Risk of Rising Procurement Costs in China
First written in FY2016. 3 of 10 entries say "Restated". Latest entry: FY2024.
Twinbird moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 24 of 53 companies on the "Worse" side.
32 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「We will further strengthen partnerships with high-quality contract manufacturers, promote quality improvements and component standardization through VA/VE activities, and work to reduce procurement costs and strengthen our stable supply structure. If procurement prices rise significantly, we will consider reflecting the increase in selling prices in line with market conditions.」
The risks of soaring procurement prices and supply shortages at contract manufacturers continue to be identified, with VA/VE, component standardization, partnerships with contract manufacturers, and passing costs through to prices specified as countermeasures. - FY2023ReframedAnnual report
「For our group, procuring products and components of sufficient quality from contract manufacturers in a timely manner is essential to maintaining competitiveness. If procurement prices rise due to higher labor costs and other factors at contract manufacturers, the performance and financial position of our group may be adversely affected.」
The framework has been broadened from the previous risk of higher procurement costs at contract manufacturers in China to procurement risks across contract manufacturers generally, including soaring procurement prices, supply timing, and quality. - FY2021WorsenedAnnual report
「Soaring procurement prices and supply shortages at contract manufacturers in China [Probability of occurrence: High Severity: High]」
The scope has been expanded from the previous risk of higher procurement costs at contract manufacturers in China to include soaring procurement prices, supply shortages caused by disasters and other events, and impediments to stable supply, with both probability of occurrence and severity explicitly rated high. - FY2020WorsenedAnnual report
「Our group's revenue for the current consolidated fiscal year was ¥12,159 million, an increase of ¥533 million year on year, or 4.6%, despite the negative after-effect of the consumption tax rate increase and delays in product manufacturing in China caused by the spread of COVID-19 infections.」
The disclosure states that, in addition to the risk of higher procurement prices from contract manufacturers in China, delays in product manufacturing in China due to the spread of COVID-19 infections actually occurred. - FY2019MaterialisedAnnual report
「In addition to the decline in revenue through the first half, results were affected by quality improvement costs incurred during new product development, higher manufacturing costs in China, and increased freight and warehouse costs in domestic logistics, among other factors.」
The company explains that higher manufacturing costs in China actually occurred and, together with the decline in revenue and other factors, affected the decline in profit in the current fiscal year. - FY2019-Q2MaterialisedAnnual report
「In terms of earnings, the company recorded an operating loss of ¥178 million, an ordinary loss of ¥209 million, and a quarterly net loss attributable to owners of the parent of ¥151 million. The decline in revenue had a substantial impact, while higher manufacturing costs in China also affected results.」
The company explains that higher manufacturing costs in China affected the operating loss, ordinary loss, and net loss during the cumulative second quarter of the current fiscal year, again documenting the actual impact of an existing risk. - FY2019-Q1MaterialisedAnnual report
「Higher manufacturing costs in China and increased procurement costs resulting from some unfavorable foreign exchange contracts remaining in the current fiscal year compared with current market rates also affected results.」
The company explains that higher manufacturing costs in China actually occurred and affected the first-quarter loss through increased procurement costs. - FY2018RestatedAnnual report
「Because a high proportion of our manufacturing is outsourced to manufacturers in China, we face the risk of higher procurement costs due to rising labor costs and other factors. Together with our consolidated subsidiary 双鳥電器（深圳）有限公司, we will work to reduce procurement costs by improving quality and promoting the standardization of components.」
The company reiterates the risk of higher procurement costs associated with dependence on contract manufacturers in China, together with quality improvements and component standardization as countermeasures. - FY2017RestatedAnnual report
「Because a high proportion of our manufacturing is outsourced to manufacturers in China, we face the risk of higher procurement costs due to rising labor costs and other factors. Together with our consolidated subsidiary 双鳥電器（深圳）有限公司, we will work to reduce procurement costs by improving quality and promoting the standardization of components.」
The company reiterates the risk of higher procurement costs arising from dependence on contract manufacturers in China, together with quality improvements and component standardization as countermeasures. - FY2016First statedAnnual report
「Because a high proportion of our production is outsourced to manufacturers in China, we face the risk of higher procurement costs due to rising labor costs and other factors. Together with our consolidated subsidiary 双鳥電器（深圳）有限公司, we will work to reduce procurement costs by improving quality and promoting the standardization of components.」
The company identifies higher labor costs and procurement costs arising from its dependence on contract manufacturers in China as risks, and cites quality improvements and component standardization as countermeasures.