Delayed China Market Ramp-Up and Affiliate Losses
First written in FY2016. 8 of 30 entries say "Worsened", first in FY2017-Q3. Latest entry: FY2025.
EnBio Holdings,Inc moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2018: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Because the timing of obtaining construction permits from local governments was uncertain, competition with local companies was intensifying, and the outlook for the Chinese economy was uncertain, the company determined that it could not secure the initially projected earnings or expect future growth. It therefore withdrew from soil pollution control services and concentrated its business on EHS consulting services.」
In the China business, the company determined that the expected earnings and growth could not be achieved because of permits, local competition, and the economic environment. The disclosed response was to withdraw from soil pollution control services and concentrate the business. - FY2025-H1WorsenedAnnual report
「In China, the company focused on soil pollution control associated with Japanese companies relocating factories or withdrawing from businesses. However, the prolonged economic downturn has intensified competition from local Chinese companies, which had previously been limited. The company has maintained its competitiveness through its relationship with its Japanese headquarters, but the situation remains uncertain.」
The disclosure states that, in addition to the prolonged economic downturn in the Chinese market, competition from local Chinese companies has intensified, indicating worsening market takeoff and competitive risks. - FY2024-Q2WorsenedAnnual report
「In China, the company focused on soil pollution control associated with Japanese companies relocating factories or withdrawing from businesses. Although inquiries increased, there were a number of cases in which Chinese buyers of factories sold by Japanese companies took the lead, creating an increasingly uncertain order environment.」
Although inquiries increased in China, cases arose in which Chinese buyers of factories being sold by Japanese companies took the lead, increasing uncertainty in the order environment. - FY2024-Q1MitigatedAnnual report
「In China, the company focused on soil pollution control associated with Japanese companies relocating factories or withdrawing from businesses. Although inquiries increased after the zero-COVID policy was lifted in January of this year, securing orders took time, and only 1 order was secured.」
Inquiries increased after the zero-COVID policy was lifted, and 1 order was secured, partly easing the sales stagnation. However, it still takes time to secure orders. - FY2023MaterialisedAnnual report
「In China, the company focused on soil pollution control associated with Japanese companies relocating factories or withdrawing from businesses, but new sales activities stagnated throughout the fiscal year because of the zero-COVID policy.」
Because of the zero-COVID policy, new sales activities in China stagnated throughout the fiscal year. However, profit was secured by handling projects already ordered. - FY2023-Q3RestatedAnnual report
「In China, where the company operates subsidiaries, tighter environmental regulations supported demand for soil pollution control. However, restrictions on activity under the zero-COVID policy kept foot traffic below pre-pandemic levels, and the economic recovery lacked strength.」
The company indicated that although environmental regulations supported demand in China, restrictions on activity under the zero-COVID policy continued and the economic recovery lacked strength. - FY2023-Q2RestatedAnnual report
「In China, the company focused on soil pollution control associated with Japanese companies relocating factories or withdrawing from businesses. However, during the cumulative second quarter of the consolidated fiscal year, new sales activities stagnated because of the lockdown in Shanghai and restrictions on movement within Jiangsu Province. The company focused on production activities for projects already ordered and worked to improve the cost ratio.」
New sales activities stagnated because of the lockdown in Shanghai and restrictions on movement within Jiangsu Province, and the company continued to focus on handling projects already ordered. - FY2023-Q1WorsenedAnnual report
「In China, the company focused on soil pollution control associated with Japanese companies relocating factories or withdrawing from businesses. However, during the first quarter of the consolidated fiscal year, new sales activities stagnated because of the lockdown in Shanghai and restrictions on movement within Jiangsu Province, leaving the company focused solely on production activities for projects already ordered.」
In the China business, new sales activities stagnated because of the lockdown in Shanghai and restrictions on movement within Jiangsu Province, limiting operations to handling projects already ordered. - FY2022MitigatedAnnual report
「In China, activity related to soil pollution control associated with Japanese companies relocating factories or withdrawing from businesses increased, and the company secured remediation construction orders.」
