Declining Market Prices for Optical Communications Components and Rising Labor Costs in China
First written in FY2016. 4 of 6 entries say "Restated". Latest entry: FY2024-Q2.
Seikoh Giken moved to the "Worse" side of this theme in 2023.
0 other companies' latest entry also says "Worsened".
- FY2024-Q2WorsenedAnnual report
「Among these products, optical communications components mass-produced by our Chinese consolidated subsidiary Dalian Seiko Giken Co., Ltd. face a highly competitive market, resulting in persistent downward pressure on selling prices.」
The company recognizes that downward pressure on prices for optical communications components has become persistent and has resolved to reduce staffing at its Dalian subsidiary in response. - FY2023RestatedAnnual report
「In these industries, price competition has become extremely intense as competing manufacturers have entered the market, and our Group is also facing pressure to reduce prices.」
Price competition resulting from the entry of competing manufacturers and pressure to reduce prices continue to be described as business risks. - FY2017RestatedAnnual report
「Meanwhile, market prices for general-purpose components such as optical connectors that connect optical fibers continued to decline during the consolidated fiscal year under review.」
The continued decline in market prices for general-purpose optical communications components is described. - FY2017-Q3RestatedAnnual report
「The products and services provided by our Group target manufacturers of automotive parts, electronic components, machinery and molded products, as well as companies in the optical communications-related industries. In these industries, price competition has become extremely intense as competing manufacturers, including Chinese companies, have entered the market, and our Group is also facing pressure to reduce prices.」
Price competition resulting from the entry of competing manufacturers, including Chinese companies, and pressure to reduce prices continue to be identified as risks. - FY2017-Q1RestatedAnnual report
「Although demand for optical communications components is expanding, unit prices for general-purpose components widely used in the market have been consistently declining.」
The risk that unit prices for general-purpose components will continue to decline is being maintained, despite expanding demand for optical communications. - FY2016First statedAnnual report
「In the expanding optical communications market, market prices for general-purpose components with high-volume demand continued to decline during the consolidated fiscal year under review. Meanwhile, labor costs have risen sharply in China, where optical communications devices are manufactured, reducing the impact of cost-reduction measures.」
The decline in market prices and sharp increase in labor costs at production sites in China are specifically described as factors behind the decline in optical products-related sales and pressure on profitability during the current period.