Supply Interruption Risk from Concentration of Production in China
First written in FY2016. 2 of 8 entries say "Reframed", first in FY2018. Latest entry: FY2026.
Nkk Switches 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 2022: 33 of 69 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「The Group operates globally, and both its overseas sales ratio and overseas production ratio exceed 60%.」
The scope has been recast from the previous description centered on concentrated production in China to global geopolitical and trade risks encompassing both overseas sales and overseas production. - FY2024RestatedAnnual report
「To diversify risks and fulfill its responsibility as a manufacturer to supply the market, the Group conducts production activities in Japan, China and the Philippines. Currently, approximately 75% of the Group's total production is carried out overseas.」
The Group continues to describe production diversification across Japan, China and the Philippines, an overseas production ratio of approximately 75%, and its supply response through the plants' complementary functions. - FY2022WorsenedAnnual report
「To diversify risks and fulfill its responsibility as a manufacturer to supply the market, the Group conducts production activities in Japan, China and the Philippines. Currently, approximately 75% of the Group's total production is carried out overseas. This has enabled the plants to complement one another, allowing the Group to fulfill its supply responsibilities even in the event of a disaster or other disruption. On the other hand, overseas production activities carry the risk that unexpected events arising from geopolitical risks may temporarily cause problems with product supplies and adversely affect the Group's business performance and other results.」
The overseas production ratio has risen from approximately 70% in the previous fiscal year to approximately 75%, increasing exposure to geopolitical risks associated with overseas production activities. - FY2021RestatedAnnual report
「To diversify risks and fulfill its responsibility as a manufacturer to supply the market, the Group conducts production activities in Japan, China and the Philippines. Currently, approximately 70% of the Group's total production is carried out overseas.」
The overseas production ratio is approximately 70%, and the Group continues to describe both its supply response through the plants' complementary functions and the geopolitical risks associated with overseas production. - FY2019WorsenedAnnual report
「The Group conducts production activities in Japan, China and the Philippines, and currently produces approximately 70% of its total production overseas. This has enabled the plants to complement one another, allowing the Group to fulfill its supply responsibilities even in the event of a disaster or other disruption. On the other hand, overseas production activities carry the risk that unexpected events arising from geopolitical risks may temporarily cause problems with product supplies,」
The overseas production ratio has risen from approximately 60% in the previous fiscal year to approximately 70%, increasing exposure to geopolitical risks associated with overseas production activities. At the same time, the Group continues to describe its supply response through the plants' complementary functions. - FY2018ReframedAnnual report
「To diversify risks and fulfill its responsibility as a manufacturer to supply the market, the Group conducts production activities in Japan, China and the Philippines. Currently, approximately 60% of the Group's total production is carried out overseas. This has enabled the plants to complement one another, allowing the Group to fulfill its supply responsibilities even in the event of a disaster or other disruption. On the other hand, overseas production activities carry the risk that unexpected events arising from geopolitical risks may temporarily cause problems with product supplies,」
The scope of the description has been recast from the risk of concentrated production in China to risks associated with overseas production activities as a whole in Japan, China and the Philippines, and the plants' complementary functions are also described. - FY2017MitigatedAnnual report
「Currently, approximately 40% of the Group's total production is carried out in China, but unexpected events may occur there due to political issues and differences in customs, creating a risk of problems with product supplies.」
The stated share of production in China has declined from approximately 50% to approximately 40%, reducing exposure to concentrated supply. However, the risk of supply problems remains. - FY2016First statedAnnual report
「Currently, approximately 50% of the Group's total production is carried out in China, but unexpected events may occur there due to political issues and differences in customs, creating a risk of problems with product supplies.」
China accounts for approximately 50% of the Group's production, and the company identifies the possibility of supply problems caused by political issues and differences in customs as a risk.