Establishing a Production and Sales Platform in China for Optical Surface Protection Films and Developing the Market
First written in FY2016. 9 of 22 entries say "Worsened", first in FY2021-Q1. Latest entry: 2026-05-15.
Sun A.Kaken moved to the "Worse" side of this theme in 2021.
1 other company's latest entry also says "Advanced".
- 2026-05-15AdvancedEarnings
「Orders for olefin-based adhesive products increased following the start of production of protective film from the business acquired in the previous fiscal year.」
The start of production by the acquired business resulted in higher orders for protective film during the fiscal year. - FY2025-H1AdvancedAnnual report
「Inventory reduction for display-related components progressed, and orders for existing optical surface-protection films recovered. In addition, newly developed surface-protection films were adopted for electronic and automotive components, resulting in higher revenue for olefin-based adhesive-coated products and other adhesive-coated products. As a result, revenue for the current interim consolidated accounting period was ¥3,115 million, up 14.4% year on year.」
In addition to the recovery in orders for optical surface-protection films, adoption of new products for electronic and automotive components progressed, and Functional Materials revenue increased 14.4% year on year. Recovery and expansion into new applications were evident after the sale of the Chinese base. - FY2024-Q3Orders bottoming out and showing signs of recoveryAnnual report
「Inventory reduction progressed at some LCD-panel manufacturers, and orders for optical surface-protection films began to show signs of recovery. Orders for surface-protection films for automotive panels also increased, suggesting that the decline in orders had bottomed out, but the impact of lower orders in the first half weighed heavily, resulting in lower revenue.」
Inventory reduction for LCD panels and increased orders for automotive-panel applications indicated that the decline in orders for optical surface-protection films had bottomed out and was showing signs of recovery. However, due to the impact of lower orders in the first half, Functional Materials revenue fell 4.1% year on year. - FY2024-Q2WorsenedAnnual report
「The prolonged sluggishness in sales volumes of LCD panels for televisions, computers, smartphones and other products has depressed demand across the display market, and orders for optical surface-protection films continue to decline. Meanwhile, order volumes for olefin-based adhesive-coated products for general applications remained at the previous year's level.」
Prolonged weakness in demand for display applications led to a continued decline in orders for optical surface-protection films. Olefin-based adhesive-coated products for general applications remained at the previous year's level, showing divergent trends by product application. Functional Materials revenue fell 10.6% year on year. - FY2024-Q1WorsenedAnnual report
「Sales volumes of televisions, computers, smartphones and other products remained sluggish due to the slowdown in the Chinese economy and rising interest rates in Europe and the United States, which depressed demand across the display market. As a result, orders for optical surface-protection films for these applications declined significantly, and other adhesive-coated products recorded lower revenue. Meanwhile, sales of olefin-based adhesive-coated products for general applications remained at the previous year's level. As a result, revenue for the three months ended the first quarter of the current consolidated fiscal year was ¥1,451 million, down 14.6% year on year.」
Display demand remained sluggish against a backdrop of the slowdown in the Chinese economy and rising interest rates in Europe and the United States, resulting in a significant decline in orders for optical surface-protection films. Functional Materials revenue fell 14.6% year on year. - FY2023RestatedAnnual report
「We will also continue developing and expanding products for non-optical applications, while working to expand sales in China and East Asian markets through overseas bases, technology partners and local sales-agent networks.」
The company continues its policy of developing the Chinese and East Asian markets by utilizing overseas bases, technology partners and local sales-agent networks. - FY2023-Q3WorsenedAnnual report
「Sales of smartphones, tablets and other devices remained sluggish amid global uncertainty, including the slowdown in the Chinese economy, and LCD-panel manufacturers made substantial production cuts. As a result, orders for optical surface-protection films for these applications declined significantly. Revenue for the nine months ended the third quarter of the current consolidated fiscal year was ¥4,319 million, down 28.1% year on year.」
The slowdown in the Chinese economy, sluggish device sales and substantial production cuts by LCD-panel manufacturers led to a significant decline in orders for optical surface-protection films, and Functional Materials revenue fell 28.1% year on year. - FY2023-Q2WorsenedAnnual report
