Slowdown in industrial equipment-related demand due to China’s economic deceleration
First written in FY2019-Q3. 7 of 21 entries say "Worsened", first in FY2020-Q1. Latest entry: 2026-10-29.
Nippon Kodoshi moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 14 of 21 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- 2026-10-29MitigatedEarnings
「また、産業機器分野では在庫調整の進展にともない、需要回復の動きが見られました。」
中国経済減速や産業機器関連の需要鈍化を含む従来の需要下押し要因に対し、在庫調整の進展と需要回復の動きが記載された。 - FY2026-H1RestatedAnnual report
「Although signs of a lull in China's consumer stimulus measures were observed, demand for data centers and other applications driven by the spread of generative AI remained solid. As a result, sales of aluminum electrolytic capacitor separators for the six months ended the current interim consolidated accounting period were ¥7,080 million, up ¥762 million, or 12.1%, year on year.」
While the filing cited the apparent lull in China's consumer stimulus measures as a factor weighing on demand, sales of the core products increased 12.1% year on year due to demand from data centers. - FY2025ReframedAnnual report
「In the electronics industry, which is a related market for the Group, new digital technologies such as generative AI are spreading through society and daily life, and demand for servers and other products for data centers continues to increase. However, demand recovery was delayed due to prolonged inventory adjustments related to industrial equipment and a slowdown in the EV market.」
The description of factors slowing demand shifted from the previous focus on China's economic slowdown to delayed demand recovery due to prolonged inventory adjustments related to industrial equipment and the slowdown in the EV market. - FY2025-H1RestatedAnnual report
「Although the recovery in demand from industrial equipment applications was delayed, demand related to automotive applications and AI servers remained solid. As a result, sales of aluminum electrolytic capacitor separators for the six months ended the current interim consolidated accounting period were ¥6,318 million, up ¥275 million, or 4.6%, year on year.」
While the view that recovery in demand from industrial equipment applications was delayed continued, the filing stated that demand related to automotive applications and AI servers remained solid. - FY2024Weak demand alongside the outlook for recoveryAnnual report
「In the electronics industry, which is a related market for the Group, demand for semiconductors and electronic components overall has slowed due to prolonged inventory adjustments following the buildup of inventories during the COVID-19 pandemic and stagnation in the Chinese economy. Weak demand related to consumer and industrial equipment has persisted. Meanwhile, demand in the global semiconductor and electronic components markets is expected to recover due to continued demand for related components as automobile production recovers, growing demand related to generative AI, and capital investment aimed at automation, labor saving, and environmental measures.」
While prolonged inventory adjustments, stagnation in the Chinese economy, and weak demand for consumer and industrial equipment continued, the filing also stated the outlook for a recovery in demand driven by the recovery in automobile production, generative AI, and investment in automation and environmental measures. - FY2024-Q3WorsenedAnnual report
「In the electronics industry, one of the Group’s related markets, demand for electronic components has remained sluggish due to prolonged inventory adjustments in industrial-equipment-related component demand and the downturn in the Chinese market. Meanwhile, production recovery in the automotive industry and expanding demand related to generative AI are expected.」
Prolonged inventory adjustments related to industrial equipment and sluggish demand for electronic components due to weakness in the Chinese market were explicitly stated. While the impact of slowing demand continued and became more specific, expectations for a recovery in automobile production and demand related to generative AI were also noted. - FY2024-Q2RestatedAnnual report
「Demand for electronic components has remained sluggish due to the slowdown in China's economic recovery.」
The filing reconfirmed the view that the slowdown in China's economic recovery was causing demand for electronic components to remain sluggish. - FY2024-Q1WorsenedAnnual report
「In the electronics industry, one of the Group’s related markets, demand for related components is increasing against the backdrop of advancing vehicle electrification and electrification and accelerating decarbonization. However, in addition to the inventory adjustment continuing since the second half of the previous year, the lackluster recovery of China’s economy has caused demand for electronic components to remain sluggish.」
The filing stated that inventory adjustments continued and that demand for electronic components was sluggish because China's economic recovery lacked momentum, making the slowdown in demand associated with China's economic slowdown and stagnant production more apparent. - FY2023Expectations for normalization of China's economy alongside inventory adjustmentsAnnual report
「In the electronics industry, which is a related market for the Group, inventory adjustments were observed among customers, but demand for related components is expected to continue increasing due to the normalization of economic activity following the lifting of China's zero-COVID policy, continued demand for capital investment aimed at labor saving and environmental measures, the increasing electrification and electrification of vehicles, and the easing of semiconductor supply constraints.」
While expectations were expressed for the normalization of economic activity following the lifting of China's zero-COVID policy, the filing also stated that inventory adjustments were occurring among customers, indicating the coexistence of factors slowing demand and factors supporting recovery. - FY2023-Q3WorsenedAnnual report
「In the electronics industry, which is a related market for the Group, China's measures to address COVID-19 affected production activity, but demand for related components increased due to continued demand for capital investment aimed at labor saving and environmental measures, the increasing electrification and electrification of vehicles, and progress in easing semiconductor supply constraints.」
