Dependence on overseas production bases concentrated in Asia
First written in FY2019. 11 of 19 entries say "Mitigated", first in FY2022-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2022: 32 of 66 companies on the "Worse" side.
40 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Group is working to strengthen its overseas production bases in ASEAN countries and elsewhere outside China and optimize production locations. However, if production activities are disrupted by factors such as the materialization of geopolitical risks in the regions where it operates, changes in the international situation or laws and regulations, or delays in the hiring and development of local management and staff, this could affect the Group's financial position and operating results.」
While advancing production-location optimization from China to ASEAN and elsewhere, the company continues to explicitly identify geopolitical, regulatory and human resources risks associated with dependence on overseas production bases. - FY2026-H1MitigatedAnnual report
「The company continued to promote the shift of production to ASEAN countries and elsewhere and worked to establish a stable production structure.」
As a response to the concentration of production in Asia, particularly China, the company continues to shift production to ASEAN countries and elsewhere and establish a stable production structure. - FY2025MitigatedAnnual report
「The company promoted the shift of production to ASEAN countries and elsewhere, which it has been pursuing for some time, and established a production structure in the most suitable locations. In China, it responded to customer needs for sample production and short lead times by leveraging the advanced sewing skills of its highly skilled operators.」
As a response to overseas production risks associated with concentration in China, the shift of production to ASEAN continued, while the role of the China bases was defined as sample production and responding to short lead-time requirements. - FY2025-H1MitigatedAnnual report
「The company continued the shift of production from China to ASEAN countries and elsewhere, which it has long prioritized, and worked to increase production capacity, mainly at newly established factories in Vietnam and Bangladesh. This expanded production capacity and contributed to higher utilization rates and productivity.」
In response to the concentration of production in Asia, particularly China, the company continued shifting production from China to ASEAN countries and elsewhere and expanding capacity in Vietnam and Bangladesh, with effects on production capacity, utilization rates and productivity indicated. - FY2024-Q3RestatedAnnual report
「In addition to continuing to promote the shift of production from China to ASEAN countries and elsewhere, the company worked to expand production capacity, mainly at newly established factories in Vietnam and Bangladesh.」
As a response to dependence on overseas production bases concentrated in Asia, the shift of production from China to ASEAN countries and elsewhere and capacity expansion in Vietnam and Bangladesh continue to be reported. - FY2024-Q2RestatedAnnual report
「The company continued to promote the shift of production from China to ASEAN countries and elsewhere.」
As a response to the concentration of production in Asia, including China, the shift of production from China to ASEAN countries and elsewhere continued to advance. - FY2024-Q1MitigatedAnnual report
「The shift of production from China to ASEAN countries and elsewhere, along with the expansion of production capacity, which the company has long prioritized, progressed.」
The company explained that, in response to overseas production risks associated with concentration in China, the shift of production from China to ASEAN countries and elsewhere and the expansion of production capacity progressed. - FY2023MitigatedAnnual report
「As part of the shift of production to ASEAN countries and elsewhere that the company has been pursuing for some time, it closed 1 sewing factory. Production previously carried out at that factory was transferred as appropriate to production bases in other countries, establishing a production structure in the most suitable locations.」
The company closed 1 sewing factory in China and transferred production to bases in other countries, reducing its concentration in China and advancing production-location optimization. - FY2023-Q3MitigatedAnnual report
「The Group leveraged its diverse production network, one of its strengths, to meet the needs of customers considering shifting production from China, which was disrupted by lockdowns under the zero-COVID policy and a resurgence of infections following their lifting, to ASEAN, resulting in solid orders.」
The company explained that, in response to production disruptions caused by lockdowns in China and other factors, it used its diversified production network to meet demand for the transfer of production to ASEAN and secured orders. - FY2023-Q2MitigatedAnnual report
「Regarding production conditions, the stabilization of logistics after the lifting of lockdowns in China gradually led to stable utilization rates at existing production bases.」
The company explained that the lifting of lockdowns in China and the gradual resolution of logistics disruptions stabilized utilization rates at existing production bases. - FY2023-Q1MitigatedAnnual report
「In China in particular, utilization rates were expected to decline due to the impact of lockdowns and other factors. However, by leveraging the Group's advantage of its broad network of production bases and transferring production to other locations, the Group worked to maintain stable utilization rates, and overall operations remained generally steady.」
Although lower utilization rates were expected due to lockdowns in China, the company explained that it maintained overall Group utilization rates generally stable by transferring production and leveraging its broad network of production bases. - FY2022MaterialisedAnnual report
「Due to the prolonged spread of COVID-19 and political upheaval in Myanmar, the company was forced to accept lower factory utilization rates as a result of temporary operating restrictions and shutdowns.」
In connection with dependence on overseas production bases concentrated in Asia, operating restrictions and shutdowns caused by the spread of COVID-19 and political upheaval in Myanmar, as well as lower utilization rates, actually occurred during the full fiscal year. - FY2022-Q3MitigatedAnnual report
「Regarding orders and sales, signs of a recovery emerged as demand for some product categories began to recover and production capacity to meet that demand was restored after operating restrictions at some factories during the second quarter of the current consolidated fiscal period were lifted.」
The company explained that operating restrictions at some factories related to dependence on overseas production bases had been lifted and production capacity had recovered. - FY2022-Q2MaterialisedAnnual report
「Regarding production conditions, in addition to the temporary shutdown of some factories for a short period at the direction of local governments, production bases in Vietnam, a key production region, were forced to reduce operating hours and lower utilization rates due to restrictions on the number of people in factories following the spread of COVID-19.」
In connection with dependence on overseas production bases concentrated in Asia, some factories were actually shut down and utilization rates declined at the Vietnam production base. - FY2022-Q1MaterialisedAnnual report
「Regarding current production conditions, the Group faced continued difficulties, including temporary factory shutdowns necessitated by the spread of COVID-19 in emerging countries and political upheaval in Myanmar. However, it worked to maintain production efficiency by leveraging one of its strengths, its broad network of production bases.」
In connection with dependence on overseas production bases centered in Asia, temporary factory shutdowns actually occurred due to the spread of infections in emerging countries and political upheaval in Myanmar. The company explained that it sought to maintain production efficiency by leveraging its broad network of production bases. - FY2020RestatedAnnual report
「All products handled by the Group are manufactured at overseas sites. Although the Group currently has production bases in 5 countries, China, Myanmar, Bangladesh, Vietnam and Indonesia, production is centered on China.」
Complete dependence on overseas production and concentration in Asia continue, with China remaining the main production base despite diversification across 5 countries. - FY2019First statedAnnual report
「All products handled by the Group are manufactured at overseas sites. The Group is currently promoting the diversification of its overseas production bases, centered on China, across Myanmar, Bangladesh, Vietnam and Indonesia, but its production bases remain concentrated in Asia.」
The structure of complete dependence on overseas production and continued concentration in Asia, despite efforts to diversify across multiple countries, was disclosed as an independent risk for the first time.