Turning 東邦化学（上海）有限公司 profitable and putting its business on track
First written in FY2016. 10 of 26 entries say "Advanced", first in FY2019-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2019: 3 of 9 companies on the "Worse" side.
10 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「In FY2025, 東邦化学（上海）有限公司 reported lower sales and profit year on year because some equipment was temporarily taken offline for building reinforcement work in preparation for the expansion of pressurized reaction equipment. However, the 2 Shanghai operations combined secured ¥380 million in operating profit. The expanded pressurized reaction equipment began operating in March 2026, increasing the company's production capacity from FY2026.」
Although 東邦化学（上海）有限公司 reported lower sales and profit due to the temporary suspension associated with the building reinforcement work, the 2 Shanghai operations combined secured ¥380 million in operating profit, and the expanded pressurized reaction equipment began operating in March 2026. - FY2026-H1AdvancedAnnual report
「Operating profit at the consolidated subsidiary 東邦化学（上海）有限公司 declined year on year because some equipment was temporarily taken offline for building reinforcement work in preparation for the expansion of pressurized reaction equipment.」
The disclosure indicates that building reinforcement work is under way in preparation for the expansion of pressurized reaction equipment, in connection with the Shanghai operations' ¥500 million operating profit target and equipment expansion plans. However, operating profit declined year on year because some equipment was temporarily taken offline for the construction work. - FY2025RaisedAnnual report
「In FY2024, with no major problems, the Shanghai operations (東邦化学（上海）有限公司 and 東邦化貿易（上海）有限公司) generated more than ¥400 million in operating profit. ... Achievement of ¥500 million in operating profit by the Shanghai operations (the 2 companies, 東邦化学（上海）有限公司 and 東邦化貿易（上海）有限公司)」
The Shanghai operations generated more than ¥400 million in operating profit, marking substantial progress in establishing a growth trajectory. In addition, the "TOHO Step Up Plan 2027" raised the target for the Shanghai operations to ¥500 million in operating profit, with plans to expand pressurized reaction equipment, transfer production from domestic plants, and develop overseas markets. - FY2025-H1AdvancedAnnual report
「On the earnings side, in addition to the earnings benefit from higher sales, improved margins resulting from changes in the sales mix and other factors, as well as improved performance at consolidated subsidiaries including 東邦化学（上海）有限公司, led to operating profit increasing by ¥635 million year on year to ¥892 million and ordinary profit increasing by ¥669 million to ¥883 million.」
Improved performance at 東邦化学（上海）有限公司 and other companies was explicitly identified as a factor driving higher consolidated profit. The disclosure does not state that the Shanghai subsidiary achieved profitability. - FY2023AdvancedAnnual report
「In FY2022, unforeseen negative factors, including the Shanghai lockdown and an explosion and fire at a nearby company, prevented a full recovery to operating profitability, and profit remained at a low level. In FY2023, substantial improvement in performance is expected due to the anticipated economic recovery following the end of China's zero-COVID policy, the expected increase in utilization of the second expansion facilities as the start of high-temperature steam supply in September 2022 enables production of products requiring high-temperature reactions, and the resolution of the aforementioned negative factors.」
The Shanghai subsidiary returned to operating profitability, but profit remained low and the business had not yet been put on a fully stable trajectory. Specific assumptions supporting substantial performance improvement in FY2023 were presented, including higher utilization of the second expansion facilities following the start of high-temperature steam supply. - FY2023-Q1MitigatedAnnual report
「Our consolidated subsidiary 東邦化学（上海）有限公司 had suspended operations since 18 June 2022 due to the impact of an explosion and fire at 中国石化上海化工股份有限公司 (hereinafter, "Shanghai Petrochemical") that occurred in the early hours of 18 June 2022. Following the resumption of utility supplies from Shanghai Petrochemical on 23 June 2022, it resumed operations on 27 June 2022. Although supplies of the principal raw materials from Shanghai Petrochemical are currently suspended, 東邦化学（上海）有限公司 is procuring those raw materials from suppliers other than Shanghai Petrochemical and continuing production activities」
The Shanghai subsidiary temporarily suspended operations due to the explosion and fire, but resumed operations on 27 June and continues production by procuring raw materials from alternative suppliers. The impact on establishing a stable business trajectory was described as limited. - FY2022WorsenedAnnual report
「Although operating profitability was achieved for the first time since the start of operations in FY2019 and ordinary profitability for the first time in FY2020, operating results turned substantially negative in FY2021. In addition to the COVID-19 pandemic, production was suspended for approximately 3 months following an inspection by the State Council of China, substantially delaying market development activities and the transfer of manufacturing from domestic plants. Soaring raw material prices added further pressure, and the company was unable to put its business on a stable trajectory after the second expansion project became operational.」