China's measures to address COVID-19 affected production activity, and delays in the recovery of production activity in China led to a decline in demand for consumer equipment. - FY2023-Q2WorsenedAnnual report
「In the electronics industry, which is a related market for the Group, demand for related components continued due to expanded capital investment and the increasing electrification and electrification of vehicles, but prolonged global semiconductor shortages and lockdowns in China affected production activity.」
Lockdowns in China affected production activity and also led to a decline in demand for consumer equipment. The impact of slowing demand associated with China's economic slowdown and stagnant production became apparent again. - FY2022-Q2MitigatedAnnual report
「In the electronics industry, which is a related market for the Group, global semiconductor shortages and other factors affected automobile production, but demand for related components increased due to the increasing electrification and electrification of vehicles and the recovery in capital investment.」
While semiconductor shortages had an impact, demand for related components increased as vehicle electrification and capital investment recovered. This indicated that the impact of slowing demand, including demand related to industrial equipment, had been partially mitigated. - FY2022-Q1MitigatedAnnual report
「In the electronics industry, which is a related market for the Group, global semiconductor shortages affected automobile production, but demand for related components increased due to the increasing electrification and electrification of vehicles and the recovery in capital investment.」
While semiconductor shortages had an impact, demand for related components increased as vehicle electrification and capital investment recovered, partially mitigating the slowdown in demand related to industrial equipment. - FY2021MitigatedAnnual report
「In the electronics industry, which is a related market for the Group, demand related to automobiles had declined sharply, but signs of a gradual recovery emerged from the summer onward. As the recovery in automobile production accelerated from early autumn, demand related to industrial equipment also began to improve.」
Demand related to industrial equipment also began to improve as the recovery in automobile production accelerated, partially mitigating the impact of slowing demand associated with China's economic slowdown and other factors. - FY2021-Q3MitigatedAnnual report
「Global vehicle sales, which had declined worldwide, recovered in the United States and Japan following China, where economic activity normalized earlier. In addition, capital investment also began to show signs of recovery, resulting in increased demand for related components.」
Economic activity and vehicle sales recovered in the United States and Japan following China, capital investment also began to recover, and demand for related components increased. This indicated some improvement in the environment affecting the slowdown in demand related to industrial equipment accompanying China's economic slowdown. - FY2021-Q2RestatedAnnual report
「A full recovery in demand for related components following the global decline in vehicle sales is expected to take time, while demand related to industrial equipment remains weak due to continued restraint on capital investment.」
The filing stated that the recovery in demand for automotive-related components would take time and that demand related to industrial equipment remained weak due to restraint on capital investment. - FY2020RestatedAnnual report
「Although the number of components installed in vehicles increased as vehicle electrification advanced, capacitor separators were significantly affected by the global decline in vehicle production. In addition, demand from industrial equipment applications such as machine tools remained weak, resulting in net sales of ¥10,034 million for the current consolidated fiscal year, down ¥1,741 million, or 14.8%, from the previous consolidated fiscal year.」
The filing stated that weak demand from industrial equipment applications continued. The direct causal relationship with China's economic slowdown was not explicitly stated. - FY2020-Q3WorsenedAnnual report
「During the first 9 months of the fiscal year, the global economy remained uncertain, as production and exports and imports stagnated owing to the impact of trade friction between the United States and China and economic slowdowns in China and Europe, while capital investment also showed signs of weakness.」
The filing stated that the economic slowdowns in China and Europe led to stagnation in production, imports and exports, as well as weak capital investment, making the impact of China's economic slowdown more specific. - FY2020-Q2WorsenedAnnual report
「By product category, sales of capacitor separators amounted to ¥4,974 million for the cumulative second quarter of the current consolidated fiscal year, down ¥1,275 million, or 20.4%, year on year. Although the number of components installed in vehicles increased as automotive electrification advanced, sales were significantly affected by the global decline in production volumes, as well as sluggish demand from industrial equipment such as machine tools.」
As the effects of the economic slowdown, including in China, continued, demand for industrial equipment such as machine tools remained weak, and sales of capacitor separators fell 20.4% year on year. - FY2020-Q1WorsenedAnnual report
「The Japanese economy remained lackluster, with production and exports stagnating due to the weakness of the Chinese economy.」
The filing stated that weakness in the Chinese economy led to stagnation in production and exports, indicating that the impact of China's economic slowdown, which began in the previous fiscal year, continued. - FY2019-Q3First statedAnnual report
「The slowdown in demand related to industrial equipment due to China's economic slowdown has become increasingly apparent since early autumn.」
The slowdown in demand related to industrial equipment due to China's economic slowdown was identified for the first time as a condition affecting the global economy and the company's related markets. The impact of declining orders for China in the industrial equipment field was also stated by product category.