Responding to China’s New-Energy Vehicle Market
First written in FY2016. 16 of 34 entries say "Worsened", first in FY2020-Q1. Latest entry: 2026-10-30.
Kawata Mfg. moved to the "Worse" side of this theme in 2025.
The whole theme swung hardest in 2020: 1 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2026WorsenedAnnual report
「In East Asia, revenue declined by ¥263 million, or 5.0%, year on year to ¥5,024 million, as sales related to lithium-ion batteries for electric vehicles (EVs) in China remained sluggish and sales related to lenses for smartphones and VR applications were also weak. In terms of earnings, although selling, general and administrative expenses declined substantially, the gross profit margin fell from 27.8% to 20.9% due to a product mix variance caused by the above factors in China, namely lower sales of high-value-added products and a higher proportion of standard products, as well as intensifying price competition. The operating loss was ¥484 million, compared with an operating loss of ¥172 million in the same period of the previous year, and the segment loss (ordinary loss) was ¥482 million, compared with an ordinary loss of ¥114 million in the same period of the previous year.」
Weakness in China-related EV batteries, smartphones and VR lenses, together with a product mix variance and intensifying price competition, reduced the gross profit margin to 20.9% and widened operating and ordinary losses. - FY2026-H1WorsenedAnnual report
「In East Asia, in addition to sluggish sales related to lithium-ion batteries for electric vehicles (EVs) in China, sales related to lenses for smartphones and VR applications were also weak. Revenue declined by ¥415 million, or 16.1%, year on year to ¥2,170 million. In terms of earnings, the gross profit margin deteriorated from 30.3% to 23.4% as the number of high-margin projects declined. Although selling, general and administrative expenses decreased due to cost reductions, the operating loss was ¥216 million, compared with an operating loss of ¥83 million in the same period of the previous year, and the segment loss (ordinary loss) was ¥212 million, compared with an ordinary loss of ¥52 million in the same period of the previous year.」
Weakness in China-related lithium-ion batteries for EVs and lenses for smartphones and VR applications reduced East Asian revenue and worsened the gross profit margin and earnings. - FY2025WorsenedAnnual report
「In East Asia, capital investment related to lithium-ion batteries for electric vehicles (EVs), which had driven the previous fiscal year’s revenue, remained sluggish. Capital investment related to lenses for smartphones and VR applications also showed signs of a lull, resulting in a substantial decline in orders. Revenue declined by ¥1,724 million, or 24.6%, year on year to ¥5,287 million. In terms of earnings, although the gross profit margin improved from 26.0% to 27.8%, the decline in gross profit accompanying lower revenue and the increase in selling, general and administrative expenses resulted in an operating loss of ¥172 million, compared with operating profit of ¥285 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥114 million, compared with ordinary profit of ¥254 million in the same period of the previous year.」
Capital investment related to EV batteries, smartphones and VR lenses remained sluggish in East Asia, particularly China, resulting in lower revenue and a shift to an operating loss. - FY2024AdvancedAnnual report
「In East Asia, firm sales related to lithium-ion batteries for electric vehicles (EVs) and lenses for smartphones and VR applications drove revenue up by ¥1,582 million, or 29.1%, year on year to ¥7,012 million. In terms of earnings, although the gross profit margin deteriorated from 28.8% to 26.0%, higher revenue led to increased gross profit, resulting in operating profit of ¥285 million, up ¥208 million, or 271.5%, year on year.」
Sales related to EV batteries and lenses for smartphones and VR applications contributed to a 29.1% increase in East Asian revenue and a 271.5% increase in operating profit. However, the gross profit margin deteriorated. - FY2024-Q3AdvancedAnnual report
「In East Asia, firm sales related to lithium-ion batteries for electric vehicles (EVs) and lenses for smartphones and VR applications drove revenue up by ¥1,762 million, or 44.1%, year on year to ¥5,762 million. In terms of earnings, although the gross profit margin deteriorated from 30.2% to 25.3%, higher revenue led to increased gross profit. Operating profit increased by ¥221 million, or 589.0%, year on year to ¥258 million, while segment profit (ordinary profit) increased by ¥178 million, or 757.3%, to ¥202 million.」
Sales related to lithium-ion batteries for EVs and lenses for smartphones and VR applications remained firm, driving a 44.1% increase in East Asian revenue. Operating and segment profit also increased substantially year on year. - FY2024-Q2AdvancedAnnual report
