Deteriorating profitability in China operations and insufficient future cash flows
First written in FY2016-Q3. 8 of 23 entries say "Advanced", first in FY2017-Q2. Latest entry: FY2023.
The whole theme swung hardest in 2026: 5 of 11 companies on the "Worse" side.
2 other companies' latest entry also says "Dropped".
- FY2023DroppedAnnual reportThis securities report contains no separate disclosure regarding deteriorating profitability or future cash flow shortfalls in the China segment.
- FY2022-Q1RestatedAnnual report
「山王電子（無錫）有限公司, which had been responsible for the China reporting segment, has been excluded from the scope of consolidation since the beginning of the second quarter of the previous fiscal year.」
Following the exclusion of the Chinese subsidiary from consolidation, the limited consolidated exposure to deteriorating profitability in the China business has been reconfirmed. - FY2021RestatedAnnual report
「山王電子（無錫）有限公司 has been excluded from the scope of consolidation since the beginning of the second quarter, and is therefore included only for the first quarter cumulative consolidated period. Net sales recorded were ¥345 million and operating profit was ¥11 million.」
Following the exclusion of the Chinese subsidiary from consolidation, only first-quarter results are recorded, reconfirming the reduced consolidated exposure to the China business. - FY2021-Q3RestatedAnnual report
「山王電子（無錫）有限公司 has been excluded from the scope of consolidation since the beginning of the second quarter, and is therefore included only for the first quarter cumulative consolidated period. Net sales recorded were ¥345 million and operating profit was ¥11 million.」
Following the exclusion of the Chinese subsidiary from consolidation, only first-quarter results continue to be recorded, reconfirming that the consolidated exposure to deteriorating profitability in the China business is limited. - FY2021-Q2MitigatedAnnual report
「In addition, the Company transferred all of its equity interest in 山王電子(無錫)有限公司 for the purpose of improving management efficiency and excluded the company from the scope of consolidation. Accordingly, the net sales and profit at each stage of 山王電子（無錫）有限公司 are included only for the first quarter cumulative consolidated period.」
Following the transfer of all equity interests in the Chinese subsidiary and its exclusion from the scope of consolidation, China business net sales and profit were recorded only for the first quarter. The China business's consolidated exposure to deteriorating profitability has decreased. - FY2021-Q1MitigatedAnnual report
「During the first quarter cumulative consolidated period, the Company actively pursued orders, mainly for automotive products, for which demand in China was on a recovery trend, while working to reduce costs, particularly for key materials. Net sales were ¥345 million, up 1.1% year on year, and operating profit was ¥11 million, compared with an operating loss of ¥11 million in the year-earlier period.」
Against a backdrop of recovering demand for automotive products in China, the Company pursued orders and cost improvements, turning an operating loss of ¥11 million in the year-earlier period into operating profit of ¥11 million. The risk of deteriorating profitability in the China business eased during the quarter. - FY2020WorsenedAnnual report
「During the consolidated fiscal year, net sales declined from the year-earlier period due to sluggish demand for electronic components resulting from US-China trade friction, as well as operating restrictions associated with tighter environmental regulations implemented by the Chinese government and restrictions implemented in response to COVID-19. The Company nevertheless thoroughly implemented earnings improvement initiatives, including expense reductions. Net sales were ¥1,387 million, down 8.4% year on year, and operating profit was ¥13 million, down 82.1% year on year.」
In the China business, net sales declined due to sluggish demand and multiple operating restrictions, while operating profit narrowed by 82.1% year on year. - FY2020-Q3WorsenedAnnual report
「During the third quarter cumulative consolidated period, net sales declined substantially from the year-earlier period due to sluggish orders resulting from US-China trade friction, as well as operating restrictions associated with tighter environmental regulations implemented by the Chinese government and restrictions implemented in response to COVID-19. Net sales were ¥994 million, down 19.7% year on year, and the operating loss was ¥17 million, compared with operating profit of ¥89 million in the year-earlier period.」
In the China business, orders remained sluggish due to US-China trade friction, while operating restrictions were imposed in response to environmental regulations and COVID-19. Net sales declined 19.7% year on year, turning operating profit of ¥89 million in the year-earlier period into an operating loss of ¥17 million. - FY2020-Q2WorsenedAnnual report
「During the second quarter cumulative consolidated period, the order environment deteriorated rapidly as orders remained sluggish due to US-China trade friction, and the Company worked to reduce expenses in response. Net sales were ¥731 million, down 23.1% year on year, and operating profit was ¥3 million, down 97.0% year on year.」
In the China business, orders remained sluggish due to US-China trade friction, and the order environment continued to deteriorate rapidly. Net sales declined 23.1% year on year, while operating profit was ¥3 million, down 97.0% year on year. - FY2020-Q1WorsenedAnnual report
「During the first quarter cumulative consolidated period, the order environment deteriorated rapidly due to sluggish orders resulting from US-China trade friction, as well as a decline in orders transferred from other industry participants amid tighter environmental regulations. The Company worked to reduce expenses in response. Net sales were ¥342 million, down 25.8% year on year, and the operating loss was ¥11 million, compared with operating profit of ¥48 million in the year-earlier period.」
