Reforming the earnings structure of the U.S. and China businesses in light of U.S.-China tensions
First written in FY2019. 14 of 24 entries say "Advanced", first in FY2020-Q1. Latest entry: 2026-11-13.
No other company in this theme has enough history to compare yet.
- 2026-11-13WorsenedResults
「In China, domestic sales edged up amid a challenging business environment, while exports of products and parts to Group companies declined due to supply-chain adjustments. As a result, total sales rose 2.0% year on year to ¥490 million, while operating profit declined by ¥20 million and the company recorded an operating loss of ¥30 million.」
In the Chinese business, domestic sales edged up, but declining exports resulted in a continuing and larger operating loss as the earnings structure was reformed. - FY2026The effects of the reforms diminished as exports from China declinedAnnual report
「In China, sluggish domestic sales bottomed out, but exports of products and components to group companies declined due to inventory adjustments. Net sales fell 31.6% year on year to ¥982.665 million, while operating profit decreased by ¥119.484 million to an operating loss of ¥46.541 million.」
Regarding the reform of the China business's earnings structure, pursued against the backdrop of decoupling between the US and China businesses, revenue and operating profit deteriorated due to lower exports, resulting in an operating loss. - FY2026-H1Reform benefits receded due to sluggish exports from ChinaAnnual report
「In China, domestic sales remained sluggish, while exports of products and parts to group companies declined due to inventory adjustments and supply chain revisions. Total revenue decreased 39.7% year on year to ¥488.475 million, while operating profit decreased by ¥76.699 million to an operating loss of ¥9.530 million.」
Regarding the reform of the China business's earnings structure, pursued against the backdrop of decoupling between the US and China businesses, exports to group companies declined due to inventory adjustments and supply chain revisions, resulting in an operating loss. - FY2025-H1Earnings improvement stalled due to sluggish exports from ChinaAnnual report
「In China, exports of products and parts to group companies remained sluggish. Total revenue decreased 14.8% year on year to ¥809.595 million, while operating profit decreased 41.0% to ¥67.168 million.」
Regarding reform of the earnings structure of the China business, centered on exports of products and components to group companies, revenue and operating profit fell below the year-earlier period due to sluggish exports. - FY2024AdvancedAnnual report
「In China, while the domestic market remained sluggish, exports of products and parts to group companies increased. Total revenue increased 24.6% from the previous consolidated fiscal year to ¥1,979.362 million, and operating profit increased 56.2% to ¥209.182 million.」
Regarding reform of the China business against the backdrop of decoupling between the US and China businesses, revenue and operating profit improved as exports to group companies increased. - FY2024-Q3AdvancedAnnual report
「In China, while the domestic market remained sluggish, exports of products and parts to group companies increased. Total revenue increased 51.9% year on year to ¥1,435.590 million, and operating profit increased 421.4% to ¥183.740 million.」
Regarding the reform of the earnings structure of the China business, revenue increased 51.9% and operating profit increased 421.4%, driven by higher exports of products and components to group companies. - FY2024-Q2AdvancedAnnual report
「In China, while domestic sales remained sluggish, exports of products and parts to group companies increased. As a result, total revenue increased 105.1% year on year to ¥949.862 million, and operating profit improved by ¥133.922 million, turning positive at ¥113.828 million.」
Regarding earnings-structure reforms in the Chinese business, the company expanded exports of products and parts to Group companies, returning operating profit to a profit of ¥113.828 million. - FY2024-Q1AdvancedAnnual report
「In China, while the domestic market remained sluggish, domestic sales bottomed out and exports of products and parts to group companies increased. As a result, total revenue increased 115.8% year on year to ¥398.841 million, and operating profit improved by ¥46.105 million, turning positive at ¥37.554 million.」
Regarding earnings-structure reforms in the Chinese business, the company achieved a bottoming out in domestic sales and expanded exports of products and parts to Group companies, returning operating profit to a profit of ¥37.554 million. - FY2023AdvancedAnnual report
「In China, amid continued weak domestic demand, exports of products and parts to group companies increased. As a result, total revenue increased 63.3% from the previous consolidated fiscal year to ¥1,589.026 million, while operating profit improved by ¥213.649 million and turned positive at ¥133.880 million.」