「In East Asia, firm sales related to lithium-ion batteries for electric vehicles (EVs) and lenses for smartphones and VR applications drove revenue up by ¥2,076 million, or 110.1%, year on year to ¥3,962 million. In terms of earnings, although the gross profit margin deteriorated from 30.2% to 25.1%, higher revenue led to increased gross profit. Operating profit increased by ¥423 million to ¥259 million, compared with an operating loss of ¥164 million in the same period of the previous year, while segment profit (ordinary profit) increased by ¥372 million to ¥210 million, compared with an ordinary loss of ¥162 million in the same period of the previous year.」
Sales related to lithium-ion batteries for EVs and lenses for smartphones and VR applications contributed to a 110.1% increase in East Asian revenue, and both operating and segment profit turned positive. - FY2024-Q1AdvancedAnnual report
「In East Asia, firm orders related to lithium-ion batteries for electric vehicles (EVs) and lenses for smartphones and VR applications drove revenue up by ¥615 million, or 62.9%, year on year to ¥1,594 million. In terms of earnings, although the gross profit margin deteriorated from 25.5% to 22.5%, higher revenue led to increased gross profit, resulting in operating profit of ¥3 million, an increase of ¥102 million from the operating loss of ¥98 million in the same period of the previous year. However, due in part to lower foreign exchange gains, the segment loss (ordinary loss) was ¥67 million, compared with an ordinary loss of ¥99 million in the same period of the previous year.」
Against a backdrop of orders related to lithium-ion batteries for EVs and lenses for smartphones and VR applications, East Asian revenue increased 62.9% and the business turned from an operating loss to operating profit. However, the segment remained loss-making. - FY2023WorsenedAnnual report
「In East Asia, orders related to lithium-ion batteries for electric vehicles (EVs) and lenses for smartphones and VR applications remained firm, as in the previous fiscal year, but they were insufficient to offset the decline in revenue during the more than 2-month suspension of factory operations caused by the Shanghai lockdown. Revenue declined by ¥1,068 million, or 16.4%, year on year to ¥5,430 million.」
Orders related to EV batteries and lenses for smartphones and VR applications remained firm, but the more than 2-month suspension of the Shanghai plant could not be offset, resulting in a 16.4% decline in full-year revenue. - FY2023-Q3WorsenedAnnual report
「In East Asia, orders related to lithium-ion batteries for electric vehicles (EVs) and lenses for smartphones and VR applications remained firm, but they were insufficient to offset the decline in revenue during the more than 2-month suspension of factory operations caused by the Shanghai lockdown. Revenue declined by ¥695 million, or 14.8%, year on year to ¥3,999 million. In terms of earnings, the gross profit margin improved from 24.4% to 30.2% because manufacturing fixed costs incurred during the suspension were transferred to extraordinary losses, among other factors. However, the increase in selling, general and administrative expenses could not be absorbed, and operating profit declined by ¥10 million, or 21.8%, year on year to ¥37 million. Segment profit (ordinary profit), however, increased by ¥18 million, or 339.1%, to ¥23 million, due in part to the recognition of foreign exchange gains.」
Orders related to EV batteries and lenses for smartphones and VR applications remained firm, but the more than 2-month suspension of the Shanghai plant could not be offset, resulting in a 14.8% decline in East Asian revenue and a 21.8% decline in operating profit. - FY2023-Q2WorsenedAnnual report
「In East Asia, orders related to lithium-ion batteries for electric vehicles (EVs) and lenses for smartphones and VR applications remained firm. However, the lockdown in Shanghai under China’s zero-COVID policy forced a temporary suspension of factory operations, reducing revenue by ¥1,119 million, or 37.2%, year on year to ¥1,885 million. In terms of earnings, the gross profit margin improved from 25.3% to 30.2% because manufacturing fixed costs incurred during the suspension were transferred to extraordinary losses, among other factors. However, the decline in revenue reduced gross profit, resulting in an operating loss of ¥164 million, compared with operating profit of ¥44 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥162 million, compared with ordinary profit of ¥21 million in the same period of the previous year.」