In the China business, orders remained sluggish due to US-China trade friction, while orders transferred from other industry participants declined amid tighter environmental regulations. The business shifted from operating profit of ¥48 million in the year-earlier period to an operating loss of ¥11 million, with both the order environment and profitability deteriorating. - FY2019AdvancedAnnual report
「During the consolidated fiscal year, the Company worked to improve earnings by actively pursuing sales opportunities amid increased recognition of Japanese quality following tighter environmental regulations in China, while thoroughly implementing expense reduction initiatives. Net sales were ¥1,515 million, up 2.4% year on year, and operating profit was ¥73 million, up 322.6% year on year.」
The China business maintained revenue growth, with operating profit rising 322.6% year on year to ¥73 million. The full-year results demonstrate earnings improvement from sales activities supported by recognition of Japanese quality and expense reductions. - FY2019-Q3AdvancedAnnual report
「During the third quarter cumulative consolidated period, the Company actively pursued sales opportunities amid increased recognition of Japanese quality following tighter environmental regulations in China, achieving net sales substantially above the year-earlier level, significantly improving profitability from the year-earlier period and recording operating profit. Net sales were ¥1,238 million, up 13.2% year on year, and operating profit was ¥89 million, compared with an operating loss of ¥29 million in the year-earlier period.」
In the China business, net sales increased 13.2% year on year to ¥1,238 million, turning an operating loss of ¥29 million in the year-earlier period into operating profit of ¥89 million. - FY2019-Q2AdvancedAnnual report
「Amid increased recognition of Japanese quality following tighter environmental regulations in China, the Company actively pursued sales opportunities, securing net sales substantially above the year-earlier level and significantly improving profitability from the year-earlier period, thereby achieving a high level of operating profit. Net sales were ¥951 million, up 24.9% year on year, and operating profit was ¥98 million, compared with an operating loss of ¥10 million in the year-earlier period.」
In the China business, net sales increased 24.9% year on year to ¥951 million, turning an operating loss of ¥10 million in the year-earlier period into operating profit of ¥98 million. Profitability also improved from the previous quarter, when operating profit was ¥48 million. - FY2019-Q1MitigatedAnnual report
「② China During the first quarter cumulative consolidated period, the Company actively pursued sales opportunities amid increased recognition of Japanese quality following tighter environmental regulations in China. As a result, it achieved net sales substantially above the year-earlier level and secured an operating profit. Net sales were ¥461 million, up 25.8% year on year, and operating profit was ¥48 million, compared with an operating loss of ¥10 million in the year-earlier period.」
In the China business, sales activities supported by increased recognition of Japanese quality lifted net sales 25.8% year on year, turning an operating loss of ¥10 million in the year-earlier period into operating profit of ¥48 million. - FY2018-Q3AdvancedAnnual report
「During the third quarter cumulative consolidated period, the Company secured net sales above the year-earlier level by actively pursuing sales opportunities amid increased recognition of Japanese quality following tighter environmental regulations in China. However, personnel expenses remained elevated as the Company actively recruited and trained employees to establish a production system capable of supporting higher output, and it was unable to secure an operating profit for the third quarter cumulative consolidated period. Net sales were ¥1,093 million, up 26.5% year on year, and the operating loss was ¥29 million, compared with an operating loss of ¥56 million in the year-earlier period.」
In the China business, net sales increased 26.5% year on year, while the operating loss narrowed from ¥56 million to ¥29 million. Personnel expenses associated with establishing a higher-output production system remained elevated, and the business has still not secured an operating profit. - FY2018-Q2AdvancedAnnual report
「During the second quarter cumulative consolidated period, the Company secured net sales above the year-earlier level by actively pursuing sales opportunities amid increased recognition of Japanese quality following tighter environmental regulations in China. However, personnel expenses remained elevated as the Company actively recruited and trained employees to establish a production system capable of supporting higher output, and it was unable to secure an operating profit for the second quarter cumulative consolidated period. Net sales were ¥761 million, up 25.0% year on year, and the operating loss was ¥10 million, compared with an operating loss of ¥34 million in the year-earlier period.」
In the China business, net sales increased 25.0% year on year, while the operating loss narrowed from ¥34 million to ¥10 million. Personnel expenses associated with establishing a higher-output production system remained elevated, and the business has still not secured an operating profit. - FY2018-Q1WorsenedAnnual report
「During the first quarter cumulative consolidated period, the Company secured net sales above the year-earlier level by actively pursuing sales opportunities amid increased recognition of Japanese quality following tighter environmental regulations in China. However, personnel expenses increased as the Company actively recruited and trained employees to establish a production system capable of supporting higher output, and it was unable to secure an operating profit for the first quarter cumulative consolidated period. Net sales were ¥366 million, up 21.2% year on year, and the operating loss was ¥10 million, compared with an operating loss of ¥4 million in the year-earlier period.」
