Stagnant Demand in China and Southeast Asia and Reduced Production at the Chinese Manufacturing Subsidiary
First written in FY2017-Q1. 12 of 37 entries say "Worsened", first in FY2020-Q1. Latest entry: 2026-08-10.
Anest Iwata moved to the "Worse" side of this theme in 2024, 5 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 15 of 33 companies on the "Worse" side.
11 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「(China) Net sales were ¥12,274 million, down 2.3% from the previous fiscal year, and segment profit was ¥517 million, down 41.4%. The decline in profit was mainly due to deteriorating performance at a subsidiary that manufactures and sells compressor products, against a backdrop of weak market conditions in China.」
The China segment's profit declined 41.4% in addition to lower sales, due to deteriorating performance at the compressor products subsidiary. - FY2026-H1WorsenedAnnual report
「Sales of compressor products declined as the contraction in domestic demand in China and the decline in export sales of medium-sized compressors to the European market continued.」
For compressor products in China, the continued contraction in domestic demand and decline in export sales of medium-sized compressors to the European market were reflected in lower sales. - FY2025RestatedAnnual report
「Although export sales by the local subsidiary of compressor products remained solid, growth stalled toward the end of the fiscal year. Domestic sales also remained difficult, resulting in an overall decline in sales.」
In China, export sales remained relatively solid, while domestic sales continued to be difficult, and sales of compressor products continued to decline. - FY2025-H1RestatedAnnual report
「Sales of coating equipment products declined as the Chinese economy failed to recover and demand remained contracted.」
The Chinese economy has yet to recover, confirming again that the continued contraction in demand for coating equipment is leading to lower sales. - FY2024WorsenedAnnual report
「In China, with no recovery in business confidence evident, the downward trend in sales continued throughout the fiscal year. Sales of coating systems products also continued to decline, as with coating equipment products.」
In China, the downward trend in sales of coating equipment and coating systems continued throughout the fiscal year, and the risk of stagnant Chinese demand persisted over an extended period in the actual results. - FY2024-Q3WorsenedAnnual report
「Sales of coating equipment products declined as the recovery in demand was delayed due in part to the lack of momentum in the Chinese economy.」
The lack of momentum in the Chinese economy delayed the recovery in demand for coating equipment, resulting in lower sales. Companies also remained cautious about capital investment in coating systems. - FY2024-Q2WorsenedAnnual report
「Sales of coating equipment products declined as demand contracted due to the slowdown in the Chinese economy. Sales of coating systems products also declined, affected by weaker capital investment appetite among Japanese automotive parts manufacturers.」
In China, sales declined as demand for coating equipment contracted due to the economic slowdown and sales of coating systems declined as Japanese automotive parts manufacturers reduced their capital investment appetite. - FY2024-Q1WorsenedAnnual report
「Sales of coating equipment products declined as the recovery in demand was delayed following the shift away from the zero-COVID policy.」
In China, the recovery in demand for coating equipment was delayed following the shift away from the zero-COVID policy, resulting in lower sales. - FY2023AdvancedAnnual report
「In China, sales by 上海斯可絡圧縮機有限公司, whose exports have remained strong, and sales of compressors for lithium-ion battery manufacturing equipment have continued to perform well.」
In China, exports by 上海斯可絡圧縮機有限公司 and demand related to lithium-ion batteries remained strong, while sales-channel development also progressed in Southeast Asia, and recovery from the previous regional demand stagnation advanced on a full-year basis. - FY2023-Q3MitigatedAnnual report
「For compressor products, sales have shifted toward recovery following the lifting of lockdowns, and sales including exports by 上海斯可絡圧縮機有限公司 and sales of compressors for fuel-cell manufacturing have remained strong. …In Southeast Asia, including Thailand, sales increased as efforts to develop sales channels began to produce results.」
Sales in China recovered after lockdowns were lifted, while sales-channel development began to produce results in Southeast Asia, indicating a trend toward easing the previous risk of stagnant demand. - FY2023-Q2MitigatedAnnual report
「For compressor products, sales were temporarily affected by the lockdown in Shanghai, but the impact was limited as sales recovered following the lifting of the lockdown.」