Orders related to lithium-ion batteries for EVs and lenses for smartphones and VR applications remained firm, but the Shanghai lockdown halted factory operations, reducing revenue 37.2% year on year and turning operating and segment profit from profits to losses. - FY2023-Q1Orders remained firm, but China-related constraints reduced revenue and pushed the business into the redAnnual report
「In East Asia, orders related to lithium-ion batteries for electric vehicles (EVs) and lenses for smartphones and VR applications remained firm. However, in addition to longer lead times for molding machines and peripheral equipment due to semiconductor shortages, logistics disruptions and lower factory operating rates from the second half of the first quarter due to China’s zero-COVID policy reduced revenue by ¥409 million, or 29.5%, year on year to ¥979 million. In terms of earnings, the gross profit margin deteriorated from 27.8% to 25.5% due to lower factory operating rates and other factors, while gross profit declined with the decrease in revenue. As a result, the operating loss was ¥98 million, compared with operating profit of ¥55 million in the same period of the previous year, and the segment loss (ordinary loss) was ¥99 million, compared with ordinary profit of ¥52 million in the same period of the previous year.」
Orders related to lithium-ion batteries for EVs and lenses for smartphones and VR applications remained firm, but semiconductor shortages and China’s zero-COVID policy caused longer lead times, logistics disruptions and lower operating rates, resulting in a 29.5% decline in East Asian revenue and a shift to an operating loss. - FY2022AdvancedAnnual report
「In East Asia, although the economy was slowing due to the prolonged US-China trade friction and the economic downturn caused by China’s strict zero-COVID policy, increased orders, mainly related to lithium-ion batteries for electric vehicles (EVs) and the electronics industry, drove revenue up by ¥1,906 million, or 41.5%, year on year to ¥6,498 million. In terms of earnings, the improved gross profit margin, from 20.9% to 24.9%, and other factors resulted in operating profit of ¥129 million, compared with an operating loss of ¥306 million in the same period of the previous year.」
In East Asia, including China, orders for lithium-ion batteries for EVs and from the electronics industry increased, driving revenue up 41.5% and turning operating profit from a loss to a profit. - FY2022-Q3AdvancedAnnual report
「In East Asia, although the prolonged US-China trade friction and the economic downturn caused by China’s strict zero-COVID policy weighed on the economy, economic activity continued to recover. Increased orders, mainly related to LiB and the electronics industry, drove revenue up by ¥1,201 million, or 34.4%, year on year to ¥4,695 million. In terms of earnings, the gross profit margin improved from 20.2% to 24.4% as operating rates improved, while higher revenue led to increased gross profit. Operating profit was ¥48 million, compared with an operating loss of ¥217 million in the same period of the previous year, and segment profit (ordinary profit) was ¥5 million, compared with an ordinary loss of ¥246 million in the same period of the previous year.」
In East Asia, increased orders from the LiB-related and electronics industries drove revenue up 34.4%, the gross profit margin improved from 20.2% to 24.4%, and operating and segment profit turned from losses in the same period of the previous year to profits. - FY2022-Q2AdvancedAnnual report
「In East Asia, although the US-China trade friction remained unresolved, the Chinese economy continued to recover steadily as China contained the number of novel coronavirus infections. Increased orders, particularly related to automobiles, drove revenue up by ¥558 million, or 22.8%, year on year to ¥3,005 million. In terms of earnings, the gross profit margin improved from 17.5% to 25.3% as operating rates improved, while higher revenue led to increased gross profit. Operating profit was ¥44 million, compared with an operating loss of ¥179 million in the same period of the previous year, and segment profit (ordinary profit) was ¥21 million, compared with an ordinary loss of ¥196 million in the same period of the previous year.」
In East Asia, the recovery in the Chinese economy and increased automobile-related orders drove revenue up 22.8%, the gross profit margin improved from 17.5% to 25.3%, and operating and segment profit turned from losses to profits. - FY2022-Q1MitigatedAnnual report
「In East Asia, although there were no signs of improvement in the US-China trade friction, the Chinese economy was recovering as China balanced containing the spread of the novel coronavirus with maintaining economic activity. Increased orders, particularly related to automobiles, drove revenue up by ¥219 million, or 18.8%, year on year to ¥1,388 million. In terms of earnings, the gross profit margin improved from 12.7% to 27.8% as operating rates improved, while higher revenue led to increased gross profit. Operating profit was ¥55 million, compared with an operating loss of ¥166 million in the same period of the previous year, and segment profit (ordinary profit) was ¥52 million, compared with an ordinary loss of ¥169 million in the same period of the previous year.」