In the China business, net sales increased 21.2% year on year, while the operating loss widened from ¥4 million in the year-earlier period to ¥10 million due to higher personnel expenses associated with recruitment and training. The business did not secure an operating profit. - FY2017AdvancedAnnual report
「② China During the consolidated fiscal year, the Company actively pursued orders, mainly for integrated press and plating processing, while continuing earnings improvement initiatives, including yield improvement, productivity enhancement and expense reductions. As a result, profitability improved from the year-earlier period, but the Company was unable to secure an operating profit for the consolidated fiscal year. Net sales were ¥1,180 million, up 5.5% year on year, and the operating loss was ¥67 million, compared with an operating loss of ¥198 million in the year-earlier period.」
In the China business, net sales increased 5.5% year on year, while the operating loss narrowed from ¥198 million to ¥67 million. Profitability improved, but the business has still not secured a full-year operating profit. - FY2017-Q3AdvancedAnnual report
「② China During the third quarter cumulative consolidated period, the Company actively pursued orders, mainly for integrated press and plating processing, while continuing earnings improvement initiatives, including yield improvement, productivity enhancement and expense reductions. As a result, profitability improved from the year-earlier period, but the Company was unable to secure an operating profit for the third quarter cumulative consolidated period. Net sales were ¥864 million, up 0.1% year on year, and the operating loss was ¥56 million, compared with an operating loss of ¥176 million in the year-earlier period.」
In the China business, continued earnings improvement initiatives reduced the operating loss from ¥176 million in the year-earlier period to ¥56 million. An operating profit has still not been secured, but the reduction in the loss from the year-earlier period represents measurable progress. - FY2017-Q2AdvancedAnnual report
「During the second quarter cumulative consolidated period, the Company actively pursued orders, mainly for integrated press and plating processing, while continuing earnings improvement initiatives, including yield improvement, productivity enhancement and expense reductions. As a result, profitability improved from the year-earlier period, but the Company was unable to secure an operating profit for the second quarter cumulative consolidated period. Net sales were ¥609 million, down 1.3% year on year, and the operating loss was ¥34 million, compared with an operating loss of ¥145 million in the year-earlier period.」
In the China business, continued earnings improvement initiatives reduced the operating loss from ¥145 million in the year-earlier period to ¥34 million. However, the business has still not secured an operating profit. - FY2017-Q1MitigatedAnnual report
「During the first quarter cumulative consolidated period, the Company actively pursued orders, mainly for integrated press and plating processing, while continuing earnings improvement initiatives, including yield improvement, productivity enhancement and expense reductions. As a result, profitability improved from the year-earlier period, but the Company was unable to secure an operating profit for the first quarter cumulative consolidated period. Net sales were ¥302 million, down 5.2% year on year, and the operating loss was ¥4 million, compared with an operating loss of ¥66 million in the year-earlier period.」
Profitability in the China business improved year on year as earnings improvement initiatives continued, reducing the operating loss to ¥4 million. However, the business has not yet secured an operating profit. - FY2016MaterialisedAnnual report
「In the China segment, product orders declined substantially as temporary production adjustments were made, mainly for smartphone products. On the earnings front, profitability improved from the third quarter onward following improvement initiatives addressing the deterioration in yield, which had been the main factor behind the decline in profitability. However, the improvement was not sufficient to offset the substantial decline in net sales. As a result, net sales were ¥1,118 million, down 33.9% year on year, and the operating loss was ¥198 million.」
In the China business, profitability improved as a result of yield improvement initiatives, while full-year net sales declined 33.9% year on year and the operating loss was ¥198 million, reflecting the impact of lower orders throughout the year. - FY2016-Q3First statedAnnual report
「During the nine months ended the third quarter, we worked to improve yield in the plating process, a major cause of deteriorating profitability, and achieved improvements. However, orders declined substantially due to production adjustments, mainly for products for smartphones. As a result, net sales were ¥863 million, down 36.9% year on year, and the operating loss was ¥176 million, compared with an operating loss of ¥179 million in the same period of the previous year. Profitability remained significantly depressed due to the deterioration in the business environment. Business assets for which recoverability was not recognized over the estimated period of future cash flows were reduced to their recoverable amounts, and the reduction was recorded as an impairment loss under extraordinary losses.」
In the China segment, orders declined and an operating loss was incurred. For comparison, an impairment loss of ¥975.103 million was recorded for business assets in China during the nine months ended the third quarter of the previous fiscal year.