Regulatory, Political and Business Environment Risks in China Operations
First written in FY2016. 5 of 10 entries say "Worsened", first in FY2024-Q2. Latest entry: FY2026.
Nakamura Choukou moved to the "Worse" side of this theme in 2023, 2 years after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 9 of 14 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In the special precision equipment business, sales to the electronic components industry and sales of wear-resistant tools to the bearing industry and, through trading companies, to automotive parts manufacturers remained sluggish due to the impact of higher U.S. tariffs on automobiles and the stagnation of the Chinese economy.」
The impact of the stagnating Chinese economy continued to be reflected in sluggish sales to the electronic components, bearing and automotive parts industries, compounded by the impact of U.S. automobile tariffs. - FY2026-H1WorsenedAnnual report
「In the special precision equipment business, sales to the electronic components industry and sales of wear-resistant tools to the bearing industry and, through trading companies, to automotive parts manufacturers remained sluggish due to the impact of higher U.S. tariffs on automobiles and the stagnation of the Chinese economy.」
The impact of the stagnating Chinese economy continued to materialize in sluggish sales to the electronic components industry and sluggish sales of wear-resistant tools to bearing and automotive parts manufacturers. - FY2025RestatedAnnual report
「However, the global economy remains in a challenging and uncertain situation, with geopolitical risks remaining elevated as the Russia-Ukraine conflict and tensions in the Middle East continue, alongside policy shifts in the United States and concerns about the outlook for the Chinese economy.」
Continued uncertainty in the overseas business environment, including concerns about the outlook for the Chinese economy, was identified. - FY2025-H1RestatedAnnual report
「The global economy remains challenging and uncertain due to the prolonged Russia-Ukraine conflict, conditions in the Middle East, volatility in the financial and capital markets, and concerns over the outlook for China's economy.」
Uncertainty in the overseas business environment, including concerns about the outlook for the Chinese economy, was said to be continuing. - FY2024-Q3WorsenedAnnual report
「Although some progress was made in areas such as developing new customers in the special precision equipment business, orders for the core product, nozzles for mounting machines, declined substantially due to the stagnating Chinese economy. Similarly, in the spinning-nozzle business for synthetic fibers, orders for nonwoven-fabric-related nozzles for China remained sluggish, resulting in a challenging business environment.」
The impact of the stagnating Chinese economy continued to materialize in a substantial decline in orders for nozzles for mounting machines and sluggish orders for nonwoven-fabric-related nozzles for China. - FY2024-Q2WorsenedAnnual report
「Similarly, in the spinning-nozzle business for synthetic fibers, orders for nonwoven-fabric-related nozzles for China remained sluggish, resulting in a challenging business environment.」
The impact of the stagnating Chinese economy was reflected not only in nozzles for mounting machines but also in sluggish orders for nonwoven-fabric-related nozzles for China, confirming the continued breadth of the impact of the business-environment risk in China. - FY2024-Q1MaterialisedAnnual report
「Orders for nonwoven-fabric-related nozzles for China declined substantially, particularly due to the stagnation of the Chinese economy.」
The business-environment risk in China materialized in the results as a decline in orders for nonwoven-fabric-related nozzles. - FY2016First statedAnnual report
「In conducting business activities in China, if the Group is unable to sufficiently avoid risks such as changes in laws and regulations concerning taxation, trade, labor and the environment, developments in foreign-exchange policy, economic conditions, political instability and uncertainty in the business environment, these factors may affect the Group's operating results and financial position.」
The risk is based on the increasing contribution of overseas sales, particularly sales in the Chinese market.