In East Asia, the recovery in the Chinese economy and increased automobile-related orders drove revenue up 18.8%, and operating and segment profit turned from losses to profits. However, there were no signs of improvement in the US-China trade friction. - FY2021WorsenedAnnual report
「In East Asia, although economic activity in China was on a recovery trend as the spread of the novel coronavirus subsided, private-sector capital investment had not yet recovered. Revenue declined by ¥1,085 million, or 19.1%, year on year to ¥4,591 million. In terms of earnings, the decline in the gross profit margin from 26.5% to 20.9% due to the higher unit cost of manufacturing fixed costs resulting from lower operating rates led to an operating loss of ¥306 million.」
The recovery in private-sector capital investment in China was delayed, reducing East Asian revenue and gross profit margins and widening the operating loss. - FY2021-Q3WorsenedAnnual report
「In East Asia, although economic activity in China was on a recovery trend as the spread of the novel coronavirus subsided, private-sector capital investment had not yet recovered. Revenue declined by ¥981 million, or 21.9%, year on year to ¥3,494 million. In terms of earnings, the gross profit margin declined from 26.6% to 20.2% as the unit cost of manufacturing fixed costs rose due to lower operating rates, while gross profit also declined with the decrease in revenue. As a result, the operating loss was ¥217 million, compared with an operating loss of ¥47 million in the same period of the previous year, and the segment loss (ordinary loss) was ¥246 million, compared with an ordinary loss of ¥81 million in the same period of the previous year.」
In East Asia, the recovery in private-sector capital investment was delayed, revenue declined 21.9% year on year, the gross profit margin fell from 26.6% to 20.2%, and operating and segment losses widened. - FY2021-Q2WorsenedAnnual report
「In East Asia, although economic activity resumed in China as the spread of the novel coronavirus subsided, private-sector capital investment did not recover, despite the prolonged US-China trade friction. Revenue declined by ¥618 million, or 20.2%, year on year to ¥2,446 million. In terms of earnings, the gross profit margin declined from 27.3% to 17.5% as the unit cost of manufacturing fixed costs rose due to lower operating rates, while gross profit also declined with the decrease in revenue. As a result, the operating loss was ¥179 million, compared with an operating loss of ¥22 million in the same period of the previous year, and the segment loss (ordinary loss) was ¥196 million, compared with an ordinary loss of ¥55 million in the same period of the previous year.」
The recovery in private-sector capital investment in East Asia was delayed, resulting in lower revenue and gross profit margins and larger operating and segment losses. - FY2020WorsenedAnnual report
「In East Asia, revenue declined by ¥2,755 million, or 32.7%, year on year to ¥5,677 million, due to the prolonged US-China trade friction and the economic slowdown in China. In terms of earnings, the decline in the gross profit margin from 30.2% to 26.5% and other factors resulted in an operating loss of ¥138 million, compared with operating profit of ¥501 million in the same period of the previous year.」
In East Asia, centered on China, revenue declined 32.7% and the business turned from operating profit to an operating loss. - FY2020-Q3WorsenedAnnual report
「In East Asia, revenue declined by ¥1,759 million, or 28.2%, year on year to ¥4,476 million, due to the prolonged US-China trade friction and the economic slowdown in China. In terms of earnings, the decline in the gross profit margin from 30.4% to 26.6% and the decrease in gross profit accompanying the decline in revenue resulted in an operating loss of ¥47 million, compared with operating profit of ¥339 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥81 million, compared with ordinary profit of ¥319 million in the same period of the previous year.」
The prolonged US-China trade friction and the slowdown in the Chinese economy reduced East Asian revenue by 28.2% year on year. Operating profit and segment profit turned from profits in the same period of the previous year to operating and segment losses. - FY2020-Q2WorsenedAnnual report
