Focus on ultrapure water systems and lower profitability of large-scale projects
First written in FY2016. 17 of 34 entries say "Mitigated", first in FY2017-Q3. Latest entry: 2026-10-23.
No other company in this theme has enough history to compare yet.
- 2026-10-23MaterialisedRevision of earnings forecasts
「また、韓国の受注済み大型水処理装置案件において原価が上昇したこと等により、利益面においても期初の予想を下回る見込みとなりました。」
韓国の受注済み大型水処理装置案件で原価上昇が発生し、利益予想の下振れ要因として大型案件の採算性リスクが顕在化した。 - FY2026-H1MitigatedAnnual report
「On the earnings side, each profit level from operating profit downward exceeded the same period of the previous year due partly to higher sales resulting from steady progress on construction projects in each region, including large water treatment system projects in Japan and the United States.」
Construction projects in each region, including large water treatment system projects in Japan and the United States, progressed steadily, and each profit level exceeded the same period of the previous year. The impact of large-project profitability on earnings was indicated to be easing during the interim period. - FY2025MitigatedAnnual report
「On the earnings side, each profit level from operating profit downward substantially exceeded the previous period due partly to steady progress on construction projects in each region, including large water treatment system projects in the United States and Japan, resulting in substantial sales growth.」
In addition to the explanation that low-profit projects were completed by the previous period, progress on large projects and contributions from highly profitable projects led to substantial increases in each profit level, while the impact of profitability risk on earnings eased during the period. - FY2024MitigatedAnnual report
「On the earnings side, each profit level from operating profit downward substantially exceeded the previous period due partly to the completion by the previous period of low-profit projects, steady progress on water treatment system construction projects ordered in each region, and substantial sales growth.」
Low-profit projects were completed by the previous period, and progress on large water treatment system projects and higher sales caused each profit level from operating profit downward to substantially exceed the previous year. - FY2024-Q3MitigatedAnnual report
「On the earnings side, each profit level from operating profit downward substantially exceeded the same period of the previous year due partly to the completion by the previous period of low-profit projects and substantial sales growth resulting from steady progress on water treatment system projects ordered in various regions.」
Low-profit projects were reportedly completed by the previous period, while substantial sales growth resulting from progress on water treatment system projects in various regions also contributed to each profit level from operating profit downward substantially exceeding the same period of the previous year. The impact of low-profit projects on earnings eased on a cumulative quarterly basis. - FY2024-Q2MitigatedAnnual report
「On the earnings side, each profit level from operating profit downward exceeded the same period of the previous year due partly to the completion by the previous period of low-profit projects and substantial sales growth resulting from steady progress on water treatment system projects ordered in various regions.」
Low-profit projects were completed by the previous period, and higher sales resulting from progress on water treatment system projects contributed to each profit level from operating profit downward exceeding the same period of the previous year. The company explains that the impact on earnings from declining profitability on large projects eased during the quarter. - FY2024-Q1MitigatedAnnual report
「On the earnings side, each profit level from operating profit downward exceeded the same period of the previous year due partly to the completion by the previous period of low-profit projects and substantial sales growth resulting from steady progress on large water treatment system projects ordered in the United States and other regions.」
Low-profit projects were completed by the previous period, and higher sales resulting from progress on large projects contributed to each profit level from operating profit downward exceeding the same period of the previous year. The company explains that the impact on earnings from the risk of declining profitability on large projects eased during the quarter. - FY2023MaterialisedAnnual report
「In Japan, orders for water treatment systems from domestic, South Korean and Chinese semiconductor-related companies remained firm, while orders for upgrades, modifications and maintenance remained firm for maintenance and consumables, resulting in sales of ¥21,389 million, up 14.5% from the previous period. However, operating profit declined 6.4% to ¥2,742 million due partly to the completion by the previous period of highly profitable large water treatment system projects that benefited from cost reductions, as well as higher costs for certain water treatment systems and increased selling, general and administrative expenses.」
The completion of highly profitable large projects and higher costs for certain systems caused operating profit in Japan to decline 6.4% year on year, with profitability risk appearing in full-year results. - FY2023-Q3MaterialisedAnnual report