In the Chinese market, the company captured demand associated with Japanese companies relocating factories or withdrawing from businesses and secured remediation construction orders, while concerns about a resurgence of COVID-19 remained. - FY2022-Q3Slowing economic recovery and slower growth in investmentAnnual report
「In China, where we operate a subsidiary, tighter environmental regulations are a tailwind for soil contamination remediation, but the business environment remains uncertain as the pace of economic recovery has slowed and growth in fixed asset investment has also declined.」
Although environmental regulations supported demand in China, uncertainty in the market environment continued because of the slowing economic recovery and slower growth in fixed asset investment. - FY2022-Q2RestatedAnnual report
「In China, environmental-related activity associated with Japanese companies relocating factories or withdrawing from businesses increased, and the company also secured remediation projects. Although concerns about a resurgence of COVID-19 remained and uncertainty persisted, the company expected this trend to continue and planned to focus for the time being on serving Japanese companies.」
In China, environmental demand associated with Japanese companies relocating factories or withdrawing from businesses and remediation projects continued, while concerns about a resurgence of COVID-19 remained. - FY2022-Q1MitigatedAnnual report
「In China, environmental-related activity associated with Japanese companies relocating factories or withdrawing from businesses increased, and the company also secured remediation projects. Although concerns about a resurgence of COVID-19 remained and uncertainty persisted, the company expected this trend to continue and planned to focus for the time being on serving Japanese companies.」
In China, environmental demand associated with Japanese companies relocating factories or withdrawing from businesses increased, and remediation projects were secured. However, concerns about a resurgence of COVID-19 remained. - FY2021MaterialisedAnnual report
「Although economic activity in China was beginning to recover, concerns about a resurgence of COVID-19 remained. As customers revised plans and administrative procedures were delayed, the company was unable to secure the projects it had expected to win.」
In the Chinese market, the company was in fact unable to secure expected projects despite the recovery in economic activity, because of customers’ plan revisions and delays in administrative procedures. - FY2021-Q3MaterialisedAnnual report
「Although economic activity in China was beginning to recover, concerns about a resurgence of COVID-19 remained. As customers revised plans and administrative procedures were delayed, the company was unable to secure the projects it had expected to win.」
Although economic activity in China was recovering, the company continued to be unable to secure expected projects because of customers’ plan revisions and delays in administrative procedures. - FY2021-Q2MaterialisedAnnual report
「Economic activity in China temporarily came to a halt because of COVID-19. Although economic activity was beginning to recover, construction orders were affected by customers’ plan revisions and delays in administrative procedures.」
Even after economic activity halted in China, construction orders continued to be affected in practice by customers’ plan revisions and delays in administrative procedures. - FY2021-Q1MaterialisedAnnual report
「In China, operations were suspended from January to March, which was reflected in the first quarter of the consolidated fiscal year, due to the impact of COVID-19. Economic activity gradually resumed from April to June and had almost recovered, but demand did not recover because customers postponed or cancelled plans.」
Operations in China were suspended and projects were postponed or cancelled because of COVID-19. Demand did not recover even as economic activity began to return. - FY2020-Q3MitigatedAnnual report
「In China, inquiries and orders from Japanese companies increased following the enforcement of the Soil Pollution Prevention and Control Law.」
In China, inquiries and orders from Japanese companies increased, while the equity-method investment loss for the cumulative third quarter remained limited to ¥1.106 million. The description indicates that the risk of a delayed market takeoff is improving. - FY2020-Q2MitigatedAnnual report
「In China, inquiries and orders from Japanese companies increased following the enforcement of the Soil Pollution Prevention and Control Law.」
In China, inquiries and orders from Japanese companies increased, while the equity-method investment loss narrowed to ¥955 thousand from ¥9.438 million in the same period of the previous year. The description indicates that the risks of a delayed market takeoff and losses are improving. - FY2020-Q1MitigatedAnnual report
「In China, inquiries and orders from Japanese companies increased following the enforcement of the Soil Pollution Prevention and Control Law.」