「In East Asia, revenue declined by ¥1,194 million, or 28.0%, year on year to ¥3,065 million, due to the prolonged US-China trade friction and the economic slowdown in China. In terms of earnings, the decline in the gross profit margin from 30.9% to 27.3% and the decrease in gross profit accompanying the decline in revenue resulted in an operating loss of ¥22 million, compared with operating profit of ¥296 million in the same period of the previous year, and a segment loss (ordinary loss) of ¥55 million, compared with ordinary profit of ¥279 million in the same period of the previous year.」
The prolonged US-China trade friction and the slowdown in the Chinese economy reduced East Asian revenue, resulting in operating and segment losses. - FY2020-Q1WorsenedAnnual report
「In East Asia, revenue declined by ¥26 million, or 1.3%, year on year to ¥1,949 million, due to the prolonged US-China trade friction. In terms of earnings, the Company worked to improve its gross profit margin through cost reduction measures focused mainly on materials costs, but operating profit declined by ¥30 million, or 24.3%, year on year to ¥95 million, while segment profit (ordinary profit) declined by ¥44 million, or 37.2%, to ¥75 million.」
East Asian revenue, operating profit and segment profit declined year on year due to the prolonged US-China trade friction. - FY2019AdvancedAnnual report
「In China, capital investment related to lithium-ion batteries for electric vehicles (EVs) and optical components such as camera lenses for smartphones and automotive applications was brisk. In Japan, capital investment in the manufacture of a wide range of plastic products was also active, including food containers, logistics equipment, and construction and civil engineering products, in addition to automobiles and electronic components.」
Capital investment related to lithium-ion batteries for EVs and optical components in China remained brisk, with East Asian revenue up 30.9% year on year and segment profit up 89.9%. - FY2019-Q3AdvancedAnnual report
「In East Asia, capital investment related to automobiles in China and electronic components in China and Taiwan remained firm. Revenue increased by ¥1,713 million, or 37.9%, year on year to ¥6,236 million. In terms of earnings, the gross profit margin declined slightly from 31.6% to 30.4%, but operating profit increased by ¥159 million, or 88.6%, year on year to ¥339 million, mainly because the increase in revenue led to higher gross profit. Segment profit (ordinary profit) increased by ¥174 million, or 120.8%, year on year to ¥319 million.」
Capital investment related to automobiles in China and electronic components in China and Taiwan remained firm, with East Asian revenue up 37.9% year on year and operating profit up 88.6%. - FY2019-Q2AdvancedAnnual report
「In East Asia, capital investment related to automobiles in China and electronic components in China and Taiwan remained firm. Revenue increased by ¥1,618 million, or 61.2%, year on year to ¥4,260 million. In terms of earnings, the gross profit margin declined slightly from 32.0% to 30.9%, but operating profit increased by ¥228 million, or 331.7%, year on year to ¥296 million, mainly because the increase in revenue led to higher gross profit. Segment profit (ordinary profit) increased by ¥234 million, or 521.0%, year on year to ¥279 million.」
Capital investment related to automobiles in China and electronic components in China and Taiwan remained firm, with East Asian revenue up 61.2% year on year and operating profit up 331.7%. - FY2019-Q1AdvancedAnnual report
「In East Asia, capital investment related to automobiles in China and electronic components in China and Taiwan remained firm. Revenue increased by ¥826 million, or 71.9%, year on year to ¥1,975 million.」
Capital investment related to automobiles in China and electronic components in China and Taiwan remained firm, and East Asian revenue increased 71.9% year on year. - FY2018AdvancedAnnual report
「In China, capital investment related to lithium-ion batteries for electric vehicles (EVs) and optical components such as camera lenses for smartphones and automotive applications was brisk. In Japan, capital investment in the manufacture of a wide range of plastic products was also active, including food containers, logistics equipment, and construction and civil engineering products, in addition to automobiles and electronic components.」
Capital investment related to lithium-ion batteries for EVs and optical components in China was identified as an area of increased orders and demand. - FY2017RestatedAnnual report
「Response to markets revitalized by national policy, including the expansion of new energy vehicles in China」
Continues to pursue a response to markets revitalized by government policy, including China’s new energy vehicle market, as part of its medium-term management strategy. - FY2016First statedAnnual report
「Response to markets revitalized by national policy, including the expansion of new energy vehicles in China」
Identifies markets revitalized by Chinese government policy as sales opportunities.