「On the earnings side, gross profit margin declined by 5.8 percentage points year on year due partly to the completion by the previous period of highly profitable large water treatment system projects that benefited from cost reductions and higher costs for certain water treatment systems. However, each profit level from operating profit downward exceeded the same period of the previous year due to the effect of higher sales and other factors.」
The completion of highly profitable large water treatment system projects and higher costs for certain systems reduced gross profit margin by 5.8 percentage points, with the profitability risk associated with large projects appearing in the results. Meanwhile, each profit level exceeded the same period of the previous year due to the effect of higher sales. - FY2023-Q2MaterialisedAnnual report
「On the earnings side, sales increased in each business, but each profit level from operating profit downward fell below the same period of the previous year due partly to the completion by the previous period of highly profitable large water treatment system projects that benefited from cost reductions, as well as higher costs for certain water treatment systems and increased selling, general and administrative expenses.」
The completion of highly profitable large water treatment system projects and higher costs for certain systems caused each profit level to fall below the same period of the previous year, with the profitability risk associated with large projects appearing in the results. - FY2023-Q1MaterialisedAnnual report
「On the earnings side, each profit level from operating profit downward fell below the same period of the previous year due partly to the completion by the previous period of highly profitable large water treatment system projects that benefited from cost reductions, as well as higher costs for certain water treatment systems and increased selling, general and administrative expenses.」
The completion of highly profitable large projects and higher costs for certain systems caused each profit level from operating profit downward to fall below the same period of the previous year, with concerns over the profitability of large systems appearing in the results. - FY2022RestatedAnnual report
「Ultrapure water systems are a core product of our Group. In recent years, however, intensifying competition has made it unavoidable, particularly in China and Taiwan, to accept orders for large systems at low profitability. When accepting orders, we seek to improve profitability by fully understanding regional characteristics, prioritizing profitability and cooperating with partner companies, among other measures. However, declining order profitability due to intensifying competition with competitors could affect the performance of our Group.」
The company continues to disclose the risk of accepting low-profit orders for large systems and identifies understanding regional characteristics, prioritizing profitability and cooperating with partner companies as countermeasures. - FY2022-Q3MaterialisedAnnual report
「On the earnings side, gross profit margin declined by 0.4 percentage points year on year due partly to the recognition of sales from certain low-profit projects in China and Taiwan. In addition, selling, general and administrative expenses increased due to higher personnel costs and an upgrade of the core system, causing operating profit to fall below the same period of the previous year. However, profit at each level from ordinary profit downward exceeded the same period of the previous year due partly to foreign exchange gains recorded as non-operating income and the recognition of provision for doubtful accounts as a non-operating expense in the same period of the previous year.」
Sales from certain low-profit projects in China and Taiwan were recognized, causing gross profit margin to decline by 0.4 percentage points year on year. The risk associated with the profitability of large projects has appeared in quarterly margins. - FY2022-Q2MitigatedAnnual report
「On the earnings side, gross profit margin improved by 3.7 percentage points due to successful cost reductions on certain large water treatment system projects and the effect of higher maintenance and consumables sales, and each profit level from operating profit downward exceeded the same period of the previous year.」
Successful cost reductions on certain large water treatment system projects improved gross profit margin by 3.7 percentage points. The company explains that the impact on margins from the risk of declining profitability on large projects eased during the quarter. - FY2021MitigatedAnnual report
「On the earnings side, gross profit increased due to higher water treatment system sales and the completion of low-profit projects. In addition, the decline in selling, general and administrative expenses from the previous period, due partly to teleworking, resulted in a substantial increase in operating profit, with operating margin improving by 4.3 percentage points.」
The company explains that margins improved as low-profit projects were completed and water treatment system sales increased, and that the impact of low-profit large projects on earnings eased during the period. However, the decline in profitability of large systems continues to be disclosed as a risk. - FY2021-Q3MitigatedAnnual report
「On the earnings side, gross profit margin improved by 1.0 percentage point due to higher water treatment system sales and the completion of low-profit projects. In addition, the decline in selling, general and administrative expenses year on year, due partly to teleworking, improved operating margin by 7.2 percentage points.」
