Changes in China’s policies and legal system and dependence on Alibaba-affiliated e-commerce platforms
First written in FY2021. 3 of 13 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026RestatedAnnual report
「In China, e-commerce, a major sales channel, relies primarily on the platforms of Alibaba Group and Douyin. Accordingly, the Group may be affected by changes in platform operating policies, business conditions and other factors.」
The Group continues to disclose risks related to Chinese policies and regulations and its dependence on e-commerce platforms, explicitly adding Douyin to the previously cited Alibaba-related platforms. Sales to China account for 71.4%. - FY2025RestatedAnnual report
「As of the end of the current consolidated fiscal year, 4 of the company’s 8 directors, including outside directors, are from China, which is also a strength in developing its China business. Sales to China accounted for 72.2% of group revenue in the current consolidated fiscal year.」
While continuing to recognize the risks associated with dependence on China’s policies and platforms, the company cites directors from China and its in-house sales and marketing structure as countermeasures. Sales to China account for 72.2%. - FY2024Easing avoidance of Japanese products and additional factors behind the stagnation of the Chinese economyAnnual report
「In China, moves to avoid Japanese products following the release of ALPS-treated water into the sea are easing. However, the recovery in economic conditions has stalled against a backdrop of the continuing property downturn and falling prices, and difficult market conditions continue.」
While the previous risk of avoidance of Japanese products is viewed as subsiding, stagnation of the Chinese economy driven by the property downturn and falling prices is additionally identified as a risk factor. - FY2024-Q3Easing of avoidance of Japanese products and continued stagnation of the Chinese economyAnnual report
「In China, moves to avoid Japanese products following the release of ALPS-treated water into the sea are easing, but the recovery in economic conditions has stalled, and difficult market conditions continue.」
While avoidance of Japanese products is subsiding, the recovery of the Chinese economy continues to stall, and the company continues to describe difficult conditions in the Chinese market. - FY2024-Q2WorsenedAnnual report
「In China's cosmetics market, the recovery in economic conditions stalled, resulting in difficult market conditions. In addition, moves to avoid Japanese products following the release of ALPS-treated water into the sea have contributed to continued difficult operating conditions.」
The company describes the stalling recovery of the Chinese economy alongside avoidance of Japanese products, indicating a more severe market-risk environment related to policies and social conditions in its China business. - FY2024-Q1MaterialisedAnnual report
「In China's cosmetics market, moves to avoid Japanese products following the release of ALPS-treated water into the sea contributed to continued uncertainty about the outlook.」
The company states that avoidance of Japanese products actually occurred as a risk related to policies and social conditions in the Chinese market. - FY2023-Q3RestatedAnnual report
「In China, the explosive increase in COVID-19 cases following the shift away from the zero-COVID policy is easing, and movement of people and consumption are showing signs of recovery.」
The company continues to describe the surge in infections following the shift away from the zero-COVID policy and the subsequent recovery in mobility and consumption. - FY2023-Q2Surge in infections and recovery in mobility following the shift away from the zero-COVID policyAnnual report
「In China, the shift away from the zero-COVID policy temporarily led to an explosive increase in COVID-19 cases, but conditions began to settle after the start of the year, and movement of people showed signs of recovery.」
Regarding business-environment risks arising from China’s policies, the company describes the shift away from the zero-COVID policy, the temporary surge in infections that followed, and the recovery in mobility after the start of the new year. - FY2023-Q1MaterialisedAnnual report
「In China’s cosmetics market, the outlook remained uncertain, with movement restrictions imposed in various areas as a result of the zero-COVID policy aimed at suppressing new COVID-19 infections to zero.」
The company states that movement restrictions were actually imposed in various areas as a result of the zero-COVID policy, in connection with business risks arising from policy changes and other factors in China. - FY2021First statedAnnual report
「Business activities in China are exposed to operational risks, including unforeseeable and opaque policy administration, underdeveloped or changing laws and regulations, reviews of preferential measures for foreign capital, and labor issues, as well as social disruption caused by anti-Japanese protests, deteriorating public safety, outbreaks of terrorism or war, and infectious disease epidemics. In addition, because the company sells mainly through the platforms of Alibaba Group Holding Limited, its main e-commerce sales channel in China, its business may be affected by changes in Alibaba Group Holding Limited’s operating policies, business conditions and other factors.」
The company discloses risks related to policies, laws and regulations, and public safety in its China business, as well as its dependence on Alibaba Group’s e-commerce platforms. Sales to China accounted for 90.3% of consolidated revenue in the current consolidated fiscal year.