In China, inquiries and orders from Japanese companies increased, and the risk of a delayed market takeoff is described as improving. The equity-method investment loss for the quarter was reported as ¥642 thousand. - FY2019WorsenedAnnual report
「Equity-method investment loss 9,835」
For equity-method investees, including those related to China, a ¥9.835 million equity-method investment loss was recorded, up from ¥1.508 million in the previous fiscal year. - FY2019-Q2WorsenedAnnual report
「In China, orders from Japanese companies increased as environmental regulations took concrete shape. Equity-method investment loss 9,438」
Although orders from Japanese companies increased in China, a ¥9.438 million equity-method investment loss was recorded, and losses have continued. - FY2019-Q1RestatedAnnual report
「Equity-method investment loss 1,754」
A ¥1.754 million equity-method investment loss, apparently related to China, was recorded, and losses have continued. - FY2018-Q3WorsenedAnnual report
「In China, sales leads increased under the Ten Articles, and inquiries from Japanese companies increased. However, profitability is still improving, and a ¥2.514 million loss was recorded as equity-method investment income (loss).」
Although inquiries from Japanese companies increased, the business shifted back from recording a gain in the previous quarter to an equity-method investment loss, indicating that profitability is still improving. - FY2018-Q2MitigatedAnnual report
「In China, sales leads increased under the Ten Articles, and inquiries from Japanese companies increased. Profitability was trending upward, and a ¥4.981 million gain was recorded as equity-method investment income (loss).」
The China business saw an increase in inquiries and shifted from the previous equity-method investment loss to recording a ¥4.981 million gain. - FY2018-Q1MitigatedAnnual report
「In China, sales leads increased under the Ten Articles, and inquiries from Japanese companies increased. However, profitability is still improving, and a ¥936 thousand loss was recorded as equity-method investment income (loss).」
Inquiries from Japanese companies increased, and the equity-method investment loss was limited to ¥936 thousand. However, profitability is still improving and a loss remains. - FY2017RestatedAnnual report
「Although the number of investigation and construction orders has been trending upward, no remediation construction orders were secured, and a ¥22.483 million loss was recorded as equity-method investment income (loss).」
In China, the number of investigation and construction orders has continued to trend upward, but no remediation construction orders have been secured and the business has not reached profitability. Equity-method investment losses have continued. - FY2017-Q3WorsenedAnnual report
「In China, sales leads have increased under the Soil Pollution Control Action Plan (the “Ten Articles”), and the number of investigation and construction orders has been trending upward. However, no remediation construction orders have been secured, the break-even point has not been reached, and a ¥14.532 million loss was recorded as equity-method investment income (loss).」
Although the upward trend in investigation and construction orders continued, no remediation construction orders were secured and the break-even point was not reached. The equity-method investment loss was ¥14.532 million. - FY2017-Q2RestatedAnnual report
「In China, sales leads have increased under the Soil Pollution Control Action Plan (the “Ten Articles”), and the number of investigation and construction orders has been trending upward. However, no remediation construction orders have been secured, the break-even point has not been reached, and a ¥12.448 million loss was recorded as equity-method investment income (loss).」
Although the number of investigation and construction orders has continued to trend upward, no remediation construction orders have been secured, the break-even point has not been reached, and equity-method investment losses have continued. - FY2017-Q1RestatedAnnual report
「In China, sales leads have increased under the Soil Pollution Control Action Plan (the “Ten Articles”), and the number of investigation and construction orders has been trending upward. However, the business did not reach the break-even point and recorded a ¥8.272 million loss as equity-method investment income (loss).」
Although sales leads and the number of investigation and construction orders have been trending upward, the break-even point has not been reached and equity-method investment losses have continued. - FY2016First statedAnnual report
「In China, sales leads increased, and we conducted small-scale tests for survey and remediation works as well as survey works and consulting for Japanese companies, but we did not reach the breakeven point and recorded a ¥31.155 million loss as equity-method investment loss.」
Despite expectations for growth in the Chinese market, the results for the period show that the break-even point was not reached and that an equity-method investment loss was recorded.