The completion of low-profit projects and higher water treatment system sales improved gross profit margin by 1.0 percentage point, while operating margin also improved by 7.2 percentage points. The impact of low-profit projects on margins continues to ease. - FY2021-Q2MitigatedAnnual report
「On the earnings side, gross profit margin improved by 2.5 percentage points due to higher water treatment system sales and the completion of low-profit projects. In addition, the decline in selling, general and administrative expenses year on year, due partly to teleworking, improved operating margin by 8.3 percentage points.」
The completion of low-profit projects and higher water treatment system sales improved gross profit margin by 2.5 percentage points, while operating margin also improved by 8.3 percentage points. The impact of profitability risk from low-profit projects on earnings continued to ease during the quarter. - FY2021-Q1MitigatedAnnual report
「On the earnings side, gross profit margin improved by 2.8 percentage points due to higher water treatment system sales and the completion of low-profit projects. In addition, the decline in selling, general and administrative expenses year on year, due partly to teleworking, improved operating margin by 5.6 percentage points.」
The completion of low-profit projects and higher water treatment system sales improved gross profit margin by 2.8 percentage points, and the company explains that the impact of profitability risk on earnings eased during the quarter. - FY2020MitigatedAnnual report
「On the earnings side, gross profit margin improved by 6.6 percentage points from the previous period due to improved margins on water treatment systems and higher maintenance and consumables sales. Operating profit increased 52.1% to ¥1,846 million, ordinary profit increased 44.2% to ¥1,781 million, and net income attributable to owners of the parent increased 23.6% to ¥1,273 million.」
Improved margins on water treatment systems and higher maintenance and consumables sales improved gross profit margin by 6.6 percentage points. Meanwhile, the risk of accepting low-profit orders for large systems continues to be disclosed. - FY2020-Q3MitigatedAnnual report
「On the earnings side, gross profit margin improved by 6.1 percentage points year on year due to improved margins on water treatment systems and higher maintenance and consumables sales, while operating profit increased 16.7% to ¥962 million.」
Improved margins on water treatment systems and higher maintenance and consumables sales improved gross profit margin by 6.1 percentage points, and the company explains that the impact on margins from low-profit projects eased during the quarter. - FY2020-Q2MitigatedAnnual report
「On the earnings side, gross profit margin improved by 4.7 percentage points year on year due partly to improved margins on water treatment system projects and higher maintenance and consumables sales. However, operating profit declined 3.5% to ¥375 million due to higher selling, general and administrative expenses.」
Gross profit margin improved by 4.7 percentage points due to improved margins on water treatment system projects, and the company explains that the impact on margins from declining profitability on equipment projects eased during the quarter. - FY2020-Q1MitigatedAnnual report
「On the earnings side, gross profit margin improved by 5.4 percentage points due partly to the lower share of water treatment system sales.」
Large equipment projects in South Korea and China were completed, and the lower share of water treatment system sales improved gross profit margin by 5.4 percentage points. The company states that the impact on margins from declining profitability on large equipment projects eased during the quarter. - FY2019MaterialisedAnnual report
「On the earnings side, gross profit margin declined by 2.8 percentage points as water treatment systems accounted for a larger share of sales, leaving gross profit and operating profit at approximately the same levels as in the previous period in absolute terms.」
The decline in gross profit margin resulting from the higher equipment sales mix occurred in full-year results. In Japan, operating profit also declined 39.0% due to progress on certain low-profit construction projects. - FY2019-Q3Decline in gross profit margin due to higher equipment salesAnnual report
「On the earnings side, gross profit margin declined by 4.4 percentage points as water treatment systems accounted for a larger share of sales. However, profit increased due partly to higher sales, foreign exchange gains recorded as non-operating income, and a ¥192 million gain on the sale of investments in affiliates recorded as extraordinary income.」
Gross profit margin declined by 4.4 percentage points as water treatment systems accounted for a larger share of sales, while profit increased due to higher sales, foreign exchange gains and gains on the sale of equity interests. - FY2019-Q1MaterialisedAnnual report
「On the earnings side, gross profit margin declined by 5.1 percentage points due partly to a higher share of water treatment system sales and increased costs for certain equipment projects. However, profit increased substantially due to higher sales and the recognition of ¥97 million in foreign exchange gains.」
Gross profit margin declined by 5.1 percentage points due to higher costs for certain equipment projects, with the profitability risk associated with equipment projects appearing in quarterly results. - FY2018MaterialisedAnnual report
