 million in the previous year. In China, although the company was affected by production cuts by Japanese manufacturers, sales increased due to the results of sales expansion activities in the electrification field and substantial increases in production of electrification components. Profit also increased due to the continuing effects of structural reforms implemented by the previous fiscal year. As a result, sales were ¥11,700 million, up 17.1% year on year, and ordinary income was ¥266 million, compared with an ordinary loss of ¥711 million in the previous year.」

「In Thailand, sales and profit decreased due to production cuts in automotive parts for the domestic market and general-purpose engine parts by major customers. The company is working to improve its earnings structure through cost-reduction initiatives covering expenses and transportation costs, as well as structural reforms, including workforce optimisation and the downsizing of the die business, which have continued since the previous fiscal year. As a result, sales were ¥2,935 million, down 20.9% year on year, and the ordinary loss was ¥101 million, compared with an ordinary loss of ¥78 million in the previous year.」

「In Thailand, amid market maturity in Thailand and neighbouring export markets, the company is working to strengthen its earnings structure by promoting structural reforms centred on fixed-cost reductions. In Guangzhou, the company is expanding its electrification business to capture accelerating demand for automotive electrification in China, while seeking to build a sustainable corporate structure through structural reforms.」

「At J-MAX, sales increased due to the recovery in production by major customers and higher selling prices reflecting soaring raw material costs. Profit also increased due to the effect of higher sales, as well as cost-reduction initiatives including lower procurement costs in the parts business and greater efficiency in the die business. In Thailand, although production cuts affecting general-purpose engine parts had an impact, sales increased due to higher sales of automotive parts for the domestic market and dies and equipment, as well as foreign-exchange effects resulting from the weaker yen. Although the company promoted cost-reduction initiatives, including improvements in logistics efficiency and workforce optimisation, profit decreased due to factors including changes in the production mix of vehicle models. In Guangzhou, although the company promoted structural reforms, including workforce optimisation and the consolidation of production equipment, in response to continuing substantial production cuts by major customers, sales and profit both decreased due to the decline in production volumes and the fact that the previous year's same quarter included the recovery of unrecovered die-investment costs associated with the end of mass production for certain vehicle models. In Wuhan, sales decreased due to production cuts by major customers and other factors. Although the company promoted cost-reduction initiatives, including labour-cost reductions, profit decreased due to factors including higher fixed costs, mainly depreciation associated with capital investment in equipment for new vehicle models.」

「In Thailand, although production cuts affecting automotive parts for major customers' export markets and general-purpose engine parts had an impact, sales increased due to higher sales of automotive parts for the domestic market and dies and equipment. … The ordinary loss was ¥78 million, compared with ordinary income of ¥35 million in the same quarter of the previous year. In Guangzhou, although the company promoted cost-reduction initiatives, including labour-cost reductions through workforce optimisation, sales and profit both decreased due to the substantial production cuts by major customers and other factors. … The ordinary loss was ¥299 million, compared with ordinary income of ¥465 million in the same quarter of the previous year. In Wuhan, although the company promoted cost-reduction initiatives, including labour-cost reductions through productivity improvements, sales and profit both decreased due to the substantial production cuts by major customers and other factors. … The ordinary loss was ¥38 million, compared with ordinary income of ¥282 million in the same quarter of the previous year.」

「In Thailand, although production cuts affecting automotive parts for major customers' export markets and general-purpose engine parts had an impact, sales increased due to higher sales of automotive parts for the domestic market and dies and equipment. Although the company promoted cost-reduction initiatives, including expense reductions through improved logistics efficiency, profit decreased due to factors including changes in the production mix of vehicle models.」

「(Thailand) In Thailand, sales increased due to the recovery in production of automotive parts for major customers' export markets and general-purpose engine parts, as well as higher sales of dies and equipment. Profit also increased as a result of cost-reduction initiatives, including the in-house production of parts. As a result, sales were ¥4,923 million, up 22.0% year on year, and ordinary income was ¥116 million, compared with an ordinary loss of ¥95 million in the same quarter of the previous year. (Guangzhou) In Guangzhou, although production stoppages at major customers resulting from the Shanghai lockdown had an impact, sales increased as production recovered during the quarter. Profit also increased due to workforce optimisation initiatives and the recovery of unrecovered die-investment costs associated with the end of mass production for certain vehicle models. As a result, sales were ¥15,093 million, up 28.5% year on year, and ordinary income was ¥1,077 million, up 85.4% year on year. (Wuhan) In Wuhan, sales declined on a local-currency basis due to production stoppages at major customers resulting from the Shanghai lockdown, but increased in yen terms due to foreign-exchange movements resulting from the weaker yen. Profit decreased due to the increased fixed-cost burden associated with lower sales and the effects of soaring raw material prices. As a result, sales were ¥9,106 million, up 6.1% year on year, and ordinary income was ¥539 million, down 33.4% year on year.」

