Risks of delays and defects in contract-based development
First written in FY2016. 16 of 26 entries say "Restated". Latest entry: FY2026.
Ryoyu Systems moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2017: 9 of 35 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In the system development business, as initiatives to expand into new fields and deepen understanding of customer needs advance, the number of new development projects is increasing, projects are becoming larger in scale and customer requirements are becoming more sophisticated, increasing the difficulty of development.」
The company explicitly states that development difficulty is increasing as expansion into new fields and deeper engagement with customer needs lead to more new projects, larger project scale and more sophisticated requirements. - FY2026-H1RestatedAnnual report
「No new business or other risks arose during the six months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company reconfirms that there has been no new occurrence of, or material change to, the risk of delays and defects in contract-based development through a blanket disclosure. - FY2025-H1RestatedAnnual report
「No new business or other risks arose during the six months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company reconfirms that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year through a blanket disclosure. - FY2024-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there has been no new occurrence of, or material change to, the risk of delays and defects in contract-based development. - FY2024-Q2RestatedAnnual report
「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2023-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2023-Q2RestatedAnnual report
「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2023-Q1RestatedAnnual report
「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2022-Q2RestatedAnnual report
「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2022-Q1RestatedAnnual report
「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2021-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2021-Q2RestatedAnnual report
「No new business or other risks arose during the first half of the current consolidated fiscal year. In addition, no material changes have occurred in the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2021-Q1RestatedAnnual report
「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2020RestatedAnnual report
「To address these risks, the group is promoting rigorous front-end screening, stronger project management and quality improvements through QMS activities to reduce risk.」
The group continues to address the risk of delays and defects in contract-based development through front-end screening, project management and quality improvements through QMS activities. - FY2020-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter of the current consolidated fiscal year. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2020-Q2RestatedAnnual report
「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2020-Q1RestatedAnnual report
「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risk of delays and defects in contract-based development described in the previous fiscal year. - FY2019MitigatedAnnual report
「In addition to the absence in the current fiscal year of the significant construction losses incurred in the previous consolidated fiscal year, improved profitability resulting from higher sales and productivity, among other factors,」
The company explains that the significant construction losses incurred in the previous fiscal year did not occur in the current fiscal year, indicating that the impact of unprofitable contract-based development has declined. - FY2019-Q3MitigatedAnnual report
「Profit and loss improved substantially from the same period of the previous year due to the completion of unprofitable construction projects in the previous fiscal year and productivity gains on individual system development projects, among other factors. Operating profit was ¥1,269 million (¥695 million, up 82.6%), ordinary profit was ¥1,273 million (¥705 million, up 80.6%), and net income attributable to owners of the parent was ¥827 million (¥578 million, up 43.0%).」
Unprofitable construction projects were completed in the previous fiscal year, and higher productivity on each system development project also contributed to improved profit and loss from the previous year. The impact of unprofitable contract-based development projects has declined during the cumulative current-quarter period. - FY2019-Q2MitigatedAnnual report
「Profit and loss improved significantly from the previous year, due to the completion of unprofitable construction projects in the previous fiscal year and higher productivity on each system development project, resulting in operating profit of ¥729 million (¥311 million in the previous year, up 133.9% year on year), ordinary profit of ¥732 million (¥318 million in the previous year, up 129.5% year on year), and profit attributable to owners of the parent of ¥472 million (¥185 million in the previous year, up 154.2% year on year).」
Unprofitable construction projects were completed in the previous fiscal year, and higher productivity on each system development project also contributed to improved profit and loss from the previous year. The impact of unprofitable contract-based development projects has declined in the current quarter. - FY2019-Q1MitigatedAnnual report
「Profit and loss improved from the same period of the previous year, when provisions for loss on construction contracts and other items were recognized for certain system development projects. Operating profit was ¥209 million (¥26 million, up 695.2%), ordinary profit was ¥211 million (¥27 million, up 665.9%), and net income attributable to owners of the parent was ¥110 million (¥2 million).」
Compared with the previous year, when provisions for loss on construction contracts and other items were recognized on certain system development projects, the company states that profit and loss improved in the current quarter. This indicates that the impact of cost increases in contract-based development projects declined from the previous year. - FY2018MaterialisedAnnual report
「Due to increased development costs on certain system development projects, among other factors,」
Increased development costs on contract-based development projects continue to be a factor reducing full-year profit, confirming the occurrence of the cost increase risk. - FY2018-Q3MaterialisedAnnual report
「Due to the recognition of provisions for loss on construction contracts and valuation losses on work in progress resulting from increased development costs on certain system development projects, among other factors,」
Development costs increased on certain system development projects, resulting in the recognition of provisions for loss on construction contracts and valuation losses on work in progress during the cumulative third quarter period as well. - FY2018-Q2MaterialisedAnnual report
「Development costs increased on certain large-scale system development projects, resulting in the recognition of provisions for loss on construction contracts and valuation losses on work in progress.」
Development costs increased on large-scale system development projects, resulting in the recognition of provisions for loss on construction contracts and valuation losses on work in progress. The risk of cost increases in contract-based development has materialized as actual loss-related charges. - FY2017MitigatedAnnual report
「To address these risks, the group is promoting rigorous front-end screening, stronger project management and quality improvements through QMS activities to reduce risk.」
In addition to the existing front-end screening and project management measures, quality improvements through QMS activities are explicitly identified as a countermeasure. - FY2016First statedAnnual report
「The group undertakes contract-based development of various customer systems. If work delays result in increased costs or defects after delivery require corrective work, the group's performance may be affected. To mitigate these risks, the group is promoting rigorous front-end screening and stronger project management.」
Work delays and post-delivery defects are identified as risks, with front-end screening and project management identified as countermeasures.