Dependence on manufacturing outsourced to external companies
First written in FY2018. 4 of 6 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2020: 4 of 20 companies on the "Worse" side.
21 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「The Group produces mainly low-volume, high-mix products at the Ashibetsu Plant of its subsidiary Hokkaido Denshi Kogyo Co., Ltd., and outsources the production of mass-produced products to multiple non-group companies overseas. The Group relies heavily on outsourced production and maintains ongoing, favorable business relationships with its contractors.」
The production structure continues to involve low-volume, high-mix products being produced by a domestic subsidiary and mass-produced products being outsourced to multiple external companies overseas, along with the associated outsourcing-dependence risk. - FY2023RestatedAnnual report
「The Group produces mainly low-volume, high-mix products at the Ashibetsu Plant of its subsidiary Hokkaido Denshi Kogyo Co., Ltd., and outsources the production of mass-produced products to multiple non-group companies overseas. The Group relies heavily on outsourced production and maintains ongoing, favorable business relationships with its contractors.」
The production structure continues to involve low-volume, high-mix products being produced by a domestic subsidiary and mass-produced products being outsourced to multiple external companies overseas, along with the associated outsourcing-dependence risk. - FY2021RestatedAnnual report
「The Company outsources the production of mass-produced products to multiple non-group companies overseas. The Group relies heavily on outsourced production and maintains ongoing, favorable business relationships with its contractors.」
The Company continues to disclose its production structure, under which mass-produced products are outsourced to multiple external companies overseas, and the risk of business disruption arising from its dependence on outsourcing. - FY2020-Q2MitigatedAnnual report
「Delays in production and deliveries caused by COVID-19 have been contained through the early reopening of the contracted plant in China and changes to parts suppliers, among other measures, and sales have not been materially affected.」
The Company explains that production and delivery delays related to its dependence on external contractors were contained by reopening the contracted plant in China and changing suppliers. - FY2019RestatedAnnual report
「The Company outsources the production of mass-produced products to multiple non-group companies overseas. The Group relies heavily on outsourced production and maintains ongoing, favorable business relationships with its contractors.」
The Company continues to disclose its production structure, under which mass-produced products are outsourced to multiple external companies overseas, and the risk of business disruption arising from its dependence on outsourcing. - FY2018First statedAnnual report
「The Group relies heavily on outsourced production and maintains ongoing, favorable business relationships with its contractors. However, if these favorable relationships between the Group and its contractors were disrupted for any reason, the Group's operating results could be affected.」
The Company outsources the production of mass-produced products to multiple non-group companies overseas and disclosed the possibility that disruptions in these business relationships could affect operating results.