Sales in China were affected by the Shanghai lockdown, but recovered after it was lifted, limiting the impact. - FY2022-Q3RestatedAnnual report
「For compressor products, sales increased as exports by the Chinese subsidiary and demand for compressors for medical applications and vehicle installation by the Indian subsidiary expanded. …In India and Southeast Asia, sales activities stagnated as movement restrictions related to COVID-19 and a more cautious stance toward capital investment became widespread.」
Demand expanded and sales grew in China and India, while sales activities in India and Southeast Asia continued to stagnate due to movement restrictions and greater caution toward capital investment. - FY2022-Q2Recovery in China and India alongside stagnation in Southeast AsiaAnnual report
「Sales of compressor products remained strong in China and India, but sales activities stagnated in Southeast Asia due to lockdowns and other measures in response to the spread of COVID-19.」
Sales remained strong in China and India, while sales activities in Southeast Asia continued to stagnate due to lockdowns, and regional disparities persisted. - FY2022-Q1China-led recovery, delayed recovery in Southeast AsiaAnnual report
「Asia: Sales were ¥3,378 million, up 60.0% from the cumulative consolidated period of the same quarter of the previous year, and segment profit was ¥232 million, up 5,094.5% year on year. The increase in profit was primarily due to higher sales in China. …For painting equipment products, economic recovery in Southeast Asia was delayed due to the impact of COVID-19, while sales of general-purpose equipment, mainly spray guns, increased, led by China.」
Sales in Asia overall increased 60.0% year on year, with higher sales in China driving the increase in profit, while the economic recovery in Southeast Asia continued to be delayed by the pandemic. - FY2021Recovery and stagnation coexist by regionAnnual report
「In Asia, sales of medium-sized compressors increased as the economy recovered first in China, while sales of oil-free compressors for medical applications expanded substantially in India. In Southeast Asia, sales remained sluggish as political instability compounded the impact of COVID-19.」
Recovery and growth were seen in China and India, while sluggish conditions continued in Southeast Asia due to the pandemic and political instability. - FY2021-Q3Recovery and stagnation coexist by regionAnnual report
「For compressor products, sales in China increased as domestic sales expanded due to higher demand for large oil-injected screw compressors and compressors for vehicle installation, while exports by the local subsidiary 上海斯可絡圧縮機有限公司 also remained strong. In India, sales of oil-free compressors for medical applications continued to grow, as in the second quarter of the consolidated accounting period. Meanwhile, sales recovery in Southeast Asia was delayed as sales activities stagnated due to the impact of COVID-19.」
Demand recovery and growth in medical sales were seen in China and India, while sales activity in Southeast Asia remained sluggish due to the pandemic and sales recovery continued to be delayed. - FY2021-Q2Recovery and stagnation coexist by regionAnnual report
「For compressor products, sales in China were affected by sluggish sales activities during the first quarter of the consolidated accounting period, but subsequently recovered toward the level of the previous consolidated fiscal year as domestic demand recovered. In India, sales of compressors for general manufacturing declined due to lockdown measures, but sales of oil-free compressors for medical applications increased as demand surged and the local subsidiary resumed production. Meanwhile, sales activities remained sluggish in Southeast Asia, and sales declined overall.」
Demand recovered in China, while production resumed and medical demand increased in India. In Southeast Asia, however, sluggish conditions continued. - FY2021-Q1MaterialisedAnnual report
「Asia Sales were ¥2,111 million, down 32.6% from the cumulative consolidated period of the same quarter of the previous year, and segment profit was ¥4 million, down 98.3% year on year. For compressor products, sales declined in China as the impact of COVID-19 peaked. In India, the local subsidiary also ceased operations due to lockdown measures, contributing to the sales decline.」
Sales and segment profit in Asia declined substantially as the impact of the pandemic peaked in China and the local subsidiary in India ceased operations. - FY2020-Q3WorsenedAnnual report
「In China, lower demand for large compressors and a stagnant market for compressor units for installation in transport vehicles continued from the second quarter of the consolidated fiscal year, and sales also declined in the consolidated accounting period under review.」
In China, lower demand for large compressors and continued stagnation in the market for compressor units for vehicle installation resulted in lower sales. - FY2020-Q2WorsenedAnnual report
