Operating, procurement and demand risks from COVID-19

「During the six-month period of the current fiscal year, the economy was gradually recovering, with signs of a rebound in personal consumption and corporate capital investment as economic activity normalized following the reclassification of COVID-19 to Category 5. However, uncertainty remained due to the effects of global monetary tightening, concerns about the outlook for the Chinese economy, and soaring resource, energy and raw material prices resulting from the prolonged Russia-Ukraine situation.」

「During the cumulative first 3 quarters of the current fiscal year, infection trends improved as COVID-19 vaccinations progressed, and the economy showed signs of recovery. However, conditions remained challenging as the renewed spread of infections caused by highly transmissible new variants once again constrained economic activity.」

「Overseas sales faced challenging conditions, including lockdowns in China due to the spread of COVID-19, but following the lifting of the lockdowns, the company gradually resumed business negotiations, worked to deepen customer relationships, and will seek to secure sales by expanding its sales channels in Southeast Asia.」

「During the first quarter of the current fiscal year, although there were signs of a move toward leaving socioeconomic activity unrestricted amid expectations of a seventh wave of COVID-19 infections, the business environment remained uncertain due to persistently high raw material and energy prices resulting from the prolonged conflict over Ukraine and a sharp depreciation of the yen in the foreign exchange market.」

「During the consolidated fiscal year, the business environment remained challenging as the spread of new COVID-19 variants led to repeated declarations of states of emergency and the implementation of priority preventive measures, while personal consumption remained sluggish.」

「Overseas sales continue to be affected by new variants, and we are refraining from visiting local customers in China for sales activities. However, we are steadily pursuing online business discussions and sharing information via social media, deepening relationships with customers and leading to higher sales.」

「Overseas sales continue to be affected by COVID-19 variants, and we are refraining from visiting local customers in China for sales activities. However, we are steadily pursuing online business discussions, deepening relationships with customers and working to secure sales.」

「During the first quarter, the business environment remained challenging as the renewed spread of COVID-19 led to the reissuance of states of emergency in multiple regions. Although COVID-19 vaccinations have begun with the elderly and healthcare workers, conditions remain difficult because the risk of renewed spread has not been eliminated.」

「During the cumulative first 3 quarters of the current fiscal year, economic activity gradually resumed as measures were taken to prevent the spread of COVID-19, and signs of recovery emerged as various government policies took effect. However, the number of infections increased again, and a state of emergency was reissued in January this year, mainly in the 3 major metropolitan areas, leaving the outlook uncertain.」

「Economic and social activity was severely restricted by the spread of COVID-19, resulting in difficult conditions, including a rapid slowdown in economic activity.」

「As economic activity stagnated under the impact of the spread of COVID-19, the domestic economy rapidly deteriorated and conditions became extremely challenging. To prevent the spread of infection following the declaration of a state of emergency, we refrained from visiting customers for sales activities. Our business partners also implemented measures including limiting the number of employees coming to work, refraining from sales activities, canceling events such as trade shows, closing showrooms and shortening their opening hours.」

「COVID-19 is currently spreading worldwide and having various effects on the economy. At our group, the Dalian plant and its subcontractors experienced labor shortages because a 14-day observation period was required as an infection-prevention measure before employees could return to the plant after the Lunar New Year holiday, resulting in delays to some exports to the head office plant. The Philippine plant also suspended operations through 4 May this year because travel restrictions made it difficult for employees to commute to work.」