Risk of Inventory Write-Downs on Excess and Slow-Moving Inventory from Make-to-Order Production
First written in FY2021. 7 of 12 entries say "Restated". Latest entry: FY2026.
Nippon Gear moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The write-down amount for the previous fiscal year was ¥75.663 million, while the write-down amount for the fiscal year was ¥77.503 million (the inventory write-down was ¥277.115 million in the previous fiscal year and ¥354.618 million in the current fiscal year).」
The inventory valuation risk arising from excess and slow-moving inventory in made-to-order production continued to materialise, and the inventory write-down increased from ¥277.115 million in the previous fiscal year to ¥354.618 million in the current fiscal year. The possibility of additional write-downs due to future demand, specification changes and other factors also remains. - FY2026-H1RestatedAnnual report
「During the current interim accounting period, there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
The Company states that there were no material changes to its existing risks, including the risk of inventory write-downs on excess and slow-moving inventory arising from made-to-order production. - FY2025WorsenedAnnual report
「The write-down amount for the previous fiscal year was ¥88.366 million, while the write-down amount for the fiscal year was ¥75.663 million (the inventory write-down was ¥201.451 million in the previous fiscal year and ¥277.115 million in the current fiscal year).」
The inventory valuation risk arising from excess and slow-moving inventory in made-to-order production materialised, and the inventory write-down increased from ¥201.451 million in the previous fiscal year to ¥277.115 million in the current fiscal year. The possibility of additional write-downs due to future demand, specification changes and other factors remains. - FY2025-H1RestatedAnnual report
「During the current interim accounting period, there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
The Company states that there were no material changes to its existing risks, including the risk of inventory write-downs on excess and slow-moving inventory arising from made-to-order production. - FY2024MaterialisedAnnual report
「The write-down amount for the previous fiscal year was negative ¥30.549 million, while the write-down amount for the fiscal year was negative ¥88.366 million (the inventory write-down was ¥289.817 million in the previous fiscal year and ¥201.451 million in the current fiscal year).」
Regarding the inventory valuation risk arising from sudden changes in demand and specification changes in made-to-order production, an inventory write-down of ¥201.451 million was recognised during the fiscal year. Although this was down from ¥289.817 million in the previous fiscal year, the risk continues to materialise. - FY2024-Q3RestatedAnnual report
「There were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year during the cumulative third quarter period.」
The Company states that there were no material changes to its existing risks, including the risk of inventory write-downs on excess and slow-moving inventory arising from made-to-order production. - FY2024-Q2RestatedAnnual report
「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The Company states that there were no material changes to its existing risks, including the risk of inventory write-downs on excess and slow-moving inventory arising from made-to-order production. - FY2024-Q1RestatedAnnual report
「During the six months ended [current first quarter], there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
The Company states that there were no material changes to its existing risks, including the risk of inventory write-downs on excess and slow-moving inventory arising from made-to-order production. - FY2023-Q3RestatedAnnual report
「There were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year during the cumulative third quarter period.」
The Company states that there were no material changes to its existing risks, including the risk of inventory write-downs on excess and slow-moving inventory arising from made-to-order production. - FY2023-Q1RestatedAnnual report
「During the six months ended [current first quarter], there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
The Company states that there were no material changes to its existing risks, including the risk of inventory write-downs on excess and slow-moving inventory arising from made-to-order production. - FY2022MaterialisedAnnual report
「The write-down amount for the previous fiscal year was negative ¥68.248 million, while the write-down amount for the fiscal year was ¥3.318 million (the inventory write-down was ¥317.048 million in the previous fiscal year and ¥320.367 million in the current fiscal year).」
Regarding the inventory valuation risk arising from sudden changes in demand and specification changes in made-to-order production, an inventory write-down of ¥3.318 million was recognised during the fiscal year. The Company also discloses the possibility of additional write-downs due to changes in expected future usage and other factors. - FY2021First statedAnnual report
「The Company primarily engages in made-to-order production tailored to customer specifications in Japan and overseas. Although it appropriately manages its inventories, sudden changes in demand or changes in specifications may leave excess or slow-moving inventory. If the net realisable value is below cost, the Company writes down inventory by comparing the two amounts. It also systematically writes down the carrying amount of inventory that has become slow-moving or otherwise fallen outside the normal operating cycle, based on past results, expected usage and other factors.」
The risk of inventory write-downs on excess and slow-moving inventory arising from sudden changes in demand or specification changes in made-to-order production is disclosed separately. The Company recognised an inventory write-down of ¥317.048 million during the fiscal year and indicates that additional write-downs may arise in the future.