「In China, sales of small and medium-sized compressors for manufacturing equipment were strong, but overall activity slowed due to lower demand for large compressors and sluggish sales of compressor units for vehicle installation.」
In China, sales of small and medium-sized compressors were strong, while overall compressor activity slowed due to lower demand for large compressors and sluggish sales of units for vehicle installation. - FY2020-Q1WorsenedAnnual report
「The decrease in orders and order backlog in Asia was primarily due to lower capital investment related to automobile production in China and the inclusion of a large order in India in the cumulative first quarter of the previous consolidated fiscal year, among other factors.」
Orders and order backlog for painting equipment in Asia decreased from the same period of the previous year against a backdrop of lower capital investment in equipment related to automobile production in China. - FY2019MitigatedAnnual report
「In Asia, external sales totaled ¥11,854 million, up 78.5% year on year, and segment profit was ¥1,162 million, up 73.9%.」
The Asian business reported substantial increases in both sales and profit, easing the previous performance-related concerns about stagnant demand in China and Asia. - FY2019-Q3MitigatedAnnual report
「3. The increase in orders in Asia was primarily due to increased capital investment related to automobile production in China and musical instrument production in India.」
Orders for painting equipment in Asia increased due to increased capital investment related to automobile production in China and musical instrument production in India. - FY2019-Q2MitigatedAnnual report
「3. The increase in orders in Asia was primarily due to an increase in equipment related to automobile and electrical-product production in China.」
Orders for painting equipment in Asia increased due to an increase in equipment related to automobile and electrical-product production in China. - FY2019-Q1MitigatedAnnual report
「2. The increase in orders and order backlog in Japan was primarily due to increased capital investment in equipment related to automobile production. 3. The increase in orders and order backlog in Asia was primarily due to increased capital investment in equipment related to automobile production in China and musical instrument production in India.」
Orders and order backlog in Asia increased due to increased capital investment related to automobile production in China and musical instrument production in India. - FY2018-Q3MitigatedAnnual report
「3. The increase in orders and order backlog in Asia was primarily due to an increase in equipment related to automobile production in China and Southeast Asia.」
The order backlog for painting equipment increased due to an increase in equipment related to automobile production in China and Southeast Asia. Demand conditions continued to improve. - FY2018-Q2MitigatedAnnual report
「For painting equipment products, recovery in the Chinese market and capital investment, mainly related to domestic automotive parts, remained firm.」
The report describes the recovery of the Chinese market and the resilience of capital investment related to domestic automotive parts, indicating continued improvement in demand conditions in China and Asia. - FY2018-Q1MitigatedAnnual report
「For painting equipment products, we will increase sales by improving capital investment appetite in China, enhancing sales activities in the ASEAN region and commencing full-scale sales activities in Mexico, among other initiatives.」
The report describes improved capital investment appetite in China, indicating a shift toward improving conditions from the previous recognition of stagnant demand in China and ASEAN. - FY2017MitigatedAnnual report
「The increase in orders in Asia was primarily due to increased capital investment in equipment related to automobile production in China.」
Orders for painting equipment in Asia totaled ¥1,034 million, up 52.8% year on year, due to increased capital investment in equipment related to automobile production in China. - FY2017-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It explicitly states that there have been no material changes in business and other risks, including demand in China and Southeast Asia. - FY2017-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It explicitly states that there have been no material changes in business and other risks. - FY2017-Q1First statedAnnual report
「Although demand for painting equipment products has stalled in China and Southeast Asia, we continue to propose equipment upgrades for existing users of robotic equipment to achieve energy and resource savings and further efficiency improvements.」
The report describes the demand slowdown as part of the actual business environment and also mentions production cuts at the Chinese manufacturing subsidiary.