Risks of commoditization and declining birth rates in China and renminbi fluctuations
First written in FY2020. 2 of 3 entries say "Restated". Latest entry: FY2022.
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- FY2022RestatedAnnual report
「China is a major market for superabsorbent resin, and the Group's competitive environment may intensify as superabsorbent resin becomes commoditized due to improvements in the quality of products made by local manufacturers and as birth rates decline. In addition, because the Group does not conduct major raw material transactions denominated in renminbi, fluctuations in the renminbi exchange rate may affect the Group's financial position and operating results. A 1% decline in the renminbi exchange rate would reduce full-year revenue and operating income by approximately ¥200 million.」
The risks of commoditization in the Chinese market, declining birth rates, and renminbi fluctuations, together with the approximately ¥200 million full-year impact of a 1% decline in the renminbi, were also disclosed. - FY2021RestatedAnnual report
「China is a major market for superabsorbent resin, and the Group's competitive environment may intensify as superabsorbent resin becomes commoditized due to improvements in the quality of products made by local manufacturers and as birth rates decline. If the renminbi exchange rate declines by 1%, full-year revenue and operating income will decrease by approximately ¥200 million.」
The risks of commoditization in the Chinese market, declining birth rates, and renminbi fluctuations, together with the approximately ¥200 million full-year impact of a 1% decline in the renminbi, were also disclosed. - FY2020First statedAnnual report
「China is a major market for superabsorbent resin, and the Group's competitive environment may intensify as superabsorbent resin becomes commoditized due to improvements in the quality of products made by local manufacturers and as birth rates decline. In addition, because the Group does not conduct major raw material transactions denominated in renminbi, fluctuations in the renminbi exchange rate may affect the Group's financial position and operating results. A 1% decline in the renminbi exchange rate would reduce full-year revenue and operating income by approximately ¥200 million.」
For the Chinese market, product commoditization, declining birth rates, and renminbi fluctuations were identified as individual risks, with their impact on revenue and operating income quantified at approximately ¥200 million if the renminbi declines by 1%.