Risk of Business Constraints from Tighter or Revised Legal Regulations
First written in FY2020. 1 of 2 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2022-Q1.
Toho Chemical Industry moved to the "Worse" side of this theme in 2021, 4 years before the typical company in this theme (2025).
The whole theme swung hardest in 2025: 12 of 62 companies on the "Worse" side.
3 other companies' latest entry also says "Materialised".
- FY2022-Q1MaterialisedAnnual report
「Toho Chemical (Shanghai) Co., Ltd., a consolidated subsidiary of the Company that received an order to suspend production from the Jinshan District Emergency Management Bureau of Shanghai, China, dated 30 April 2021, was granted permission to resume production by the same bureau on 27 July 2021 and resumed production activities on 28 July 2021.」
Chinese authorities actually issued an order to suspend production, bringing legal and institutional business constraints to the surface. Production resumed after the necessary permit was obtained, but the timing of a return to normal sales and business activities was described as uncertain. - FY2020First statedAnnual report
「However, if stricter or changed regulations restrict business activities or result in response costs, the Group's operating results and other aspects of its performance could be affected by lower sales and higher costs.」
The company newly organized the risks of business restrictions and response costs resulting from stricter or changed regulations governing commercial transactions, safety, the environment, employment, taxation and other matters. Countermeasures include establishing and providing training on a code of conduct.