Lower Profitability and Fixed-Asset Impairment at a Chinese Subsidiary
First written in FY2016. 4 of 7 entries say "Mitigated", first in FY2018-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2026: 5 of 11 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Key profit and loss information: (1) Net sales ¥6,778.165 million (2) Ordinary income ¥1,017.833 million (3) Net income ¥704.673 million」
The company disclosed net sales of ¥6,778.165 million, ordinary income of ¥1,017.833 million and net income of ¥704.673 million for its Chinese subsidiary, with profit generation continuing despite the risk of declining profitability. - FY2025MitigatedAnnual report
「Key profit and loss information, etc. (1) Net sales: ¥5,217.499 million (2) Ordinary income: ¥518.774 million (3) Net income: ¥435.257 million」
The company disclosed net sales of ¥5,217.499 million, ordinary income of ¥518.774 million and net income of ¥435.257 million for the Chinese subsidiary, confirming profit generation despite the previously reported risk of declining profitability. - FY2019RestatedAnnual report
「The Chinese consolidated subsidiary has increased the proportion of automotive components and secured stable orders.」
The company continues to report a shift in the business mix following the period of weak demand at the Chinese subsidiary and efforts to secure stable orders. - FY2018MitigatedAnnual report
「The Chinese consolidated subsidiary has secured stable orders by increasing the proportion of automotive components and will seek to expand profit going forward.」
At the Chinese subsidiary, the business is shifting from weak demand and declining profitability toward securing stable orders by increasing the proportion of automotive parts. However, profit growth remains a future policy that has not yet been achieved. - FY2018-Q2MitigatedAnnual report
「Demand for the Chinese consolidated subsidiary’s core components is showing signs of recovery, creating an outlook for improvement.」
The demand environment at the Chinese subsidiary is said to be recovering, indicating an improvement in the previously identified risks of weak demand and declining profitability. However, no return to profitability has been reported. - FY2018-Q1MaterialisedAnnual report
「The consolidated subsidiary in China received few orders because demand was sluggish in the first half, but plans capital investment aimed at achieving profitability.」
Orders at the Chinese subsidiary remained sluggish this quarter due to weak demand. - FY2016First statedAnnual report
「The consolidated subsidiary in China recorded poor results as it transitioned to a different product mix.」
In addition to the Chinese subsidiary's poor performance, the company recognized an impairment loss of ¥275.025 million on fixed assets, indicating that declining profitability has actually occurred.