「Sales of LCD televisions, smartphones and other products remained sluggish due to the prolonged Ukraine crisis, the slowdown in the Chinese economy and rising prices in various countries. Excess LCD-panel inventories caused by supply-chain disruption stemming from the lockdown in Shanghai, China, led LCD-panel manufacturers to make substantial production cuts, resulting in a significant decline in orders for optical surface-protection films for these applications. As a result, revenue for the six months ended the second quarter of the current consolidated fiscal year was ¥3,047 million, down 26.2% year on year.」
Excess LCD-panel inventories and substantial production cuts caused by the lockdown in Shanghai, China, led to a significant decline in orders for optical surface-protection films, and Functional Materials revenue fell 26.2% year on year. Conditions surrounding the production and sales structure and market development in China have deteriorated further. - FY2023-Q1WorsenedAnnual report
「Under these circumstances, within the Group, production adjustments for LCD panels that had become excess inventory due to supply-chain stagnation and disruption caused by the lockdown in Shanghai, China, reduced orders for the Functional Materials segment, resulting in lower revenue.」
Supply-chain disruption caused by the lockdown in Shanghai, China, together with excess LCD-panel inventories and production adjustments, resulted in lower orders and revenue for Functional Materials. Conditions surrounding the production and sales structure and market development in China deteriorated. - FY2022ReframedAnnual report
「Sale of the entire ownership interest in 長鼎電子材料（蘇州）有限公司 The sale of the ownership interest was completed on 28 January 2022. In markets in East Asia, including China, we will work to uncover demand by utilizing local bases and collaborating with newly established technology partners and sales agents.」
The sale of the Chinese joint venture interest was completed on 28 January 2022, shifting the direction from a production structure funded by our own investment to developing the East Asian market through cooperation with local bases, technology partners and sales agents. - FY2022-Q3AdvancedAnnual report
「Regarding the sale to 浙江長星控股有限公司 of our entire ownership interest in 長鼎電子材料（蘇州）有限公司, an equity-method affiliate and material subsequent event disclosed for the consolidated accounting period ended the second quarter, in which our ownership interest was 40%, we entered into an agreement for the sale of the ownership interest dated 22 December 2021.」
The plan shifted from maintaining and expanding the production and sales structure in China to selling the interest in 長鼎電子材料（蘇州）, and had progressed to the execution of a sale agreement dated 22 December 2021. The sale requires approval from the Chinese authorities and registration procedures, and the completion date had not been determined. - FY2022-Q2ReframedAnnual report
「Although we provided various forms of support to improve quality, the recovery in business performance did not progress as expected, and we concluded that selling the company to a Chinese company was the best option. The sale was scheduled for December 2021, with an ownership interest of 40% and a post-sale ownership interest of 0%.」
The plan shifted from the previous direction of establishing a production base and developing the market for optical surface-protection films in China to selling the interest in 長鼎電子材料（蘇州） to a Chinese company. At the filing date, the sale was scheduled but had not been completed. - FY2022-Q1WorsenedAnnual report
「For other adhesive-coated products, orders for smartphone-related components for the precision-coated surface-protection film “SAT” declined due to intensifying competition in the Chinese market, resulting in lower revenue. As a result, revenue for the three months ended the first quarter of the current consolidated fiscal year was ¥2,151 million. Revenue calculated under the previous accounting standard, before applying the accounting standard for revenue recognition, was ¥2,154 million, down 2.1% year on year.」
SAT orders for smartphone-related products declined as competition in the Chinese market intensified, and Functional Materials revenue fell 2.1% year on year under the previous accounting standard. Conditions surrounding the production and sales structure and market development in China have deteriorated. - FY2021WorsenedAnnual report
「For the two-layer extruded surface-protection film “PAC” and the precision-coated surface-protection film “SAT,” orders for polarizer applications and smartphone-related products declined amid deteriorating relations between China and the United States, resulting in lower revenue.」
For PAC and SAT, the products covered by the China production and sales structure, orders for major applications declined due to deteriorating China-U.S. relations, and Functional Materials revenue fell 14.5% year on year. - FY2021-Q3WorsenedAnnual report