「In Asia, sales amounted to ¥7,722 million, up 38.4% from the previous period, due partly to progress on ultrapure water system projects ordered by semiconductor- and LCD-related companies in South Korea, China and Taiwan, progress on wastewater treatment system projects at an industrial park in South Korea, and higher maintenance and consumables sales. However, operating profit declined 6.0% to ¥321 million as low-profit equipment construction projects progressed.」
The decline in operating profit in Asia resulting from progress on low-profit equipment construction projects is reflected in the results, indicating that profitability risk has resurfaced. - FY2018-Q3Decline in gross profit margin due to a higher equipment sales mixAnnual report
「On the earnings side, gross profit margin declined by 1.4 percentage points year on year as equipment accounted for a larger share of sales, but profit increased substantially due to the effect of higher sales.」
Gross profit margin declined by 1.4 percentage points as equipment accounted for a larger share of sales, while profit increased substantially due to the effect of higher sales. This indicates equipment project profitability issues in another form. - FY2018-Q2Additional costs incurred in the Japan segmentAnnual report
「Sales amounted to ¥4,251 million, up 14.7% year on year, due partly to progress on ultrapure water system projects ordered by pharmaceutical and semiconductor-related companies in Japan and semiconductor- and LCD-related companies in South Korea and China, as well as increased orders for maintenance and consumables. However, an operating loss of ¥77 million was recorded, compared with an operating loss of ¥123 million in the same period of the previous year, due partly to additional costs incurred on certain equipment projects.」
Although the company secured an operating profit overall, additional costs were incurred on certain equipment projects in the Japan segment, leaving an operating loss. The company does not state that profitability issues on large equipment projects have been fully resolved. - FY2018-Q1RestatedAnnual report
「On the earnings side, gross profit margin improved by 2.8 percentage points due partly to the effect of higher sales and the completion of low-profit projects, while reductions in selling, general and administrative expenses enabled the company to secure operating profit.」
The company reported the completion of low-profit projects, a 2.8-percentage-point improvement in gross profit margin and secured operating profit, confirming that the impact of low-profit large projects had weakened. - FY2017MitigatedAnnual report
「The completion of low-profit projects through the previous period, improved profitability for water treatment systems, and substantial sales growth in maintenance and consumables improved gross profit margin by 3.8 percentage points.」
The company explains that the completion of low-profit projects and improved equipment profitability raised gross profit margin by 3.8 percentage points from the previous year. Meanwhile, the risk of declining profitability on large systems remains. - FY2017-Q3MitigatedAnnual report
「Meanwhile, sales of maintenance and consumables remained firm in China, Taiwan and South Korea, resulting in sales of ¥5,048 million, up 20.2% year on year. On the earnings side, gross profit margin improved by 2.0 percentage points year on year, due partly to higher maintenance and consumables sales, while the company worked to reduce selling, general and administrative expenses through cost reductions and secured operating profit.」
The completion of major equipment projects and increased maintenance and consumables sales improved gross profit margin, and the company secured cumulative operating profit, indicating that the impact of low-profit large projects had weakened. - FY2017-Q2MaterialisedAnnual report
「Although the company focused on reducing selling, general and administrative expenses, lower sales and a decline in gross profit margin resulted in an operating loss. In addition, recording ¥320 million in foreign exchange losses as a non-operating expense resulted in an ordinary loss and a quarterly net loss attributable to owners of the parent.」
Lower sales and the decline in gross profit margin continued to appear in results as an operating loss, an ordinary loss and a quarterly net loss attributable to owners of the parent. - FY2017-Q1MaterialisedAnnual report
「In addition to lower sales resulting from the yen's appreciation, gross profit margin declined by 6.4 percentage points due to the impact of accepting low-profit projects and other factors, resulting in an operating loss, an ordinary loss and a quarterly net loss attributable to owners of the parent.」
The previously recognized risk associated with low-profit projects materialized during the quarter, appearing as a decline in gross profit margin and losses at each level of the income statement. - FY2016First statedAnnual report
「Ultrapure water systems are a core product of our Group. In recent years, however, intensifying competition has made it unavoidable, particularly in China and Taiwan, to accept orders for large systems at low profitability.」
The company states that accepting low-profit orders for large systems, mainly in China and Taiwan, has already become unavoidable, and identifies intensifying competition and declining profitability as future risks.