After achieving operating and ordinary profitability in FY2019 and FY2020, respectively, operating results turned substantially negative in FY2021 due to approximately 3 months of production suspension, the COVID-19 pandemic, delays in market development and the transfer of manufacturing, and soaring raw material prices, and the business was not put on a stable trajectory. In addition, as a subsequent event, the disclosure stated that operations were suspended following an accident at Shanghai Petrochemical and that the timing of their resumption was uncertain. - FY2022-Q3The earnings impact of the Shanghai subsidiary's production suspension continued through the cumulative third quarterAnnual report
「Although higher sales had a positive earnings effect, the negative impact of higher raw material prices and increased fixed costs, including personnel expenses and depreciation, was substantial. In addition, operating profit was limited to ¥1,044 million partly because our consolidated subsidiary 東邦化学（上海）有限公司 suspended production from 30 April to 27 July 2021.」
The disclosure states that the Shanghai subsidiary's production suspension affected operating profit for the cumulative third-quarter period, indicating that the impact on establishing a stable business trajectory and achieving profitability continues. - FY2022-Q2The earnings impact of the Shanghai subsidiary's production suspension was explicitly disclosedAnnual report
「In addition, operating profit was limited to ¥612 million partly because our consolidated subsidiary 東邦化学（上海）有限公司 suspended production from 30 April 2021. 東邦化学（上海）有限公司 resumed operations on 28 July.」
Although the resumption of operations after the production suspension was confirmed, it was explicitly stated that the suspension reduced operating profit. Manufacturing fixed costs of ¥144 million incurred during the suspension were recorded as an extraordinary loss. - FY2022-Q1Resumption of production after the production suspension order and increased uncertainty over the impactAnnual report
「東邦化学（上海）有限公司, our consolidated subsidiary that received a production suspension order from the Emergency Management Bureau of Jinshan District, Shanghai, China, dated 30 April 2021, obtained production approval from the bureau dated 27 July 2021 and resumed production activities on 28 July 2021. However, because the company continued selling inventory products during the production suspension and its inventory has declined substantially, the impact on product sales will continue for a certain period after production resumes, and the time required for the company's product sales to return to normal levels remains uncertain.」
The Shanghai subsidiary resumed production after receiving a production suspension order. However, the timing of the return of sales to normal levels remains uncertain due to depleted inventory, and the impact on the return to profitability and establishment of a stable business trajectory has not been explicitly determined. - FY2020AdvancedAnnual report
「During the consolidated fiscal year under review, 東邦化学（上海）有限公司 achieved operating profitability for the full year for the first time since its establishment, but regrettably failed to achieve ordinary profitability due to foreign exchange losses.」
The Shanghai subsidiary achieved full-year operating profitability for the first time since its establishment. However, it failed to achieve full-year ordinary profitability due to foreign exchange losses, and achieving ordinary profitability during the new medium-term management plan and establishing a stable business trajectory after the second expansion remain challenges. - FY2019AdvancedAnnual report
「Over the 3 years since FY2016, the first year of the 7th Medium-Term Management Plan (the overseas subsidiaries' fiscal years run from January to December), sales continued to increase at an annual rate of approximately 50%. Although operating profitability was achieved in the second half of FY2018 amid substantial sales growth, neither operating profitability nor ordinary profitability was achieved for FY2018 as a whole.」
東邦化学（上海）有限公司 achieved approximately 50% annual sales growth for 3 consecutive years and returned to operating profitability in the second half of FY2018. However, it failed to achieve operating or ordinary profitability for the full year, and the new medium-term management plan targets ordinary profitability in FY2019 and profitability in FY2021 after the second expansion. - FY2019-Q3RestatedAnnual report
「On the earnings side, although the earnings benefit from higher sales and the narrowing of the loss at 東邦化学（上海）有限公司 provided support, they were insufficient to offset the effects of higher raw material prices and increased expenses, resulting in lower profit.」
The narrowing of the loss at 東邦化学（上海）有限公司 was again disclosed, but neither the achievement of profitability nor a new stage of improvement was indicated. - FY2019-Q2RestatedAnnual report
「On the earnings side, although the earnings benefit from higher sales and the narrowing of the loss at 東邦化学（上海）有限公司 provided support, they were insufficient to offset the effects of higher raw material prices and increased expenses, resulting in lower profit.」
