Declining competitive advantage due to competitors’ equipment installations and price competition
First written in FY2021. 1 of 3 entries say "Worsened", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2026: 38 of 84 companies on the "Worse" side.
107 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In the chemicals business, we are one of the few companies in Japan to possess pulverizing and drying equipment for ion-exchange resins, and the technology developed through many years of processing experience has reached a level that is not easily replicable. However, for products used in general water-treatment applications, such as ultrapure water production, price competitiveness is the primary factor because no special technology is required. Many competitors handle these products, and a decline in transaction value may affect our operating results and financial position.」
The disclosure continues to describe the chemicals business's technological advantages and the risks of competition and pricing pressure in general water-treatment applications. - FY2022WorsenedAnnual report
「In the chemicals business, inexpensive water-treatment products from China and South Korea are being imported into Japan. If these products develop greater technological capabilities, price competition may intensify sharply, which may affect our operating results and financial position.」
The disclosure specifies the competitive risks in the chemicals business: imports of inexpensive water-treatment products from China and South Korea and intensified price competition as their technology improves. - FY2021First statedAnnual report
「In the chemicals business, we are one of the few companies in Japan to possess pulverizing and drying equipment for ion-exchange resins, and the technology developed through many years of processing experience has reached a level that is not easily replicable. However, for products used in general water-treatment applications, such as ultrapure water production, price competitiveness is the primary factor because no special technology is required. Many competitors handle these products, and a decline in transaction value may affect our operating results and financial position.」
The disclosure indicates that competitors' equipment investments and price competition may reduce our competitive advantages and transaction values in the pharmaceutical, health food and chemicals businesses.