「In Thailand, sales increased due to the recovery in production of automotive parts for major customers' export markets and general-purpose engine parts, as well as higher sales of dies and equipment. Profit also increased as a result of fixed-cost reductions, including workforce optimisation accompanying productivity improvements. In Guangzhou, sales declined on a local-currency basis due to production stoppages at major customers resulting from the Shanghai lockdown and lower sales of dies and equipment, but increased in yen terms due to foreign-exchange movements resulting from the weaker yen. … Profit decreased. In Wuhan, sales declined on a local-currency basis due to production stoppages at major customers resulting from the Shanghai lockdown, but were at the same level as in the same quarter of the previous year in yen terms due to foreign-exchange movements resulting from the weaker yen. … Profit decreased.」

「In Thailand, although production cuts affecting automotive parts for major customers, both for the domestic market and for export, had an impact, sales increased due to higher production of general-purpose engine parts and other products, as well as higher selling prices reflecting soaring raw material costs. Profit also increased as a result of cost-reduction initiatives, including workforce optimisation through productivity improvements. As a result, sales were ¥1,608 million, up 13.8% year on year, and ordinary income was ¥58 million, compared with an ordinary loss of ¥35 million in the same quarter of the previous year. In Guangzhou, sales increased due to higher production by major customers and higher selling prices reflecting soaring raw material costs, in addition to the effects of foreign-exchange movements resulting from the weaker yen. Profit also increased as a result of cost-reduction initiatives, including workforce optimisation through productivity improvements, and the recovery of unrecovered die-investment costs associated with the end of mass production for certain vehicle models. As a result, sales were ¥5,145 million, up 40.5% year on year, and ordinary income was ¥288 million, up 38.4% year on year. In Wuhan, sales increased due to higher production by major customers and higher selling prices reflecting soaring raw material costs, in addition to the effects of foreign-exchange movements resulting from the weaker yen. Although the company promoted cost-reduction initiatives, including improvements in material yields and logistics efficiency, profit decreased as the effects of higher material costs resulting from soaring raw material prices and the increased labour-cost burden associated with production fluctuations at major customers outweighed these benefits. As a result, sales were ¥3,272 million, up 21.0% year on year, and ordinary income was ¥215 million, down 37.6% year on year.」

「Guangzhou serves as the group's China hub and is working to expand new orders for high-growth products such as electrification components, while advancing its business partnership strategy and seeking further earnings growth as a core base.」

「In Thailand, revenue increased due to the recovery of production centered on automotive components for domestic and export customers and general-purpose engine components. Losses narrowed due to cost-reduction activities, including lower purchasing costs from bringing production of components in-house, as well as improvements to the earnings base through fixed-cost reductions associated with structural reforms. As a result, revenue was ¥5,933 million, up 5.1% year on year, and ordinary loss was ¥40 million, compared with an ordinary loss of ¥308 million in the previous year.」

「In Thailand, revenue edged up as production of automotive components for export by major customers recovered, although the same quarter of the previous year included a temporary revenue-boosting factor from the recovery of previously unrecovered mold investment costs associated with the end of mass production of certain vehicle models. Losses narrowed due to continued cost-reduction activities involving labor costs and expenses as part of the structural reforms. In Guangzhou, despite production cuts by major customers due to the semiconductor shortage, revenue increased as production of automotive components for major customers recovered with the easing of the impact of COVID-19. Although the company pursued cost-reduction activities involving purchasing costs and other items, profit declined due to higher raw-material prices, increased costs associated with responding to power shortages, and higher labor costs resulting from fluctuations in production by major customers.」

