Risk of higher costs due to revisions to environmental laws and regulations
First written in FY2017. 2 of 7 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2025.
Kyowa Leather Cloth moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
68 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「There is a possibility that other raw materials used by the corporate group may become unusable due to government regulations in various countries. The group is taking measures based on information gathered in advance, such as developing products that do not use these raw materials, but this could lead to higher development costs, capital investment and costs for switching raw materials.」
The group continues to disclose the possibility of product development, capital investment and raw-material switching costs arising from environmental and raw-material regulations, as well as its response measures. - FY2024WorsenedAnnual report
「There is a possibility that other raw materials used by the corporate group may become unusable due to government regulations in various countries. The group is taking measures based on information gathered in advance, such as developing products that do not use these raw materials, but this could lead to higher development costs, capital investment and costs for switching raw materials.」
In addition to the costs of complying with existing environmental regulations, including VOC regulations, it adds the possibility that raw materials themselves may become unusable due to regulations, resulting in product development, capital investment and raw-material switching costs. - FY2020WorsenedAnnual report
「Similar regulations are also being tightened overseas. Although measures have been implemented, further revisions could result in additional costs and lower production capacity.」
In addition to explaining that measures have been taken to comply with domestic VOC regulations, it states that environmental regulations are being tightened overseas and that this could result in additional costs and lower production capacity. - FY2020-Q3MitigatedAnnual report
「In terms of earnings, although sales to China declined, the resolution of the delays in normalizing production after environmental measures at the consolidated subsidiary 共和興塑膠（廊坊）有限公司 in the previous year and other factors resulted in consolidated ordinary profit increasing 1.4% to ¥1,543 million from ¥1,522 million in the same period of the previous year. Net profit attributable to owners of the parent increased 4.2% to ¥1,099 million from ¥1,055 million in the same period of the previous year.」
The company stated that the delays in normalizing production after environmental measures at the Chinese subsidiary in the previous year had been resolved, indicating that the production impact of the environmental measures had diminished. - FY2019-Q3MaterialisedAnnual report
「In terms of earnings, consolidated ordinary profit declined 44.6% to ¥1,522 million from ¥2,745 million in the same period of the previous year, due to higher raw material and fuel prices, delays in normalizing production at the consolidated subsidiary 共和興塑膠（廊坊）有限公司 after environmental measures, and lower sales in the Chinese market.」
At the Chinese subsidiary, delays in normalizing production after environmental measures occurred and were identified, together with lower sales in the Chinese market, as factors behind the decline in consolidated ordinary profit. - FY2019-Q2MaterialisedAnnual report
「In terms of earnings, consolidated ordinary profit declined 40.2% to ¥953 million from consolidated ordinary profit of ¥1,594 million in the same period of the previous year, due to higher raw material and fuel prices and environmental countermeasure costs at the consolidated subsidiary 共和興塑膠（廊坊）有限公司.」
Environmental countermeasure costs were incurred at a consolidated subsidiary and were identified as a factor behind the decline in consolidated ordinary profit. - FY2017First statedAnnual report
「With respect to environmental laws and regulations, measures to comply with the volatile organic compound (VOC) emissions regulations under the Air Pollution Control Act, which took effect on 1 April 2006, had been completed for existing facilities by the end of March 2010. However, future revisions to the regulations could lead to higher compliance costs.」
Although measures to comply with VOC regulations at existing facilities have been completed, the company indicates that future revisions to laws and regulations could increase compliance costs.