Downside to Asian business performance due to China's economic slowdown
First written in FY2016. 18 of 36 entries say "Worsened", first in FY2017-Q3. Latest entry: 2026-08-06.
Sinko Industries moved to the "Worse" side of this theme in 2023, 4 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 15 of 34 companies on the "Worse" side.
11 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Although China, Asia's largest market, faces intensifying trade issues and a stagnant property market, the company forecasts medium- to long-term expansion in domestic demand, particularly in manufacturing, supported by policies focused on improving productivity through infrastructure development and promoting technological innovation.」
For the Chinese business, intensifying trade issues and stagnation in the property market were identified as risks. At the same time, the filing also presents an outlook for medium- to long-term expansion in domestic demand. - 2026-05-14WorsenedEarnings
「In China, the business environment has become more challenging and uncertain amid deteriorating economic sentiment and the stagnation of the real estate market.」
Although revenue in the China business increased, the company again indicates that conditions have become more challenging and uncertain because of deteriorating economic sentiment and the stagnant real estate market. - FY2026-H1WorsenedAnnual report
「In China, the business environment has become more challenging and uncertain amid deteriorating economic sentiment and the stagnation of the real estate market.」
The filing states that the business environment has become more challenging and uncertain in China due to worsening business sentiment and stagnation in the property market. - FY2025WorsenedAnnual report
「In China, the business environment has become more challenging and uncertain amid deteriorating economic sentiment and the stagnation of the real estate market.」
The deterioration of the Chinese economy and stagnation in the property market continue, with downside pressure on earnings emerging as lower Asian business revenue and a shift to an operating loss. - FY2025-H1WorsenedAnnual report
「In China, the economy remained stagnant and the business was affected by the stagnation in the property market. Revenue fell 24.6% year on year to ¥2,713 million due to a reactionary decline from the previous year's revenue, which had been inflated by delivery-date shifts.」
The Chinese economy remained stagnant and the property market continued to stagnate. Revenue fell 24.6% year on year, also reflecting a reactionary decline from the previous year's revenue due to delivery-date shifts. - FY2024-Q2WorsenedAnnual report
「In China, the recovery in economic activity has weakened amid stagnation in the real estate market. Against this backdrop, the company worked to expand orders, and delivery schedules were shifted from the end of the previous period to the current period due to the impact of COVID-19. As a result, revenue was ¥3,597 million, up 92.1% year on year. On the earnings side, improved profitability accompanying higher revenue resulted in segment profit (operating profit) of ¥24 million, compared with a segment loss of ¥56 million in the same quarter of the previous year.」
Weakness has emerged in China's economic recovery amid stagnation in the property market, and downside risks to the economy persist. Meanwhile, operating income improved due to higher revenue, including revenue arising from delivery-date shifts. - FY2024-Q1WorsenedAnnual report
「In China, the economy is showing signs of recovery, although growth in fixed asset investment has recently slowed.」
While the Chinese economy showed signs of recovery, growth in fixed asset investment declined, and Asian operating profit fell 22.9% year on year. - FY2023Return to an operating loss during the economic recovery phaseAnnual report
「In China, Asia's largest market, economic activity normalized following the lifting of the zero-COVID policy, and the economy entered a recovery phase.」
While the outlook indicates that the Chinese economy has entered a recovery phase, the Asia segment changed from operating profit of ¥78 million to an operating loss of ¥68 million in FY2023 due to soaring raw material prices and price competition. - FY2023-Q3WorsenedAnnual report
「In China, the economy showed weakness due to the resurgence of COVID-19 infections. During the nine-month period of the third quarter of the current consolidated fiscal year, the business was affected by COVID-19 lockdowns during the period, but the yen's depreciation lifted revenue to ¥4,146 million, up 8.3% from the same quarter of the previous year. In terms of profit, higher raw material prices depressed earnings, resulting in a segment loss (operating loss) of ¥183 million, compared with a segment loss of ¥66 million in the same quarter of the previous year.」