「For the two-layer extruded surface-protection film “PAC” and the precision-coated surface-protection film “SAT,” orders for polarizer applications and smartphone-related products declined due to the impact of COVID-19 and tighter U.S. export restrictions on Chinese companies, resulting in lower revenue. As a result, revenue for the nine months ended the third quarter of the current consolidated fiscal year was ¥6,206 million, down 20.1% year on year.」
For PAC and SAT, the products covered by the China production and sales structure, the impact of tighter U.S. export restrictions on Chinese companies, in addition to the infectious disease, was identified as a factor behind lower orders for polarizer applications and smartphone-related products and the 20.1% revenue decline. - FY2021-Q2RestatedAnnual report
「For the two-layer extruded surface-protection film “PAC” and the precision-coated surface-protection film “SAT,” orders for polarizer applications and smartphone-related products declined due to the impact of COVID-19, resulting in lower revenue. As a result, revenue for the six months ended the second quarter of the current consolidated fiscal year was ¥4,087 million, down 22.9% year on year.」
In Functional Materials, including products covered by the China production and sales structure, declines in PAC and SAT orders for polarizer applications and smartphone-related products, as well as lower segment revenue, have continued. - FY2021-Q1WorsenedAnnual report
「For the adhesive-coated surface-protection film “Sanitect,” orders generally declined amid the impact of the spread of COVID-19, but sales for computers were strong as more companies introduced remote working, allowing sales to remain at the previous fiscal year's level. For the two-layer extruded surface-protection film “PAC” and the precision-coated surface-protection film “SAT,” orders for polarizer applications and smartphone-related products declined due to the impact of the spread of COVID-19, resulting in lower revenue.」
In Functional Materials, including products covered by the China production and sales structure, orders for PAC and SAT for polarizer applications and smartphone-related products declined due to the impact of the infectious disease, resulting in lower segment revenue overall. - FY2020Specifying quality requirementsAnnual report
「For surface-protection films for LCD televisions, we will provide technical support to the Chinese affiliate 長鼎電子材料（蘇州）有限公司, raise quality to a level compatible with 4K and 8K, and work to expand our market share in China and neighboring countries.」
The scope of technical support for the Chinese affiliate has been specified as raising quality to a level compatible with 4K and 8K. - FY2019RestatedAnnual report
「Overseas, we will continue providing technical guidance to the Chinese affiliate 長鼎電子材料（蘇州）有限公司 to further raise processing standards, while the Group as a whole continues developing sales channels in China, the center of the LCD television and smartphone markets.」
The company has reaffirmed its policy of continuing technical guidance for its Chinese affiliate and developing sales channels in the Chinese market. - FY2019-Q1AdvancedAnnual report
「For the precision-coated surface-protection film “SAT,” handling of LCD television-related products increased as 長鼎電子材料（蘇州）有限公司 reached full-scale operations, but weak smartphone-related orders resulted in lower revenue.」
The full-scale operation of the Chinese joint venture and increased handling of LCD television-related products are described as concrete progress in the production and sales structure. - FY2018AdvancedAnnual report
「For the precision-coated surface-protection film “SAT,” production at the Chinese joint venture 長鼎電子材料（蘇州）有限公司 came on stream, enabling us to fulfill orders for wide-width specifications for LCD televisions, and orders increased. Orders related to smartphones also remained firm, resulting in substantial revenue growth. As a result, revenue for the consolidated fiscal year was ¥11,690 million, up 15.8% year on year.」
Production at the Chinese joint venture came on stream, enabling the company to handle wide-width specifications for LCD televisions. Functional Materials revenue also increased 15.8% year on year. - FY2016First statedAnnual report
「For this segment, a production and sales structure for optical surface-protection films in China was established through the start of operations at the joint venture 長鼎電子材料（蘇州）有限公司, located in Suzhou, China, and the establishment of the local sales subsidiary 灿櫻（上海）商貿有限公司. Going forward, we will stabilize the quality of products handled by these local entities, develop users in China and neighboring countries, and work to expand segment revenue.」
This indicates a production and sales structure, quality stabilization and user development through the Suzhou joint-venture manufacturing company and the Shanghai sales subsidiary.