「In Thailand, revenue declined due to lower production of automotive components for export by major customers and lower sales of molds and other equipment, as well as the fact that the same quarter of the previous year included a temporary revenue-boosting factor from the recovery of previously unrecovered mold investment costs associated with the end of mass production of certain vehicle models. Although the company pursued fixed-cost reductions, including labor costs, as part of its structural reforms, the impact of lower revenue was substantial and profit declined. As a result, revenue was ¥2,607 million, down 7.7% year on year, and ordinary loss was ¥103 million, compared with ordinary profit of ¥13 million in the same quarter of the previous year. In Guangzhou, despite production cuts by major customers due to the semiconductor shortage, revenue and profit increased due to higher revenue as the effects of COVID-19 subsided and efforts to reduce costs, including purchasing and labor costs. As a result, revenue was ¥7,965 million, up 25.1% year on year, and ordinary profit was ¥534 million, up 81.6% year on year. In Wuhan, despite production cuts by major customers due to the semiconductor shortage, revenue increased as the effects of COVID-19 subsided. However, profit declined because the previous year included the recovery of previously unrecovered mold investment costs associated with the end of mass production of certain vehicle models, despite efforts to reduce costs through operational efficiency and staffing optimization. As a result, revenue was ¥5,649 million, up 34.3% year on year, and ordinary profit was ¥613 million, down 21.2% year on year.」

「In Thailand, revenue declined due to lower production of automotive components for major customers and lower sales of molds and other equipment, as well as the fact that the same quarter of the previous year included a temporary revenue-boosting factor from the recovery of previously unrecovered mold investment costs associated with the end of mass production of certain vehicle models. Although the company pursued structural reforms centered on reducing labor and purchasing costs, profit declined because the relative burden of fixed costs increased as revenue fell. As a result, revenue was ¥1,413 million, down 32.4% year on year, and ordinary loss was ¥35 million, compared with ordinary profit of ¥289 million in the same quarter of the previous year. In Guangzhou, both revenue and profit increased due to higher production of automotive components for major customers and higher sales of molds and other equipment as automotive demand recovered from the impact of COVID-19, as well as lower purchasing costs resulting from changes in the production mix and continued cost-reduction activities. As a result, revenue was ¥3,661 million, up 70.1% year on year, and ordinary profit was ¥208 million, compared with an ordinary loss of ¥66 million in the same quarter of the previous year. In Wuhan, both revenue and profit increased due to higher production of automotive components for major customers as automotive demand recovered from the impact of COVID-19, as well as continued cost-reduction activities, including reductions in labor costs. As a result, revenue was ¥2,703 million, up 166.2% year on year, and ordinary profit was ¥345 million, up 248.4% year on year.」

「In Thailand, production of automotive components at major customers was suspended or reduced due to the impact of COVID-19, causing revenue to decline. Although the company worked to reduce fixed costs, mainly through staff reductions, the impact of lower revenue from the production suspension and reduction was substantial, and profit declined. As a result, revenue was ¥3,967 million, down 35.6% year on year, and ordinary loss was ¥210 million, compared with ordinary profit of ¥74 million in the same quarter of the previous year.」

「In Thailand, production of automotive components at major customers was suspended or reduced due to the impact of COVID-19, causing revenue to decline. Although the company continued to reduce manufacturing costs and cut staff, the impact of lower revenue from the production suspension and reduction was substantial, and profit declined.」

「In Thailand, although production of automotive components for major customers and sales of dedicated equipment declined, revenue remained approximately at the same level as in the same quarter of the previous year due to the recovery of previously unrecovered mold investment costs associated with the end of mass production of certain vehicle models. Profit increased due to efforts to improve the earnings base, including fixed-cost reductions, as well as the recovery of mold investment costs, which also boosted revenue. As a result, revenue was ¥2,091 million, up 0.2% year on year, and ordinary profit was ¥289 million, up 480.8% year on year. In Guangzhou, production was suspended or reduced from February to March 2020 due to the spread of COVID-19, causing revenue to decline. Although the company pursued production-efficiency improvements through equipment consolidation and transferred costs associated with the production suspension to extraordinary losses, profit declined due to the impact of lower revenue from the suspension and reduction of production. As a result, revenue was ¥2,152 million, down 38.8% year on year, and ordinary loss was ¥66 million, compared with ordinary profit of ¥49 million in the same quarter of the previous year. In Wuhan, production was suspended or reduced from February to March 2020 due to the spread of COVID-19, causing revenue to decline. Although the company sought to limit the decline in profit through ongoing efforts to reduce manufacturing costs and transferred costs associated with the production suspension to extraordinary losses, profit declined due to the impact of lower revenue from the suspension and reduction of production. As a result, revenue was ¥1,015 million, down 59.6% year on year, and ordinary profit was ¥99 million, down 54.7% year on year.」

