Risk of Concentration of Overseas Operations in China and Southeast Asia
First written in FY2016. 4 of 12 entries say "Restated". Latest entry: FY2025.
Swcc moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2024: 11 of 19 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「With the prolonged weakness of the Chinese economy, a risk of bad debts on receivables held by an equity-method investee arose during the interim consolidated accounting period.」
The prolonged weakness of the Chinese economy materialized in the annual results as a bad-debt risk concerning receivables held by equity-method investee FSH and as an investment loss. - FY2025-H1WorsenedAnnual report
「With the prolonged weakness of the Chinese economy, a risk of bad debts on receivables held by an equity-method investee arose during the interim consolidated accounting period.」
The prolonged weakness of the Chinese economy has materialized as a bad-debt risk concerning receivables held by an equity-method investee. - FY2024MitigatedAnnual report
「The wire harness business aims to further reduce geopolitical risk by diversifying production bases in China and Vietnam and strengthening local procurement and local production for local consumption.」
In response to geopolitical risk arising from the concentration of operations in China and Southeast Asia, the Group is pursuing diversification of production bases in China and Vietnam and greater local procurement and local production for local consumption. - FY2024-Q3WorsenedAnnual report
「Although demand for office applications partially recovered, the industrial devices business was affected by worsening economic conditions in China and Vietnam and sluggish domestic demand for home appliances in the wire harness business.」
The deterioration of economic conditions in China and Vietnam materialized as an impact on the wire harness business, making the risk associated with the concentration of operations in China and Southeast Asia more concrete. - FY2023-Q3RestatedAnnual report
「The industrial devices business was affected by supply chain disruptions caused by lockdowns in China and other factors, but profitability recovered as operations were streamlined through a review of material sourcing and other measures.」
The disclosure states that the impact of supply chain disruptions caused by lockdowns in China and other factors continued, while profitability recovered through a review of material sourcing and other measures. - FY2023-Q2RestatedAnnual report
「In the industrial devices business, although supply chain disruptions were gradually easing, the impact on operations in China and Vietnam continued in part. As a result, revenue in this business was ¥16,380 million, up 17.5% from the same quarter of the previous year, while operating profit was ¥463 million, down 47.6%.」
The disclosure states that supply chain disruptions were gradually easing, while some impact on operations in China and Vietnam continued. - FY2023-Q1MaterialisedAnnual report
「Overseas, conditions remained unpredictable as the prolonged Russia-Ukraine situation and the impact of lockdowns in China and Shanghai under the zero-COVID policy continued, while raw material and logistics costs rose, the yen weakened and global supply chain disruptions persisted.」
The disclosure states that the impact of lockdowns in China and Shanghai actually occurred, with risks related to concentration in overseas operations and markets, including China, emerging in the external environment. - FY2020RestatedAnnual report
「The Group's overseas business operations and bases are concentrated mainly in China. Changes in the country's legal system or administrative practices could disrupt the Group's business activities there, while a substantial adjustment in the renminbi exchange rate or a slowdown in the Chinese economy could directly affect the Group's operating results.」
The Group continues to identify concentration in China, the legal system, the renminbi and dependence on the Chinese economy as risks, while reaffirming measures to mitigate them through overseas expansion into Vietnam and other countries outside China. - FY2020-Q1MaterialisedAnnual report
「During the cumulative first-quarter consolidated period, domestic demand in Japan, including capital investment, remained firm. Exports, however, continued to trend downward due to the slowdown in the Chinese economy, while prolonged US-China trade friction and other factors increased uncertainty in the global economy, leaving the outlook for economic conditions uncertain.」
The slowdown in the Chinese economy has materialized as a downward trend in exports, and the deterioration of the external environment related to dependence on the Chinese economy is described. - FY2019ReframedAnnual report
「The Group's overseas business operations and bases are concentrated mainly in China. Changes in the country's legal system or administrative practices could disrupt the Group's business activities there, while a substantial adjustment in the renminbi exchange rate or a slowdown in the Chinese economy could directly affect the Group's operating results.」
The description of the risk from concentration of overseas operations changed from a broad listing covering China and Southeast Asia to a focus on concentration in China and dependence on its legal system, the renminbi and the Chinese economy. Measures to mitigate the risk through expansion into Vietnam and other markets are also described. - FY2017RestatedAnnual report
「Many of the Group's overseas operations are concentrated in China and Southeast Asia, where risks exist relating to amendments to laws and regulations, the development and securing of human resources, trends among partner companies, infrastructure development, exchange rates and other factors. These risks could affect the Group's operating results and other aspects of its business.」
The disclosure reiterates the concentration of overseas operations in China and Southeast Asia and the related risks concerning laws and regulations, human resources, partners, infrastructure and foreign exchange. - FY2016First statedAnnual report
「Many of the Group's overseas operations are concentrated in China and Southeast Asia, where risks exist relating to amendments to laws and regulations, the development and securing of human resources, trends among partner companies, infrastructure development, exchange rates and other factors.」
With its overseas operations concentrated in certain regions, the Group identifies laws and regulations, human resources, partners, infrastructure and foreign exchange as risk factors.