Risk of sales deferrals and cost overruns due to specification changes, increased difficulty and process delays
First written in FY2020. 7 of 17 entries say "Materialised", first in FY2024-Q1. Latest entry: FY2027-H1.
Zuiko moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
The whole theme swung hardest in 2025: 7 of 13 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「The impact of higher costs caused by delivery delays for new product projects incorporating higher value-added functions, which has continued from the previous fiscal year, has largely subsided as of the end of the interim consolidated accounting period.」
The company states that the impact from the previous fiscal year of delivery delays and higher costs associated with high-value-added new product projects after receiving orders had largely subsided as of the end of the interim period. - FY2025MaterialisedAnnual report
「The delay in the progress of orders already received caused sales scheduled for the current consolidated fiscal year to be pushed into the following consolidated fiscal year」
The delay in progress in made-to-order production caused the scheduled recognition of sales to be pushed into the following consolidated fiscal year. - FY2025-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company has reconfirmed that there have been no new developments or significant changes regarding the risks of delayed sales recognition and cost overruns caused by specification changes, increased complexity and process delays. - FY2024MaterialisedAnnual report
「Cost ratios increased during the cumulative first-quarter consolidated accounting period because additional modifications were required for highly complex orders, among other factors,」
The company states that the risk of higher cost ratios caused by additional modifications after receiving orders in made-to-order production actually materialized during the first quarter of the fiscal year. - FY2024-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter under review. In addition, there have been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company has reconfirmed that there have been no new developments or significant changes regarding the risks of delayed sales recognition and cost overruns caused by specification changes, increased complexity and process delays. - FY2024-Q2MitigatedAnnual report
「During the first-quarter cumulative consolidated period, the cost ratio rose due to additional modifications and other work on highly complex projects. During the second-quarter consolidated accounting period, however, the impact of additional modifications and other work declined, resulting in an improved cost ratio.」
The company states that the impact of higher cost ratios caused by additional modifications after receiving orders decreased during the second quarter accounting period and that cost ratios improved. - FY2024-Q1MaterialisedAnnual report
「Additional modifications to highly challenging projects increased the cost ratio, resulting in an operating loss of ¥361 million, compared with an operating loss of ¥222 million in the same quarter of the previous year.」
The company states that the risk in made-to-order production of higher cost ratios caused by additional modifications after receiving orders, affecting the ability to secure profits, actually materialized. - FY2023ReframedAnnual report
「The Group is working to identify and contain the risk of production delays at an early stage, including by testing in advance the portions of ordered machinery that incorporate new development elements. It is also pursuing continuous improvements in schedule and cost management by standardizing common components and promoting the use of data and feedback through the introduction of a production management system.」
The risks of delayed sales recognition and cost overruns caused by specification changes, increased complexity, process delays and other factors have been reorganized to include measures to manage and mitigate them through advance testing, component standardization, production control systems and data utilization. - FY2023-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company has reconfirmed that there have been no new developments or significant changes regarding the risks of delayed sales recognition and cost overruns caused by specification changes, increased complexity and process delays. - FY2023-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company has reconfirmed that there have been no new developments or significant changes regarding the risks of delayed sales recognition and cost overruns caused by specification changes, increased complexity and process delays. - FY2021ReframedAnnual report
「Some products require an extended period before customer acceptance because adjustment test runs and other work before acceptance take time. If the scheduled acceptance date changes and shipment is delayed, the production schedule for the next scheduled product may also be delayed, potentially pushing back the recognition of sales.」
The company has added the risk of prolonged adjustment test runs before acceptance and consequential delays to the production schedules of subsequent products to the existing risks in made-to-order production, including specification changes, increased complexity, process delays and cost overruns. - FY2020First statedAnnual report
「Our production system is based on made-to-order products. Changes in specifications after an order is received, increasing product complexity, process delays and higher construction costs could result in revenue being recognized later than scheduled or estimated costs being exceeded. In such cases, our operating results and financial position could be affected.」
The filing systematically describes risks specific to made-to-order production, including post-order specification changes, increasing complexity, process delays and higher construction costs that could delay revenue recognition or cause cost overruns.