The narrowing of the loss at 東邦化学（上海）有限公司 was again confirmed, but similar improvement had already been disclosed through the previous quarter, and no new stage of achievement was indicated. - FY2019-Q1AdvancedAnnual report
「On the earnings side, although earnings were affected by higher raw material prices and increased expenses, profit increased slightly due to the earnings benefit from higher sales and the narrowing of the loss at 東邦化学（上海）有限公司.」
The loss at 東邦化学（上海）有限公司 narrowed, confirming progress toward the profitability target. However, the disclosure does not state that profitability was achieved. - FY2018-Q3RestatedAnnual report
「On the earnings side, although earnings were affected by higher raw material costs and the delayed return to operating profitability at 東邦化学（上海）有限公司, the earnings benefit from higher sales offset these factors, resulting in year-on-year increases in operating profit, ordinary profit, and quarterly net income attributable to owners of the parent.」
The continued delay in the return to operating profitability at 東邦化学（上海）有限公司 is stated as an ongoing factor affecting earnings, indicating that the delay in achieving the profitability target remains ongoing. - FY2018-Q2RestatedAnnual report
「On the earnings side, although earnings were affected by higher raw material costs and the delayed improvement in the operating loss at 東邦化学（上海）有限公司, the earnings benefit from higher sales offset these factors, resulting in year-on-year increases in operating profit, ordinary profit, and quarterly net income attributable to owners of the parent.」
The continued delay in improving the operating loss at 東邦化学（上海）有限公司 is stated as an ongoing factor affecting earnings, indicating that the delay in achieving profitability remains ongoing. - FY2018-Q1RestatedAnnual report
「On the earnings side, although earnings continued to be affected by higher raw material costs and the delayed improvement in the operating loss at 東邦化学（上海）有限公司, the significant contribution from higher sales led to substantial year-on-year improvement in operating profit, ordinary profit, and quarterly net income attributable to owners of the parent.」
The disclosure states that the continued delay in improving the operating loss at 東邦化学（上海）有限公司 is affecting earnings, indicating that the delay in achieving profitability remains ongoing. - FY2017SoftenedAnnual report
「The return to profitability at the company, which is substantially behind the initial plan, will remain our most important priority next fiscal year. Specifically, our group will provide full support by leveraging all of its resources, including deepening business with existing customers and promoting new customer development in the Chinese market, bringing development projects currently in progress to commercial results at an early stage, expanding product sales to domestic plants, and further reducing production costs at the company's plant. We intend to make every effort to achieve profitability by the final year at the latest.」
It is explicitly stated that the return to profitability is substantially behind the initial plan, and the timeline has been pushed back from the originally established deadlines for operating profitability and ordinary profitability to a policy of achieving profitability by the final year of the 7th Medium-Term Management Plan at the latest. - FY2017-Q3RestatedAnnual report
「On the other hand, on the earnings side, although results were affected by the delayed improvement in the operating loss at 東邦化学（上海）有限公司 and the substantial foreign exchange loss incurred by the company due to the stronger yen,」
The continued delay in improving the Shanghai subsidiary's operating loss is stated, indicating that the delay in achieving profitability remains ongoing. - FY2017-Q2RestatedAnnual report
「On the earnings side, although improvement in the operating loss at 東邦化学（上海）有限公司 has been delayed, operating profit increased due to the margin improvement resulting from lower raw material prices than in the previous fiscal year.」
The continued delay in improving the Shanghai subsidiary's operating loss is stated, indicating that the delay in achieving profitability remains ongoing. - FY2017-Q1Delay in progress toward the profitability targetAnnual report
「On the earnings side, although improvement in the operating loss at 東邦化学（上海）有限公司 has been delayed, operating profit increased due to the margin improvement resulting from lower raw material prices than in the previous fiscal year.」
The disclosure states that improvement in the Shanghai subsidiary's operating loss has been delayed, indicating delayed progress toward the targets of operating profitability and ordinary profitability. - FY2016First statedAnnual report
「東邦化学（上海）有限公司 aims to return to operating profitability in the second half of FY2016 (July–December) and to ordinary profitability in FY2017 (January–December). To this end, our group will provide the company with comprehensive and thorough support, including in order-taking activities and the development of production systems to increase output.」
Different deadlines were set for operating profitability and ordinary profitability, and support through order-taking activities and the development of increased production capacity was explicitly stated.