「In Thailand, production of automotive components for major customers declined, and revenue fell. … As a result, revenue was ¥8,864 million, down 1.8% year on year, and ordinary profit was ¥147 million, down 23.5% year on year. / In Guangzhou, production of automotive components in the components business declined, and revenue fell. … As a result, revenue was ¥15,974 million, down 10.6% year on year, and ordinary profit was ¥1,051 million, down 5.8% year on year. / In Wuhan, revenue in local-currency terms was at the same level as the previous year, but revenue in yen terms declined due to yen appreciation. Profit increased due to ongoing efforts to reduce manufacturing costs, including expenses, and lower purchasing costs resulting from changes in the production mix. As a result, revenue was ¥10,493 million, down 5.5% year on year, and ordinary profit was ¥1,195 million, up 37.0% year on year.」

「In Thailand, revenue declined due to lower production of automotive components for major customers in the components business. Although the company reduced manufacturing costs by bringing outsourced processing in-house and reduced depreciation expenses, profit declined because the previous year included the recovery of mold investment costs associated with the end of mass production of certain vehicle models as a temporary profit-boosting factor. As a result, revenue was ¥6,161 million, down 10.6% year on year, and ordinary profit was ¥74 million, down 60.3% year on year. In Guangzhou, revenue declined due to lower production of automotive components in the components business and lower sales of dedicated equipment in the engineering business. Despite continuing staffing optimization and expense-reduction efforts, profit declined as the relative burden of fixed costs increased with lower revenue. As a result, revenue was ¥11,574 million, down 14.0% year on year, and ordinary profit was ¥731 million, down 23.4% year on year. In Wuhan, revenue increased in local-currency terms but declined in yen terms due to yen appreciation. Profit increased due to lower labor and other costs resulting from logistics improvements following the introduction of a smart warehouse, as well as lower purchasing costs due to changes in the production mix.」

「In Thailand, sales of dedicated equipment in the engineering business increased, but revenue declined because production of automotive components for major customers in the components business decreased. As a result, revenue was ¥4,190 million, down 8.8% year on year, and ordinary profit was ¥23 million, down 89.0% year on year. In Guangzhou, revenue declined due to lower production of automotive components in the components business and the foreign-exchange impact of yen appreciation. Although ongoing staffing optimization efforts continued, profit declined because the relative burden of fixed costs increased as revenue fell. As a result, revenue was ¥7,601 million, down 18.7% year on year, and ordinary profit was ¥370 million, down 49.6% year on year. In Wuhan, revenue in local-currency terms was approximately unchanged from the previous year, but revenue in yen terms declined due to yen appreciation. Profit increased due to ongoing cost-reduction activities involving purchasing costs and expenses. As a result, revenue was ¥4,985 million, down 3.6% year on year, and ordinary profit was ¥504 million, up 23.1% year on year.」

「In Thailand, revenue declined due to lower production of automotive components for major customers and lower sales of dedicated equipment in the engineering business. However, profit increased due to ongoing efforts to reduce staffing and expenses and lower depreciation expenses. As a result, revenue was ¥2,086 million, down 7.9% year on year, and ordinary profit was ¥49 million, compared with an ordinary loss of ¥7 million in the same quarter of the previous year.」

「In Thailand, sales of dedicated equipment in the engineering business expanded, and revenue increased due to the foreign-exchange impact of yen depreciation. Profit also increased due to reductions in fixed costs through continuing efforts to improve production efficiency and the recovery from customers of previously unrecovered mold investment costs associated with the end of mass production of certain vehicle models. As a result, revenue was ¥6,891 million and ordinary profit was ¥188 million, compared with an ordinary loss of ¥130 million in the same quarter of the previous year. In Guangzhou, efforts to reduce manufacturing costs through staffing optimization continued, but profit declined due to higher quality costs associated with the launch of new vehicle models. In Wuhan, revenue increased due to higher production by major customers, while profit increased due to lower expenses through restrained capital investment and the reuse of general-purpose containers, as well as lower manufacturing costs resulting from quality stabilization efforts.」

「In Thailand, revenue increased due to higher production by major customers and expanded sales of dedicated equipment. Manufacturing costs declined through reductions in fixed costs and expenses resulting from improved operational efficiency, while profit also increased because the company recovered from customers previously unrecovered mold investment costs associated with the end of mass production of certain vehicle models. As a result, revenue was ¥4,594 million, up 12.5% year on year, and ordinary profit was ¥215 million, compared with an ordinary loss of ¥208 million in the same quarter of the previous year.」