In the Chinese business, the company shifted its response from curbing exports and developing the domestic market to expanding exports of products and parts to Group companies, successfully returning the business to operating profitability. - FY2023-Q3AdvancedAnnual report
「In China, business activity was forced to stagnate due to the lockdown in Shanghai. While domestic sales declined, exports of products and parts to group companies increased. As a result, total revenue increased 42.6% year on year to ¥945.033 million, and operating profit improved by ¥80.194 million to ¥35.243 million, turning positive.」
Regarding earnings-structure reforms in the Chinese business against the backdrop of decoupling between the U.S. and Chinese businesses, the company expanded exports of products and parts to Group companies, returning operating profit to positive territory. - FY2023-Q2AdvancedAnnual report
「In China, business activity was forced to stagnate due to the lockdown in Shanghai. While domestic sales declined, exports of products and parts to group companies increased. As a result, total revenue decreased 2.1% year on year to ¥463.046 million, while the operating loss improved by ¥14.889 million year on year to ¥20.093 million, but remained a loss.」
Regarding earnings-structure reforms in the Chinese business against the backdrop of decoupling between the U.S. and Chinese businesses, the company expanded exports of products and parts to Group companies and improved its operating loss by ¥14.889 million from the same period of the previous year. However, the loss continued. - FY2023-Q1AdvancedAnnual report
「In China, business activity was forced to stagnate due to the lockdown in Shanghai, where the plant is located. While domestic sales in China declined substantially, exports of products and parts to group companies increased. As a result, total revenue decreased 27.2% year on year to ¥184.858 million, while the operating loss improved by ¥13.393 million year on year to ¥8.551 million, but remained a loss.」
In the Chinese business, the company expanded exports of products and parts to Group companies and improved its operating loss despite the Shanghai lockdown and declining domestic sales. However, the operating loss continued. - FY2022AdvancedAnnual report
「In China, the company is pursuing business revitalization by developing the domestic market and exporting products and parts to group companies, but domestic sales remained sluggish as the Chinese market stagnated. Total revenue increased 32.9% year on year to ¥973.225 million, while the operating loss improved by ¥2.964 million from the previous consolidated fiscal year to ¥79.769 million, and losses continued.」
Regarding earnings-structure reforms in the Chinese business, the company developed the domestic market and expanded exports of products and parts to Group companies, demonstrating higher sales and an improvement in the operating loss. - FY2022-Q3AdvancedAnnual report
「In China, the company is pursuing business revitalization by developing the domestic market, promoting local production for local consumption, and expanding its products and parts business within the group. However, domestic sales remained sluggish due to the slowdown in the Chinese market. Total revenue increased by ¥80.378 million from the same period of the previous year to ¥662.777 million, while the operating loss improved by ¥10.045 million year on year to ¥44.951 million, but remained a loss.」
In the Chinese business, the company promoted local production for local consumption by developing the domestic market and expanded the Group's product and parts businesses, resulting in higher total sales and an improvement in the operating loss from the same period of the previous year. - FY2022-Q2AdvancedAnnual report
「For the Chinese business, the company has decided to provide USD 3 million in additional capital to stabilize its financial base and will proceed with earnings-structure reforms that also include expanding the Group's product and parts businesses.」
For the Chinese business, the company decided to provide USD 3 million in additional capital and reached the stage of advancing earnings-structure reforms that include stabilizing its financial base and expanding the Group's product and parts businesses. - FY2022-Q1The Chinese business posted a loss despite higher sales because of high-cost inventoryAnnual report
「In China, expanding domestic sales while curbing exports to the United States increased total revenue 99.0% year on year to ¥254.049 million, but the impact of high-cost product inventories manufactured in the previous fiscal year resulted in an operating loss of ¥21.944 million.」
The company continued to curb exports and expand domestic sales in line with the decoupling of its U.S. and Chinese businesses, but the Chinese business posted an operating loss due to the impact of high-cost product inventory. - FY2021The Chinese business posted an operating loss amid decouplingAnnual report