The filing notes the impact of the resurgence of infections and lockdowns in China, as well as economic weakness, while the operating loss widened from ¥66 million in the previous year to ¥183 million. - FY2023-Q2WorsenedAnnual report
「Although developments in the property market require close monitoring in China, growth in fixed asset investment was broadly flat and the economy showed signs of recovery. Against this backdrop, revenue was ¥1,873 million, down 26.4% from the same quarter of the previous year, due to the impact of COVID-19 lockdowns.」
While the Chinese economy showed signs of recovery, growth in fixed asset investment was flat, and lockdowns resulted in a 26.4% year-on-year decline in revenue. - FY2023-Q1Lower revenue and a return to operating profitabilityAnnual report
「In China, delays to construction schedules caused delivery delays as economic activity was restricted in some regions due to the resurgence of COVID-19, resulting in revenue of ¥835 million, down 23.8% from the same quarter of the previous year. In terms of profit, in addition to pursuing profitability-focused sales activities, the company collected trade receivables and recognized a reversal gain on the allowance for doubtful accounts. As a result, segment profit (operating profit) was ¥17 million, compared with a segment loss of ¥161 million in the same quarter of the previous year.」
While the resurgence of infections and construction delays in China reduced revenue, operating income returned to a profit through profitability-focused sales activities and a reversal gain on the allowance for doubtful accounts. - FY2022MitigatedAnnual report
「In addition to the profitability-focused sales strategy and strengthened cost management pursued for several years, the weaker yen contributed to revenue of ¥6,204 million, up 17.3% from the previous fiscal year. Segment profit (operating profit) was ¥78 million, compared with a segment loss of ¥89 million in the previous fiscal year.」
While downside risks to earnings from the Chinese economy and the competitive environment remain, operating income improved to a profit through profitability-focused sales and cost management. - FY2022-Q3WorsenedAnnual report
「In China, growth in fixed asset investment declined and the pace of economic recovery slowed.」
The filing notes that growth in fixed asset investment in China declined and the pace of economic recovery slowed. Meanwhile, Asian revenue increased 24.9% year on year, and the operating loss narrowed from ¥75 million to ¥66 million. - FY2022-Q2WorsenedAnnual report
「In China, growth in fixed asset investment declined slightly and the pace of economic recovery slowed. Against this backdrop, the company increased sales, centered on high-performance AHUs for which proposals had been made from the planning stage, resulting in revenue of ¥2,545 million, up 35.3% from the same quarter of the previous year. However, challenges remain in restoring profitability, and the segment loss (operating loss) was ¥124 million, partly due to the additional provision for doubtful accounts, compared with a segment loss of ¥77 million in the same quarter of the previous year.」
As the pace of recovery in the Chinese economy slowed and challenges in restoring profitability remained, the operating loss widened from ¥77 million in the previous year to ¥124 million. - FY2022-Q1MitigatedAnnual report
「Although the impact of domestic and overseas infection trends and volatility in the financial and capital markets requires close monitoring in China, the economy is recovering gradually. Against this backdrop, the company increased sales, centered on high-performance AHUs for which proposals had been made from the planning stage, resulting in revenue of ¥1,096 million, up 79.9% from the same quarter of the previous year. In terms of profit, amid intensifying price competition and higher material costs, the segment loss (operating loss) was ¥161 million, compared with a segment loss of ¥170 million in the same quarter of the previous year.」
The Chinese economy is described as recovering gradually. Higher sales of high-performance AHUs drove a 79.9% year-on-year increase in revenue, while the operating loss narrowed from ¥170 million to ¥161 million. - FY2021-Q3MitigatedAnnual report
「Although the impact of infection trends and volatility in the financial and capital markets requires close monitoring in China, fixed asset investment is recovering and the economy is recovering gradually.」
The Chinese economy is described as recovering gradually, while the Asia segment's operating loss narrowed from ¥135 million in the previous year to ¥75 million, indicating that the impact of a Chinese slowdown is easing. Meanwhile, the company states that it will continue to monitor the impact of infections and other factors closely. - FY2021-Q2MitigatedAnnual report
