Risk of Dependence on Specific Contract Manufacturers for Procurement
First written in FY2018. 3 of 9 entries say "Reframed", first in FY2021. Latest entry: FY2026.
TRaaS On Product moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2020: 4 of 20 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The Group primarily outsources the production of its IoT products to multiple companies in China, which accounted for 63.1% of purchases. The Group therefore has a high degree of dependence on procurement from that region.」
The purchase ratio attributable to multiple companies in China rose from 41.1% in the previous fiscal year to 63.1%, increasing dependence on procurement from a specific region. - FY2025WorsenedAnnual report
「The company primarily outsources the production of its IoT products to multiple companies in China, which accounted for 41.1% of purchases. The company therefore has a high degree of dependence on procurement from that region.」
The purchase ratio attributable to multiple companies in China rose from 32.4% in the previous fiscal year to 41.1%, increasing dependence on procurement from the region. - FY2024ReframedAnnual report
「The company primarily outsources the production of its IoT products to multiple companies in China, which accounted for 32.4% of purchases. The company therefore has a high degree of dependence on procurement from that region. To diversify this risk, it assesses alternative contract manufacturers based on cost, quality and other factors and seeks to maintain alternative manufacturers at all times. However, if unforeseen changes in laws or regulations in the region, deterioration in Japan-China relations, or other risks materialize, this could affect the company's business and results.」
The region on which the company depends for procurement changed again from Taiwan to China, and the company disclosed that purchases from multiple Chinese companies accounted for 32.4%. It also explicitly identified changes in laws and regulations and deterioration in Japan-China relations as risk factors. - FY2023ReframedAnnual report
「The company outsources the production of its IoT products to multiple companies in Taiwan, which accounted for 48.6% of purchases. The company therefore has a high degree of dependence on procurement from that region.」
The description changed from dependence on multiple companies in Shenzhen, China to dependence on multiple companies in Taiwan and on that region, and the company disclosed that purchases from them accounted for 48.6%. - FY2022WorsenedAnnual report
「The company outsources the production of its IoT products to multiple companies in Shenzhen, China, which accounted for 65.8% of purchases. The company therefore has a high degree of dependence on procurement from that region.」
The purchase ratio attributable to multiple companies in Shenzhen, China rose from 40.8% in the previous fiscal year to 65.8%, increasing regional concentration. - FY2021ReframedAnnual report
「The Group outsources the production of its IoT products to multiple companies in Shenzhen, China, which accounted for 40.8% of purchases. The Group therefore has a high degree of dependence on procurement from that region.」
The description changed from dependence on specific Taiwanese and Chinese companies to the risk of regional concentration among multiple companies in Shenzhen, China, and the company disclosed that purchases from the region accounted for 40.8%. - FY2020Change of contract manufacturer and renewed disclosure of dependenceAnnual report
「From the consolidated fiscal year under review, the Group has outsourced the production of its IoT devices to Shenzhen Electron Technology Co. Ltd in China, which accounted for 30.4% of purchases. The Group therefore has transactions with a company on which it depends heavily for procurement.」
The contract manufacturer changed from the former Taiwanese company to Shenzhen Electron Technology Co. Ltd in China, and the company disclosed that purchases from it accounted for 30.4%. It also continued to indicate that it would diversify this risk by securing alternative contract manufacturers. - FY2019MitigatedAnnual report
「The Group outsources the production of its IoT devices to Taiwan's Accton Technology Corporation, which accounted for 35.3% of purchases in the fiscal year ended January 2019. The Group therefore has transactions with a company on which it depends heavily for procurement. To diversify this risk, it assesses alternative contract manufacturers based on cost, quality and other factors and seeks to maintain alternative manufacturers at all times.」
The purchase ratio attributable to a specific contract manufacturer declined from 54.2% in the previous fiscal year to 35.3%, while the company continued to indicate that it would diversify this risk by securing alternative contract manufacturers. - FY2018First statedAnnual report
「The Group outsources the production of its IoT devices to Taiwan's Accton Technology Corporation, which accounted for 54.2% of purchases in the fiscal year ended January 2018. The Group therefore has transactions with a company on which it depends heavily for procurement. To diversify this risk, it assesses alternative contract manufacturers based on cost, quality and other factors and seeks to maintain alternative manufacturers at all times.」
The company disclosed that purchases from a specific contract manufacturer accounted for 54.2% and indicated that it would diversify this risk by securing alternative contract manufacturers.