「In China, under the policy of decoupling the US and China businesses, domestic sales increased 30% through strengthened sales activities, but the company was unable to offset the decline in exports to North America and exports of parts to group plants. Total revenue decreased 32.4% from the previous consolidated fiscal year to ¥732.038 million, resulting in an operating loss of ¥82.733 million.」
The company expanded domestic sales in line with its decoupling policy, but the decline in exports could not be offset, and the Chinese business posted an operating loss for the full fiscal year. - FY2021-Q3Domestic sales unable to offset lower exports under decoupling, resulting in a lossAnnual report
「In China, under the policy of decoupling the US and China businesses, domestic sales increased by approximately 30%, but the company was unable to offset declines in exports to North America and exports of parts to group plants. Total revenue decreased 32.1% year on year to ¥582.399 million, resulting in an operating loss of ¥54.997 million.」
The company increased domestic sales under its policy of decoupling the U.S. and Chinese businesses, but the decline in exports could not be offset, and the Chinese business posted an operating loss. - FY2021-Q2The Chinese business fell into the red amid decouplingAnnual report
「In China, under the policy of decoupling the US and China businesses, the company increased domestic sales but was unable to offset the reduction in exports to North America. Total revenue decreased 30.8% year on year to ¥394.822 million, resulting in an operating loss of ¥35.380 million.」
Under its policy of decoupling the U.S. and Chinese businesses, the company continued measures to curb exports to North America and expand domestic sales, but the Chinese business posted an operating loss because the decline in exports could not be offset. - FY2021-Q1The Chinese business posted an operating loss as domestic sales stagnatedAnnual report
「In China, while curbing exports to the United States, domestic sales remained sluggish. Total revenue decreased 68.3% year on year to ¥127.671 million, resulting in an operating loss of ¥21.451 million.」
The company continued to pursue the policy of curbing exports and expanding domestic sales in response to U.S.-China tensions, but domestic sales stagnated and the Chinese business posted an operating loss. - FY2020-Q3AdvancedAnnual report
「In China, as the company reduced exports to North America while expanding domestic sales, total revenue decreased 28.2% year on year to ¥857.226 million, but operating profit turned positive at ¥20.639 million.」
Regarding business-structure reforms in response to U.S.-China tensions, the company continued to curb exports from China to North America and expand domestic sales, returning the Chinese business to operating profitability. - FY2020-Q2AdvancedAnnual report
「In China, as the company reduced exports to North America while expanding domestic sales, total revenue decreased 36.7% year on year to ¥570.753 million, but operating profit was ¥24.224 million, 5.4 times the prior-year level.」
Regarding business-structure reforms in response to U.S.-China tensions, the company reduced exports from China to North America and expanded domestic sales, increasing operating profit 5.4-fold year on year. In the U.S., higher costs associated with production transfers resulted in lower profit. - FY2020-Q1AdvancedAnnual report
「In China, as the company reduced exports to North America while expanding domestic sales, total revenue decreased 9.7% year on year to ¥402.156 million, but operating profit turned positive at ¥27.865 million.」
Regarding the reform of the earnings structures of the U.S. and Chinese businesses in response to U.S.-China tensions, the company reduced exports from China to North America and expanded domestic sales, returning operating profit to positive territory. In the U.S., however, higher costs associated with supply-chain adjustments put downward pressure on profit. - FY2019First statedAnnual report
「Against this outlook, the Group will base its operations on business management premised on change and a medium- to long-term growth strategy centered on its overseas and next-generation businesses. It will actively promote initiatives addressing change and pursuing growth, including strengthening its ability to respond to changes in demand, reforming the earnings structures of its U.S. and Chinese businesses in response to U.S.-China tensions, expanding its overseas business domains, developing next-generation businesses through the use of new technologies, and investing to upgrade organizational capabilities, thereby solidifying its growth platform in the new business environment.」
In response to U.S.-China tensions, the company explicitly identified for the first time the reform of the earnings structures of its U.S. and Chinese businesses as separate initiatives and as a specific measure under its medium- to long-term growth strategy centered on its overseas and next-generation businesses.