「Economic activity in China is recovering. Although the impact of infection trends and volatility in the financial and capital markets requires close monitoring, recovery is expected to continue, including in fixed asset investment.」
The Chinese economy is described as recovering, and Asian revenue also increased 3.0% year on year, indicating that the adverse impact of a Chinese slowdown on earnings is easing. Meanwhile, the company states that it will continue to monitor the impact of infections and other factors closely. - FY2021-Q1MitigatedAnnual report
「Although the Chinese economy remains in a difficult situation due to the global COVID-19 pandemic and the intensifying and prolonged US-China trade friction, signs of recovery continue. Against this backdrop, the company pursued measures including a shift to a sales strategy focused on profitability and tighter cost management, and concentrated on proposals from the planning stage for high-performance air-conditioning equipment. As a result, revenue was ¥609 million, up 3.0% from the same quarter of the previous year. In terms of profit, recovery from the COVID-19 pandemic progressed quickly, with the new sales strategy producing results above the same quarter of the previous year, and the segment loss (operating loss) was ¥170 million, compared with a segment loss of ¥308 million in the same quarter of the previous year.」
Although the Chinese economy remains difficult, revenue increased 3.0% year on year, while the operating loss narrowed from ¥308 million to ¥170 million, indicating continued recovery. - FY2020MitigatedAnnual report
「Amid growing uncertainty surrounding the Chinese economy due to the intensifying and prolonged US-China trade friction, the company pursued measures including a shift to a sales strategy focused on profitability and tighter cost management. In sales, it focused on high-performance air-conditioning equipment and made proposals from the planning stage, resulting in revenue of ¥5,393 million, up 28.8% from the previous consolidated fiscal year.」
While uncertainty surrounding the Chinese economy persists, revenue increased and the operating loss narrowed through profitability-focused sales, cost management and proposals for high-performance products. - FY2020-Q3WorsenedAnnual report
「In China, economic activity has weakened further, particularly in the manufacturing sector, and the economy continues to slow gradually.」
The filing states that economic activity in China has weakened further, particularly in the manufacturing sector, and that the gradual slowdown is continuing. While the risk from the economic slowdown persists, the Asian operating loss narrowed from ¥551 million in the previous year to ¥135 million. - FY2020-Q2MitigatedAnnual report
「Although China’s economy is expected to continue slowing moderately and the shift to a sales strategy focused on profitability is under way, it has not been sufficient to offset the decline in air-conditioning equipment sales. Sales were ¥1,826 million, down 16.3% year on year, and the segment loss (operating loss) was ¥246 million, compared with a segment loss of ¥349 million in the same quarter of the previous year.」
While expectations of a slowdown in the Chinese economy and the decline in air-conditioning equipment sales continue, the year-on-year decline in Asian revenue narrowed to 16.3%, and the operating loss narrowed to ¥246 million from ¥349 million in the previous year. - FY2020-Q1WorsenedAnnual report
「With the gradual slowdown in the Chinese economy expected to continue, the company is pursuing structural reforms at its Chinese subsidiaries, including a shift to a sales strategy focused on profitability and tighter cost management.」
With the gradual slowdown in the Chinese economy expected to continue, the Asia segment reported a 47.7% year-on-year decline in revenue and an operating loss of ¥308 million, indicating that the downward pressure on earnings is continuing. - FY2019WorsenedAnnual report
「Amid the slowdown in the Chinese economy and concerns about the outlook, sales of air-conditioning equipment declined as competition intensified, resulting in revenue of ¥4,187 million, down 34.2% from the previous consolidated fiscal year. In addition, lower margins due to worsening price competition and a higher fixed-cost ratio resulting from lower sales led to a segment loss (operating loss) of ¥894 million, compared with segment profit of ¥25 million in the previous consolidated fiscal year.」
Due to the slowdown in the Chinese economy and intensifying competition, Asian revenue fell 34.2% year on year, while operating income changed from a profit of ¥25 million to a loss of ¥894 million. - FY2019-Q3WorsenedAnnual report
「China's economy is slowing moderately. The business is currently undergoing structural reforms, including a shift to a sales strategy focused on profitability, but intensified market price competition resulted in net sales of ¥3,311 million, down 26.6% year on year, and a segment loss (operating loss) of ¥551 million, compared with a segment loss of ¥312 million in the same quarter of the previous year.」