「In Thailand, revenue increased due to higher production of automotive components for major customers and expanded sales of dedicated equipment in the engineering business. Although some factors increased manufacturing costs, including higher quality costs, depreciation expenses declined following the sale of the former Saha plant as part of the business structural reforms, and fixed costs declined due to staffing optimization and improved operational efficiency. As a result, revenue was ¥2,266 million, up 14.9% year on year, and ordinary loss narrowed to ¥7 million, compared with an ordinary loss of ¥131 million in the same quarter of the previous year.」

「In Thailand, revenue increased due to higher production by customers in the components business and losses declined as a result of efforts to reduce manufacturing costs, including a review of purchased items. However, the impact of lower sales of dedicated equipment in the engineering business caused both revenue and profit to decline. Overall, revenue was approximately unchanged from the previous year, but losses widened. As a result, revenue was ¥6,511 million, up 1.0% year on year, and ordinary loss was ¥130 million, compared with an ordinary loss of ¥103 million in the previous year. In Guangzhou, both revenue and profit increased due to higher production by major customers in the components business and fixed-cost reductions through improved production efficiency and staffing optimization. In Wuhan, both revenue and profit increased due to substantially higher production by major customers and efforts to contain fixed costs through improved production efficiency.」

「In Thailand, sales in the components business remained firm and losses declined due to efforts to reduce manufacturing costs, including expenses. However, the substantial decline in sales of dedicated equipment in the engineering business caused overall revenue and profit to decline. As a result, revenue was ¥4,083 million, down 7.2% year on year, and ordinary loss was ¥208 million, compared with an ordinary loss of ¥156 million in the same quarter of the previous year. In Guangzhou, although sales of dedicated equipment in the engineering business declined, both revenue and profit increased due to higher production by major customers in the components business and efforts to reduce manufacturing costs, including bringing outsourced processing in-house. In Wuhan, both revenue and profit increased due to substantially higher production by major customers and efforts to contain increases in manufacturing costs, mainly through reductions in purchasing costs.」

「In Thailand, although the company worked to reduce manufacturing costs through lower purchasing costs and expenses, the substantial decline in sales of dedicated equipment in the engineering business increased the relative burden of fixed costs, causing both revenue and profit to decline.」

「In the Asian business, the company is steadily implementing a strategy of concentrating management resources on China and Asia following the withdrawal from North America. It is transferring production equipment used in the high-labor-cost North American operations to sites in China and pursuing cost reductions, while also promoting orders for highly competitive components such as bumper beams.」

「In Thailand, revenue increased due to the expansion of sales of dedicated equipment in the engineering business, while losses declined as a result of efforts to reduce manufacturing costs through reductions in purchasing costs and expenses. As a result, revenue was ¥6,447 million, up 1.2% year on year, and ordinary loss was ¥103 million, compared with an ordinary loss of ¥811 million in the same quarter of the previous year.」

「In Thailand, sales of dedicated equipment in the engineering business expanded and revenue increased in local-currency terms, but the impact of yen appreciation left revenue in yen terms at approximately the same level as in the previous year. Losses declined as a result of efforts to reduce manufacturing costs through reductions in purchasing costs and expenses. As a result, revenue was ¥4,400 million, up 0.4% year on year, and ordinary loss was ¥156 million, compared with an ordinary loss of ¥640 million in the same quarter of the previous year. In Guangzhou, revenue declined due to lower sales of dedicated equipment in the engineering business, but profit increased as a result of efforts to reduce manufacturing costs through reductions in labor costs and expenses. As a result, revenue was ¥8,175 million, down 22.0% year on year, and ordinary profit was ¥380 million, compared with ordinary profit of ¥16 million in the same quarter of the previous year. In Wuhan, the increase in revenue resulting from higher production by major customers reduced the relative burden of fixed costs, including depreciation and labor costs, and losses declined.」

「In Thailand, sales of dedicated equipment in the engineering business expanded, while lower manufacturing costs resulting from reductions in purchasing costs and expenses led revenue and profit to exceed the levels of the same quarter of the previous year. As a result, revenue was ¥2,538 million, up 11.7% year on year, and ordinary loss was ¥39 million, compared with an ordinary loss of ¥393 million in the same quarter of the previous year. In Guangzhou, revenue declined due to lower sales of dedicated equipment in the engineering business, despite the impact of increased production by major customers, while profit exceeded the level of the same quarter of the previous year as a result of reductions in fixed costs, including labor costs.」

「In the Asian business, タイ・マルジュン社 is actively pursuing orders to expand its customer base in the press components and engineering businesses with a view to increasing revenue. At 広州丸順社 and 武漢丸順社, the company is working to optimize staffing through improvements to the production base in response to rising labor costs in China.」