The filing notes a gradual slowdown in the Chinese economy. Asian revenue fell 26.6% year on year, while the operating loss widened from ¥312 million to ¥551 million. The impact of the Chinese slowdown has worsened again. - FY2019-Q2MitigatedAnnual report
「While signs of an economic recovery, mainly in China, have emerged, severe price competition continues in the market,」
As the recovery in economic activity centered on China continues, the impact of the Chinese slowdown is easing. Meanwhile, price competition is weighing on the profitability of the Asian business. - FY2018MitigatedAnnual report
「Although China's economy has continued to show signs of recovery, it has been affected by intensifying price competition and other factors,」
While China's economy continues to recover and the impact of the slowdown is easing, price competition is putting pressure on the profitability of the Asian business. - FY2018-Q3MitigatedAnnual report
「Although China's economy has continued to show signs of recovery, revenue was ¥4,509 million, up 6.0% year on year, due to the impact of intensifying price competition and other factors.」
As China's economy continues to recover and Asian revenue has increased 6.0% year on year, the impact of China's economic slowdown appears to be continuing to ease. However, price competition has resulted in an operating loss. - FY2018-Q2MitigatedAnnual report
「Although China's economy showed signs of recovery, net sales were ¥3,218 million, up 5.5% year on year, and the segment posted a loss (operating loss) of ¥31 million, compared with segment profit of ¥173 million in the same quarter of the previous year, due in part to intensifying price competition.」
The filing describes a recovery in China's economy and a 5.5% year-on-year increase in Asian revenue, suggesting that the impact of China's economic slowdown may be easing. However, the segment recorded an operating loss due to price competition. - FY2018-Q1Signs of Recovery in China's Economy and Asian Operating LossAnnual report
「Although signs of an economic recovery were seen, mainly in China, revenue was ¥1,551 million, up 2.1% year on year, while the segment recorded an operating loss of ¥126 million, compared with segment profit of ¥112 million in the same period of the previous year.」
While describing signs of an economic recovery centred on China and year-on-year growth in Asian revenue, the Asian segment swung from an operating profit in the previous year to an operating loss. The text does not explicitly establish a causal relationship with the risk of a slowdown in China's economy. - FY2017RestatedAnnual report
「Due mainly to the impact of intensifying price competition associated with the slowdown in China's economic growth, net sales were ¥6,534 million, down 14.6% from the previous consolidated fiscal year, and segment profit (operating profit) was ¥382 million, down 0.1%.」
The impact of slower economic growth in China on the Asian business continued throughout the year, and revenue declined. Segment profit declined 0.1% from the previous year. - FY2017-Q3WorsenedAnnual report
「Mainly due to the impact of slower economic growth in China, revenue was ¥4,256 million, down 25.6% year on year, while segment profit (operating profit) was ¥214 million, down 29.9% year on year.」
Due to the impact of slower economic growth in China, both Asian revenue and segment profit declined year on year, with the rates of decline in revenue and profit worsening from the second quarter. - FY2017-Q2RestatedAnnual report
「Mainly due to the impact of slower economic growth in China, revenue was ¥3,049 million, down 11.5% year on year, while segment profit (operating profit) was ¥173 million, up 54.0% year on year.」
While the decline in Asian revenue due to slower economic growth in China has continued, segment profit increased year on year. - FY2017-Q1RestatedAnnual report
「Although sales declined 3.1% year on year to ¥1,520 million, mainly due to the slowdown in China’s economic growth, segment profit (operating profit) was ¥112 million, compared with a segment loss of ¥63 million in the same quarter of the previous year, owing in part to cost reductions resulting from the strengthening of the production system.」
While the decline in revenue due to slower economic growth in China has continued, cost reductions from strengthening the production structure have offset the impact on profit. - FY2016MaterialisedAnnual report
「Mainly due to slower economic growth in China, revenue was ¥7,651 million, down 13.3% from the previous consolidated fiscal year, and segment profit (operating profit) was ¥382 million, down 13.9%.」
Slower economic growth in China materialised as declines in Asian revenue and profit for the current year.